Document:

Exhibit 10.1

 

 

PURSUANT TO ITEM 601(B)(10)(IV) OF REGULATION
S-K, CERTAIN INFORMATION MARKED WITH [***] HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS OF THE
TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

Execution Version

 

FIRST AMENDMENT TO FIFTH AMENDED AND RESTATED
LOAN AGREEMENT

 

This First Amendment to the Fifth Amended and Restated Loan Agreement
(this "Amendment"), dated as of July 15, 2021, is entered into by and among WHITEHORSE FINANCE CREDIT I, LLC (the "Company"),
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as lender (the "Lender") and administrative agent (the "Administrative
Agent"), CITIBANK, N.A., as collateral agent (the "Collateral Agent") and securities intermediary (the "Securities
Intermediary"), WHITEHORSE FINANCE, INC. (the "Portfolio Manager")
and Virtus Group LP, as collateral administrator (the "Collateral Administrator"). Reference is hereby made to the Fifth
Amended and Restated Loan Agreement (as amended or modified from time to time, the "Loan Agreement"), dated as of April
28, 2021, among the Company, the Lender, the Administrative Agent, the Collateral Agent, the Securities Intermediary, the Portfolio Manager
and the Collateral Administrator. Capitalized terms used herein without definition shall have the meanings assigned thereto in the Loan
Agreement.

 

WHEREAS, the parties hereto
are parties to the Loan Agreement;

 

WHEREAS, the parties hereto desire to amend the
terms of the Loan Agreement in accordance with Section 10.05 thereof as provided for herein; and

 

ACCORDINGLY, the Loan Agreement
is hereby amended as follows:

 

SECTION 1.AMENDMENT TO THE LOAN
AGREEMENT

 

(a)               
The Loan Agreement is hereby amended in accordance with Section 10.05 thereof to delete the stricken text (indicated textually
in the same manner as the following example: stricken text) and to add the bold and double-underlined text (indicated
textually in the same manner as the following example: bold
and double-underlined text) as set forth on the pages of the Loan and Security Agreement attached as Exhibit A hereto.
Exhibit A hereto constitutes a conformed copy of the Loan and Security Agreement.

 

SECTION 2.MISCELLANEOUS.

 

(A)       The
effectiveness of this Amendment shall be subject to receipt by the Administrative Agent of (i) the fee payable in accordance with the
First Amendment Effective Date Letter and (ii) to the extent the Company qualifies as a "legal entity customer" under the Beneficial
Ownership Regulation, a Beneficial Ownership Certification in relation to the Company.

 

(B)       The
parties hereto hereby agree that, except as specifically amended herein, the Loan Agreement is and shall continue to be in full force
and effect and is hereby ratified and confirmed in all respects. Except as specifically provided herein, the execution, delivery and effectiveness
of this Amendment shall not operate as a waiver of any right, power or remedy of any party hereto under the Loan Agreement, or constitute
a waiver of any provision of any other agreement.

 

(C)       The
Collateral Administrator, the Collateral Agent and the Securities Intermediary are hereby directed to execute and deliver this Amendment.

 

    	 	1	 

     

    

 

(D)       The
effectiveness of this Amendment shall be subject to receipt by the Administrative Agent of an opinion of counsel for the Company to the
effect that this Amendment constitutes a legal, valid and binding obligation of the Company (subject to standard qualifications and assumptions).

 

(E)       The
Portfolio Manager hereby certifies that (i) all of the Company’s representations and warranties set forth in Section 6.01 of the
Loan Agreement are true and correct (subject to any materiality qualifiers set forth therein) as of the date hereof and (ii) as of the
date hereof, no Default, Event of Default or Market Value Cure Failure has occurred and is continuing.

 

(F)       This
Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

(G)       This
Amendment 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.

 

(H)       This
Amendment shall be effective as of the date of this Amendment first written above.

 

    	 	2	 

     

    

 

 

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

 

  

	 	WHITEHORSE FINANCE CREDIT I, LLC
	 	 
	 	By: 	/s/ Joyson Thomas
	 	 	Name: Joyson Thomas
Title: Authorized Signatory

 

		JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative
Agent
	 	 
	 	By: 	/s/ James Greenfield
	 	 	Name: James Greenfield
Title: Executive Director

 

		CITIBANK, N.A., as Collateral Agent
	 	 
	 	By: 	/s/ Jose Mayorga
	 	 	Name: Jose Mayorga
Title: Senior Trust Officer

 

 

		CITIBANK, N.A., as Securities Intermediary
	 	 
	 	By: 	/s/ Jose Mayorga
	 	 	Name: Jose Mayorga
Title: Senior Trust Officer

 

 

    	 	3	 

     

    

 

	 	VIRTUS GROUP LP, as Collateral Administrator
	 	 
	 	By: Rocket Partners Holdings, LLC, its General Partner
	 	 
	 	By: 	/s/ Joseph U. Elston
	 	 	Name: Joseph U. Elston
Title: Senior Vice President

 

	 	whitehorse finance,
inc., as Portfolio Manager
	 	 
	 	By: 	/s/ Joyson Thomas
	 	 	Name: Joyson Thomas

                                                                   Title: Authorized Signatory

 

	 	The Financing Provider
	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Lender
	 	 
	 	By: 	/s/ James Greenfield
	 	 	Name: James Greenfield
Title: Executive Director

  

    	 	4	 

     

    

 

Annex A

 

Conformed Loan Agreement

 

    	 	5	 

     

    

 

Execution Version

 

Conformed through the First Amendment
to the Amended and Restated Loan Agreement

dated as of July 15, 2021

 

 

 

FIFTH AMENDED AND RESTATED

 

LOAN AGREEMENT

dated as of

April 28, 2021

among

WHITEHORSE FINANCE CREDIT I, LLC

The Financing Providers Party Hereto

The Collateral Administrator, Collateral Agent and Securities Intermediary Party Hereto

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent

and

WHITEHORSE FINANCE, INC.,

as Portfolio Manager

 

 

 

     

     

    

 

Table of Contents

 

Page

 

	Article
    I
	THE
    PORTFOLIO INVESTMENTS
	 
	Section
    1.01.	Purchases
    of Portfolio Investments	28
	Section
    1.02.	Procedures
    for Purchases and Related Financings	28
	Section
    1.03.	Conditions
    to Purchases or Substitutions	29
	Section
    1.04.	Sales
    of Portfolio Investments	30
	Section
    1.05.	Substitution	32
	Section
    1.06.	Certain
    Assumptions Relating to Portfolio Investments	32
	Section
    1.07.	Currency
    Equivalents	33
	Section
    1.08.	Interest
    Rates; LIBOR Notification	33
	 	 	 
	Article
    II
	THE
    FINANCINGS
	 
	Section
    2.01.	Financing
    Commitments	34
	Section
    2.02.	[reserved]	34
	Section
    2.03.	Financings;
    Use of Proceeds	34
	Section
    2.04.	Other
    Conditions to Financings	36
	Section
    2.05.	Commitment
    Increase Option	37
	 	 	 
	Article
    III
	ADDITIONAL
    TERMS APPLICABLE TO THE FINANCINGS
	 
	Section
    3.01.	The
    Advances	37
	Section
    3.02.	General	41
	Section
    3.03.	Taxes	41
	Section
    3.04.	Interest
    Rate Unascertainable, Inadequate or Unfair	44
	 	 	 
	Article
    IV
	COLLECTIONS
    AND PAYMENTS
	 
	Section
    4.01.	Interest
    Proceeds	46
	Section
    4.02.	Principal
    Proceeds	47
	Section
    4.03.	Principal
    and Interest Payments; Prepayments; Commitment Fee	48
	Section
    4.04.	MV
    Cure Account	49
	Section
    4.05.	Priority
    of Payments	49
	Section
    4.06.	Payments
    Generally	50
	Section
    4.07.	Termination
    or Reduction of Financing Commitments	51
	 	 	 
	Article
    V
	THE
    PORTFOLIO MANAGER
	 
	Section
    5.01.	Appointment
    and Duties of the Portfolio Manager	52
	Section
    5.02.	Portfolio
    Manager Representations As to Eligibility Criteria; Etc.	52
	Section
    5.03.	Limitation
    of Liability; Indemnification	53

 

     

     

    

 

	Article
    VI
	REPRESENTATIONS,
    WARRANTIES AND COVENANTS
	 
	Section
    6.01.	Representations
    and Warranties	54
	Section
    6.02.	Covenants
    of the Company	57
	Section
    6.03.	Amendments
    of Portfolio Investments, Etc.	64
	 	 	 
	Article
    VII
	EVENTS
    OF DEFAULT
	 
	Article
    VIII
	ACCOUNTS;
    COLLATERAL SECURITY
	 
	Section
    8.01.	The
    Accounts; Agreement As to Control	66
	Section
    8.02.	Collateral
    Security; Pledge; Delivery	69
	 	 	 
	Article
    IX
	THE
    AGENTS
	 
	Section
    9.01.	Appointment
    of Administrative Agent and Collateral Agent	72
	Section
    9.02.	Additional
    Provisions Relating to the Collateral Agent, Securities Intermediary and the Collateral Administrator	76
	 	 	 
	Article
    X
	MISCELLANEOUS
	 
	Section
    10.01.	Non-Petition;
    Limited Recourse; Limited Recourse	78
	Section
    10.02.	Notices	78
	Section
    10.03.	No
    Waiver	78
	Section
    10.04.	Expenses;
    Indemnity; Damage Waiver; Right of Setoff	78
	Section
    10.05.	Amendments	79
	Section
    10.06.	Successors;
    Assignments	80
	Section
    10.07.	Governing
    Law; Submission to Jurisdiction; Etc.	82
	Section
    10.08.	Interest
    Rate Limitation	82
	Section
    10.09.	PATRIOT
    Act	82
	Section
    10.10.	Counterparts	82
	Section
    10.11.	Headings	83
	Section
    10.12.	Acknowledgement
    and Consent to Bail-In of EEA Financial Institutions	83

 

	Schedules	 
	 	 
	Schedule 1	Transaction Schedule
	Schedule 2	Contents of Notice of Acquisition
	Schedule 3	Eligibility Criteria
	Schedule 4	Concentration Limitations
	Schedule 5	Initial Portfolio Investments
	Schedule 6	Moody's Industry Classifications
	 	 
	Exhibit	 
	 	 
	Exhibit A	Form of Request for Advance

 

    -ii-

     

    

 

FIFTH
AMENDED AND RESTATED LOAN AGREEMENT, dated as of April 28, 2021 (this "Agreement"), among WHITEHORSE FINANCE
CREDIT I, LLC, as borrower (the "Company"); WHITEHORSE FINANCE, INC. (the "Portfolio Manager"); the
Financing Providers party hereto; the Collateral Agent party hereto (in such capacity, the "Collateral Agent"); the Collateral
Administrator party hereto (in such capacity, the "Collateral Administrator"); the Securities Intermediary party hereto
(in such capacity, the "Securities Intermediary"); and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as administrative agent
for the Financing Providers hereunder (in such capacity, the "Administrative Agent").

 

Pursuant to Section 10.05, the parties to the Fourth
Amended and Restated Loan Agreement, dated as of November 22, 2019 (as amended by the First Amendment, dated as of December 21, 2020,
the "Original Agreement"), hereby agree to amend and restate the Original Agreement and the Original Agreement is hereby
amended and restated as set forth in this Agreement.

 

The Portfolio Manager and the Company wish for the
Company to acquire and finance certain loans and other debt securities (together with the Subsidiary Investments (as defined below), the
 "Portfolio Investments"), all on and subject to the terms and conditions set forth herein.

 

The Company entered into a Sale and Contribution
Agreement (the "Parent Sale Agreement"), dated as of December 23, 2015, between the Company and WhiteHorse Finance, Inc.
(the "Parent"), pursuant to which the Company acquired certain Portfolio Investments listed, together with certain other
Portfolio Investments acquired by the Company on the Original Effective Date, on Schedule 5 hereof (the "Initial Portfolio Investments")
and from time to time may acquire additional Portfolio Investments from the Parent.

 

The Company has formed the Permitted Subsidiary to
purchase or originate certain loans made to obligors in the State of California (the "Subsidiary Investments") and the
Company wishes to provide proceeds of Advances to the Permitted Subsidiary from time to time for that purpose.

 

On
and subject to the terms and conditions set forth herein, JPMorgan Chase Bank, National Association ("JPMCB") has agreed
to make advances to the Company ("Advances") hereunder to the extent specified on the transaction schedule attached as
Schedule 1 hereto (the "Transaction Schedule"). JPMCB, together with its respective successors and permitted assigns,
are referred to herein as the "Financing Providers", and the types of financings to be made available by them hereunder
are referred to herein as the "Financings". For the avoidance of doubt, the terms of this Agreement relating to types
of Financings not indicated on the Transaction Schedule as being available hereunder shall not bind the parties hereto, and shall be of
no force and effect.

 

Accordingly, the parties hereto agree that the Original
Agreement is hereby amended and restated in its entirety as follows:

 

Certain Defined Terms

 

"Accounts"
has the meaning set forth in Section 8.01(a).

 

"Additional
Distribution Date" has the meaning set forth in Section 4.05.

 

"Adjusted Applicable Margin" means
the stated Applicable Margin for Advances set forth on the Transaction Schedule plus 2% per annum.

 

     

     

    

 

"Adverse Proceeding" means any action,
suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly
on behalf of the Company) at law or in equity, or before or by any Governmental Authority, domestic or foreign, whether pending, active
or, to the Company's or the Portfolio Manager's knowledge, threatened against or affecting the Company or the Portfolio Manager or their
respective property that would reasonably be expected to result in a Material Adverse Effect.

 

"Affiliate" means, with respect
to any Person, any Person directly or indirectly controlling, controlled by, or under common control with, such former Person (whether
by virtue of ownership, contractual rights or otherwise) but, which shall not, with respect to the Company include the obligors under
any Portfolio Investment.

 

"Agent"
has the meaning set forth in Section 9.01.

 

"Agent Business Day" means any day
on which commercial banks settle payments in each of New York City and the city in which the corporate trust office of the Collateral
Agent is located (which shall initially be New York City).

 

"Amended
and Restated Effective Date" has the meaning set forth in Section 2.04.

 

"Amendment"
has the meaning set forth in Section 6.03.

 

"Amendment Date" means November
22, 2019.

 

"Amendment Date Letter" means the
letter agreement, dated as of the Amendment Date, by and between the Company and the Administrative Agent.

 

"Anti-Corruption Laws" means all
laws, rules, and regulations of any jurisdiction applicable to the Company from time to time concerning or relating to bribery or corruption.

 

"Applicable Law" means, for any
Person, all existing and future laws, rules, regulations (including temporary and final income tax regulations), statutes, treaties, codes,
ordinances, permits, certificates, orders, licenses of and interpretations by any Governmental Authority applicable to such Person and
applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other administrative, judicial, or quasi-judicial
tribunal or agency of competent jurisdiction.

 

"Asset Pledge Agreement" means the
asset pledge agreement, dated May 15, 2018, between the Permitted Subsidiary and Citibank, N.A., in its capacity as collateral agent,
related to the Pledged Accounts and the other assets of the Permitted Subsidiary.

 

"Available Tenor" means, as of any
date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for
interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of a Calculation
Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is
then-removed from the definition of "Calculation Period" pursuant to clause (f) of Section 3.04.

 

"Base Rate" means, for any day,
(i) with respect to USD denominated Advances, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day
and (b) the Federal Funds Effective Rate in effect on such day plus 0.50% and (ii) with respect to CAD denominated Advances shall
be the Canadian Prime Rate. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Canadian
Prime Rate, as applicable, shall be effective from and including the effective date of such change in the applicable rate. In the event
that any applicable Base Rate is below zero percent at any time during the term of this Agreement, it shall be deemed to be zero percent
until it exceeds zero percent again.

 

    - 2 -

     

    

 

"Base Rate Advance" means, on any
date of determination, any Advance denominated in any Permitted Currency that bears interest at the applicable Base Rate plus the
Applicable Margin for Advances (or the Adjusted Applicable Margin, as applicable).

 

"Benchmark" means, with respect
to Advances in each Permitted Currency, initially, the applicable Reference Rate; provided that if a Benchmark Transition Event,
a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with
respect to the LIBO Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent
that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (b) or clause (c) of Section 3.04.

 

"Benchmark Replacement" means, for
any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable
Benchmark Replacement Date; provided that, in the case of any Advance denominated in a Permitted Non-USD Currency, "Benchmark
Replacement" shall mean the alternative set forth in (3) below:

 

(1) the sum of: (a) Term SOFR and (b) the related
Benchmark Replacement Adjustment;

 

(2) the sum of: (a) Daily Simple SOFR and (b) the
related Benchmark Replacement Adjustment;

 

(3) the sum of: (a) the alternate benchmark rate
that has been selected by the Administrative Agent as the replacement for the then-current Benchmark for the applicable Corresponding
Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining
such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate
as a replacement for the then-current Benchmark for syndicated credit facilities denominated in the applicable Permitted Currency at such
time and (b) the related Benchmark Replacement Adjustment;

 

provided that, in the case of clause (1),
such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time
as selected by the Administrative Agent in its reasonable discretion; provided further that, solely with respect to Advances denominated
in USD, notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon the occurrence of a Term SOFR Transition
Event, and the delivery of a Term SOFR Notice, on the applicable Benchmark Replacement Date the "Benchmark Replacement" shall
revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause
(1) of this definition (subject to the first proviso above).

 

If the Benchmark Replacement as determined pursuant
to clause (1), (2) or (3) above would be less than 0% per annum, the Benchmark Replacement will be deemed to be 0% per annum for the purposes
of this Agreement and the other Loan Documents.

 

"Benchmark Replacement Adjustment"
means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Calculation
Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:

 

    - 3 -

     

    

 

(1) for purposes of clauses (1) and (2) of the
definition of "Benchmark Replacement," the first alternative set forth in the order below that can be determined by the Administrative
Agent:

 

(a) the spread adjustment, or method for calculating
or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement
is first set for such Calculation Period that has been selected or recommended by the Relevant Governmental Body for the replacement of
such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;

 

(b) the spread adjustment (which may be a positive
or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Calculation Period that would apply
to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with
respect to such Benchmark for the applicable Corresponding Tenor; and

 

(2) for purposes of clause (3) of the definition
of "Benchmark Replacement," the spread adjustment, or method for calculating or determining such spread adjustment, (which may
be a positive or negative value or zero) that has been selected by the Administrative Agent for the applicable Corresponding Tenor giving
due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread
adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body
on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment,
or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted
Benchmark Replacement for syndicated credit facilities denominated in the applicable Permitted Currency;

 

provided that, in the case of clause (1) above,
such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to
time as selected by the Administrative Agent in its reasonable discretion.

 

"Benchmark Replacement Conforming Changes"
means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition
of "Base Rate," the definition of "Business Day," the definition of "Calculation Period," timing and frequency
of determining rates and making payments of interest, timing of borrowing requests or prepayment or continuation notices, length of lookback
periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative
Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration
thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides
that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no
market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative
Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

 

"Benchmark Replacement Date" means,
with respect to any Benchmark, the earliest to occur of the following events with respect to such then-current Benchmark:

 

(1) in the case of clause (1) or (2) of the definition
of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced
therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently
or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);

 

    - 4 -

     

    

 

(2) in the case of clause (3) of the definition
of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein; or

 

(3) in the case of a Term SOFR Transition Event,
the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Lenders and the Company pursuant to Section 3.04(c);
or

 

(4) in the case of an Early Opt-in Election, the
sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative
Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election
is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Financing Providers.

 

For the avoidance of doubt, (i) if the event giving
rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination,
the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the "Benchmark
Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence
of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published
component used in the calculation thereof).

 

"Benchmark Transition Event" means,
with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark:

 

(1)       a
public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used
in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark
(or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor
administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

 

(2)       a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the administrator
for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component)
or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component),
which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of
such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there
is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

 

(3)       a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer
representative.

 

For the avoidance of doubt, a "Benchmark Transition
Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth
above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation
thereof).

 

    - 5 -

     

    

 

"Benchmark Unavailability Period"
means, with respect to any Benchmark, the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses
(1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all
purposes hereunder and under any Loan Document in accordance with Section 3.04 and (y) ending at the time that a Benchmark Replacement
has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.04.

 

"Beneficial Ownership Certification"
means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

 

"Beneficial Ownership Regulation"
means 31 C.F.R. § 1010.230.

 

"Borrowing Base Test" means a test
that will be satisfied on any date of determination if the following is true:

 

 

Where:

 

Adv
= the aggregate principal amount of the Advances actually outstanding on such date of determination;

 

PP
= Principal Proceeds then on deposit in the Accounts, the Permitted CAD Accounts, the Permitted EUR Accounts and the Permitted GBP Accounts
(including cash and Eligible Investments (other than Principal Proceeds that have been identified for use to settle outstanding Purchase
Commitments which have traded but not settled)); and

 

AR
= 60%.

 

"Business Day" means any day on
which commercial banks are open in each of New York City and the city in which the corporate trust office of the Collateral Agent is located;
provided that, (i) with respect to any LIBO Rate or SONIA related provisions herein or the payment, calculation or conversion of
amounts denominated in GBP, "Business Day" shall be deemed to exclude any day on which banks are required or authorized to be
closed in London, England, (ii) with respect to any provisions herein relating to the calculation or conversion of amounts denominated
in CAD, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in Toronto, Canada and
(iii) with respect to any provisions herein relating to the setting of EURIBOR or the payment, calculation or conversion of amounts denominated
in Euros, Business Day shall be deemed to exclude any day on which banks are required or authorized to be closed in London, England or
which is not a TARGET2 Settlement Day.

 

"CAD" and "C$"
mean Canadian dollars.

 

"CAD Collection Account" means the
account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated as
the "CAD Collection Account".

 

"CAD Equivalent" means, with respect
to any amount in USD, the amount of CAD that could be purchased with such amount of USD using the reciprocal foreign exchange rate(s)
obtained as described in the definition of the term Spot Rate.

 

    - 6 -

     

    

 

"CAD Obligation" means any Portfolio
Investment denominated in CAD.

 

"CAD Unfunded Exposure Account"
means the account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated
as the "CAD Unfunded Exposure Account".

 

"Calculation Period" means the quarterly
period from and including the date on which the first Advance is made hereunder to but excluding the first Calculation Period Start Date
following the date of such Advance and each successive quarterly period from and including a Calculation Period Start Date to but excluding
the immediately succeeding Calculation Period Start Date (or, in the case of the last Calculation Period, if the last Calculation Period
does not end on the 5th calendar day of March, June, September or December, the period from and including the related Calculation Period
Start Date to but excluding the Maturity Date).

 

"Calculation Period Start Date"
means the 5th calendar day of March, June, September and December of each year (or, if any such date is not a Business Day, the immediately
succeeding Business Day), commencing in March, 2016.

 

"Canadian Prime Rate" means, on
any day, the rate determined by the Administrative Agent to be the higher of (i) the rate equal to the PRIMCAN Index rate published by
Bloomberg Financial Markets Commodities News (or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided by such service, as determined by the Administrative Agent from time to time) at 10:15 a.m. Toronto time on
such day and (ii) the CDOR Rate, plus 1% per annum. Any change in the Canadian Prime Rate due to a change in the PRIMCAN Index or the
CDOR Rate shall be effective from and including the effective date of such change in the PRIMCAN Index or CDOR Rate, respectively.

 

"Cash Equivalents" means, any of
the following, denominated in U.S. Dollars: (i) marketable securities (a) issued or directly and unconditionally guaranteed as to interest
and principal by the United States Government or (b) issued by any agency of the United States the obligations of which are backed by
the full faith and credit of the United States, in each case maturing within one year after such date; (ii) marketable direct obligations
issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each
case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least "A-1"
from S&P or at least "P-1" from Moody's; (iii) commercial paper maturing no more than three months from the date of creation
thereof and having, at the time of the acquisition thereof, a rating of at least "A-1" from S&P or at least "P-1"
from Moody's; (iv) certificates of deposit or bankers' acceptances maturing within three months after such date and issued or accepted
by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District
of Columbia that (a) is at least "adequately capitalized" (as defined in the regulations of its primary Federal banking regulator)
and (b) has Tier 1 capital (as defined in such regulations) of not less than $1,000,000,000; and (v) shares of any money market mutual
fund that (a) has substantially all of its assets invested continuously in the types of investments referred to in clauses (i) and (ii)
above, (b) has net assets of not less than $5,000,000,000, and (c) has the highest rating obtainable from either S&P or Moody's. Subject
to the foregoing, Cash Equivalents may include investments in which the Collateral Agent or its Affiliates provide services and receive
compensation.

 

"CDOR
Rate" means, on any day and for any period, an annual rate of interest equal to the average rate applicable to CAD bankers'
acceptances for a three month period (or, for purposes of the definition of the term "Canadian Prime Rate", a thirty day period)
that appears on the Reuters Screen CDOR Page (or on any successor or substitute page of such service, or any successor to or substitute
for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the
Administrative Agent from time to time), rounded to the nearest 1/100th of 1% (with .005% being rounded up), at approximately
10:15 a.m. Toronto time on such day, or if such day is not a Business Day, then on the immediately preceding Business Day (the "Screen
Rate"); provided that if such Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of
this Agreement. The CDOR Rate shall be determined by the Administrative Agent (and notified in writing to the Collateral Administrator
and the Portfolio Manager), and such determination shall be conclusive absent manifest error.

 

    - 7 -

     

    

 

"Change in Law" means the occurrence,
after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b)
any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of
law) by any Governmental Authority; provided that all requests, rules, guidelines or directives concerning liquidity and capital
adequacy issued by any United States regulatory authority (i) under or in connection with the implementation of the Dodd-Frank Wall Street
Reform and Consumer Protection Act and (ii) in connection with the implementation of the recommendations of the Bank for International
Settlements or the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority) shall be deemed
to have occurred after the date of this Agreement for purposes of this definition, regardless of the date adopted, issued, promulgated
or implemented.

 

"Change of Control" means an event
or series of events by which (A) the Parent or its Affiliates, collectively, (i) shall cease to possess, directly or indirectly, the right
to elect or appoint (through contract, ownership of voting securities, or otherwise) managers that at all times have a majority of the
votes of the board of managers (or similar governing body) of the Company or to direct the management policies and decisions of the Company
or (ii) shall cease, directly or indirectly, to own and control legally and beneficially all of the equity interests of the Company, (B)
H.I.G. WhiteHorse Advisers, LLC or its Affiliates shall cease to be the investment advisor of the Parent or (C) the Company shall (i)
cease to possess the right to elect or appoint managers that at all times have a majority of the votes of the board of managers (or similar
governing body) of the Permitted Subsidiary or to direct the management policies and decisions of the Permitted Subsidiary or (ii) cease
to own and control legally and beneficially all of the equity interests of the Permitted Subsidiary.

 

"Charges"
has the meaning set forth in Section 10.08.

 

"Code" means the Internal Revenue
Code of 1986, as amended.

 

"Collateral"
has the meaning set forth in Section 8.02(a).

 

"Collateral Principal Amount" means
on any date of determination (A) the aggregate principal balance of the Portfolio, excluding the unfunded balance of any Delayed Funding
Term Loan or Revolving Loan as of such date, plus (B) the amounts on deposit in the Accounts, the Permitted CAD Accounts, the Permitted
EUR Accounts and the Permitted GBP Accounts (including cash and Eligible Investments) representing Principal Proceeds as of such date
and the amounts on deposit in the Unfunded Exposure Account (including cash and Eligible Investments), the CAD Unfunded Exposure Account,
the EUR Unfunded Exposure Account and the GBP Unfunded Exposure Account as of such date minus (C) the aggregate principal balance
of all Ineligible Investments as of such date.

 

"Collection
Account" has the meaning set forth in Section 8.01(a).

 

    - 8 -

     

    

 

"Commitment Increase Date" means
any Business Day on which the Administrative Agent (in its sole discretion) approves in writing (which may be by email), with a copy to
the Collateral Administrator and the Collateral Agent, a Commitment Increase Request.

 

"Commitment Increase Request" means,
on any date prior to the termination of the Reinvestment Period, the request of the Company in writing (which may be by email) to the
Administrative Agent and the Lenders for an increase of the Financing Commitments pursuant to Section 2.05.

 

"Concentration Limitation Excess"
means, without duplication, the principal amount of any Portfolio Investment that exceeds any Concentration Limitation; provided
that the Portfolio Manager shall select in its sole discretion which Portfolio Investment(s) constitute part of the Concentration Limitation
Excess; provided, further, that, with respect to any Delayed Funding Term Loan or Revolving Loan, the Portfolio Manager shall select any
term Portfolio Investment from the same obligor and/or any funded portion of the aggregate commitment amount of such Delayed Funding Term
Loan or Revolving Loan before selecting any unfunded portion of such aggregate commitment amount; provided, further, that, if the Portfolio
Manager does not so select any Portfolio Investment(s), the applicable portion of the Portfolio Investment(s) with the lowest Market Value
(as determined in the reasonable commercial judgment of the Administrative Agent) shall make up the Concentration Limitation Excess.

 

"Connection Income Taxes" means
Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits
Taxes.

 

"Corresponding Tenor" means with
respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately
the same length (disregarding business day adjustment) as such Available Tenor.

 

"Credit
Risk Parties" has the meaning set forth in Article VII(b).

 

"Currency Shortfall" has the meaning
specified in Section 4.06(b).

 

"Custodial
Account" has the meaning set forth in Section 8.01(a).

 

"Daily Simple SOFR" means, for any
day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance
with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR"
for business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible
for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

 

"Daily Simple SONIA" means, for
each day during any Calculation Period, SONIA, with the conventions for this rate (which may include a lookback) being established by
the Administrative Agent in consultation with the Company in accordance with the conventions for this rate selected or recommended by
the Relevant Governmental Body for determining "Daily Simple SONIA" for business loans, as determined for such day at approximately
11:00 a.m., London time, on the immediately preceding Business Day. If such rate is not available at such time for any reason, then Daily
Simple SONIA for such day shall be the rate (which shall not be less than zero) at which GBP deposits in an amount corresponding to the
amount of such Advance are offered by the principal London office of the Administrative Agent in immediately available funds in the London
interbank market. Notwithstanding anything in the foregoing to the contrary, if Daily Simple SONIA as calculated for any purpose under
this Agreement is below zero percent, Daily Simple SONIA will be deemed to be zero percent for such purpose until such time as it exceeds
zero percent again.

 

    - 9 -

     

    

 

"Delayed Funding Term Loan" means
any Loan that (a) requires the holder thereof to make one or more future advances to the obligor under the underlying instruments relating
thereto, (b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates, and (c) does not permit the re-borrowing
of any amount previously repaid by the obligor thereunder; but any such loan will be a Delayed Funding Term Loan only to the extent of
undrawn commitments except as expressly set forth herein and only until all commitments by the holders thereof to make advances to the
obligor thereon expire or are terminated or reduced to zero.

 

"Deliver"
has the meaning set forth in Section 8.02(b).

 

"Designated Email Notification Address"
means operations@higcapital.com, provided that, so long as no Event of Default shall have occurred and be continuing and no Market
Value Event shall have occurred, the Company may, upon at least five Business Day's written notice to the Administrative Agent, the Collateral
Administrator and the Collateral Agent, designate any other email address with respect to the Company as the Designated Email Notification
Address.

 

"Designated Independent Broker-Dealer"
means J.P. Morgan Securities LLC; provided that, so long as no Market Value Event shall have occurred and no Event of Default shall
have occurred and be continuing, the Company may, upon at least five Business Day's written notice to the Administrative Agent, the Collateral
Administrator and the Collateral Agent, designate another Independent Broker-Dealer as the Designated Independent Broker-Dealer; provided
further that, with respect to the proposed sale of a Portfolio Investment, no other Independent Broker-Dealer may be designated as
the Designated Independent Broker-Dealer without the consent of the Administrative Agent.

 

"Disruption Event" means either
or both of (a) a material disruption to those payment or communications systems or to those of financial markets which are, in each case,
required to operate in order for payments to be made in connection with this Agreement (or otherwise in order for the transactions contemplated
by the Loan Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the parties hereto; or
(b) the occurrence of any other event which results in a disruption (of a technical of systems-related nature) to the treasury or payments
operations of a party preventing that or any other party (i) from performing its payment obligations under the Loan Documents or (ii)
from communicating with other parties in accordance with the terms of the Loan Documents.

 

"Dollar Equivalent" means, with
respect to any Advance denominated in any Permitted Non-USD Currency, the amount of USD that would be required to purchase the amount
of Permitted Non-USD Currency, as applicable, of such Advance using the reciprocal foreign exchange rates obtained as described in the
definition of the term Spot Rate.

 

"Early Opt-in Election" means

 

(a)       in
the case of Advances denominated in USD, the occurrence of:

 

(1)       a
notification by the Administrative Agent to (or the request by the Company to the Administrative Agent to notify) each of the other parties
hereto that at least five currently outstanding syndicated credit facilities denominated in U.S. dollars at such time contain (as
a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as
a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and

 

    - 10 -

     

    

 

(2)       the
joint election by the Administrative Agent and the Company to trigger a fallback from the LIBO Rate and the provision by the Administrative
Agent of written notice of such election to the Lenders; and

 

(b)        in
the case of Advances denominated in any Permitted Non-USD Currency, the occurrence of:

 

(1)       (i)
a determination by the Administrative Agent or (ii) a notification by the Required Financing Providers to the Administrative Agent (with
a copy to the Company) that the Required Financing Providers have determined that syndicated credit facilities denominated in the applicable
Permitted Non-USD Currency being executed at such time, or that include language similar to that contained in Section 3.04 are being executed
or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the applicable Reference Rate, and

 

(2)       (i)
the election by the Administrative Agent or (ii) the election by the Required Financing Providers to declare that an Early Opt-in Election
has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Company and the Lenders
or by the Required Financing Providers of written notice of such election to the Administrative Agent.

 

"EBITDA" means, with respect to
the last four full fiscal quarters with respect to any Portfolio Investment, the meaning of "EBITDA", "Adjusted EBITDA"
or any comparable definition in the underlying instruments for each such Portfolio Investment, and in any case that "EBITDA",
 "Adjusted EBITDA" or such comparable definition is not defined in such underlying instruments, an amount, for the obligor on
such Portfolio Investment and any parent that is obligated pursuant to the underlying instruments for such Portfolio Investment (determined
on a consolidated basis without duplication in accordance with GAAP) equal to earnings from continuing operations for such period plus
(a) interest expense, (b) income taxes, (c) depreciation and amortization for such four fiscal quarter period (to the extent deducted
in determining earnings from continuing operations for such period), (d) amortization of intangibles (including, but not limited to, goodwill,
financing fees and other capitalized costs), other non-cash charges and organization costs, (e) extraordinary losses in accordance with
GAAP, (f) one-time, non-recurring or non-cash charges consistent with the applicable compliance statements and financial reporting packages
provided by such obligor, and (g) any other item the Portfolio Manager and the Administrative Agent mutually deem to be appropriate; provided
that with respect to any obligor for which four full fiscal quarters of economic data are not available, EBITDA shall be determined for
such obligor based on annualizing the economic data from the reporting periods actually available.

 

"Eligibility
Criteria" has the meaning set forth in Section 1.03(1).

 

"Eligible
Investments" has the meaning set forth in Section 4.01.

 

"Equity Pledge Agreement" means
the Equity Pledge Agreement, dated as of May 15, 2018, among the Company, as pledgor, and the Collateral Agent, as security agent, pursuant
to which the Company pledges all of its rights, title and interest in the equity interests in the Permitted Subsidiary to the Collateral
Agent, for the benefit of the Secured Parties.

 

"ERISA" means the United States
Employee Retirement Income Security Act of 1974, as amended.

 

    - 11 -

     

    

 

"ERISA Affiliate" means any trade
or business (whether or not incorporated) under common control with the Company, the Permitted Subsidiary or the Parent, as applicable,
within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to
Section 412, 430 or 431 of the Code).

 

"ERISA Event" means that (1) any
of the Company, the Permitted Subsidiary or the Parent has underlying assets which constitute "plan assets" within the meaning
of the Plan Asset Rules or (2) any of the Company, the Permitted Subsidiary or the Parent sponsors, maintains, contributes to, is required
to contribute to or has any material liability with respect to any Plan.

 

"EUR", "Euros"
and "€" mean the lawful currency of each state so described in any EMU Legislation introduced in accordance with
the EMU Legislation.

 

"EUR Account Opening Notice" has
the meaning set forth in Section 8.01(a).

 

"EUR Collection Account" means the
account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated as
the "EUR Collection Account".

 

"EUR Equivalent" means, with respect
to any amount in USD, the amount of EUR that could be purchased with such amount of USD using the reciprocal foreign exchange rate(s)
obtained as described in the definition of the term Spot Rate.

 

"EUR Obligation" means any Portfolio
Investment denominated in EUR.

 

"EUR Unfunded Exposure Account"
means the account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated
as the "EUR Unfunded Exposure Account".

 

"EURIBOR" means, for each Calculation
Period relating to an Advance in EUR, the Euro interbank offered rate administered by the European Money Markets Institute (or any other
person which takes over the administration of that rate) displayed on Reuters Screen EURIBOR01 on the Bloomberg Financial Markets Commodities
News (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations
comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes
of providing quotations of interest rates applicable to deposits in the EUR in the Euro Zone) at approximately 11:00 a.m., Brussels
time, two (2) Business Days prior to the commencement of such Calculation Period, as the rate for EUR deposits with a maturity of
three months. If such rate is not available at such time for any reason, then EURIBOR for such Calculation Period shall be the rate (which
shall not be less than zero) at which EUR deposits in an amount corresponding to the amount of such Advance and for the applicable maturity
are offered by the principal Brussels office of the Administrative Agent in immediately available funds in the Euro Zone interbank market
at approximately 11:00 a.m., Brussels time, two (2) Business Days prior to the commencement of such Calculation Period. Notwithstanding
anything in the foregoing to the contrary, if EURIBOR as calculated for any purpose under this Agreement is below zero percent, EURIBOR
will be deemed to be zero percent for such purpose until such time as it exceeds zero percent again.

 

"Events
of Default" has the meaning set forth in Article VII.

 

    - 12 -

     

    

 

"Excess
Interest Proceeds" means, at any time of determination, the excess of (1) amounts then on deposit in the Accounts, the Permitted
CAD Accounts, the Permitted EUR Accounts and the Permitted GBP Accounts representing Interest Proceeds over (2) the projected amount required
to be paid pursuant to Section 4.05(a), (b) and (c) on the next Interest Payment Date or the Maturity Date,
as applicable, in each case, as determined by the Company in good faith and in a commercially reasonable manner and verified by in the
case of clause (1) the Collateral Agent and otherwise by the Administrative Agent.

 

"Excluded
Taxes" means any of the following Taxes imposed on or with respect to a Secured Party or required to be withheld or deducted
from a payment to a Secured Party, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and branch profits
Taxes, in each case, (i) imposed as a result of such Secured Party being organized under the laws of, or having its principal office or,
in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable
to or for the account of such Lender with respect to an applicable interest in a Financing Commitment or Advance pursuant to a law in
effect on the date on which (i) such Lender acquires such interest in the Financing Commitment or Advance or (ii) such Lender changes
its lending office, except in each case to the extent that, pursuant to Section 3.03, amounts with respect to such Taxes
were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before
it changed its lending office, (c) Taxes attributable to such Secured Party's failure to comply with Section 3.03(f) and (d) any
U.S. federal withholding Taxes imposed under FATCA.

 

"Expense
Reserve Account" has the meaning set forth in Section 8.01(a).

 

"Expense Reserve Account Amount"
means, on any date of determination, an amount equal to U.S.$100,000 minus the available balance of the Expense Reserve Account
on such date; provided that, with respect to any Additional Distribution Date, the aggregate Expense Reserve Account Amount with
respect to such Additional Distribution Date shall be an amount equal to U.S.$100,000 minus the available balance of the Expense
Reserve Account on such date minus the Expense Reserve Account Amount(s) on any prior Additional Distribution Date(s) occurring
during the same Calculation Period.

 

"FATCA" means Sections 1471 through
1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially
more onerous to comply with), any current or future regulations or official interpretations thereof, any intergovernmental agreements
thereunder, similar or related non-U.S. Law that corresponds to Sections 1471 to 1474 of the Code, any agreements entered into pursuant
to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such sections
of the Code and any U.S. or non-U.S. fiscal or regulatory law, legislation, rules, guidance, notes or practices adopted pursuant to such
intergovernmental agreement.

 

"Federal Funds Effective Rate" means,
for any day, the rate calculated by the Federal Reserve Bank of New York based on such day’s federal funds transactions by depositary
institutions, as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to
time, and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the effective federal funds rate, provided
that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes
of this Agreement.

 

"Federal
Reserve Bank of New York's Website" means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.

 

    - 13 -

     

    

 

"Fifth A&R Effective Date" means
April 28, 2021.

 

"Financing Commitment" means, with
respect to each Financing Provider and each type of Financing available hereunder at any time, the commitment of such Financing Provider
to provide such type of Financing to the Company hereunder in an amount up to but not exceeding the portion of the applicable financing
limit set forth on the Transaction Schedule that is held by such Financing Provider at such time.

 

"First
Amendment Effective Date" means July 15, 2021.

 

"First
Amendment Effective Date Letter" means the letter agreement, dated as of the First Amendment Date, by and between the Company and
the Administrative Agent.

 

"FLLO Loan" means any interest in
a loan, including any assignment of or participation in or other interest in a loan, that satisfies the definition of "Senior Secured
Loan" except that, at any time after an event of default under the related underlying instruments, such interest will be paid after
one or more tranches of Senior Secured Loans issued by the related obligor have been paid in full in accordance with a specified waterfall
or other priority of payments as specified in the related underlying instruments, an agreement among lenders or other applicable agreement.
For the avoidance of doubt, any FLLO Loan identified as such on the related Notice of Acquisition and approved by the Administrative Agent
shall not be reclassified by the Administrative Agent after the related Trade Date.

 

"Foreign Lender" means a Lender
that is not a U.S. Person.

 

"GAAP" means generally accepted
accounting principles in the effect from time to time in the United States, as applied from time to time by the Company.

 

"GBP" and "£"
mean British Pounds.

 

"GBP Account Opening Notice" has
the meaning set forth in Section 8.01(a).

 

"GBP Collection Account" means the
account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated as
the "GBP Collection Account".

 

"GBP Equivalent" means, with respect
to any amount in USD, the amount of GBP that could be purchased with such amount of USD using the reciprocal foreign exchange rate(s)
obtained as described in the definition of the term Spot Rate.

 

"GBP Obligation" means any Portfolio
Investment denominated in GBP.

 

"GBP Unfunded Exposure Account"
means the account established by the Securities Intermediary (acting through its London Branch) in accordance with Section 8.01 and designated
as the "GBP Unfunded Exposure Account".

 

"Governmental Authority" means the
government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank).

 

    - 14 -

     

    

 

"Indebtedness" as applied to any
Person, means, without duplication, as determined in accordance with GAAP, (i) all indebtedness of such Person for borrowed money; (ii)
all obligations of such Person evidenced by bonds, debentures, notes, deferrable securities or other similar instruments; (iii) all obligations
of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course
of business; (iv) that portion of obligations with respect to capital leases that is properly classified as a liability of such Person
on a balance sheet; (v) all non-contingent obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts
paid under a letter of credit, banker's acceptance or similar instrument; (vi) all debt of others secured by a Lien on any asset of such
Person, whether or not such debt is assumed by such Person; and (vii) all debt of others guaranteed by such Person and other contingent
obligations to purchase, to provide funds for payment, to supply funds to invest in any Person or otherwise to assure a creditor against
loss. Notwithstanding the foregoing, "Indebtedness" shall not include a commitment arising in the ordinary course of business
to purchase a future Portfolio Investment in accordance with the terms of this Agreement.

 

"Indemnified
Person" has the meaning specified in Section 5.03(b).

 

"Indemnified Taxes" means (a) Taxes,
other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Company under this
Agreement and (b) to the extent not otherwise described in (a), Other Taxes.

 

"Indemnitee"
has the meaning set forth in Section 10.04(b).

 

"Independent Broker-Dealer" means
any of the following (as such list may be revised from time to time by mutual agreement of the Company and the Administrative Agent):
Bank of America/Merrill Lynch, Barclays Bank, BNP Paribas, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, Nomura,
Royal Bank of Scotland, UBS any Affiliate of any of the foregoing, but in no event including the Company or any Affiliate of the Company.

 

"Ineligible
Investment" means, from time to time, any Portfolio Investment that fails, at such time, to satisfy the Eligibility Criteria;
provided, that, with respect to any Portfolio Investment for which the Administrative Agent has waived one or more of the criteria
set forth on Schedule 3, the Eligibility Criteria in respect of such Portfolio Investment shall be deemed not to include such waived
criteria at any time after such waiver and such Portfolio Investment shall not be considered an "Ineligible Investment" by reason
of its failure to meet such waived criteria; provided, further, that any Portfolio Investment (other than an Initial Portfolio
Investment) which has not been approved by the Administrative Agent pursuant to Section 1.02 on or prior to its Trade Date or Substitution
Date, as applicable, will be deemed to be an Ineligible Investment until such later date (if any) on which such Portfolio Investment is
so approved.

 

"Initial Portfolio Investments"
has the meaning set forth in the recitals.

 

"Interest
Payment Date" has the meaning set forth in Section 4.03(b).

 

"Interest Proceeds" means all payments
of interest received in respect of the Portfolio Investments and Eligible Investments acquired with the proceeds of Portfolio Investments
(in each case other than accrued interest purchased using Principal Proceeds, but including proceeds received from the sale of interest
accrued after the date on which the Company or the Permitted Subsidiary acquired the related Portfolio Investment), all other payments
on the Eligible Investments acquired with the proceeds of Portfolio Investments (for the avoidance of doubt, such other payments shall
not include principal payments (including, without limitation, prepayments, repayments or sale proceeds) with respect to Eligible Investments
acquired with Principal Proceeds) and all payments of fees, dividends and other similar amounts received in respect of the Portfolio Investments
or deposited into any of the Accounts, a Permitted CAD Account, a Permitted EUR Account or a Permitted GBP Account (including closing
fees, commitment fees, facility fees, late payment fees, amendment fees, waiver fees, prepayment fees and premiums, ticking fees, delayed
compensation, customary syndication or other up-front fees and customary administrative agency or similar fees); provided, however,
that for the avoidance of doubt, Interest Proceeds shall not include amounts or Eligible Investments in the MV Cure Account, the Unfunded
Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account, the GBP Unfunded Exposure Account or any proceeds
therefrom.

 

    - 15 -

     

    

 

"Investment" means (a) the purchase
of any debt or equity security of any other Person, or (b) the making of any loan or advance to any other Person, or (c) becoming obligated
with respect to a contingent obligation in respect of obligations of any other Person.

 

"IRS" means the United States Internal
Revenue Service.

 

"ISDA Definitions" means the 2006
ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented
from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International
Swaps and Derivatives Association, Inc. or such successor thereto.

 

"Lender"
has the meaning set forth in Section 2.01.

 

"Lender
Participant" has the meaning set forth in Section 10.06(c).

 

"LIBO Rate" means, for each Calculation
Period relating to an Advance denominated in U.S. Dollars, the rate appearing on the LIBO Screen Rate at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Calculation Period, as the rate for U.S. dollar deposits with a maturity
of three months. If such rate is not available at such time for any reason, then the LIBO Rate for such Calculation Period shall be the
rate (which shall not be less than zero) at which USD deposits in an amount corresponding to the amount of such Advance and for the applicable
maturity are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Calculation Period.
Notwithstanding anything in the foregoing to the contrary, if the LIBO Rate as calculated for any purpose under this Agreement is below
zero percent, the LIBO Rate will be deemed to be zero percent for such purpose until such time as it exceeds zero percent again.

 

"LIBO Screen Rate" means, for any
day and time, with respect to any Advance for any applicable Permitted Currency and for any Calculation Period, the London interbank offered
rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for the relevant
Permitted Currency for a term of three months as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that
displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such
screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time
as selected by the Administrative Agent in its reasonable discretion); provided that if the LIBO Screen Rate shall not be available
at such time for any reason, then the LIBO Rate for such Calculation Period shall be the rate per annum (rounded to the same number of
decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent
manifest error) to be equal to the rate that results from interpolating on a linear basis between (a) the LIBO Screen Rate for the longest
period available that is shorter than three months and (b) the LIBO Screen Rate that is the shortest period available that is longer than
three months, in each case at such time; provided, further, that if the LIBO Screen Rate as so determined would be less
than zero percent, such rate shall be deemed to be zero percent for the purposes of this Agreement.

 

    - 16 -

     

    

 

"Lien" means any security interest,
lien, charge, pledge, preference, equity or encumbrance of any kind, including tax liens, mechanics' liens and any liens that attach by
operation of law.

 

"Loan" means any obligation for
the payment or repayment of borrowed money that is documented by a term loan agreement or other similar credit agreement.

 

"Loan Documents" means this Agreement,
the Asset Pledge Agreement, the Equity Pledge Agreement, the Parent Sale Agreement and,
the Amendment Date Letter and the First Amendment Effective Date Letter.

 

"Losses"
has the meaning set forth in Section 5.03(a).

 

"Margin Stock" has the meaning provided
such term in Regulation U of the Board of Governors of the Federal Reserve Board.

 

"Market Value" means, on any date
of determination, (i) with respect to any Senior Secured Loan or Second Lien Loan, the average indicative bid-side price determined by
Markit Group Limited or LoanX, Inc. (or, if the Administrative Agent determines in its sole discretion that such bid price is not available
or is not indicative of the actual current market value, the market value of such Senior Secured Loan or Second Lien Loan as determined
by the Administrative Agent in good faith and in a commercially reasonable manner) and (ii) with respect to any other Portfolio Investment,
the market value of such Portfolio Investment as determined by the Administrative Agent in good faith and in a commercially reasonable
manner, in each case, expressed as a percentage of par.

 

So long as no Market Value Event has occurred or
Event of Default has occurred and is continuing, the Portfolio Manager shall have the right to initiate a dispute of the Market Value
of certain Portfolio Investments as set forth below; provided that the Portfolio Manager provides the executable bid or valuation
set forth below no later than 2:00 p.m. New York City time on the Business Day immediately following the related date of determination;
provided, further, that with respect to each Portfolio Investment whose Market Value is not determined by the Administrative
Agent using Markit Group Limited or LoanX, Inc., the Portfolio Manager may not initiate a dispute of the Market Value thereof until the
earlier of (x) the date that is six (6) months following the Trade Date of such Portfolio Investment and (y) the next date on which the
Company (or the Portfolio Manager on behalf of the Company) delivers financial statements to the Administrative Agent pursuant to Section
6.02(p).

 

If the Portfolio Manager disputes the determination
of Market Value with respect to any Portfolio Investment (i) whose Market Value is not determined by the Administrative Agent using Markit
Group Limited or LoanX, Inc., the Portfolio Manager may, with respect to up to three such Portfolio Investments in each calendar quarter,
engage a Nationally Recognized Valuation Provider, at the expense of the Company, to provide a valuation of the applicable Portfolio Investments
and submit evidence of such valuation to the Administrative Agent; provided that if the Company engages a Nationally Recognized
Valuation Provider that provides a range of valuations, then the valuation for the purposes of this clause (i) shall be equal to the mean
of the highest and lowest valuations of such range, and (ii) whose Market Value is determined by the Administrative Agent using Markit
Group Limited or LoanX, Inc., the Portfolio Manager may, at the expense of the Company, obtain a written executable bid from an Independent
Broker-Dealer for the lower of (x) the full principal amount of such Portfolio Investment and (y) an amount equal to at least $7,500,000
and submit evidence of such bid to the Administrative Agent; provided that the Administrative Agent has the ability to execute
any such bid by selling any portion of such Portfolio Investment held by the Administrative Agent or its Affiliate for its own account
directly to any such Independent Broker-Dealer (or indirectly through a broker or other intermediary reasonably acceptable to the Administrative
Agent) at the time such bid is delivered to the Administrative Agent by the Portfolio Manager.

 

    - 17 -

     

    

 

The market value of any Portfolio Investment determined
in accordance with the immediately preceding paragraph will be the Market Value for the applicable Portfolio Investment from and after
(but not earlier than) the Business Day following delivery of notice of such executable bid or valuation to the Administrative Agent until
the Administrative Agent has made a good faith and commercially reasonable determination that the Market Value of such Portfolio Investment
has changed, in which case the Administrative Agent may determine another Market Value (in accordance with the definition of Market Value).

 

Notwithstanding anything to the contrary herein,
(A) the Market Value for any Portfolio Investment shall not be greater than the par amount thereof, (B) the Market Value of any Ineligible
Investment shall be deemed to be zero, (C) the Administrative Agent shall be entitled to disregard as invalid any bid submitted by the
Portfolio Manager from any Independent Broker-Dealer if, in the Administrative Agent's good faith judgment: (i) such Independent Broker-Dealer
is ineligible to accept assignment or transfer of the relevant Portfolio Investment or portion thereof, as applicable, substantially in
accordance with the then-current market practice in the principal market for such Portfolio Investment, as reasonably determined by the
Administrative Agent; or (ii) such firm bid or such firm offer is not bona fide due to the insolvency of the Independent Broker-Dealer
and (D) no valuation provided by a Nationally Recognized Valuation Provider shall be effective unless it is in form and substance commercially
reasonably acceptable to the Administrative Agent and takes into account factors commonly used by market participants in conducting valuation
processes, including without limitation (i) industry and comparable company analysis, (ii) market yield assumptions, (iii) credit fundamentals,
cyclical nature, and outlook of the business of the Portfolio Investment's obligor; (iv) historical material debt-financed acquisitions
consummated by the Portfolio Investment's obligor (if relevant) and (v) other corporate actions taken by the Portfolio Investment's obligor
(if relevant).

 

The Administrative Agent shall notify the Company,
the Portfolio Manager and the Collateral Administrator in writing of the then-current Market Value of each Portfolio Investment in the
Portfolio no later than the 5th day of each calendar month or upon the reasonable request of the Portfolio Manager. Any notification from
the Administrative Agent to the Company that the events set forth in clause (A)(i) of the definition of the term Market Value Event have
occurred and is continuing shall be accompanied by a written statement showing the then-current Market Value of each Portfolio Investment.

 

"Market
Value Cure" means, on any date of determination, (i) the contribution by the Parent of additional Portfolio Investments (provided
that a Notice of Acquisition has been approved by the Administrative Agent with respect to such Portfolio Investment) and the pledge and
Delivery thereof by the Company to the Collateral Agent pursuant to the terms hereof, (ii) the contribution by the Parent of cash to the
Company and the pledge and Delivery thereof by the Company to the Collateral Agent pursuant to the terms hereof (which amounts shall be
deposited in the MV Cure Account), (iii) the prepayment by the Company of an aggregate principal amount of Advances (together with accrued
and unpaid interest thereon) or (iv) any combination of the foregoing clauses (i), (ii) and (iii), in each case during the Market Value
Cure Period, at the option of the Portfolio Manager, in an amount such that immediately after giving effect to all such actions the Net
Advances are less than the product of (a) the Market Value Cure Trigger specified on the Transaction Schedule and (b) the Net Asset Value;
provided that, any Portfolio Investment contributed to the Company in connection with the foregoing must meet all of the applicable
Eligibility Criteria (unless otherwise consented to by the Administrative Agent) and the Concentration Limitations (as defined on Schedule
4) shall be satisfied after such contribution or, if not satisfied immediately prior to such contribution, maintained or improved. For
the purposes of any request for consent of the Administrative Agent pursuant to clause (i) in the immediately preceding sentence, if the
Company notifies the Administrative Agent on the day on which the events set forth in clause (A)(i) of the definition of the term Market
Value Event has occurred and is continuing of its intention to contribute a Portfolio Investment to the Company to cure such event and
requests the related consent thereto, the Administrative Agent shall respond to such request no later than one (1) Business Day after
such notice is received. In connection with any Market Value Cure, a Portfolio Investment shall be deemed to have been contributed to
the Company if there has been a valid, binding and enforceable contract for the assignment of such Portfolio Investment to the Company
and, in the reasonable judgment of the Portfolio Manager, such assignment will settle, in the case of a Loan, within fifteen (15) Business
Days thereof and, in the case of any other Portfolio Investment, within three (3) Business Days thereof. The Portfolio Manager shall use
its commercially reasonable efforts to effect any such assignment within such time period.

 

    - 18 -

     

    

 

"Market Value Cure Failure" means
the failure by the Company to effect a Market Value Cure as set forth in the definition of such term.

 

"Market Value Cure Period" means
the period commencing on the Business Day on which the Portfolio Manager receives notice from the Administrative Agent (which if received
after 2:00 p.m., New York City time, on any Business Day, shall be deemed to have been received on the next succeeding Business Day) of
the occurrence of the events set forth in clause (A)(i) of the definition of the term Market Value Event and ending at (x) the close of
business in New York two (2) Business Days thereafter or (y) such later date and time as may be agreed to by the Administrative Agent
in its sole discretion.

 

"Market Value Cure Trigger" has
the meaning set forth in the Transaction Schedule.

 

"Market Value Event" means (A) the
occurrence of both of the following events (i) the Administrative Agent shall have determined and notified the Portfolio Manager in writing
as of any date that the Net Advances equal or exceed the product of (a) the Market Value Trigger specified on the Transaction Schedule
and (b) the Net Asset Value and (ii) a Market Value Cure Failure or (B) if in connection with any Market Value Cure, a Portfolio Investment
sold, contributed or deemed to have been contributed to the Company shall fail to settle within (i) in the case of a Loan, fifteen (15)
Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade Date
thereof and (ii) in the case of any other Portfolio Investment, three (3) Business Days (or such longer period of time agreed to by the
Administrative Agent in its sole discretion) from the related Trade Date thereof.

 

"Market Value Trigger" has the meaning
set forth in the Transaction Schedule.

 

"Material Adverse Effect" means
a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of the Company or the Portfolio
Manager, taken as a whole, (b) the ability of the Company or the Portfolio Manager to perform its obligations under this Agreement or
any of the other Loan Documents or (c) the rights of or benefits available to the Agents or the Lenders under this Agreement or any of
the other Loan Documents.

 

"Material
Amendment" has the meaning set forth in Section 10.06(c).

 

    - 19 -

     

    

 

"Maturity
Date" means the date that is the earliest of (1) the Scheduled Termination Date set forth on the Transaction Schedule, (2) the
date on which the Secured Obligations become due and payable upon the occurrence of an Event of Default under Article VII and the
acceleration of the Secured Obligations, (3) the date on which the principal amount of the Advances is irrevocably reduced to zero as
a result of one or more prepayments and the Financing Commitments are irrevocably terminated and (4) the date after a Market Value Event
on which all Portfolio Investments have been sold and the proceeds therefrom have been received by the Company.

 

"Maximum
Rate" has the meaning set forth in Section 10.08.

 

"Mezzanine Obligation" means a Portfolio
Investment which is unsecured, subordinated debt of a company that represents a claim on such company's assets which is senior only to
that of the equity securities of such company.

 

"Minimum Equity Test" means a test
that will be satisfied on any date of determination if the sum of the Net Asset Value minus the Net Advances as of such date exceeds
the Market Value of the four (4) largest Portfolio Investments (after giving effect to any haircuts applied for the purposes of the Concentration
Limitations) as of such date.

 

"Minimum Funding Amount" means,
on any date of determination, the amount set forth in the table below; provided that, on and after any Commitment Increase Date,
the Minimum Funding Amount shall be the amount set forth in the last row below plus 70% of the increase in the Financing Commitment
resulting from the Commitment Increase Request and any prior Commitment Increase Request:

 

	Period Start Date	Period End Date	Minimum Funding Amount (U.S.$)
	Amendment Date	To and including the last day of the Reinvestment Period	200,000,000

 

"MV
Cure Account" has the meaning set forth in Section 8.01(a).

 

"Nationally Recognized Valuation Provider"
means (i) Houlihan Lokey Howard & Zukin, (ii) Lincoln International LLC (f/k/a Lincoln Partners LLC), (iii) Duff & Phelps Corp.,
(iv) Valuation Research Corporation, (v) FTI Consulting, Inc. and (vi) Murray Devine and (vii) Alvarez & Marsal; provided that
any independent entity providing professional asset valuation services may be added to this definition by the Company (with the consent
of the Administrative Agent) or added to this definition by the Administrative Agent from time to time by notice thereof to the Company
and the Portfolio Manager; provided, further, that (A) the Administrative Agent may remove up to three providers from this
definition by written notice to the Company and the Portfolio Manager and (B) upon any such removal, the Company may add an equivalent
number of entities providing professional asset valuation services to this definition (with the consent of the Administrative Agent).

 

"Net Advances" means the principal
amount of the outstanding Advances (inclusive of Advances that have been requested for any outstanding Purchase Commitments which have
traded but not settled) minus the amounts then on deposit in the Accounts, the Permitted CAD Accounts, the Permitted EUR Accounts
and the Permitted GBP Accounts (including cash and Eligible Investments) representing Principal Proceeds (other than Principal Proceeds
that have been identified for use to settle outstanding Purchase Commitments which have traded but not settled).

 

    - 20 -

     

    

 

"Net Asset Value" means, (A) the
sum of (I) the Market Value of each Portfolio Investment (both owned and in respect of which there are outstanding Purchase Commitments
which have traded but not settled) in the Portfolio that is not (x) an Ineligible Investment or (y) a Portfolio Investment which has traded
but not settled (i) in the case of a Loan, within fifteen (15) Business Days (or such longer period of time agreed to by the Administrative
Agent in its sole discretion) from the related Trade Date thereof and (ii) in the case of any other Portfolio Investment, within three
(3) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion) from the related Trade
Date thereof, multiplied by (II) the funded principal amount of such Portfolio Investment minus (B) the Unfunded Exposure Shortfall;
provided that product of the Market Value and the Concentration Limitation Excess will be excluded from the calculation of the
Net Asset Value and assigned a value of zero for such purposes.

 

"New
York Collateral" has the meaning set forth in Section 8.02(b).

 

"Non-Call Period" means the period
beginning on, and including, the Amendment Date and ending on, but excluding, November 22, 20212022.

 

"Non-Call Termination Event" means,
at any time, that (a)(i) the Company has properly delivered at least ten (10) Notices of Acquisition over the course of the prior twelve
calendar month period relating to proposed Portfolio Investments having credit characteristics similar to the Initial Portfolio Investments,
(ii) each Notice of Acquisition has satisfied the Eligibility Criteria and approval process set forth in this Agreement (other than any
requirement to obtain the consent of the Administrative Agent) and (iii) the Administrative Agent has rejected at least five (5) of such
requests or (b) the Lenders or the Administrative Agent demand compensation pursuant to Section 3.01(f).

 

"Notice
of Acquisition" has the meaning set forth in Section 1.02.

 

"NYFRB" means the Federal Reserve
Bank of New York.

 

"Original Effective Date" means
December 23, 2015.

 

"Original Agreement" has the meaning
set forth in the recitals.

 

"Other Connection Taxes" means,
with respect to any Secured Party, Taxes imposed as a result of a present or former connection between such Secured Party and the jurisdiction
imposing such Tax (other than connections arising from such Secured Party having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant
to or enforced any Loan Document, or sold or assigned an interest in any Advance or Loan Document).

 

"Other Taxes" means all present
or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the
execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise
with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.

 

"Parent" has the meaning set forth
in the recitals.

 

"Participant
Register" has the meaning specified in Section 10.06(d).

 

"Participation Interest" means a
participation interest in a Loan or a debt security.

 

    - 21 -

     

    

 

"PATRIOT Act" has the meaning set
forth in Section 2.04(f).

 

"Permitted CAD Account" means (i)
the CAD Collection Account and/or (ii) the CAD Unfunded Exposure Account.

 

"Permitted Currency" means USD,
CAD, EUR and GBP.

 

"Permitted Distribution" means,
on any Business Day, distributions of (x) Interest Proceeds and (y) prior to November 22, 2022, Principal Proceeds (in each case, at the
discretion of the Company) to the Parent (or other permitted equity holders of the Company); provided that amounts may be distributed
pursuant to this definition only to the extent of available Excess Interest Proceeds and Principal Proceeds and only so long as (i) no
Default or Event of Default has occurred and is continuing (or would occur after giving effect to such Permitted Distribution), (ii) no
Market Value Event shall have occurred (or would occur after giving effect to such Permitted Distribution), (iii) the Borrowing Base Test
is satisfied (and will be satisfied after giving effect to such Permitted Distribution), (iv) all Portfolio Investments satisfied the
Eligibility Criteria on the Trade Date or Substitution Date, as applicable, for their acquisition by the Company, (v) the Company gives
at least two (2) Business Days' prior written notice thereof to the Administrative Agent, (vi) the Company and the Administrative Agent
confirm in writing (which may be by email) to the Collateral Agent and the Collateral Administrator that the conditions to a Permitted
Distribution set forth herein are satisfied, (vii) not more than five Permitted Distributions are made in any single Calculation Period
and (viii) the Minimum Equity Test is satisfied.

 

"Permitted EUR Account" means (i)
the EUR Collection Account and/or (ii) the EUR Unfunded Exposure Account.

 

"Permitted GBP Account" means (i)
the GBP Collection Account and/or (ii) the GBP Unfunded Exposure Account.

 

"Permitted Lien" means any of the
following: (a) Liens for Taxes if such Taxes shall not at the time be due and payable or if a Person shall currently be contesting the
validity thereof in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided
on the books of such Person, (b) Liens imposed by law, such as materialmen's, warehousemen's, mechanics', carriers', workmen's and repairmen's
Liens and other similar Liens, arising by operation of law in the ordinary course of business for sums that are not overdue or are being
contested in good faith, (c) with respect to any collateral underlying a Portfolio Investment, the Lien in favor of the Company and Liens
permitted under the related underlying instruments, (d) as to agented Portfolio Investments, Liens in favor of the agent on behalf of
all the lenders of the related obligor, (e) Liens granted pursuant to or by the Loan Documents, and (f) bankers’ Liens, rights of
setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit in one or more accounts maintained
by such Person, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained,
securing amounts owing to such bank with respect to cash management, operating account arrangements and netting arrangements.

 

"Permitted Non-USD Currency" means
CAD, EUR and GBP.

 

"Permitted Subsidiary" means WhiteHorse
Finance (CA), LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company.

 

    - 22 -

     

    

 

"Permitted Tax Distribution" means
distributions to the Parent (from the Accounts or otherwise) to the extent required to allow the Parent to make sufficient distributions
to qualify as a regulated investment company, and to otherwise eliminate federal or state income or excise taxes payable by the Parent
in or with respect to any taxable year of the Parent (or any calendar year, as relevant); provided that (A) the amount of any such
payments made in or with respect to any such taxable year (or calendar year, as relevant) of the Parent shall not exceed 115% of the amounts
that the Company would have been required to distribute to the Parent to: (i) allow the Company to satisfy the minimum distribution requirements
that would be imposed by Section 852(a) of the Code (or any successor thereto) to maintain its eligibility to be taxed as a regulated
investment company for any such taxable year, (ii) reduce to zero for any such taxable year the Company's liability for federal income
taxes imposed on (x) its investment company taxable income pursuant to Section 852(b)(1) of the Code (or any successor thereto), or (y)
its net capital gain pursuant to Section 852(b)(3) of the Code (or any successor thereto), and (iii) reduce to zero the Company's liability
for federal excise taxes for any such calendar year imposed pursuant to Section 4982 of the Code (or any successor thereto), in the case
of each of (i), (ii) or (iii), calculated assuming that the Company had qualified to be taxed as a regulated investment company under
the Code and (B) if such Permitted Tax Distributions are made after the occurrence and during the continuance of an Event of Default,
the amount of Permitted Tax Distributions made in any 90 calendar day period shall not exceed U.S.$1,500,000.

 

"Person" means any natural person,
corporation, partnership, trust, limited liability company, association, Governmental Authority or unit, or any other entity, whether
acting in an individual, fiduciary or other capacity.

 

"Plan" means any "employee
benefit plan" (as such term is defined in Section 3(3) of ERISA) subject to Section 412 of the Code or Title IV of ERISA established
by the Company, the Parent or any ERISA Affiliate.

 

"Plan Asset Rules" means the regulations
issued by the United States Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the United States Code
of Federal Regulations, as modified by Section 3(42) of ERISA.

 

"Pledged Accounts" means the accounts
(including any applicable sub-accounts) established by the Permitted Subsidiary at Citibank, N.A. and pledged to the Collateral Agent
pursuant to the Asset Pledge Agreement.

 

"Portfolio" means all Portfolio
Investments Purchased or Substituted hereunder and not otherwise sold or liquidated.

 

"Portfolio
Manager Breach" has the meaning set forth in Section 5.03(a).

 

"Portfolio
Manager Party" has the meaning set forth in Section 5.03(a).

 

"Prime Rate" means the rate of interest
per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each
change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

 

"Principal Proceeds" means all amounts
received with respect to the Portfolio Investments or any other Collateral, and all amounts otherwise on deposit in the Accounts, the
Permitted CAD Accounts, the Permitted EUR Accounts and the Permitted GBP Accounts (including cash contributed by the Company), in each
case other than Interest Proceeds or amounts on deposit in the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded
Exposure Account or the GBP Unfunded Exposure Account.

 

"Priority
of Payments" has the meaning set forth in Section 4.05.

 

    - 23 -

     

    

 

"Proceeding"
has the meaning set forth in Section 10.07(b).

 

"Purchase" means each acquisition
of a Portfolio Investment hereunder (other than by Substitution), including, for the avoidance of doubt, by way of a contribution by the
Parent to the Company pursuant to the Parent Sale Agreement and, in the case of the Permitted Subsidiary, origination of such Portfolio
Investment, directly or indirectly.

 

"Purchase
Commitment" has the meaning set forth in Section 1.02.

 

"Reference Rate" means (i) with
respect to Advances denominated in USD and related calculations, the applicable LIBO Rate, (ii) with respect to Advances denominated in
CAD and related calculations, the CDOR Rate, (iii) with respect to Advances denominated in GBP and related calculations, Daily Simple
SONIA and (iv) with respect to Advances denominated in EUR and related calculations, EURIBOR. The Reference Rate shall be determined by
the Administrative Agent (and notified in writing to the Collateral Administrator and the Portfolio Manager), and such determination shall
be conclusive absent manifest error.

 

"Reference Time" with respect to
any setting of the then-current Benchmark means (1) if such Benchmark is the LIBO Rate, 11:00 a.m. (London time) on the day that is two
London banking days preceding the date of such setting, and (2) if such Benchmark is not the LIBO Rate, the time determined by the Administrative
Agent in its reasonable discretion.

 

"Register"
has the meaning set forth in Section 10.06(b).

 

"Reinvestment Period" means the
period beginning on, and including, the Amendment Date and ending on, but excluding, the earliest of (i) November 22, 20232024,
(ii) the date on which a Market Value Event occurs and (iii) the date on which an Event of Default occurs.

 

"Related
Party" has the meaning set forth in Section 9.01.

 

"Relevant Governmental Body" means
(i) with respect to a Benchmark Replacement in respect of Advances denominated in USD, the Federal Reserve Board and/or the NYFRB, or
a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor thereto and
(ii) with respect to a Benchmark Replacement in respect of Advances denominated in any Permitted Non-USD Currency, (a) the central bank
for the currency in which such Benchmark Replacement is denominated or any central bank or other supervisor which is responsible for supervising
either (1) such Benchmark Replacement or (2) the administrator of such Benchmark Replacement or (b) any working group or committee officially
endorsed or convened by (1) the central bank for the currency in which such Benchmark Replacement is denominated, (2) any central bank
or other supervisor that is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark
Replacement, (3) a group of those central banks or other supervisors or (4) the Financial Stability Board or any part thereof.

 

"Required Financing Providers" means
the Financing Providers with respect to 66 2/3% of the aggregate principal amount of the outstanding Advances.

 

"Responsible Officer" means (a)
with respect to the Collateral Agent, any officer of the Collateral Agent customarily performing functions with respect to corporate trust
matters and, with respect to a particular corporate trust matter under this Agreement, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular subject in each case, having direct responsibility for the
administration of this Agreement and (b) with respect to the Collateral Administrator, any officer of the Collateral Administrator customarily
performing functions with respect to collateral administration matters and, with respect to a particular matter under this Agreement,
any other officer to whom such matter is referred because of such officer's knowledge of and familiarity with the particular subject in
each case, having direct responsibility for the administration of this Agreement.

 

    - 24 -

     

    

 

"Restricted Payment" means (i) any
dividend or other distribution (including, without limitation, a distribution of non-cash assets), direct or indirect, on account of any
shares or other equity interests in the Company now or hereafter outstanding; (ii) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, by the Company of any shares or other equity interests in the Company
now or hereafter outstanding; and (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares or other equity interests in the Company now or hereafter outstanding.

 

"Reuters Screen" means Reuters Screen
LIBOR 01 Page on the Bloomberg Financial Markets Commodities News (or on any successor or substitute page of such service, or any successor
to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined
by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to U.S. dollar deposits
in the London interbank market).

 

"Revolving Loan" means any Loan
(other than a Delayed Funding Term Loan, but including funded and unfunded portions of revolving credit lines not backed by cash and letter
of credit facilities, unfunded commitments under specific facilities and other similar loans and investments) that under the underlying
instruments relating thereto may require one or more future advances to be made to the obligor by a creditor; but any such loan will be
a Revolving Loan only to the extent of undrawn commitments except as expressly set forth herein and only until all commitments by the
holders thereof to make advances to the obligor thereon expire or are terminated or are irrevocably reduced to zero.

 

"Sanctioned Country" means, at any
time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Cuba, Iran,
North Korea, Syria and Crimea).

 

"Sanctioned Person" means, at any
time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of
the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union, any
EU member state, Her Majesty's Treasury of the United Kingdom or any other relevant sanctions authority, (b) any Person operating, organized
or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses
(a) or (b) or (d) any person otherwise the subject of Sanctions.

 

"Sanctions" means economic or financial
sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations
Security Council, the European Union, any EU member state, Her Majesty's Treasury of the United Kingdom or any other relevant sanctions
authority.

 

"Second Lien Loan" means a Loan
(i) that is secured by a pledge of collateral, which security interest is validly perfected and second priority (subject to liens for
taxes or regulatory charges and any other liens permitted under the related underlying instruments that are reasonable and customary for
similar loans) under Applicable Law (other than a Loan that is second priority to a Permitted Working Capital Lien) and (ii) the Portfolio
Manager determines in good faith that the value of the collateral securing the loan (including based on enterprise value) on or about
the time of origination or acquisition by the Company equals or exceeds the outstanding principal balance thereof plus the aggregate outstanding
balances of all loans of equal or higher seniority secured by the same collateral.

 

    - 25 -

     

    

 

"Secured
Obligation" has the meaning set forth in Section 8.02(a).

 

"Secured
Party" has the meaning set forth in Section 8.02(a).

 

"Senior Secured Loan" means any
interest in a loan, including any assignment of or participation in or other interest in a loan, that (i) is not (and is not expressly
permitted by its terms to become) subordinate in right of payment to any obligation of the obligor in any bankruptcy, reorganization,
arrangement, insolvency, moratorium or liquidation proceedings (other than pursuant to a Permitted Working Capital Lien and customary
waterfall provisions contained in the applicable loan agreement), (ii) is secured by a pledge of collateral, which security interest is
(a) validly perfected and first priority under Applicable Law (subject to liens permitted under the applicable credit agreement that are
reasonable for similar loans, and liens accorded priority by law in favor of any Governmental Authority) or (b)(1) validly perfected and
second priority in the accounts, documents, instruments, chattel paper, letter-of-credit rights, supporting obligations, deposit accounts,
investments accounts and any other assets securing any Working Capital Revolver under Applicable Law and proceeds of any of the foregoing
(a first priority lien on such assets a "Permitted Working Capital Lien") and (2) validly perfected and first priority
(subject to liens for taxes or regulatory charges and any other liens permitted under the related underlying instruments that are reasonable
and customary for similar loans) in all other collateral under Applicable Law, and (iii) the Portfolio Manager determines in good faith
that the value of the collateral for such loan (including based on enterprise value) on or about the time of acquisition equals or exceeds
the outstanding principal balance of the loan plus the aggregate outstanding balances of all other loans of equal or higher seniority
secured by a first priority Lien over the same collateral. For the avoidance of doubt, debtor-in-possession loans and FLLO Loans shall
constitute Senior Secured Loans.

 

"Settlement
Date" has the meaning set forth in Section 1.03.

 

"SOFR" means, with respect to any
Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator
on the SOFR Administrator's Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.

 

"SOFR Administrator" means the NYFRB
(or a successor administrator of the secured overnight financing rate).

 

"SOFR Administrator's Website" means
the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified
as such by the SOFR Administrator from time to time.

 

"Solvent" means, with respect to
any entity, that as of the date of determination, (a) the sum of such entity's debt (including contingent liabilities) does not exceed
the present fair value of such entity's present assets; (b) such entity's capital is not unreasonably small in relation to its business
as contemplated on the date of this Agreement; and (c) such entity has not incurred debts beyond its ability to pay such debts as they
become due (whether at maturity or otherwise). For purposes of this definition, the amount of any contingent liability at any time shall
be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

    - 26 -

     

    

 

"SONIA" means, with respect to any
Business Day, a rate per annum equal to the Sterling Overnight Index Average for such business day published by the SONIA Administrator
on the SONIA Administrator’s Website.

 

"SONIA Administrator" means the
Bank of England’s website, currently at http://www.bankofengland.co.uk, or any successor source for the Sterling Overnight Index
Average identified as such by the SONIA Administrator from time to time.

 

"Spot Rate" means, as of any date
of determination, (x) with respect to actual currency exchange between USD and any Permitted Non-USD Currency and the calculations made
pursuant to Section 1.07(b), the applicable currency-USD spot rate available through Citibank, N.A.'s banking facilities (or, if Citibank,
N.A. has notified the Administrative Agent and the Company that it will no longer provide such services or if Citibank, N.A. or one of
its Affiliates is no longer the Collateral Agent, through such other source agreed to by the Administrative Agent in writing) at the time
of such exchange or calculation and (y) with respect to all other purposes between USD and any Permitted Non-USD Currency, the applicable
currency-USD spot rate that appeared on the BFIX page of Bloomberg Professional Service (or any successor thereto) (or such other recognized
service or publication used by the Collateral Administrator for purposes of determining currency spot rates in the ordinary course of
its business from time to time) for such currency at 5:00 p.m. New York City time on the immediately preceding Business Day, as determined
by the Collateral Administrator. The determination of the Spot Rate shall be conclusive absent manifest error.

 

"Subsidiary" of a Person means a
corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities
or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests
having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.

 

"Subsidiary Investments" has the
meaning set forth in the recitals.

 

"Substitute
Portfolio Investment" has the meaning set forth in Section 1.05.

 

"Substitution"
has the meaning set forth in Section 1.05.

 

"Substitution
Date" has the meaning set forth in Section 1.03.

 

"Taxes" means all present or future
taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by
any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

"Term SOFR" means, for the applicable
Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

"Term SOFR Notice" means a notification
by the Administrative Agent to the Lenders and the Company of the occurrence of a Term SOFR Transition Event.

 

"Term SOFR Transition Event" means
the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the
administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event has previously
occurred resulting in a Benchmark Replacement in accordance with Section 3.04 that is not Term SOFR.

 

    - 27 -

     

    

 

"Trade
Date" has the meaning set forth in Section 1.03.

 

"UCC"
has the meaning set forth in Section 8.01(b).

 

"Unadjusted Benchmark Replacement"
means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment; provided that, if the Unadjusted
Benchmark Replacement as so determined would be less than zero percent, the Unadjusted Benchmark Replacement will be deemed to be zero
percent for the purposes of this Agreement.

 

"Unfunded
Exposure Account" has the meaning set forth in Section 8.01(a).

 

"Unfunded Exposure Amount" means,
on any date of determination, the sum (determined on a traded basis), with respect to each Delayed Funding Term Loan or Revolving Loan,
of an amount equal to the aggregate amount of all unfunded commitments (in the case of unfunded commitments denominated in any Permitted
Non-USD Currency, converted to USD at the Spot Rate on such date of determination) associated with such Delayed Funding Term Loan or Revolving
Loan, as applicable.

 

"Unfunded Exposure Shortfall" means,
on any date of determination, an amount equal to the greater of (x) 0 and (y) the Unfunded Exposure Amount minus (a) amounts on
deposit in the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account and the GBP Unfunded Exposure
Account and (b) 2.5% of the Collateral Principal Amount.

 

"USD" or "U.S. Dollars"
means United States dollars.

 

"U.S. Person" means any Person that
is a "United States person" as defined in Section 7701(a)(30) of the Code.

 

"U.S.
Tax Compliance Certificate" has the meaning set forth in Section 3.03(f).

 

"Working Capital Revolver" means
a revolving lending facility secured by all or a portion of the current assets of the related obligor, which current assets subject to
such security interest do not constitute a material portion of the obligor's total assets.

 

Article
I

THE PORTFOLIO INVESTMENTS

 

Section
1.01.        Purchases of Portfolio Investments.
On the Original Effective Date, the Company acquired the Initial Portfolio Investments and has acquired additional Portfolio Investments
in accordance with the Original Agreement from time to time thereafter. From time to time on and after the Fifth A&R Effective Date
and during the Reinvestment Period, the Company may Purchase (or cause the Permitted Subsidiary to Purchase) additional Portfolio Investments,
or request that Portfolio Investments be Purchased for the Company's account, all on and subject to the terms and conditions set forth
herein.

 

Section
1.02.        Procedures for Purchases and Related Financings.

 

(a)               
Timing of Notices of Acquisition. No later than five (5) Agent Business Days (or such shorter period as the Administrative
Agent may agree in its sole discretion) before the date on which the Company proposes that a binding commitment to acquire any Portfolio
Investment (other than an Initial Portfolio Investment) be made by it or for its account or the account of the Permitted Subsidiary (a
 "Purchase Commitment") or that a Substitution occur, the Portfolio Manager, on behalf of the Company, shall deliver to
the Administrative Agent a notice of acquisition (a "Notice of Acquisition").

 

    - 28 -

     

    

 

(b)               
Contents of Notices of Acquisition. Each Notice of Acquisition shall consist of one or more electronic submissions to the
Administrative Agent (in such format and transmitted in such a manner as the Administrative Agent, the Portfolio Manager and the Company
may reasonably agree (which shall initially be the format and include the information regarding such Portfolio Investment identified on
Schedule 2)), and shall be accompanied by such other information as the Administrative Agent may reasonably request.

 

(c)               
Eligibility of Portfolio Investments. The Administrative Agent shall have the right, on behalf of all Financing Providers,
to reasonably request additional information regarding any proposed Portfolio Investment. The Administrative Agent shall notify the Portfolio
Manager and the Company (including via e-mail or other customary electronic messaging system) of its approval or failure to approve each
Portfolio Investment proposed to be acquired pursuant to a Notice of Acquisition (and, if approved, an initial determination of the Market
Value for such Portfolio Investment) no later than the fifth (5th) Agent Business Day succeeding the date on which it receives such Notice
of Acquisition and any information reasonably requested in connection therewith); provided that (i) any Initial Portfolio Investment
shall be deemed to be approved by the Administrative Agent and (ii) the failure of the Administrative Agent to notify the Portfolio Manager
and the Company of its approval in accordance with this Section 1.02(c) shall be deemed to be a disapproval of such proposed acquisition.

 

(d)               
The failure of the Administrative Agent to approve the acquisition of a Portfolio Investment will not prohibit the Company from
acquiring such Portfolio Investment (subject to the conditions set forth in Section 1.03); provided, that any Portfolio
Investment not so approved prior to its Trade Date or Substitution Date (each as defined below) shall be deemed to be an Ineligible Investment
until such later date (if any) on which such Portfolio Investment is so approved.

 

Section
1.03.        Conditions to Purchases or Substitutions.
No Purchase Commitment, Purchase or Substitution shall be entered into unless each of the following conditions is satisfied (or waived
as provided below) as of the date on which such Purchase Commitment is entered into (such Portfolio Investment's "Trade Date")
or the Company consummates a Substitution (the "Substitution Date") (and such Portfolio Investment shall not be Purchased
or Substituted, and any related Financing shall not be required to be made available to the Company by the applicable Financing Providers,
unless each of the following conditions is satisfied or waived as of such Trade Date or Substitution Date, as applicable):

 

(1)               
the information contained in the Notice of Acquisition accurately describes, in all material respects, such Portfolio Investment
and, unless waived by the Administrative Agent, such Portfolio Investment satisfies the eligibility criteria set forth in Schedule 3 (the
 "Eligibility Criteria");

 

(2)               
with respect to a Purchase, the proposed Settlement Date for such Portfolio Investment is not later than (i) in the case of a Loan,
the date that is fifteen (15) Business Days (or such longer period of time agreed to by the Administrative Agent in its sole discretion)
after such Trade Date or (ii) in the case of any other Portfolio Investment, the date that is three (3) Business Days (or such longer
period of time agreed to by the Administrative Agent in its sole discretion) after such Trade Date;

 

    - 29 -

     

    

 

(3)               
no Market Value Event has occurred and no Event of Default or event that, with notice or lapse of time or both, would constitute
an Event of Default (a "Default"), in each case, has occurred and is continuing, and the Reinvestment Period has not
otherwise ended; and

 

(4)               
after giving pro forma effect to the Purchase or Substitution of such Portfolio Investment and the related provision of Financing
(if any) hereunder:

 

(x)               
(i) the Borrowing Base Test is satisfied and (ii) the Minimum Equity Test is satisfied;

 

(y)               
the Concentration Limitations (as defined on Schedule 4) shall be satisfied or, if not satisfied immediately prior to such Purchase
Commitment, maintained or improved;

 

(z)               
the aggregate principal balance of Advances then outstanding will not exceed, for each type of Financing available hereunder, the
limit for such type of Financing set forth in the Transaction Schedule; and

 

(aa)            
in the case of a Purchase, the amount of such Financing (if any) shall be not less than U.S.$2,000,000.

 

The
Administrative Agent, on behalf of the Financing Providers, may waive any conditions to a Purchase Commitment, Purchase or Substitution,
as the case may be, specified above in this Section 1.03 by written notice thereof to the Company, the Collateral Administrator,
the Portfolio Manager and the Collateral Agent.

 

If the above conditions to a Purchase Commitment,
a Purchase or a Substitution are satisfied or waived by the Administrative Agent, the Portfolio Manager shall determine, in consultation
with the Administrative Agent and with notice to any applicable Financing Providers, the Collateral Agent and the Collateral Administrator,
the date on which such Purchase (if any) or Substitution shall settle (the "Settlement Date" for such Portfolio Investment)
and any related Financing shall be provided.

 

With respect to a Purchase, promptly following the
Settlement Date for a Portfolio Investment and its receipt thereof, the Collateral Administrator shall provide to the Administrative Agent
a copy of the executed assignment agreement (or, in the case of a Portfolio Investment that is not a Loan, the executed purchase agreement
or similar instrument) pursuant to which such Portfolio Investment was assigned, sold or otherwise transferred to the Company.

 

Section
1.04.        Sales of Portfolio Investments.
The Company will not (and will not permit the Permitted Subsidiary to) sell, transfer or otherwise dispose of any Portfolio Investment
or any other asset without the prior consent of the Administrative Agent (acting at the direction of the Required Financing Providers),
except that, subject to Section 6.02(x), the Company may sell any Portfolio Investment (including any Ineligible Investment)
or other asset without such consent so long as, (x) after giving effect thereto, no Market Value Event has occurred and no Default or
Event of Default has occurred and is continuing and (y) the sale of such asset by the Company shall be on an arm's-length basis and in
accordance with the Portfolio Manager's standard market practices. In addition, within ten (10) calendar days of any Revolving Loan or
Delayed Funding Term Loan with an unfunded commitment becoming an Ineligible Investment, the Company, subject to clauses (x) and (y) in
the immediately preceding sentence, shall either (i) sell such Revolving Loan or Delayed Funding Term Loan and shall pay any amount payable
in connection with such sale or (ii) distribute such Revolving Loan or Delayed Funding Term Loan to the Parent; provided that,
in the case of this clause (ii), the Parent has paid the Company an amount equal to the Market Value of such Revolving Loan or Delayed
Funding Term Loan on the date of its Purchase multiplied by the then-current funded balance of such Revolving Loan or Delayed Funding
Term Loan.

 

    - 30 -

     

    

 

 

Notwithstanding
anything in this Agreement to the contrary (but subject to this Section 1.04): (i) following the occurrence and during the
continuance of an Event of Default, neither the Company nor the Portfolio Manager on its behalf shall have any right to cause the sale,
transfer or other disposition of a Portfolio Investment or any other asset (including, without limitation, the transfer of amounts on
deposit in the Accounts, the Permitted CAD Accounts, the Permitted EUR Accounts or the Permitted GBP Accounts) without the prior written
consent of the Administrative Agent (which consent may be granted or withheld in the sole discretion of the Administrative Agent), (ii)
following the occurrence of a Market Value Event, the Company shall use commercially reasonable efforts to sell Portfolio Investments
(individually or in lots, including a lot comprised of all of the Portfolio Investments) at the sole direction of, and in the manner (including,
without limitation, the time of sale, sale price, principal amount to be sold and purchaser) required by the Administrative Agent (provided
that the Administrative Agent shall only require sales at the direction of the Required Financing Providers and at then-current fair market
values and in accordance with the Administrative Agent's standard market practices) and the proceeds from such sales shall be used to
prepay the Advances outstanding hereunder and (iii) following the occurrence of a Market Value Event, the Portfolio Manager shall have
no right to act on behalf of, or otherwise direct, the Company, the Administrative Agent, the Collateral Agent or any other person in
connection with a sale of Portfolio Investments pursuant to any provision of this Agreement except with the prior written consent of the
Administrative Agent (including via email). Any prepayments made pursuant to this paragraph shall automatically reduce the Financing Commitments
as provided in Section 4.07(c). The Company shall cause the Permitted Subsidiary to comply with all of the provisions of this paragraph.

 

In connection with any sale of Portfolio Investments
required by the Administrative Agent following the occurrence of an Event of Default or a Market Value Event, in connection with such
sale, the Administrative Agent or a designee of the Administrative Agent shall:

 

(i)                
notify the Company at the Designated Email Notification Address promptly upon distribution of bid solicitations regarding the sale
of such Portfolio Investments; and

 

(ii)              
direct the Company to sell such Portfolio Investments to the Designated Independent Broker-Dealer if the Designated Independent
Broker-Dealer provides the highest bid in the case where bids are received in respect of the sale of such Portfolio Investments, it being
understood that if the Designated Independent Broker-Dealer provides a bid to the Administrative Agent that is the highest bona fide bid
to purchase a Portfolio Investment on a line-item basis where such Portfolio Investment is part of a pool of Portfolio Investments for
which there is a bona fide bid on a pool basis proposed to be accepted by the Administrative Agent (in its sole discretion), then the
Administrative Agent shall accept any such line-item bid only if such line-item bid (together with any other line-item bids by the Designated
Independent Broker-Dealer or any other bidder for other Portfolio Investments in such pool) is greater than the bid on a pool basis.

 

    - 31 -

     

    

 

For purposes of this paragraph, the Administrative
Agent shall be entitled to disregard as invalid any bid submitted by the Designated Independent Broker-Dealer if, in the Administrative
Agent's judgment (acting reasonably):

 

(A)             
either:

 

(a)               
the Designated Independent Broker-Dealer is ineligible to accept assignment or transfer of the relevant Portfolio Investments or
any portion thereof, as applicable, substantially in accordance with the then-current market practice in the principal market for the
relevant Portfolio Investments; or

 

(b)               
the Designated Independent Broker-Dealer would not, through the exercise of its commercially reasonable efforts, be able to obtain
any consent required under any agreement or instrument governing or otherwise relating to the relevant Portfolio Investments to the assignment
or transfer of the relevant Portfolio Investments or any portion thereof, as applicable, to it; or

 

(A)             
such bid is not bona fide, including, without limitation, due to (x) the insolvency of the Designated Independent Broker-Dealer
or (y) the inability, failure or refusal of the Designated Independent Broker-Dealer to settle the purchase of the relevant Portfolio
Investments or any portion thereof, as applicable, or otherwise settle transactions in the relevant market or perform its obligations
generally.

 

In
connection with any sale of a Portfolio Investment directed by the Administrative Agent pursuant to this Section 1.04 and
the application of the net proceeds thereof, the Company hereby appoints the Administrative Agent as the Company's attorney-in-fact (it
being understood that the Administrative Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment),
with full authority in the place and stead of the Company and in the name of the Company to effectuate the provisions of this Section
1.04 (including, without limitation, the power to execute any instrument which the Administrative Agent or the Required Financing
Providers may deem necessary or advisable to accomplish the purposes of this Section 1.04 or any direction or notice to the Collateral
Agent in respect of the application of net proceeds of any such sales). None of the Administrative Agent, the Financing Providers, the
Collateral Administrator, the Securities Intermediary, the Collateral Agent nor any Affiliate of any thereof shall incur any liability
to the Company, the Portfolio Manager, the Financing Providers or any other person in connection with any sale effected at the direction
of the Administrative Agent in accordance with this Section 1.04, including, without limitation, as a result of the price obtained
for any Portfolio Investment, the timing of any sale or sales of Portfolio Investments or the notice or lack of notice provided to any
person in connection with any such sale, so long as, in the case of the Administrative Agent only, any such sale does not violate Applicable
Law.

 

Section
1.05.        Substitution.

 

During
the Reinvestment Period, the Company may replace a Portfolio Investment with another Portfolio Investment (each such replacement, a "Substitution"
and such new Portfolio Investment, a "Substitute Portfolio Investment") so long as the Company has submitted a Notice
of Acquisition and all applicable conditions precedent set forth in Section 1.02(c) and Section 1.03 have been satisfied
with respect to each Substitute Portfolio Investment to be acquired by the Company in connection with such Substitution.

 

Section
1.06.        Certain Assumptions Relating to Portfolio Investments.

 

(a)               
For purposes of all calculations hereunder, any Portfolio Investment for which the trade date in respect of a sale thereof by the
Company or the Permitted Subsidiary has occurred, but the settlement date for such sale has not occurred, shall be considered to be owned
by the Company or the Permitted Subsidiary until such settlement date.

 

(b)               
Unfunded commitments in respect of Delayed Funding Loans and Revolving Loans shall not be considered funded for purposes of the
definition of the term Market Value and the calculation of the Net Asset Value, the Borrowing Base Test and the Minimum Equity Test.

 

    - 32 -

     

    

 

Section
1.07.        Currency Equivalents.

 

(a)       Except
as set forth in clause (b) and Section 4.06(b), for purposes of all valuations and calculations under the Loan Documents, (i) the principal
amount and Market Value of all Portfolio Investments denominated in a Permitted Non-USD Currency, (ii) proceeds denominated in a Permitted
Non-USD Currency on deposit in any Permitted CAD Account, Permitted EUR Account or Permitted GBP Account, as applicable, and (iii) for
the purposes of Net Advances and the Borrowing Base Test, the outstanding aggregate principal amount of Advances denominated in a Permitted
Non-USD Currency shall be converted to USD at the Spot Rate in accordance with the definition of such term in consultation with the Administrative
Agent on the applicable date of valuation or calculation, as applicable.

 

(b)       Except
as provided in Section 4.06(b), for purposes of determining (i) whether the amount of any Advance, together with all other Advances then
outstanding or to be made at the same time as such Advances, would exceed the aggregate amount of the Financing Commitments, (ii) the
aggregate unutilized amount of the Financing Commitments and (iii) the limitations on the portion of the Financing Limit and the Financing
Commitment that may be utilized in a Permitted Non-USD Currency shall be deemed to be the Dollar Equivalent of the amount of the Permitted
Non-USD Currency of such Advances determined as of the date such Advances were made. Wherever in this Agreement in connection with an
Advance, an amount, such as a required minimum or multiple amount, is expressed in U.S. Dollars, but such Advance is denominated in a
Permitted Non-USD Currency, such amount shall be the CAD Equivalent, EUR Equivalent or GBP Equivalent , as applicable, of such U.S. dollar
amount (rounded to the nearest 1,000 units of the applicable Permitted Non-USD Currency).

 

Section
1.08.        Interest Rates; LIBOR Notification.

 

The interest rate on an Advance denominated in USD
or a Permitted Non-USD Currency may be derived from an interest rate benchmark that is, or may in the future become, the subject of regulatory
reform. Regulators have signaled the need to use alternative benchmark reference rates for some of these interest rate benchmarks and,
as a result, such interest rate benchmarks may cease to comply with applicable laws and regulations, may be permanently discontinued,
and/or the basis on which they are calculated may change. The London interbank offered rate is intended to represent the rate at which
contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial
Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions
to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administration, the "IBA") for
purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank
offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest
rate on Advances denominated in USD. In light of this eventuality, public and private sector industry initiatives are currently underway
to identify new or alternative reference rates to be used in place of the London interbank offered rate.  Upon the occurrence of
a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-In Election, Section 3.04 provides a mechanism for determining
an alternative rate of interest.  The Administrative Agent will promptly notify the Company, pursuant to Section 3.04, of any change
to the reference rate upon which the interest rate on an Advance is based. However, the Administrative Agent does not warrant or accept
any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to
the London interbank offered rate or other rates in the definition of "LIBO Rate" (or any other Reference Rate or definition
related thereto, as applicable) or with respect to any alternative or successor rate thereto, or replacement rate thereof (including,
without limitation, (i) any such alternative, successor or replacement rate implemented pursuant to Section 3.04(b) or (c), whether upon
the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, and (ii) the implementation
of any Benchmark Replacement Conforming Changes pursuant to Section 3.04(d)), including without limitation, whether the composition or
characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic
equivalence of, the LIBO Rate (or the applicable Reference Rate) or have the same volume or liquidity as did the London interbank offered
rate (or the applicable Reference Rate) prior to its discontinuance or unavailability.

 

    - 33 -

     

    

 

Article
II

THE FINANCINGS

 

Section
2.01.        Financing Commitments.
Subject to the terms and conditions set forth herein, only during the Reinvestment Period, each Financing Provider hereby severally agrees
to make available to the Company the types of Financing identified on the Transaction Schedule as applicable to such Financing Provider,
in a Permitted Currency, in an aggregate amount, for such Financing Provider and such Permitted Currency, not exceeding the amount of
its Financing Commitment for such Permitted Currency. The Financing Commitments shall terminate on the earliest of (a) the last day of
the Reinvestment Period, (b) the Maturity Date and (c) the occurrence of a Market Value Event (or, if earlier, the date of termination
of the Financing Commitments pursuant to Article VII).

 

A Financing Provider with a Financing Commitment
to make Advances hereunder is referred to as a "Lender".

 

Section
2.02.        [reserved]

 

Section
2.03.        Financings; Use of Proceeds.

 

(a)               
Subject to the satisfaction or waiver of the conditions to the Purchase of a Portfolio Investment set forth in Section 1.03
both as of the related Trade Date and Settlement Date, the applicable Financing Providers will make the applicable Financing available
to the Company on the related Settlement Date (or otherwise on the related specified borrowing date if no Portfolio Investment is being
acquired on such date) as provided herein; provided that, if no Portfolio Investment is being acquired on such date, only the conditions
set forth in clauses (3) and (4) of Section 1.03 shall require satisfaction or waiver.

 

(b)               
Except as expressly provided herein, the failure of any Financing Provider to make any Advance required hereunder shall not relieve
any other Financing Provider of its obligations hereunder. If any Financing Provider shall fail to provide any Financing to the Company
required hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Financing Provider to satisfy such Financing Provider's obligations
hereunder until all such unsatisfied obligations are fully paid.

 

(c)               
The Company shall use the proceeds of the Financings received by it hereunder to purchase the Portfolio Investments identified
in the related Notice of Acquisition or to make advances to the obligor of Delayed Funding Term Loans or Revolving Loans in accordance
with the underlying instruments relating thereto, provided that, if the proceeds of a Financing are deposited in the Collection
Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account as provided in Section 3.01 prior
to or on the Settlement Date for any Portfolio Investment but the Company is unable to Purchase such Portfolio Investment on the related
Settlement Date, or if there are proceeds of such Financing remaining after such Purchase, then, subject to Section 3.01(a), upon
written notice from the Portfolio Manager the Collateral Agent shall apply such proceeds as provided in Section 4.05. The proceeds
of the Financings shall not be used for any other purpose.

 

    - 34 -

     

    

 

(d)               
With respect to any Advance, the Portfolio Manager shall, on behalf of the Company, submit a request substantially in the form
of Exhibit A to the Lenders and the Administrative Agent, with a copy to the Collateral Agent and the Collateral Administrator, not later
than 2:00 p.m. New York City time, one (1) Business Day prior to the Business Day specified as the date on which such Advance shall be
made and, upon receipt of such request, the Lenders shall make such Advances in accordance with the terms set forth in Section 3.01.
Any requested Advance shall be in an amount such that, after giving effect thereto and the related purchase (if any) of the applicable
Portfolio Investment(s), the Borrowing Base Test and the Minimum Equity Test are each satisfied.

 

(e)               
[Reserved]

 

(f)                
If two Business Days prior to the end of the Reinvestment Period, the Company has any outstanding unfunded obligations to make
future advances under any Delayed Funding Term Loan or Revolving Loan, then the Portfolio Manager, on behalf of the Company, shall be
deemed to have requested a Financing in the applicable Permitted Currency on such date, and the Lenders shall make a corresponding Advance
on the last day of the Reinvestment Period (with written notice to the Collateral Administrator by the Administrative Agent) in accordance
with Article III in amount equal to the least of (i) the aggregate amount of all such unfunded obligations, (ii) the Financing Commitments
in the aggregate and in the applicable Permitted Currency in excess of the aggregate principal amount of the outstanding Advances and
(iii) an amount such that the Borrowing Base Test is satisfied after giving effect to such Advance; provided that, if the Company
provides evidence to the Administrative Agent that it has cash from other sources that is available in accordance with the terms of this
Agreement to make any such future advances in respect of any Delayed Funding Term Loan or Revolving Loan, then the amount of any such
Advance shall be reduced by the amount of such funds. After giving effect to such Advance, the Company shall cause the proceeds of such
Advance and cash from other sources that is available in accordance with the terms of this Agreement in an amount equal to the aggregate
amount of all unfunded obligations remaining in respect of any Delayed Funding Term Loans or Revolving Loans to be deposited in the Unfunded
Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account and/or the GBP Unfunded Exposure Account, as applicable,
and held as cash and Eligible Investments pending the funding of such future advances or until all commitments to make such future advances
are terminated or expire or are irrevocably reduced to zero. For the avoidance of doubt, the amounts deposited in the Unfunded Exposure
Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account and/or the GBP Unfunded Exposure Account pursuant to this
clause (f) shall not be used for any purpose other than as set forth in Section 8.01(h).

 

(g)               
Without limitation to clause (f) above, neither the Company nor the Permitted Subsidiary shall acquire any unfunded commitment
under any Revolving Loan or Delayed Funding Term Loan unless, on a pro forma basis after giving effect to such purchase, the Borrowing
Base Test, the Minimum Equity Test and item 5 of the Concentration Limitations will each be satisfied.

 

    - 35 -

     

    

 

Section
2.04.        Fifth A&R Effective Date.
Notwithstanding anything to the contrary herein, the obligations of the Lenders to make Advances shall not become effective until the
date (the "Fifth A&R Effective Date") on which each of the following conditions is satisfied (or waived by the Administrative
Agent in its sole discretion):

 

(a)               
Executed Counterparts. The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a
counterpart of this Agreement signed on behalf of such party or (ii) written evidence reasonably satisfactory to the Administrative Agent
(which may include electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

 

(b)               
[Reserved].

 

(c)               
Opinions. The Administrative Agent (or its counsel) shall have received one or more reasonably satisfactory written opinions
of Milbank LLP, counsel for the Company, covering such corporate and enforceability matters relating to the transactions contemplated
hereby as the Administrative Agent shall reasonably request in writing.

 

(d)               
Corporate Documents. The Administrative Agent (or its counsel) shall have received such certificates of resolutions or other
action, incumbency certificates and/or other certificates of officers of the Company and the Portfolio Manager as the Administrative Agent
may reasonably require evidencing the identity, authority and capacity of each officer thereof or other Person authorized to act in connection
with this Agreement, and such other documents and certificates as the Administrative Agent or its counsel may reasonably request relating
to the organization, existence and good standing of the Company and the Portfolio Manager and any other legal matters relating to the
Company, the Portfolio Manager, this Agreement or the transactions contemplated hereby, all in form and substance satisfactory to the
Administrative Agent and its counsel.

 

(e)               
Payment of Fees, Etc. The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable
by the Company in connection herewith on or prior to the Fifth A&R Effective Date and, to the extent invoiced, reimbursement or payment
of all reasonable and documented out-of-pocket (including reasonable and documented legal fees and expenses) expenses required to be reimbursed
or paid by the Company hereunder.

 

(f)                
PATRIOT Act, Etc. To the extent requested by the Administrative Agent or any Lender, the Administrative Agent or such Lender,
as the case may be, shall have received all documentation and other information required by regulatory authorities under the USA PATRIOT
Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) (the "PATRIOT Act") and other applicable "know
your customer" and anti-money laundering rules and regulations.

 

(g)               
Officer's Certificate. The Administrative Agent shall have received a certificate of the Company, certifying that the conditions
set forth in Sections 2.05(b), 2.05(c) and 2.05(d) have been satisfied on and as of the Amended and Restated Effective Date.

 

(h)               
Certain Acknowledgements. The Administrative Agent shall have received (i) UCC, tax and judgment lien searches, bankruptcy
and pending lawsuit searches or equivalent reports or searches indicating that there are no effective lien notices or comparable documents
that name the Company as debtor and that are filed in the jurisdiction in which the Company is organized and (ii) such other searches
that the Administrative Agent deems necessary or appropriate.

 

    - 36 -

     

    

 

Section
2.05.        Commitment Increase Option.
The Company may, at any time during the Reinvestment Period, submit a Commitment Increase Request for an increase in the Financing Commitment
to up to $350,000,000 (in the aggregate), subject to satisfaction of the following conditions precedent:

 

(a)               
each of the Lenders and Administrative Agent (in their sole discretion) approve in writing (which may be by email) such Commitment
Increase Request; provided, that each of the Lenders and the Administrative Agent shall use commercially reasonable efforts to
respond to any Commitment Increase Request within ten (10) Business Days of receipt thereof; provided, further, that the
failure of any Lender or the Administrative Agent to respond within ten (10) Business Days shall not constitute a breach or default of
any duty or obligation by such party.

 

(b)               
no Market Value Event shall have occurred and no Event of Default shall have occurred and be continuing, in each case on and as
of the Commitment Increase Date;

 

(c)               
the Borrowing Base Test and the Minimum Equity Test are each satisfied on and as of the Commitment Increase Date;

 

(d)               
all of the representations and warranties contained in Article VI and in any other Loan Document shall be true and correct in all
material respects (or with respect to such representations and warranties which by their terms contain materiality qualifiers, shall be
true and correct), in each case on and as of the Commitment Increase Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or with respect to such
representations and warranties which by their terms contain materiality qualifiers, shall be true and correct) as of such earlier date;

 

(e)               
no commitment reduction shall have occurred pursuant to Section 4.07(a) in connection with JPMorgan Chase Bank, National Association
ceasing to act as Administrative Agent or the occurrence of a Non-Call Termination Event prior to the Commitment Increase Date;

 

(f)                
the Company shall have paid to the Administrative Agent on the Commitment Increase Date, for the account of each Lender, an upfront
fee in the amount specified in the Amendment Date Letter;

 

(g)               
any Commitment Increase Request shall be in an amount not less than $35,000,000 (or, if the positive difference between $350,000,000
and the Financing Commitment in effect immediately prior to such Commitment Increase Request is less than $35,000,000, the amount of such
positive difference); and

 

(h)               
receipt by the Administrative Agent of such other documentation as the Administrative Agent may reasonably request, including without
limitation, documentation similar to that provided pursuant to Sections 2.04(c), (d) and (g) on the Amendment Effective Date.

 

Article
III

ADDITIONAL TERMS APPLICABLE TO THE FINANCINGS

 

Section
3.01.        The Advances.

 

(a)               
Making the Advances. If the Lenders are required to make an Advance to the Company as provided in Section 2.03, then
each Lender shall make such Advance on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York
City time, to the Collateral Agent for deposit to the Collection Account, the CAD Collection Account, the EUR Collection Account or the
GBP Collection Account, as applicable. Each Lender at its option may make any Advance by causing any domestic or foreign branch or Affiliate
of such Lender to make such Advance, provided that any exercise of such option shall not affect the obligation of the Company to
repay such Advance in accordance with the terms of this Agreement. Subject to the terms and conditions set forth herein, the Company may
borrow and prepay Advances. The Company may, during the Reinvestment Period, reborrow Advances in an amount up to (x) the aggregate Financing
Commitments of the Lenders on such date minus (y) the Minimum Funding Amount, subject to the terms and conditions set forth herein. Except
as set forth in the immediately preceding sentence, once prepaid, Advances may not be reborrowed.

 

    - 37 -

     

    

 

(b)               
Interest on the Advances. Subject to Section 3.01(h), all outstanding Advances shall bear interest (from and including the
date on which such Advance is made) at a per annum rate equal to the applicable Benchmark for each Calculation Period in effect plus
the Applicable Margin for such Advances set forth on the Transaction Schedule. Notwithstanding the foregoing, if any principal of or interest
on any Advance is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest,
after as well as before judgment, at a rate per annum equal to the applicable Benchmark plus the Adjusted Applicable Margin. If, on any
date the aggregate principal amount of the outstanding Advances is less than the Minimum Funding Amount specified in the definition of
the term Minimum Funding Amount, then the Company shall pay the Lenders interest at a per annum rate equal to (i) the Applicable Margin
for Advances in U.S. Dollars set forth on the Transaction Schedule multiplied by (ii) the amount equal to the Minimum Funding Amount minus
the aggregate principal amount of the outstanding Advances. For purposes of the foregoing, the Benchmark for each Calculation Period with
respect to Daily Simple SONIA shall be the weighted average of such Benchmark as determined on each day during such Calculation Period
in respect of Advances denominated in GBP.

 

(c)               
Evidence of the Advances. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Company to such Lender resulting from each Advance made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder and the Permitted Currency thereof. The Administrative Agent shall
maintain accounts in which it shall record (1) the amount of each Advance made hereunder, (2) the amount of any principal or interest
due and payable or to become due and payable from the Company to each Lender hereunder, (3) the Permitted Currency of such Advance and
(4) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof.
The entries made in the accounts maintained pursuant to this paragraph (c) shall, to the extent consistent with the records in the Register,
be prima facie evidence of the existence and amounts of the obligations recorded therein, provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the
Company to repay the Advances in accordance with the terms of this Agreement.

 

Any Lender may request that Advances made by it be
evidenced by a promissory note. In such event, the Company shall prepare, execute and deliver to such Lender a promissory note payable
to such Lender (or, if a registered note is requested by such Lender, to such Lender and its registered assigns) and in a form approved
by the Administrative Agent (such approval not to be unreasonably withheld, conditioned or delayed), which delivery the Administrative
Agent shall record in the Register. Thereafter, to the extent so reflected in the Register, the Advances evidenced by such promissory
note and interest thereon shall at all times be represented by one or more promissory notes in such form payable to the payee named therein
(or to such payee and its registered assigns).

 

(d)               
Pro Rata Treatment. Except as otherwise provided herein, all borrowings of, and payments in respect of, the Advances shall
be made on a pro rata basis by or to the Lenders in accordance with their respective portions of the Financing Commitments in respect
of Advances held by them.

 

    - 38 -

     

    

 

(e)           Illegality.
Notwithstanding any other provision of this Agreement, if any Lender or the Administrative Agent shall notify the Company that the adoption
of any law, rule or regulation, or any change therein or any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration thereof, in each case after the Original
Effective Date, makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for a Lender or the
Administrative Agent to perform its obligations hereunder to fund or maintain Advances hereunder, then (1) the obligation of such Lender
or the Administrative Agent hereunder shall immediately be suspended until such time as such Lender or the Administrative Agent determines
(in its sole discretion) that such performance is again lawful, (2) at the request of the Company, such Lender or the Administrative
Agent, as applicable, shall use reasonable efforts (which will not require such party to incur a loss, other than immaterial, incidental
expenses), until such time as the Advances are required to be prepaid as mandated by law in clause (3) below, to transfer all of its
rights and obligations under this Agreement to another of its offices, branches or Affiliates with respect to which such performance
would not be unlawful, and (3) if such Lender or the Administrative Agent is unable to effect a transfer under clause (2), then any outstanding
Advances of such Lender shall be promptly paid in full by the Company (together with all accrued interest and other amounts owing hereunder)
but not later than such date as shall be mandated by law; provided that, to the extent that any such adoption or change makes
it unlawful for the Advances to bear interest by reference to the applicable Reference Rate, then the foregoing clauses (1) through (3)
shall not apply and the Advances shall bear interest (from and after the last day of the Calculation Period ending immediately after
such adoption or change) at a per annum rate equal to the applicable Base Rate plus the Applicable Margin for Advances set forth
on the Transaction Schedule.

 

(f)            Increased
Costs.

 

(i)            If
any Change in Law shall:

 

(A)             
impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan
requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any
Lender;

 

(B)             
impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement
or Advances made by such Lender; or

 

(C)             
subject any Lender or the Administrative Agent to any Taxes (other than (x) Indemnified Taxes, (y) Taxes described in clauses (b)
through (d) of the definition of Excluded Taxes and (z) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments,
or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

 

and the result of any of the foregoing
shall be to increase the cost to such Lender or the Administrative Agent of making, continuing, converting or maintaining any Advance
or to reduce the amount of any sum received or receivable by such Lender or the Administrative Agent hereunder (whether of principal,
interest or otherwise), then, upon request by such Lender or the Administrative Agent, the Company will pay to such Lender or the Administrative
Agent, as the case may be, such additional amount or amounts as will compensate such Lender or the Administrative Agent, as the case may
be, for such additional costs incurred or reduction suffered.

 

    - 39 -

     

    

 

(ii)              
If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing
the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement
or the Advances made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for
such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to
capital adequacy and liquidity) by an amount deemed by such Lender to be material (which demand shall be accompanied by a statement setting
forth the basis for such demand), then from time to time the Company will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender's holding company for any such reduction suffered.

 

(iii)            
A certificate of a Lender or the Administrative Agent, as the case may be, setting forth in reasonable detail the amount or amounts
necessary to compensate such Lender, its holding company or the Administrative Agent, as the case may be, as specified in paragraph (i)
or (ii) of this Section shall be delivered to the Company and shall be conclusive absent manifest error. The Company shall pay such Lender
the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(iv)             
Failure or delay on the part of any Lender or the Administrative Agent to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender's or and Administrative Agent's right to demand such compensation; provided that the Company
shall not be required to compensate a Lender or the Administrative Agent pursuant to this Section for any increased costs or reductions
incurred more than 180 days prior to the date that such Lender or the Administrative Agent notifies the Company of the Change in Law giving
rise to such increased costs or reductions and of such Lender's or the Administrative Agent's intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day
period referred to above shall be extended to include the period of retroactive effect thereof. No Lender nor the Administrative Agent
shall be entitled to any such compensation unless such Person is generally seeking such compensation from borrowers under substantially
similar facilities with substantially similar assets and from whom such Person is entitled so seek such compensation.

 

(v)               
Each of the Lenders and the Administrative Agent agrees that it will take such commercially reasonable actions as the Company may
reasonably request that will avoid the need to pay, or reduce the amount of, any increased amounts referred to in this Section 3.01(f)
and in Section 3.03(a) or (c); provided that no Lender or the Administrative Agent shall be obligated to take any
actions that would, in the reasonable opinion of such Lender or the Administrative Agent, be disadvantageous to such Lender or the Administrative
Agent (including, without limitation, due to a loss of money). In no event will the Company be responsible for increased amounts referred
to in this Section 3.01(f) or in Section 3.03(a) or (c) which relates to any other entities to which any Lender provides
financing.

 

(vi)             
If any Lender (A) provides notice of unlawfulness or requests compensation under clause (e) above or this clause (f), (B) defaults
in its obligation to make Advances hereunder or (C) becomes the subject of a Bail-In Action, then the Company may, at its sole expense
and effort, upon written notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests,
rights and obligations under this Agreement and the related transaction documents to an assignee identified by the Company that shall
assume such obligations (whereupon such Lender shall be obligated to so assign), provided that, (x) such Lender shall have received
payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder through the date of such assignment and (y) a Lender shall not be required to make any such assignment or delegation
if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment
and delegation cease to apply. No prepayment fee that may otherwise be due hereunder shall be payable to such Lender in connection with
any such assignment.

 

(g)               
No Set-off or counterclaim. All payments to be made hereunder by the Company in respect of the Advances shall be made without
set-off or counterclaim and in such amounts as may be necessary in order that every such payment shall not be less than the amounts otherwise
specified to be paid under this Agreement; provided that this Section 3.01(g) shall not apply with respect to Taxes.

 

    - 40 -

     

    

 

Section
3.02.        General.
The provisions of Section 3.01 and any other provisions relating to the types of Financings contemplated by each such section
shall not be operative until and unless such types of Financing have been made available to the Company, as evidenced by the Transaction
Schedule.

 

Section
3.03.        Taxes.

 

(a)               
Payments Free of Taxes. All payments to be made hereunder by the Company in respect of the Advances shall be made without
deduction or withholding for any Taxes, except as required by Applicable Law (including FATCA). If any Applicable Law requires the deduction
or withholding of any Tax from any such payment by the Company, then the Company shall be entitled to make such deduction or withholding
and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and,
if such Tax is an Indemnified Tax, then the sum payable by the Company shall be increased as necessary so that after such deduction or
withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable
Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

(b)               
Payment of Other Taxes by the Company. The Company shall timely pay to the relevant Governmental Authority in accordance
with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(c)               
Indemnification by the Company. The Company shall indemnify each Lender, within 10 days after demand therefor, for the full
amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section)
payable or paid by such Lender or required to be withheld or deducted from a payment to such Lender and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company by a Lender (with a copy
to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest
error.

 

(d)               
Indemnification by the Lenders. Each Lender shall indemnify the Administrative Agent, within 10 days after demand therefor,
for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Company has not already indemnified the Administrative
Agent for such Indemnified Taxes and without limiting the obligation of the Company to do so), (ii) any Taxes attributable to such Lender's
failure to comply with the provisions of 10.06 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable
to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable
expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent
shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts
at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other
source against any amount due to the Administrative Agent under this paragraph (d).

 

    - 41 -

     

    

 

(e)               
Evidence of Payments. As soon as practicable after any payment of Taxes by the Company to a Governmental Authority pursuant
to this Section 3.03, the Company shall deliver to the Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

 

(f)                
Status of Secured Parties. (i)Any Secured Party that is entitled to an exemption from or reduction of withholding Tax
with respect to payments made under any Loan Document shall deliver to the Company and the Administrative Agent, at the time or times
reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation reasonably requested
by the Company or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.
In addition, any Lender, if reasonably requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed
by Applicable Law or reasonably requested by the Company or the Administrative Agent as will enable the Company or the Administrative
Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such
documentation set forth in Section 3.03(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's
reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or
would materially prejudice the legal or commercial position of such Lender.

 

(ii)              
Without limiting the generality of the foregoing,

 

(A)             
any Lender that is a U.S. Person shall deliver to the Company and the Administrative Agent on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative
Agent), an executed IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

(B)             
any Foreign Lender shall deliver to the Company and the Administrative Agent (in such number of copies as shall be reasonably requested
by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Company or the Administrative Agent, but only if the Foreign Lender is legally entitled to do so),
whichever of the following is applicable:

 

(i)                
in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, two copies of executed IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form
establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax
treaty and (y) with respect to any other applicable payments under any Loan Document, an IRS Form W-8BEN or IRS Form W-8BEN-E or any applicable
successor form establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits"
or "other income" article of such tax treaty;

 

    - 42 -

     

    

 

(ii)              
two copies of executed IRS Form W-8ECI;

 

(iii)            
in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code,
is not a "10 percent shareholder" of the Company within the meaning of Section 881(c)(3)(B) of the Code, and is not a "controlled
foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y)
two copies of executed IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form; or

 

(iv)             
to the extent a Foreign Lender is not the beneficial owner, two copies of executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, IRS Form W-8BEN-E or applicable successor form, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification
documents from each beneficial owner, as applicable;

 

(C)         any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company and the Administrative Agent (in
such number of copies as shall be reasonably requested by the recipient) on or prior to the date on which such Foreign Lender becomes
a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent),
executed originals of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal
withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Company
or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)         each Lender shall deliver to the Company and the Administrative Agent at the time or times prescribed by law and at such time or
times reasonably requested by the Company or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed
by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or the Administrative Agent
as may be necessary for the Company and the Administrative Agent to comply with their obligations under FATCA and to determine that such
Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely
for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the Original Effective Date.

 

Each Lender agrees that if any form or certification
it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly
notify the Company and the Administrative Agent in writing of its legal inability to do so.

 

(E)         The
Administrative Agent shall deliver to the Company an electronic copy of an IRS Form W-9 upon becoming a party under this Agreement. The
Administrative Agent represents to the Company that it is a "U.S. person" and a "financial institution" within the
meaning of Treasury Regulations Section 1.1441-1 and a "U.S. financial institution" within the meaning of Treasury Regulations
Section 1.1471-3(a)(3)(iii) and that it will comply with its obligations to withhold under Section 1441 of the Code and FATCA.

 

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(g)         Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any
Taxes as to which it has been indemnified pursuant to this Section 3.03 (including by the payment of additional amounts pursuant
to this Section 3.03), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity
payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect
to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount
paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority)
in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to
the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant
to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified
party would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph
shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes
that it deems confidential) to the indemnifying party or any other Person.

 

(h)         Survival. Each party's obligations under this Section 3.03 shall survive the resignation or replacement of the Administrative
Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Financing Commitments, and the repayment,
satisfaction or discharge of all obligations under any Loan Document.

 

Section
3.04.        Interest Rate Unascertainable, Inadequate or Unfair.

 

(a)         Subject
to clauses (b), (c), (d), (e), (f) and (g) of this Section 3.04, if prior to the commencement of any Calculation Period for an Advance,
(x) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining a Reference Rate (including, without limitation, because such Reference Rate is not available or published
on a current basis) for the applicable Permitted Currency and such Calculation Period; provided that no Benchmark Transition Event
shall have occurred at such time or (y) the Administrative Agent is advised by the Required Financing Providers that the applicable Reference
Rate for the applicable Permitted Currency and such Calculation Period will not adequately and fairly reflect the cost to such Lenders
(or Lender) of making or maintaining their Advances (or its Advance) included in such Advance for such Calculation Period; then the Administrative
Agent shall give notice thereof to the Company and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter
and, until the Administrative Agent notifies the Company and the Lenders that the circumstances giving rise to such notice no longer exist,
any Advance denominated in such Permitted Currency made by the Lenders shall thereupon constitute a Base Rate Advance.

 

(b)         Notwithstanding
anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable,
and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark,
then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of "Benchmark Replacement"
for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan
Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent
of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause
(3) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace
such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York
City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any
amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative
Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Financing
Providers.

 

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(c)       Notwithstanding
anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, solely with respect
to an Advance denominated in USD, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the
Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current
Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings,
without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided
that, this clause (c) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Company a Term SOFR
Notice.

 

(d)       In connection
with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming
Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing
such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement
or any other Loan Document.

 

(e)       The
Administrative Agent will promptly notify the Company and the Lenders of (i) any occurrence of a Benchmark Transition Event, a Term SOFR
Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any
Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any
tenor of a Benchmark pursuant to clause (f) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination,
decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this
Section 3.04, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event,
circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent
manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other
Loan Document, except, in each case, as expressly required pursuant to this Section 3.04.

 

(f)       Notwithstanding
anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark
Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBO Rate) and either (A) any tenor for such Benchmark
is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative
Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement
or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative
Agent may modify the definition of "Calculation Period" for any Benchmark settings at or after such time to remove such unavailable
or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on
a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement
that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may
modify the definition of "Calculation Period" for all Benchmark settings at or after such time to reinstate such previously
removed tenor.

 

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(g)       Upon
the Company's receipt of notice of the commencement of a Benchmark Unavailability Period, the Company may revoke any request for an Advance
in, conversion to or continuation of Advances in the applicable Permitted Currency to be made, converted or continued during any Benchmark
Unavailability Period and, failing that, the Company will be deemed to have converted any request for an Advance into a request for a
Base Rate Advance or conversion of an outstanding Advance to a Base Rate Advance.

 

Article
IV

COLLECTIONS AND PAYMENTS

 

Section
4.01.        Interest Proceeds.
The Company shall (or shall cause the Permitted Subsidiary to) notify the obligor with respect to each Portfolio Investment to remit all
amounts that constitute Interest Proceeds to the Collection Account (or, in the case of Subsidiary Assets, the applicable Pledged Account);
provided that (i) Interest Proceeds denominated in CAD shall be deposited into the CAD Collection Account, (ii) Interest Proceeds
denominated in EUR shall be deposited into the EUR Collection Account and (iii) Interest Proceeds denominated in GBP shall be deposited
into the GBP Collection Account. To the extent Interest Proceeds are received other than by deposit into the Collection Account, the CAD
Collection Account, the EUR Collection Account or the GBP Collection Account, the Company shall cause all Interest Proceeds on the Portfolio
Investments to be deposited in the Collection Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account,
as applicable, or remitted to the Collateral Agent, and the Collateral Agent shall credit (or cause to be credited) to the Collection
Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, all Interest Proceeds received
by it promptly upon receipt thereof in accordance with the written direction of the Portfolio Manager.

 

Interest Proceeds shall be retained in the Collection
Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, and held in cash and/or,
in the case of the Collection Account, invested (and reinvested) at the written direction of the Company (or the Portfolio Manager on
its behalf) delivered to the Collateral Agent in Cash Equivalents selected by the Portfolio Manager (unless an Event of Default has occurred
and is continuing or a Market Value Event has occurred, in which case, selected by the Administrative Agent) ("Eligible Investments").
Eligible Investments shall mature no later than the end of the then-current Calculation Period. For the avoidance of doubt, (i) Interest
Proceeds received in any Permitted Non-USD Currency shall remain uninvested and shall be deposited in the CAD Collection Account, the
EUR Collection Account or the GBP Collection Account, as applicable, and (ii) amounts held in the CAD Collection Account, the EUR Collection
Account and the GBP Collection Account shall remain uninvested. Not later than five Business Days following receipt, the Company shall
cause the Permitted Subsidiary to distribute Interest Proceeds received by it to the Company as a dividend or equivalent equity distribution
and deposit such Interest Proceeds into the Collection Account.

 

Interest Proceeds on deposit in the Collection Account,
the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, shall be withdrawn by the Collateral
Agent (at the written direction of the Company (or, upon the occurrence and during the continuance of an Event of Default or upon the
occurrence of a Market Value Event, the Administrative Agent)) and applied (i) to make payments in accordance with this Agreement or (ii)
to make Permitted Distributions or Permitted Tax Distributions in accordance with this Agreement with two (2) Business Days prior notice
to the Administrative Agent.

 

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Section
4.02.        Principal Proceeds.
The Company shall (or shall cause the Permitted Subsidiary to) notify the obligor with respect to each Portfolio Investment to remit all
amounts that constitute Principal Proceeds to the Collection Account (or, in the case of Subsidiary Assets, the applicable Pledged Account);
provided that (i) Principal Proceeds denominated in CAD shall be deposited into the CAD Collection Account, (ii) Principal Proceeds
denominated in EUR shall be deposited into the EUR Collection Account and (i) Principal Proceeds denominated in GBP shall be deposited
into the GBP Collection Account. To the extent Principal Proceeds are received other than by deposit into the Collection Account, the
CAD Collection Account, the EUR Collection Account or the GBP Collection Account, the Company shall cause all Principal Proceeds received
on the Portfolio Investments to be deposited in the Collection Account, the CAD Collection Account, the EUR Collection Account or the
GBP Collection Account, as applicable, or remitted to the Collateral Agent, and the Collateral Agent shall credit (or cause to be credited)
to the Collection Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, all Principal
Proceeds received by it immediately upon receipt thereof in accordance with the written direction of the Portfolio Manager.

 

All Principal Proceeds shall be retained in the Collection
Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, and held in cash and/or,
in the case of the Collection Account, invested at the written direction of the Administrative Agent in overnight Eligible Investments
selected by the Portfolio Manager (unless an Event of Default has occurred and is continuing or a Market Value Event has occurred, in
which case, selected by the Administrative Agent). All investment income on such Eligible Investments shall constitute Interest Proceeds.
For the avoidance of doubt, (i) Principal Proceeds received in any Permitted Non-USD Currency shall remain uninvested and shall be deposited
in the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, and (ii) amounts held in the CAD
Collection Account, the EUR Collection Account and the GBP Collection Account shall remain uninvested. Not later than the fifth Business
Day following receipt, the Company shall cause the Permitted Subsidiary to distribute all Principal Proceeds received by it to the Company
as a dividend or equivalent equity distribution and deposit such Principal Proceeds into the Collection Account.

 

Principal Proceeds on deposit in the Collection Account,
the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, shall be withdrawn by the Collateral
Agent (at the written direction of the Company (or, upon the occurrence and during the continuance of an Event of Default or upon the
occurrence of a Market Value Event, the Administrative Agent)) and applied (i) to make payments in accordance with this Agreement with
prior written notice to the Administrative Agent, (ii) towards the purchase price of Portfolio Investments purchased in accordance with
this Agreement with prior written notice to the Administrative Agent or (iii) to make Permitted Distributions in accordance with this
Agreement with two (2) Business Days prior notice to the Administrative Agent.

 

The Portfolio Manager shall notify the Administrative
Agent and the Collateral Agent if the Portfolio Manager reasonably determines in good faith that any amounts in the Collection Account,
the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, have been deposited in error or do
not otherwise constitute Principal Proceeds, whereupon such amounts on deposit in the Collection Account, the CAD Collection Account,
the EUR Collection Account or the GBP Collection Account, as applicable, may be withdrawn by the Collateral Agent (at the direction of
the Company and with written confirmation from the Administrative Agent (or, upon the occurrence and during the continuance of an Event
of Default or upon the occurrence of a Market Value Event, the Administrative Agent)) on the next succeeding Business Day and remitted
to the Company. For the avoidance of doubt, Principal Proceeds received in connection with the sale of any Portfolio Investment pursuant
to Section 1.04 following a Market Value Event shall be used to prepay Advances as set forth therein at the written direction of the Administrative
Agent.

 

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Section
4.03.        Principal and Interest Payments; Prepayments; Commitment Fee.

 

(a)               
The Company shall pay the unpaid principal amount of the Advances (together with accrued interest thereon) to the Administrative
Agent for the account of each Lender on the Maturity Date in accordance with the Priority of Payments and any and all cash in the Accounts,
any Permitted CAD Account, any Permitted EUR Account or any Permitted GBP Account shall be applied to the satisfaction of the Secured
Obligations on the Maturity Date and on each Additional Distribution Date in accordance with the Priority of Payments.

 

(b)               
Accrued interest on the Advances shall be payable in arrears on each Interest Payment Date, each Additional Distribution Date and
on the Maturity Date in accordance with the Priority of Payments; provided that (i) interest accrued pursuant to the second sentence
of Section 3.01(b) shall be payable on demand and (ii) in the event of any repayment or prepayment of any Advances, accrued interest
on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. "Interest Payment Date"
means the fifth Business Day after the last day of each Calculation Period.

 

(c)               
 

 

(i)                
Subject to the requirements of this Section 4.03(c), the Company shall have the right from time to time to prepay outstanding
Advances in whole or in part (A) on any Business Day that JPMorgan Chase Bank, National Association ceases to act as Administrative Agent
or following the date of a Non-Call Termination Event, (B) in connection with a Market Value Cure or to cure a Default described in Article
VII(n) or (C) subject to the payment of the premium described in clause (ii) below, up to but not more than three times during any Calculation
Period; provided that, the Company may not prepay any outstanding Advances pursuant to this Section 4.03(c)(i)(C) during
the Non-Call Period in an amount that would cause the aggregate outstanding principal amount of the Advances to be below the Minimum Funding
Amount. The Company shall notify the Administrative Agent, the Collateral Agent and the Collateral Administrator by electronic mail of
an executed document (attached as a .pdf or similar file) of any prepayment pursuant to Section 4.03(c)(i)(A) or Section 4.03(c)(i)(C)
not later than 2:00 p.m., New York City time, two (2) Business Days before the date of prepayment. Each such notice shall be irrevocable
and shall specify the prepayment date and the principal amount of the Advances to be prepaid. Promptly following receipt of any such notice,
the Administrative Agent shall advise the Lenders of the contents thereof. Except in connection with a Market Value Cure or to cure a
Default described in Article VII(n), each partial prepayment of outstanding Advances shall be in an amount not less than U.S.$2,000,000.
Prepayments shall be accompanied by accrued and unpaid interest.

 

(ii)              
Each prepayment or commitment reduction pursuant to Section 4.03(c)(i)(C) and Section 4.07(a) that is made on or
before the date which is 9 months following the end of the Non-Call Period, whether in full or in part, shall be accompanied by a premium
equal to 1% of the principal amount of such prepayment or commitment reduction; provided that no such premium shall be payable
with respect to any prepayment (or portion thereof) that does not exceed the positive difference (if any) of (x) the then-current aggregate
outstanding principal amount of the Advances over (y) the then-current Minimum Funding Amount (the "Excess Funded Amount").

 

(d)               
The Company agrees to pay to the Administrative Agent, for the account of each Lender, a commitment fee in accordance with the
Priority of Payments which shall accrue at 0.75% per annum on the average daily unused amount of the Financing Commitment of such Lender
(excluding any portion of such unused amount with respect to which interest is paid pursuant to Section 3.01(b)) during the period from
and including the date of this Agreement to but excluding the last day of the Reinvestment Period. Accrued commitment fees shall be payable
in arrears on each Interest Payment Date, and on the date on which the Financing Commitments terminate. All commitment fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the
last day).

 

(e)               
[Reserved]The Company
agrees to pay to the Administrative Agent on the First Amendment Effective Date, for the account of each Lender, a fee in accordance with
the First Amendment Effective Date Letter.

 

(f)                
Without limiting Section 4.03(c), the Company shall have the obligation from time to time to prepay outstanding Advances
in whole or in part on any date with proceeds from sales of Portfolio Investments directed by the Administrative Agent pursuant to Section
1.04 and as set forth in Sections 2.03(f) and 8.01(h). Prepayments shall be accompanied by accrued and unpaid interest.

 

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Section
4.04.        MV Cure Account

 

(a)               
The Company shall cause all cash received by it in connection with an Market Value Cure to be deposited in the MV Cure Account
or remitted to the Collateral Agent, and the Collateral Agent shall credit to the MV Cure Account such amounts received by it (and identified
in writing as such) immediately upon receipt thereof. Prior to the Maturity Date, all cash amounts in the MV Cure Account shall be invested
in overnight Eligible Investments at the written direction of the Administrative Agent (as directed by the Required Financing Providers).
All amounts contributed to the Company by Parent in connection with an MV Event Cure shall be paid free and clear of any right of chargeback
or other equitable claim.

 

(b)               
Amounts on deposit in the MV Cure Account may be withdrawn by the Collateral Agent (at the written direction of the Company (or,
upon the occurrence and during the continuance of an Event of Default or upon the occurrence of a Market Value Event, the Administrative
Agent)) and remitted to the Company with prior notice to the Administrative Agent (or, upon the occurrence and during the continuance
of an Event of Default or upon the occurrence of a Market Value Event, to the Lenders for prepayment of Advances and reduction of Financing
Commitment); provided that the Company may not direct any withdrawal from the MV Cure Account if the Borrowing Base Test is not
satisfied (or would not be satisfied after such withdrawal).

 

Section
4.05.        Priority of Payments.
On (w) each Interest Payment Date, (x) the Maturity Date, (y) any Agent Business Day after the occurrence of a Market Value Event and
(z) any Agent Business Day after the Maturity Date following an Event of Default and the declaration of the Secured Obligations as due
and payable (each date set forth in clauses (y) and (z) above, an "Additional Distribution Date"), the Collateral Agent
shall distribute all amounts in the Collection Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account
in the following order of priority (the "Priority of Payments"): 

 

(a)               
To pay (i) first, amounts due or payable to the Collateral Agent, the Collateral Administrator and the Securities Intermediary
hereunder and under each other Loan Document (including fees, out-of-pocket expenses and indemnities) and (ii) second, any other accrued
and unpaid fees and out-of pocket expenses (other than the commitment fee payable to the Lenders, but including Lender indemnities) due
hereunder and under each other Loan Document, up to a maximum amount under this clause (a) of U.S.$100,000 (the "Cap")
on each Interest Payment Date, the Maturity Date and each Additional Distribution Date (in the case of any Additional Distribution Date
or the Maturity Date, after giving effect to all payments of such amounts on any other Additional Distribution Date or Interest Payment
Date occurring in the same calendar quarter); provided that if an Event of Default has occurred and the Administrative Agent has
terminated the Financing Commitments and declared the Secured Obligations due and payable, the Cap shall be increased to $200,000 for
payment to the Collateral Agent, the Collateral Administrator and the Securities Intermediary in connection with any actions it has taken
with respect to enforcement of rights on the Collateral.

 

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(b)               
To deposit an amount equal to the Expense Reserve Account Amount in the Expense Reserve Account;

 

(c)               
To pay interest due in respect of the Advances, any amounts due or payable pursuant to Section 3.03(c) and 3.03(a) and commitment
fees payable to the Lenders (pro rata based on amounts due);

 

(d)               
To pay (i) on each Interest Payment Date, all prepayments of the Advances permitted or required under this Agreement (including
any applicable premium) and (ii) on the Maturity Date (and, if applicable, any Additional Distribution Date), principal of the Advances
until the Advances are paid in full;

 

(e)               
(i) prior to the end of the Reinvestment Period, at the direction of the Portfolio Manager, to fund the Unfunded Exposure Account,
the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account or the GBP Unfunded Exposure Account up to the Unfunded Exposure
Amount and (ii) after the Reinvestment Period but prior to the Maturity Date, to fund the Unfunded Exposure Account, the CAD Unfunded
Exposure Account, the EUR Unfunded Exposure Account or the GBP Unfunded Exposure Account up to the Unfunded Exposure Amount;

 

(f)                
To pay all amounts set forth in clause (a) above not paid due to the limitation set forth therein;

 

(g)               
To the extent not reimbursed out of funds on deposit in the Expense Reserve Account, to reimburse the Portfolio Manager and the
Company for any and all reasonable costs and expenses incurred by the Portfolio Manager and the Company, as applicable, in connection
with the Collateral or in the performance of its obligations under this Agreement;

 

(h)               
To make any Permitted Distributions or Permitted Tax Distributions (using Interest Proceeds and, in the case of Permitted Distributions
occurring during the Reinvestment Period, Principal Proceeds) directed pursuant to this Agreement; and

 

(i)                
(i) On any Interest Payment Date other than the Maturity Date, to deposit any remaining amounts in the Collection Account and (ii)
on the Maturity Date and any Additional Distribution Date, any remaining amounts to the Company.

 

Section
4.06.        Payments Generally.

 

(a)                All
payments to the Lenders or the Administrative Agent shall be made to the Administrative Agent at the account designated in writing to
the Company and the Collateral Agent for further distribution by the Administrative Agent (if applicable). The Administrative Agent shall
give written notice to the Collateral Agent and the Collateral Administrator (on which the Collateral Agent and the Collateral Administrator
may conclusively rely) and the Portfolio Manager of the calculation of amounts payable to the Lenders in respect of the Advances and the
amounts payable to the Portfolio Manager. At least two (2) Business Days prior to each Interest Payment Date, the Maturity Date and any
Additional Distribution Date, the Administrative Agent shall deliver an invoice to the Portfolio Manager, the Collateral Agent and the
Collateral Administrator in respect of the interest due on such date. All payments not made to the Administrative Agent for distribution
to the Lenders shall be made as directed in writing by the Administrative Agent. Subject to Section 3.03 hereof, all payments
by the Company hereunder shall be made without setoff or counterclaim. All payments hereunder shall be made in U.S. Dollars, other than
payments of interest and principal made in respect of Advances denominated in a Permitted Non-USD Currency, which shall be made in such
Permitted Non-USD Currency. All interest calculated using the Reference Rate (other than the CDOR Rate) hereunder shall be computed on
the basis of a year of 360 days and all interest calculated using the Base Rate or the CDOR Rate hereunder shall be computed on the basis
of a year of 365 days in each case, payable for the actual number of days elapsed (including the first day but excluding the last day).

 

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(b)                If after
receipt of an invoice from the Administrative Agent pursuant to Section 4.06(a) and at least two (2) Business Days prior to any Interest
Payment Date or the Maturity Date or an Additional Distribution Date, the Collateral Administrator shall have notified the Company, the
Collateral Agent and the Administrative Agent that the Company does not have a sufficient amount of funds in a Permitted Currency on deposit
in the applicable Accounts that will be needed (1) to pay to the Lenders all of the amounts required to be paid on such date and/or (2)
to pay any expenses required to be paid in accordance with the Priority of Payments, in each case, in such Permitted Currency as required
for such payment (a "Currency Shortfall"), then, so long as no Event of Default shall have occurred and be continuing
and no Market Value Event has occurred, the Company shall exchange (or shall direct the Collateral Agent to exchange) amounts in the other
Permitted Currency in any Permitted CAD Account, any Permitted EUR Account, any Permitted GBP Account or the Collection Account, as applicable,
for the Permitted Currency in respect of which there is a Currency Shortfall in an amount necessary to cure such Currency Shortfall. Each
such exchange shall occur no later than one Business Day prior to such Interest Payment Date or Additional Distribution Date or the Maturity
Date, as applicable, and shall be made at the Spot Rate at the time of conversion. If for any reason the Company shall have failed to
effect any such currency exchange by the Business Day prior to such date, then the Administrative Agent shall be entitled to (but shall
not be obligated to) direct such currency exchange on behalf of the Company.

 

(c)                At any
time following the occurrence of a Market Value Event or if an Event of Default has occurred and is continuing, the Administrative Agent
may in its sole discretion direct the Collateral Agent to exchange amounts held in any Permitted CAD Account, any Permitted EUR Account
or any Permitted GBP Account for USD, or exchange amounts in the Collection Account for any Permitted Non-USD Currency, in each case,
at the Spot Rate for application hereunder.

 

Section
4.07.        Termination or Reduction of Financing Commitments.

 

(a)               
After the Non-Call Period (or any other date if JPMorgan Chase Bank, National Association ceases to act as Administrative Agent
or a Non-Call Termination Event has occurred), the Company shall be entitled at its option, subject to the payment of the premium described
in Section 4.03(c)(ii), and upon three (3) Business Days' prior written notice to the Administrative Agent (with a copy to the
Collateral Agent and the Collateral Administrator) to either (i) terminate the Financing Commitments in whole upon payment in full of
all Advances, all accrued and unpaid interest, all applicable premium and all other Secured Obligations (other than unmatured contingent
indemnification and reimbursement obligations) or (ii) reduce in part the portion of the Financing Commitments that exceeds the sum of
the outstanding Advances. In addition, the Financing Commitments shall be automatically and irrevocably reduced by the amount of any prepayment
of Advances pursuant to Section 4.03(c)(i)(C) during the Reinvestment Period that exceeds the Excess Funded Amount.

 

(b)               
The Financing Commitments shall be automatically and irrevocably reduced on the date of any prepayment made in accordance with
the definition of "Market Value Cure" or in connection with the cure of a Default described in Article VII(n) in an amount equal
to the amount of such prepayment.

 

(c)               
[Reserved].

 

(d)               
All unused Financing Commitments as of the last day of the Reinvestment Period shall automatically be terminated.

 

(e)               
The Financing Commitments shall be irrevocably reduced by the amount of any repayment or prepayment of Advances following the last
day of the Reinvestment Period.

 

    - 51 -

     

    

 

Article
V

THE PORTFOLIO MANAGER

 

Section
5.01.        Appointment and Duties of the Portfolio Manager.
The Company hereby appoints the Portfolio Manager as its portfolio manager under this Agreement and to perform the investment management
functions of the Company set forth herein, and the Portfolio Manager hereby accepts such appointment. For so long as no Market Value Event
has occurred and subject to Section 1.04, the services to be provided by the Portfolio Manager shall consist of (x) selecting,
purchasing, managing and directing the investment, reinvestment, substitution and disposition of Portfolio Investments, delivering Notices
of Acquisition on behalf of and in the name of the Company and (y) acting on behalf of the Company for all other purposes hereof and the
transactions contemplated hereby. The Portfolio Manager agrees to comply with all covenants and restrictions imposed on the Company herein
and in each other Loan Document. The Company hereby irrevocably appoints the Portfolio Manager its true and lawful agent and attorney-in-fact
(with full power of substitution) in its name, place and stead and at its expense, in connection with the performance of its duties provided
for herein. Without limiting the foregoing:

 

(a)               
The Portfolio Manager shall perform its obligations hereunder with reasonable care, using a degree of skill not less than that
which the Portfolio Manager exercises with respect to assets of the nature of the Portfolio Investments that it manages for itself and
others having similar investment objectives and restrictions; and

 

(b)               
The Portfolio Manager shall not (and shall not cause the Company to) take any action that it knows or reasonably should know would
(1) violate the constituent documents of the Company, (2) violate any law, rule or regulation applicable to the Company that would reasonably
be expected to result in a Material Adverse Effect, (3) require registration of the Company as an "investment company" under
the Investment Company Act of 1940, or (4) cause the Company to violate the terms of this Agreement or any instruments relating to the
Portfolio Investments in any material respect.

 

The Portfolio Manager may employ third parties (including
its Affiliates) to render advice (including investment advice) and assistance to the Company and to perform any of the Portfolio Manager's
duties hereunder, provided that the Portfolio Manager shall not be relieved of any of its duties or liabilities hereunder regardless
of the performance of any services by third parties.

 

Section
5.02.        Portfolio Manager Representations As to Eligibility Criteria; Etc. The
Portfolio Manager represents to the other parties hereto that (a) as of the Trade Date and Settlement Date for each Portfolio Investment
purchased and the Substitution Date for each Substitute Portfolio Investment, such Portfolio Investment meets all of the applicable Eligibility
Criteria (unless otherwise consented to by the Administrative Agent) and, except as otherwise permitted hereunder, the Concentration Limitations
(as defined on Schedule 4) shall be satisfied, or if not satisfied immediately prior to such Purchase or Substitution, maintained
or improved, after the consummation of the related Purchase or Substitution (unless otherwise consented to by the Administrative Agent)
and (b) all of the information contained in the related Notice of Acquisition is true, correct and complete in all material respects;
provided that, to the extent any such information was furnished to the Company by any third party, such information is as of its
delivery date true, complete and correct in all material respects to the knowledge of the Portfolio Manager.

 

    - 52 -

     

    

 

Section
5.03.        Limitation of Liability; Indemnification.

 

(a)               
None of the Portfolio Manager, its Affiliates (other than, for the avoidance of doubt, the Company and the Permitted Subsidiary
to the extent provided in the Loan Documents) and their respective partners, members, managers, stockholders, directors, officers, employees
and agents (each a "Portfolio Manager Party") will be liable to the Company, the Administrative Agent, the Collateral
Agent, the Collateral Administrator, the Securities Intermediary, the Financing Providers or any other Person for any all expenses, losses,
damages, liabilities, demands, charges or claims of any kind or nature whatsoever (including reasonable attorneys' fees and accountants'
fees and costs and expenses relating to investigating or defending any demands, charges and claims) ("Losses") incurred,
or for any decrease in the value of the Collateral as a result of, the actions taken or recommended, or for any omissions (including,
with respect to the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Securities Intermediary, the Administrative
Agent or any Financing Provider, any failure to timely grant any consent requested by the Portfolio Manager) by, the Portfolio Manager,
its Affiliates or their respective partners, members, managers, stockholders, directors, officers, employees or agents under or in connection
with this Agreement, except that the Portfolio Manager shall be so liable as and to the extent such Losses arise out of or in connection
with any Portfolio Manager Breach.

 

As used herein, "Portfolio Manager Breach"
means the gross negligence, willful misconduct or bad faith on the part of the Portfolio Manager under or in connection with this Agreement.

 

(b)               
To the extent permitted by Applicable Law, the Portfolio Manager shall indemnify and hold harmless the Agents, the Collateral Administrator
and the Financing Providers and their respective Affiliates, directors, officers, stockholders, partners, agents, employees and controlling
persons (each an "Indemnified Person") from and against any and all Losses awarded against or incurred by such Indemnified
Person resulting from any Portfolio Manager Breach, excluding, however, any Losses to the extent resulting from the gross negligence,
willful misconduct or bad faith on the part of such Indemnified Person.

 

(c)               
Any amounts subject to the indemnification provisions of this Section 5.03 shall be paid by the Portfolio Manager to the
Administrative Agent on behalf of the applicable Indemnified Person within 30 Business Days following receipt by the Portfolio Manager
of the Administrative Agent's written demand therefor (and the Administrative Agent shall pay such amounts to the applicable Indemnified
Person promptly after the receipt by the Administrative Agent of such amounts). The Administrative Agent, on behalf of any Indemnified
Person making a request for indemnification under this Section 5.03, shall submit to the Portfolio Manager a certificate setting
forth in reasonable detail the basis for and the computations of the Losses with respect to which such indemnification is requested, which
certificate shall be conclusive absent demonstrable error.

 

(d)               
If the Portfolio Manager has made any indemnity payments to the Administrative Agent, on behalf of an Indemnified Person, pursuant
to this Section 5.03 and such Indemnified Person thereafter collects any of such amounts from others, such Indemnified Person will
promptly repay such amounts collected to the Portfolio Manager.

 

(e)               
The Portfolio Manager shall not have any liability for making indemnification hereunder to the extent any such indemnification
constitutes recourse for uncollectible or uncollected Portfolio Investments, results from or relates to the performance of one or more
Portfolio Investments or any decision by the Portfolio Manager to acquire or sell or refrain from acquiring or selling a Portfolio Investments
or for special, punitive, indirect, consequential or incidental damages (including but not limited to lost profits). Any indemnification
pursuant to this Section 5.03 shall not be payable from the Collateral.

 

(f)                
This Section 5.03 shall survive the termination of this Agreement and the repayment of all amounts owing to the Financing
Providers, the Collateral Administrator and Agents hereunder.

 

    - 53 -

     

    

 

Article
VI

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section
6.01.        Representations and Warranties.
The Company (and, (i) with respect to clauses (a) through (e), (l), (n), (t) through (v) and (dd), the Portfolio Manager and (ii) the
Permitted Subsidiary) represents to the other parties hereto solely with respect to itself (and, in the case of the Company, other than
with respect to clauses (s), (cc) and (dd), the Permitted Subsidiary as of each Trade Date, if applicable) that as of the date of the
Fifth A&R Effective Date and each Trade Date (or as of such other date as maybe expressly set forth below): 

 

(a)               
it is duly organized or incorporated, as the case may be, and validly existing under the laws of the jurisdiction of its organization
or incorporation and has all requisite power and authority to execute, deliver and perform this Agreement and each other Loan Document
to which it is or may become a party and to consummate the transactions herein and therein contemplated;

 

(b)               
the execution, delivery and performance of this Agreement and each such other Loan Document, and the consummation of the transactions
contemplated therein have been duly authorized by it and this Agreement and each other Loan Document to which it is or may become a party
constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms (subject to (A) bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors' rights generally, (B) equitable limitations on the availability
of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law and (C) implied covenants
of good faith and fair dealing);

 

(c)               
the execution, delivery and performance of this Agreement and each other Loan Document to which it is or may become a party and
the consummation of such transactions do not conflict with the provisions of its governing instruments and, except where such violation
would not reasonably be expected to have a Material Adverse Effect, will not violate in any material way any provisions of Applicable
Law or regulation or any applicable order of any court or regulatory body and will not result in the material breach of, or constitute
a default, or require any consent, under any material agreement, instrument or document to which it is a party or by which it or any of
its property may be bound or affected;

 

(d)               
it is not subject to any Adverse Proceeding;

 

(e)               
it has obtained all consents and authorizations (including all required consents and authorizations of any Governmental Authority)
that are necessary or advisable to be obtained by it in connection with the execution, delivery and performance of this Agreement and
each other Loan Document to which it is or may become a party and each such consent and authorization is in full force and effect except
where the failure to do so would not reasonably be expected to have a Material Adverse Effect;

 

    - 54 -

     

    

 

(f)                
it is not required to register as an "investment company" as defined in the Investment Company Act of 1940, as amended;

 

(g)               
it has not issued any securities that are or are required to be registered under the Securities Act of 1933, as amended, and it
is not a reporting company under the Securities Exchange Act of 1934, as amended;

 

(h)               
it has no Indebtedness other than (i) Indebtedness incurred under the terms of the Loan Documents, (ii) Indebtedness incurred pursuant
to certain ordinary business expenses arising pursuant to the transactions contemplated by this Agreement and the other Loan Documents
and (iii) if applicable, the obligation to make future payments under any Delayed Funding Term Loan or Revolving Loan;

 

(i)                
(x) it does not have underlying assets which constitute "plan assets" within the meaning of the Plan Asset Rules; and
(y) it has not within the last six years sponsored, maintained, contributed to, or been required to contribute to and does not have any
material liability with respect to any Plan;

 

(j)                
as of the Fifth A&R Effective Date it is, and after giving effect to any Advance it will be, Solvent and it is not entering
into this Agreement or any other Loan Document or consummating any transaction contemplated hereby or thereby with any intent to hinder,
delay or defraud any of its creditors;

 

(k)               
it is not in default under any other contract to which it is a party except where such default would not reasonably be expected
to have a Material Adverse Effect;

 

(l)                
it has complied in all material respects with all Applicable Laws, judgments, agreements with governmental authorities, decrees
and orders with respect to its business and properties and the Portfolio;

 

(m)             
it does not have any Subsidiaries (other than, solely with respect to the Company, the Permitted Subsidiary), or own any Investments
in any Person other than the Portfolio Investments or Investments (i) constituting Eligible Investments (as measured at their time of
acquisition), (ii) acquired by the Company with the approval of the Administrative Agent, or (iii) those the Company shall have acquired
or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring or similar process or proceeding involving
a Portfolio Investment or any issuer thereof;

 

(n)               
(x) it has disclosed to the Administrative Agent all agreements, instruments and corporate or other restrictions to which it is
subject, and all other matters actually known to it, without inquiry, that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Effect, (y) no information (other than projections, forward-looking information, general economic data
or industry information) heretofore furnished by or on behalf of the Company in writing to the Administrative Agent or any Lender in connection
with this Agreement or any transaction contemplated hereby (after taking into account all updates, modifications and supplements to such
information) contains (or, to the extent any such information was furnished by or relating to a third party, to the Company's or the Portfolio
Manager's knowledge contains), when taken as a whole, as of its delivery date, any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading
and (z) as of the Fifth A&R Effective Date, to the best knowledge of the Company, the information included in the Beneficial Ownership
Certification provided on or prior to the Fifth A&R Effective Date to any Lender in connection with this Agreement is true and correct
in all respects;

 

    - 55 -

     

    

 

(o)               
[Reserved];

 

(p)               
it has timely filed all Tax returns required by Applicable Law to have been filed by it; all such Tax returns are true and correct
in all material respects; and it has paid or withheld (as applicable) all Taxes owing or required to be withheld by it (if any) shown
on such Tax returns, except any such Taxes which are being contested in good faith by appropriate proceedings and for which adequate reserves
shall have been set aside in accordance with GAAP on its books and records;

 

(q)               
each of the Company and the Permitted Subsidiary is and will be treated as a disregarded entity or partnership for U.S. federal
income tax purposes;

 

(r)                
the Company is and will be wholly owned by the Parent, and the Permitted Subsidiary is and will be wholly owned by the Company,
each of which is a U.S. Person;

 

(s)                
prior to the Fifth A&R Effective Date, the Company has not engaged in any business operations or activities other than as an
ownership entity for Portfolio Investments and similar loan or debt obligations and activities incidental thereto;

 

(t)                
neither it nor any of its Affiliates is (i) the subject or target of Sanctions; (ii) a Person that resides or has a place of business
in a country or territory named on such lists or which is designated as a "Non-Cooperative Jurisdiction" by the Financial Action
Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (iii) a "Foreign
Shell Bank" within the meaning of the PATRIOT Act, i.e., a foreign bank that does not have a physical presence in any country and
that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv) a person
or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under
Sections 311 or 312 of the PATRIOT Act as warranting special measures due to money laundering concerns. It is in compliance with all applicable
Sanctions and also in compliance with all applicable provisions of the PATRIOT Act;

 

(u)               
the Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, its agents
and their respective directors, managers, officers and employees (as applicable) with Anti-Corruption Laws and applicable Sanctions, and
the Company and its officers and directors and, to its knowledge, its employees, members and agents are in compliance with Anti-Corruption
Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected
to result in the Company being designated as a Sanctioned Person. None of (i) the Company or its officers and employees or (ii) to the
knowledge of the Company, any manager or agent of the Company that will act in any capacity in connection with or benefit from the credit
facility established hereby, is a Sanctioned Person;

 

(v)               
the Loan Documents represent all of the material agreements between the Portfolio Manager, the Parent and the Permitted Subsidiary,
on the one hand, and the Company, on the other. The Company (or, in the case of Subsidiary Investments, the Permitted Subsidiary) has
good and marketable title to all Portfolio Investments and other Collateral free of any Liens (other than Liens in favor of the Secured
Parties pursuant to the Loan Documents, Permitted Liens and inchoate liens arising by operation of law);

 

    - 56 -

     

    

 

(w)             
it is not relying on any advice (whether written or oral) of any Lender, the Administrative Agent or any of their Affiliates;

 

(x)               
there are no judgments for Taxes with respect to the Company and no claim is being asserted in writing with respect to the Taxes
of the Company;

 

(y)               
all proceeds of the Advances will be used by the Company only in accordance with the provisions of this Agreement. No part of the
proceeds of any Advance will be used by the Company to purchase or carry any Margin Stock or to extend credit to others for the purpose
of purchasing or carrying Margin Stock. Neither the making of any Advance nor the use of the proceeds thereof will violate or be inconsistent
with the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve Board. No Advance is secured, directly or
indirectly, by Margin Stock, and the Collateral does not include Margin Stock;

 

(z)               
[Reserved];

 

(aa)            
[Reserved];

 

(bb)           
upon the making of each Advance, the Collateral Agent, for the benefit of the Secured Parties, will have acquired a perfected,
first priority and valid security interest (except, as to priority, for any Permitted Liens) in such Collateral, free and clear of any
adverse claim (other than Permitted Liens) or restrictions on transferability, to the extent (as to perfection and priority) that a security
interest in said Collateral may be perfected under the applicable UCC;

 

(cc)            
the Parent (i) is not required to register as an investment company under the Investment Company Act of 1940, as amended, and (ii)
has elected to be treated a business development corporation for purposes of the Investment Company Act of 1940, as amended;

 

(dd)           
the Portfolio Manager is not required to register as an investment adviser under the Investment Advisers Act of 1940, as amended;

 

(ee)            
the constituent documents of the Permitted Subsidiary restrict its activities to the origination, acquisition, holding and disposition
of Subsidiary Investments and activities incidental or related thereto; and

 

(ff)              
the Company is the sole legal and beneficial owner of all equity interests in the Permitted Subsidiary.

 

Section
6.02.        Covenants of the Company.
The Company:

 

(a)               
shall at all times (and shall ensure that the Permitted Subsidiary shall at all times): (i) maintain at least one independent manager
or director (who is in the business of serving as an independent manager or director); (ii) maintain its own separate books and records
and bank accounts; (iii) hold itself out to the public and all other Persons as a legal entity separate from any other Person (provided
that this clause (iii) shall not bind the Company's position for Tax purposes); (iv) have a board of managers separate from that of any
other Person; (v) file its own Tax returns, except to the extent that the Company is treated as a "disregarded entity" for Tax
purposes and is not required to file Taxes under Applicable Law, and pay any Taxes so required to be paid under Applicable Law, except
for those Taxes being contested in good faith by appropriate proceedings and in respect of which the Company has established proper reserves
on its books in accordance with GAAP; (vi) not commingle its assets with assets of any other Person; (vii) conduct its business in its
own name and comply with all organizational formalities to maintain its separate existence (provided that this clause (vii) shall
not bind the Company's position for Tax purposes); (viii) maintain separate financial statements; (ix) pay its own liabilities only out
of its own funds; (x) maintain an arm's length relationship with the Parent and each of its other Affiliates; (xi) not hold out its credit
or assets as being available to satisfy the obligations of others; (xii) allocate fairly and reasonably any overhead expenses that are
shared with an Affiliate, including for shared office space; (xiii) use separate stationery, invoices and checks; (xiv) except as expressly
permitted by this Agreement, not pledge its assets as security for the obligations of any other Person; (xv) correct any known misunderstanding
regarding its separate identity (provided that this clause (xv) shall not bind the Company's position for Tax purposes); (xvi)
maintain adequate capital in light of its contemplated business purpose, transactions and liabilities and pay its operating expenses and
liabilities from its own assets; (xvii) not acquire the obligations or any securities of its Affiliates; (xviii) cause the managers, officers,
agents and other representatives of the Company to act at all times with respect to the Company consistently and in furtherance of the
foregoing and in the best interests of the Company; and (xix) maintain at least one special member, who, upon the dissolution of the sole
member or the withdrawal or the disassociation of the sole member from the Company, shall immediately become the member of the Company
in accordance with its organizational documents.

 

    - 57 -

     

    

 

(b)               
shall not (i) engage, directly or indirectly, in any business, other than the actions required or permitted to be performed under
the preceding clause (a), including, other than with respect to any warrants received in connection with a Portfolio Investment, controlling
the decisions or actions respecting the daily business or affairs of any other Person except as otherwise permitted hereunder (which,
for the avoidance of doubt, shall not prohibit the Company from taking, or refraining to take, any action under or with respect to a Portfolio
Investment); (ii) fail to be Solvent; (iii) release, sell, transfer, convey or assign any Portfolio Investment (or permit the Permitted
Subsidiary to take any such action) unless in accordance with the Loan Documents; (iv) except for capital contributions or capital distributions
permitted under the terms and conditions of this Agreement and properly reflected on the books and records of the Company, enter into
any transaction with an Affiliate of the Company except on commercially reasonable terms similar to those available to unaffiliated parties
in an arm's-length transaction; (v) identify itself as a department or division of any other Person; or (vi) own any asset or property
other than the Collateral and the related assets and incidental personal property necessary for the ownership or operation of these assets.

 

(c)               
shall take all actions consistent with and shall not take any action contrary to the "Facts and Assumptions" sections
in the opinions of Dechert LLP, dated as of the Original Effective Date, relating to certain true sale and non-consolidation matters;

 

(d)               
shall not create, incur, assume or suffer to exist any Indebtedness (and shall not permit the Permitted Subsidiary to do so) other
than (i) Indebtedness incurred under the terms of the Loan Documents, (ii) Indebtedness incurred pursuant to certain ordinary business
expenses arising pursuant to the transactions contemplated by this Agreement and the other Loan Documents and (iii) if applicable, the
obligation to make future payments under any Delayed Funding Term Loan or Revolving Loan;

 

(e)               
shall comply with all Anti-Corruption Laws and applicable Sanctions and shall maintain in effect and enforce policies and procedures
designed to ensure compliance by the Company and its managers, officers, employees and agents with Anti-Corruption Laws and applicable
Sanctions;

 

(f)                
(i) shall not amend any of its constituent documents or any document to which it is a party in any manner that would reasonably
be expected to adversely affect the Lenders in any material respect without the prior written consent of the Administrative Agent and
(ii) shall not amend or permit the Permitted Subsidiary to amend any of its constituent documents or any document to which it is a party
in any manner (other than an amendment of a purely administrative or clerical nature) without the prior written consent of the Administrative
Agent);

 

    - 58 -

     

    

 

(g)               
[Reserved];

 

(h)               
shall not (and shall not permit the Permitted Subsidiary to), without the prior consent of the Administrative Agent (acting at
the direction of the Required Financing Providers), which consent may be withheld in the sole and absolute discretion of the Required
Financing Providers, enter into any hedge agreement;

 

(i)                
shall not (and shall ensure that the Permitted Subsidiary does not) change its name, identity or entity structure in any manner
that would make any financing statement or continuation statement filed by the Company or the Permitted Subsidiary (or by the Collateral
Agent on behalf of the Company or the Permitted Subsidiary) in accordance with subsection (a) above materially misleading or change its
jurisdiction of organization, unless the Company or the Permitted Subsidiary shall have given the Administrative Agent and the Collateral
Agent at least 30 days prior written notice thereof, and shall promptly file, or authorize the filing of, appropriate amendments to all
previously filed financing statements and continuation statements (and shall provide a copy of such amendments to the Collateral Agent
and Administrative Agent together with written confirmation to the effect that all appropriate amendments or other documents in respect
of previously filed statements have been filed);

 

(j)                
shall do or cause to be done all things reasonably necessary to (i) preserve and keep in full force and effect its existence as
a limited liability company (and the Permitted Subsidiary's existence as a limited liability company) and take all reasonable action to
maintain its and the Permitted Subsidiary's rights, franchises, licenses and permits material to its business or the Permitted Subsidiary's
business in its applicable jurisdiction of its formation, (ii) qualify and remain qualified as a limited liability company in good standing
in each jurisdiction where the failure to qualify and remain qualified would reasonably be expected to have a Material Adverse Effect
and (iii) cause the Permitted Subsidiary to qualify and remain qualified as a limited liability company in good standing in each jurisdiction
where the failure to qualify and remain qualified would reasonably be expected to have a Material Adverse Effect;

 

(k)               
shall comply (and shall cause the Permitted Subsidiary to comply) with all Applicable Law (whether statutory, regulatory or otherwise),
except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect;

 

(l)                
shall not merge (and shall not permit the Permitted Subsidiary to) into or consolidate with any person or dissolve, terminate or
liquidate in whole or in part, in each case, without the prior written consent of the Administrative Agent;

 

(m)             
except for the Permitted Subsidiary and Investments permitted by Section 6.02(u)(C) and without the prior written consent
of the Administrative Agent, shall not form, or cause to be formed, any Subsidiaries; or make or suffer to exist (or permit the Permitted
Subsidiary to make or suffer to exist) any loans or advances to, or extend any credit to, or make any investments (by way of transfer
of property, contributions to capital, purchase of stock or securities or evidences of indebtedness, acquisition of the business or assets,
or otherwise) in, any Affiliate or any other Person except investments as otherwise permitted herein and pursuant to the other Loan Documents;

 

(n)               
shall ensure that (i) its affairs and the Permitted Subsidiary's affairs are conducted so that its underlying assets do not constitute
 "plan assets" within the meaning of the Plan Asset Rules, and (ii) it and the Permitted Subsidiary do not sponsor, maintain,
contribute to or become required to contribute to or have any liability with respect to any Plan;

 

    - 59 -

     

    

 

(o)               
except for the security interest granted hereunder, under the Equity Pledge Agreement and the Asset Pledge Agreement and as otherwise
permitted hereunder, shall not (and shall not permit the Permitted Subsidiary to) sell, pledge, assign or transfer to any other Person,
or grant, create, incur, assume or suffer to exist any Lien on the Collateral or the Subsidiary Investments or any interest therein (other
than Liens in favor of the Secured Parties pursuant to the Loan Documents, Permitted Liens and inchoate liens arising by operation of
law), and the Company shall defend the right, title, and interest of the Collateral Agent (for the benefit of the Secured Parties) and
the Lenders in and to the Collateral and the Subsidiary Investments against all claims of third parties claiming through or under the
Company or the Permitted Subsidiary (other than Liens in favor of the Secured Parties pursuant to the Loan Documents, Permitted Liens
and inchoate liens arising by operation of law);

 

(p)               
shall promptly furnish to the Administrative Agent, and the Administrative Agent shall furnish to the Lenders, copies of the following
financial statements, reports and information: (i) as soon as available, but in any event within 120 days after the end of each fiscal
year of the Parent, a copy of the audited consolidated and consolidating balance sheet of the Parent and its consolidated Subsidiaries
as at the end of such year, the related consolidated and consolidating statements of income for such year and the related consolidated
statements of changes in net assets and of cash flows for such year, setting forth in each case in comparative form the figures for the
previous year; provided, that the financial statements required to be delivered pursuant to this clause (i) which are made available
via EDGAR, or any successor system of the Securities Exchange Commission, in the Parent's annual report on Form 10-K, shall be deemed
delivered to the Administrative Agent on the date such documents are made so available; (ii) as soon as available and in any event within
45 days after the end of each fiscal quarter of each fiscal year (other than the last fiscal quarter of each fiscal year), an unaudited
consolidated and consolidating balance sheet of the Parent and its consolidated Subsidiaries as of the end of such fiscal quarter and
including the prior comparable period (if any), and the unaudited consolidated and consolidating statements of income of the Parent and
its consolidated Subsidiaries for such fiscal quarter and for the period commencing at the end of the previous fiscal year and ending
with the end of such fiscal quarter, and the unaudited consolidated statements of cash flows of the Parent and its consolidated Subsidiaries
for the period commencing at the end of the previous fiscal year and ending with the end of such fiscal quarter; provided, that
the financial statements required to be delivered pursuant to this clause (ii) which are made available via EDGAR, or any successor system
of the Securities Exchange Commission, in Parent's quarterly report on Form 10-Q, shall be deemed delivered to the Administrative Agent
on the date such documents are made so available; and (iii) from time to time, such other information or documents (financial or otherwise)
as the Administrative Agent or the Required Financing Providers may reasonably request so long as such information is within the possession
of the Company or may be obtained with neither undue burden nor expense;

 

(q)               
shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all Taxes levied or imposed
upon the Company; provided that the Company shall not be required to pay or discharge or cause to be paid or discharged any such
Tax (i) the amount, applicability or validity of which is being contested in good faith by appropriate proceedings and for which disputed
amounts adequate reserves in accordance with GAAP have been made or (ii) the failure of which to pay or discharge could not reasonably
be expected to have a Material Adverse Effect, and shall cause the Permitted Subsidiary to take all such actions;

 

(r)                
shall permit representatives of the Administrative Agent at any time and from time to time as the Administrative Agent shall reasonably
request (A) to inspect and make copies of and abstracts from its records relating to the Portfolio Investments and (B) to visit its properties
in connection with the collection, processing or managing of the Portfolio Investments for the purpose of examining such records, and
to discuss matters relating to the Portfolio Investments or such Person's performance under this Agreement and the other Loan Documents
with any officer or employee or auditor (if any) of such Person having knowledge of such matters. The Company agrees to render to the
Administrative Agent such clerical and other assistance as may be reasonably requested with regard to the foregoing; provided that
such assistance shall not interfere in any material respect with the Company's or the Portfolio Manager's business and operations. So
long as no Event of Default has occurred and is continuing, such visits and inspections shall occur only (i) upon five (5) Business Days'
prior written notice, (ii) during normal business hours and (iii) no more than once in any calendar year. During the existence of an Event
of Default, there shall be no limit on the timing or number of such inspections and only one (1) Business Day' prior notice will be required
before any inspection;

 

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(s)                
shall not use (and shall not permit the Permitted Subsidiary to use) any part of the proceeds of any Advance, whether directly
or indirectly, for any purpose that entails a violation of any of the regulations of the Board of Governors of the Federal Reserve System
of the United States of America, including Regulations T, U and X;

 

(t)                
shall not make any Restricted Payments without the prior written consent of the Administrative Agent; provided that (A)
the Company may make Permitted Distributions subject to the other requirements of this Agreement and (B) the Company may make Permitted
Tax Distributions so long as (i) after giving effect to such Permitted Tax Distribution, the Borrowing Base Test is satisfied, (ii) the
Company gives at least two (2) Business Days prior notice thereof to the Administrative Agent and (iii) if Permitted Tax Distributions
are made after the occurrence and during the continuance of an Event of Default, the aggregate amount of all Permitted Tax Distributions
made in any 90 calendar day period (after giving effect to such Permitted Tax Distribution) is not greater than $1,500,000;

 

(u)               
shall not make or hold any Investments, except its equity interest in the Permitted Subsidiary, the Portfolio Investments or Investments
(A) constituting Eligible Investments (measured at the time of acquisition), (B) that have been consented to by the Administrative Agent,
(C) those the Company shall have acquired or received as a distribution in connection with a workout, bankruptcy, foreclosure, restructuring
or similar process or proceeding involving a Portfolio Investment or any issuer thereof or (D) received in connection with making an Eligible
Investment;

 

(v)               
shall not request any Advance, and shall not directly, or to the knowledge of the Company, indirectly, use, and shall procure that
its agents shall not directly, or to the knowledge of the Company, indirectly, use, the proceeds of any Advance (A) in furtherance of
an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation
of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with
any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the violation of any Sanctions applicable
to any party hereto, and shall not permit the Permitted Subsidiary to take any such action;

 

(w)             
shall not (and shall ensure that the Permitted Subsidiary does not) acquire any Revolving Loan or Delayed Funding Term Loan if
such acquisition would cause the Unfunded Exposure Amount, collateralized or uncollateralized, to exceed 5% of the Collateral Principal
Amount;

 

(x)               
other than pursuant to the Parent Sale Agreement, shall not transfer to any of its Affiliates any Portfolio Investment purchased
from any of its Affiliates (other than sales to Affiliates and Substitutions conducted on terms and conditions consistent with those of
an arm's length transaction and, if applicable, at fair market value);

 

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(y)               
shall post on a password protected website maintained by the Administrative Agent to which the Portfolio Manager will have access
or deliver via email to the Administrative Agent, with respect to each obligor in respect of a Portfolio Investment, within five (5) Business
Days of the Portfolio Manager's receipt of such information, without duplication of any other reporting requirements set forth in this
Agreement or any other Loan Document, any management discussion and analysis provided by such obligor and any financial reporting packages
with respect to such obligor and with respect to each Portfolio Investment for such obligor (including any attached or included information,
statements and calculations). The Company shall cause the Portfolio Manager to provide such other information as the Administrative Agent
may reasonably request with respect to any Portfolio Investment or obligor (to the extent reasonably available to the Portfolio Manager
with neither undue burden nor expense);

 

(z)               
shall not elect to be classified as other than a disregarded entity or partnership for U.S. federal income tax purposes, nor shall
the Company take any other action or actions that would cause it to be classified, taxed or treated as a corporation or publicly traded
partnership taxable as a corporation for U.S. federal income tax purposes (including transferring interests in the Company on or through
an established securities market or secondary market (or the substantial equivalent thereof), within the meaning of Section 7704(b) of
the Code (and Treasury regulations thereunder) and shall cause the Permitted Subsidiary to be classified as a disregarded entity or partnership
for U.S. federal income tax purposes;

 

(aa)            
shall only have partners or owners that are treated as U.S. Persons or that are disregarded entities owned by a U.S. Person and
shall not recognize the transfer of any interest in the Company that constitutes equity for U.S. federal income tax purposes to a person
that is not a U.S. Person;

 

(bb)           
shall from time to time execute and deliver all such supplements and amendments hereto and all such financing statements, continuation
statements, instruments of further assurance and other instruments, and shall take such other action as may be reasonably necessary to
secure the rights and remedies of the Secured Parties hereunder and to grant more effectively all or any portion of the Collateral, maintain
or preserve the security interest (and the priority thereof) of this Agreement or to carry out more effectively the purposes hereof, perfect,
publish notice of or protect the validity of any grant made or to be made by this Agreement, preserve and defend title to the Collateral
and the rights therein of the Collateral Agent and the Secured Parties in the Collateral and the Collateral Agent against the claims of
all persons and parties, pay any and all Taxes levied or assessed upon all or any part of the Collateral and use its commercially reasonable
efforts to minimize Taxes and any other costs arising in connection with its activities or give, execute, deliver, file and/or record
any financing statement, notice, instrument, document, agreement or other papers that may be necessary or desirable to create, preserve,
perfect or validate the security interest granted pursuant to this Agreement or to enable the Collateral Agent to exercise and enforce
its rights hereunder with respect to such pledge and security interest, and hereby authorizes the Collateral Agent to file a UCC financing
statement listing 'all assets of the debtor' in the collateral description of such financing statement and shall ensure that the Permitted
Subsidiary takes all such actions with respect to its assets and the Asset Pledge Agreement;

 

(cc)            
shall use all commercially reasonable efforts to elevate all Participation Interests granted under the Parent Sale Agreement to
absolute assignments within the applicable then-current standard settlement timeframes set forth in LSTA guidelines;

 

(dd)           
[Reserved];

 

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(ee)            
shall not (and shall not permit the Permitted Subsidiary to) become liable in any way, whether directly or by assignment or as
a guarantor or other surety, for the obligations of a lessee under any lease, hire any employees or make any distributions (other than
in accordance with the Loan Documents);

 

(ff)              
shall not maintain any bank accounts or securities accounts other than the Accounts, the Permitted CAD Accounts, the Permitted
EUR Accounts and the Permitted GBP Accounts and shall not permit the Permitted Subsidiary to maintain any bank accounts or securities
accounts other than the Pledged Accounts;

 

(gg)            
shall not act on behalf of, a country, territory, entity or individual that, at the time of such act, is the subject or target
of Sanctions, and none of the Company, the Portfolio Manager or any of their respective Affiliates, owners, directors or officers is a
natural person or entity with whom dealings are prohibited under Sanctions for a natural person or entity required to comply with such
Sanctions. The Company does not own and will not acquire, and the Portfolio Manager will not cause the Company to own or acquire, any
security issued by, or interest in, any country, territory, or entity whose direct ownership would be or is prohibited under Sanctions
for a natural person or entity required to comply with Sanctions;

 

(hh)           
shall not permit the Permitted Subsidiary to Purchase any Subsidiary Investment that is not held for the benefit of, or intended
to be transferred to, the Company or the Parent;

 

(ii)              
except as otherwise expressly permitted herein, shall not (and shall not permit the Permitted Subsidiary to) cancel or terminate
any of the underlying instruments in respect of a Portfolio Investment to which it is party or beneficiary (in any capacity), or consent
to or accept any cancellation or termination of any of such agreements unless (in each case) the Administrative Agent shall have consented
thereto in its sole discretion; and

 

(jj)              
shall give notice to the Administrative Agent promptly in writing upon (and in no event later than three (3) Business Days (or,
in the case of clause (ii)(y) and (iv) below, one (1) Business Day) after) the Company or the Portfolio Manager has actual knowledge of
the occurrence of any of the following:

 

(i)                
any Adverse Proceeding;

 

(ii)              
any (x) Default or (y) Event of Default;

 

(iii)             
any adverse claim asserted against any of the Permitted Subsidiary, the Portfolio Investments, the Accounts, any Permitted CAD
Account, any Permitted EUR Account, any Permitted GBP Account, the Pledged Accounts or any other Collateral; and

 

(iv)              any
Portfolio Investment becomes an Ineligible Investment.

 

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Section
6.03.        Amendments of Portfolio Investments, Etc.
If the Company or the Portfolio Manager receives any written notice or other written communication concerning any amendment, supplement,
consent, waiver or other modification of any Portfolio Investment or any related underlying instrument or rights thereunder (each, an
 "Amendment") with respect to any Portfolio Investment or any related underlying instrument, or makes any affirmative
determination to exercise or refrain from exercising any rights or remedies thereunder, it will give prompt (and in any event, not later
than three (3) Business Days') notice thereof to the Administrative Agent. In any such event, the Company shall exercise all voting and
other powers of ownership relating to such Amendment or the exercise of such rights or remedies as the Portfolio Manager shall deem appropriate
under the circumstances. If an Event of Default has occurred and is continuing or a Market Value Event has occurred, the Company will
exercise all voting and other powers of ownership as the Administrative Agent (acting at the direction of the Required Financing Providers)
shall instruct (it being understood that if the terms of the related underlying instrument expressly prohibit or restrict any such rights
given to the Administrative Agent, then such right shall be limited to the extent necessary so that such prohibition or restriction is
not violated). In any such case, following the Company's receipt thereof, the Company shall promptly provide to the Administrative Agent
copies of all executed amendments to underlying instruments, executed waiver or consent forms or other documents executed or delivered
in connection with any Amendment.

 

Article
VII

EVENTS OF DEFAULT

 

If any of the following events ("Events of
Default") shall occur:

 

(a)               
the Company shall fail to pay any amount owing by it in respect of the Secured Obligations (whether for principal, interest, fees
or other amounts) when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or otherwise and, in the case of amounts other than principal and interest, such failure continues for a period of one (1) Business
Day (or, in the case of a default in payment resulting solely from an administrative error or omission by the Collateral Agent or from
a Disruption Event, two (2) Business Days) following the earlier of (x) the Company becoming aware of such failure or (y) receipt of written
notice by the Company of such failure;

 

(b)               
any representation or warranty made or deemed made by or on behalf of the Company, the Portfolio Manager, the Permitted Subsidiary
(collectively, the "Credit Risk Parties") or the Parent herein or in any Loan Document or any amendment or modification
thereof or waiver thereunder, or in any report, certificate, or other document (other than projections, forward-looking information, general
economic data, industry information or information relating to third parties) furnished pursuant hereto or in connection herewith or any
amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed
made (it being understood that the failure of a Portfolio Investment to satisfy the Eligibility Criteria after the date of its purchase
shall not constitute a failure) and if such failure is capable of being remedied, such failure shall continue for a period of 30 days
following the earlier of (i) receipt by such Credit Risk Party or the Parent, as applicable, of written notice of such inaccuracy from
the Administrative Agent and (ii) an officer of such Credit Risk Party or the Parent, as applicable, becoming aware of such inaccuracy
(or, if such failure could not reasonably be expected to be cured within 30 days, such Credit Risk Party or the Parent, as applicable,
commences and diligently pursues such cure and such failure is cured within 45 days);

 

(c)               
(A) the Company (or to the extent it is obligated, the Permitted Subsidiary) shall fail to observe or perform any covenant, condition
or agreement contained in Section 6.02(a)(i) through (vii), (xi) or (xix), (b)(i) through (iv),
(d), (f), (h), (i), (l), (m), (o), (t), (v), (dd), (ee) or
(jj) or (B) any Credit Risk Party or the Parent shall fail to observe or perform any other covenant, condition or agreement contained
herein (it being understood that the failure of a Portfolio Investment to satisfy the Eligibility Criteria after the date of its purchase
shall not constitute such a failure) or in any other Loan Document and, in the case of this clause (B), if such failure is capable of
being remedied, such failure shall continue for a period of 30 days following the earlier of (i) receipt by such Credit Risk Party or
the Parent, as applicable, of written notice of such failure from the Administrative Agent and (ii) an officer of such Credit Risk Party
or the Parent, as applicable, becoming aware of such failure (or, if such failure could not reasonably be expected to be cured within
30 days, such Credit Risk Party or the Parent, as applicable, commences and diligently pursues such cure and such failure is cured within
45 days);

 

(d)               
an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of any Credit Risk Party or its debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for any Credit Risk Party or for a substantial part of its assets, and, in any
such case, such proceeding or petition shall continue undismissed for thirty (30) days or an order or decree approving or ordering any
of the foregoing shall be entered;

 

    - 64 -

     

    

 

(e)               
any Credit Risk Party shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or
other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii)
consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (d)
of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for such Credit Risk Party or for a substantial part of its assets, (iv) file an answer admitting the material allegations of
a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action
for the purpose of effecting any of the foregoing;

 

(f)                
any Credit Risk Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

 

(g)               
the passing of a resolution by the equity holders of the Company or the Permitted Subsidiary in respect of the winding up on a
voluntary basis of the Company or the Permitted Subsidiary;

 

(h)               
any final judgments or orders (not subject to appeal or otherwise non-appealable) by one or more courts of competent jurisdiction
for the payment of money in an aggregate amount in excess of U.S.$1,000,000 (after giving effect to insurance, if any, available with
respect thereto) shall be rendered against the Company or the Permitted Subsidiary, and the same shall remain unsatisfied, unvacated,
unbonded or unstayed for a period of sixty (60) days after the date on which the right to appeal has expired;

 

(i)                
an ERISA Event occurs;

 

(j)                
a Change of Control occurs;

 

(k)               
the Company or the arrangements contemplated by the Loan Documents, shall become required to register as an "investment company"
within the meaning of the Investment Company Act of 1940, as amended;

 

(l)                
the Portfolio Manager resigns as Portfolio Manager under this Agreement;

 

(m)              
(i) failure of the Company to fund the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure
Account or the GBP Unfunded Exposure Account when required in accordance with Section 2.03(f) other than in the case that any Lender
fails to make the Advance required in accordance with Section 2.03(f) or (ii) failure of the Company to satisfy its obligations
in respect of unfunded obligations with respect to any Delayed Funding Term Loan or Revolving Loan (including the payment of any amount
in connection with the sale thereof to the extent required under this Agreement) other than if the Company provides the Administrative
Agent with written notice in reasonable detail stating that it has elected not to fund any applicable amount due to a good faith contractual
dispute with respect to the related Portfolio Investment or a determination by the Company that an advance is not required under its underlying
instruments; provided that the failure of the Company to undertake any action set forth in this clause (m) is not remedied within
two Business Days; or

 

    - 65 -

     

    

 

(n)               
the Net Advances exceed the product of (a) 72.5% and (b) Net Asset Value and the failure of the Company to maintain the required
Net Asset Value set forth in this clause (n) is not remedied within one Business Day after the earlier of (x) receipt by the Company and
the Portfolio Manager of written notice of such failure from the Administrative Agent or (y) the date the Company or the Portfolio Manager
has actual knowledge of the occurrence of such excess;

 

then,
and in every such event (other than an event with respect to the Company described in clause (d) or (e) of this Article), and at
any time thereafter in each case during the continuance of such event, the Administrative Agent may, and at the request of the Required
Financing Providers shall, by notice to the Company, take either or both of the following actions, at the same or different times: (i)
terminate the Financing Commitments, and thereupon the Financing Commitments shall terminate immediately, and (ii) declare all of the
Secured Obligations then outstanding to be due and payable in whole (or in part, in which case any Secured Obligations not so declared
to be due and payable may thereafter be declared to be due and payable), and thereupon the Secured Obligations so declared to be due and
payable, together with accrued interest thereon and all fees and other obligations of the Company accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company;
and in case of any event with respect to the Company described in clause (d) or (e) of this Article, the Financing Commitments shall automatically
terminate and all Secured Obligations then outstanding, together with accrued interest thereon and all fees and other obligations of the
Company accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Company.

 

Article
VIII

ACCOUNTS; COLLATERAL SECURITY

 

Section
8.01.        The Accounts; Agreement As to Control.

 

(a)               
Establishment and Maintenance of Accounts. The Company hereby appoints Citibank, N.A. as Securities Intermediary and has
directed and the Securities Intermediary hereby acknowledges that it has established (1) an account designated as the "Custodial
Account", (2) an account designated as the "Collection Account", (3) an account designated as the "MV
Cure Account", (4) an account designated as the "Expense Reserve Account", (5) an account designated as the
 "Unfunded Exposure Account", (6) the CAD Collection Account, (7) the CAD Unfunded Exposure Account, (8) the EUR Collection
Account, (9) the EUR Unfunded Exposure Account, (10) the GBP Collection Account and (11) the GBP Unfunded Exposure Account (each such
account set forth in clauses (1) through (11) above and any successor accounts established in connection with the resignation or removal
of the Securities Intermediary, the "Accounts"), and the account numbers for the Accounts are set forth on the Transaction
Schedule. Promptly upon establishment of each such Permitted EUR Account, the Securities Intermediary shall provide a written notice to
each of the Company, the Portfolio Manager, the Collateral Agent, the Collateral Administrator and the Administrative Agent setting forth
the account name and account number of such account (such notice, the "EUR Account Opening Notice"). Promptly upon establishment
of each such Permitted GBP Account, the Securities Intermediary shall provide a written notice to each of the Company, the Portfolio Manager,
the Collateral Agent, the Collateral Administrator and the Administrative Agent setting forth the account name and account number of such
account (such notice, the "GBP Account Opening Notice"). The Securities Intermediary agrees to maintain each of the Accounts
as a securities intermediary in the name of the Company subject to the lien of the Collateral Agent under this Agreement and (y) agrees
not to change the name or account number of any Account without the prior consent of the Collateral Agent. The Securities Intermediary
hereby certifies that it is a bank or trust company that in the ordinary course of business maintains securities accounts for others and
in that capacity has established the Accounts in the name of the Company.

 

    - 66 -

     

    

 

The parties hereto acknowledge and agree (i) that
the Securities Intermediary (acting through its London Branch) will hold the funds held by it in the CAD Collection Account, the CAD Unfunded
Exposure Account, EUR Collection Account, the EUR Unfunded Exposure Account, GBP Collection Account and the GBP Unfunded Exposure Account
(the "Deposit") in non-interest bearing accounts established by it and (ii) to the extent that the London Branch of the
Securities Intermediary is treated as a Person separate from the New York branch of the Securities Intermediary in connection with its
establishment or maintenance of the CAD Collection Account, the CAD Unfunded Exposure Account, EUR Collection Account, the EUR Unfunded
Exposure Account, GBP Collection Account and the GBP Unfunded Exposure Account by any court or regulatory authority of competent jurisdiction,
that, for all purposes under the this Agreement and the UCC (as defined below), the London Branch is acting as the subcustodian and bailee
of the securities intermediary within the meaning of the UCC. The Securities Intermediary (acting through its London Branch) shall hold
all money forming part of the Deposit as banker and not as trustee or fiduciary and, as a result, such money will not be held as client
money in accordance with applicable local law.

 

(b)               
Collateral Agent in Control of Securities Accounts. Each of the parties hereto hereby agrees that (1) each Account shall
be deemed to be a "securities account" (within the meaning of Section 8-501(a) of the Uniform Commercial Code in effect in the
State of New York (the "UCC")), (2) all property credited to any Account shall be treated as a financial asset for purposes
of Article 8 of the UCC and (3) except as otherwise expressly provided herein, the Collateral Agent will be exclusively entitled to exercise
the rights that comprise each financial asset credited to each Account. The parties hereto agree that the Securities Intermediary shall
act only on entitlement orders or other instructions with respect to the Accounts originated by the Collateral Agent and no other person
(and without further consent by any other person); and the Collateral Agent, for the benefit of the Secured Parties, shall have exclusive
control and the sole right of withdrawal over each Account. The only permitted withdrawals from the Accounts shall be in accordance with
the provisions of this Agreement. Furthermore, the parties hereto agree that the Portfolio Manager may, in its sole discretion, but shall
not be obligated to, direct the Securities Intermediary and the Collateral Agent to withdraw from the Expense Reserve Account and pay
to the Portfolio Manager an amount equal to any and all reasonable costs and expenses incurred on behalf of the Company in connection
with its management, administration and collection activities with respect to the Collateral and in compliance with the terms of this
Agreement; provided that such amount shall not exceed U.S.$100,000 during any Calculation Period.

 

(c)               
Subordination of Lien, Etc. If the Securities Intermediary has or subsequently obtains by agreement, operation of law or
otherwise a security interest in any Account or any security entitlement credited thereto, the Securities Intermediary hereby agrees that
such security interest shall be subordinate to the security interest of the Collateral Agent. The property credited to any Account will
not be subject to deduction, set-off, banker's lien, or any other right in favor of any person other than the Collateral Agent (except
that the Securities Intermediary may set-off (1) all amounts due to the Securities Intermediary in respect of its customary fees and expenses
for the routine maintenance and operation of the Accounts, and (2) the face amount of any checks which have been credited to any Account
but are subsequently returned unpaid because of uncollected or insufficient funds).

 

    - 67 -

     

    

 

(d)               
Property Registered, Indorsed, etc. to Securities Intermediary. All securities or other property represented by a promissory
note or an instrument underlying any financial assets credited to any Account shall be registered in the name of the Securities Intermediary,
indorsed to the Securities Intermediary in blank or credited to another securities account maintained in the name of the Securities Intermediary,
and in no case will any financial asset credited to any Account be registered in the name of the Company, payable to the order of the
Company or specially indorsed to the Company except to the extent the foregoing have been specially indorsed to the Securities Intermediary
or in blank.

 

(e)               
Jurisdiction; Governing Law of Accounts. The establishment and maintenance of each Account and all interests, duties and
obligations related thereto shall be governed by the law of the State of New York and the "securities intermediary's jurisdiction"
(within the meaning of Section 8-110 of the UCC) shall be the State of New York. The parties further agree that the law applicable to
all of the issues in Article 2(1) of The Hague Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an
Intermediary shall be the law of the State of New York. Terms used in this Section 8.01 without definition have the meanings given
to them in the UCC.

 

(f)                
No Duties. The parties hereto acknowledge and agree that the Securities Intermediary shall not have any additional duties
under this Agreement other than those expressly set forth in this Section 8.01, and the Securities Intermediary shall satisfy those
duties expressly set forth in this Section 8.01 so long as it acts without gross negligence, fraud, reckless disregard or willful
misconduct. Without limiting the generality of the foregoing, the Securities Intermediary shall not be subject to any fiduciary or other
implied duties, and the Securities Intermediary shall not have any duty to take any discretionary action or exercise any discretionary
powers. The Securities Intermediary shall be subject to all of the rights, protections and immunities given to the Collateral Agent hereunder,
including indemnities.

 

(g)               
Investment of Funds on Deposit in the Expense Reserve Account, Unfunded Exposure Account. All amounts on deposit in the
Expense Reserve Account and the Unfunded Exposure Account shall be invested (and reinvested) at the written direction of the Company (or
the Portfolio Manager on its behalf) delivered to the Collateral Agent in Eligible Investments; provided that, following the occurrence
of an Event of Default or a Market Value Event, all amounts on deposit in the Expense Reserve Account and the Unfunded Exposure Account
shall be invested, reinvested and otherwise disposed of at the written direction of the Administrative Agent delivered to the Collateral
Agent.

 

(h)               
Unfunded Exposure Account, CAD Unfunded Exposure Account, EUR Unfunded Exposure Account and GBP Unfunded Exposure Account.

 

(i)                
Amounts may be deposited into the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account
or the GBP Unfunded Exposure Account from time to time in accordance with Section 4.05. Amounts shall also be deposited into the
Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account and/or the GBP Unfunded Exposure Account
as set forth in Section 2.03(f).

 

    - 68 -

     

    

 

(ii)              
While an Event of Default is not occurring and a Market Value Event has not occurred and subject to satisfaction of the Borrowing
Base Test and Section 2.03(g) (each after giving effect to such release), the Portfolio Manager may direct, by means of an instruction
in writing to the Securities Intermediary (with a copy to the Collateral Administrator), the release of funds on deposit in the Unfunded
Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account or the GBP Unfunded Exposure Account (i) for the
purpose of funding the Company's unfunded commitments with respect to Delayed Funding Term Loans and Revolving Loans, for deposit into
the Collection Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as applicable, and (ii)
so long as no Unfunded Exposure Shortfall (determined in an aggregate basis and with respect to each Permitted Currency individually)
exists or would exist after giving effect to the withdrawal. Upon the occurrence and during the continuance of an Event of Default or
the occurrence of a Market Value Event, at the written direction of the Administrative Agent (with a copy to the Collateral Administrator),
the Securities Intermediary shall transfer all amounts in the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded
Exposure Account and the GBP Unfunded Exposure Account to the Collection Account, the CAD Collection Account, the EUR Collection Account
or the GBP Collection Account, as applicable, to prepay the outstanding Advances. Upon the direction of the Company by means of an instruction
in writing to the Securities Intermediary (with a copy to the Collateral Administrator, the Collateral Agent and the Administrative Agent),
any amounts on deposit in the Unfunded Exposure Account, the CAD Unfunded Exposure Account, the EUR Unfunded Exposure Account or the GBP
Unfunded Exposure Account, as applicable, in excess of outstanding funding obligations of the Company in the applicable Permitted Currency
shall be released to the Collection Account, the CAD Collection Account, the EUR Collection Account or the GBP Collection Account, as
applicable, to prepay the outstanding Advances; provided that no such prepayment would cause the aggregate outstanding principal
amount of the Advances to be below the Minimum Funding Amount.

 

Section
8.02.        Collateral Security; Pledge; Delivery.

 

(a)               
Grant of Security Interest. As collateral security for the prompt payment in full when due of all the Company's obligations
to the Agents and the Lenders (collectively, the "Secured Parties") under this Agreement (collectively, the "Secured
Obligations"), the Company has granted on the Original Effective Date, and hereby confirms the grant and pledges again to the
Collateral Agent and grants a continuing security interest in favor of the Collateral Agent in all of the Company's right, title and interest
in, to and under (in each case, whether now owned or existing, or hereafter acquired or arising) all accounts, payment intangibles, general
intangibles, chattel paper, electronic chattel paper, instruments, deposit accounts, letter-of-credit rights, investment property, and
any and all other property of any type or nature owned by it (all of the property described in this clause (a) being collectively referred
to herein as "Collateral"), including: (1) each Portfolio Investment, (2) all of the Company's interests in the Accounts
and all investments, obligations and other property from time to time credited thereto, (3) the Parent Sale Agreement and all rights related
thereto, (4) the Company's equity interest in the Permitted Subsidiary, all rights relating thereto, and any other interest of the Company
in the Permitted Subsidiary, (5) all other property of the Company and (6) all proceeds thereof, all accessions to and substitutions and
replacements for, any of the foregoing, and all rents, profits and products of any thereof.

 

(b)               
Delivery and Other Perfection. In furtherance of the collateral arrangements contemplated herein, the Company and the Permitted
Subsidiary shall (1) Deliver to the Collateral Agent the Collateral hereunder as and when acquired by the Company; (2) if any of the securities,
monies or other property pledged by the Company and the Permitted Subsidiary hereunder are received by the Company or the Permitted Subsidiary,
forthwith take such action as is necessary to ensure the Collateral Agent's continuing perfected security interest in such Collateral
(including Delivering such securities, monies or other property to the Collateral Agent); and (3) upon the reasonable request of the Administrative
Agent, deliver to the Administrative Agent, the Financing Providers and the Collateral Agent, at the expense of the Company, legal opinions
from Milbank LLP or other counsel reasonably acceptable to the Administrative Agent and the Financing Providers, as to the perfection
and priority of the Collateral Agent's security interest in any of the Collateral.

 

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"Deliver" (and its correlative forms)
means the taking of the following steps by the Company or the Portfolio Manager:

 

(1)               
except as provided in clauses (3) and (4) below, in the case of Portfolio Investments and Eligible Investments and amounts on deposit
in the Accounts, by (x) causing the Securities Intermediary to indicate by book entry that a financial asset comprised thereof has been
credited to the applicable Account and (y) causing the Securities Intermediary to agree that it will comply with entitlement orders originated
by the Collateral Agent with respect to each such security entitlement without further consent by the Company;

 

(2)               
in the case of each general intangible, by notifying the obligor thereunder of the security interest of the Collateral Agent;

 

(3)               
in the case of Portfolio Investments consisting of money or instruments (the "New York Collateral") that do not
constitute a financial asset forming the basis of a security entitlement delivered to the Collateral Agent pursuant to clause (1) above,
by causing (x) the Collateral Agent to obtain possession of such New York Collateral in the State of New York, or (y) a person other than
the Company and a securities intermediary (A)(I) to obtain possession of such New York Collateral in the State of New York, and (II) to
then authenticate a record acknowledging that it holds possession of such New York Collateral for the benefit of the Collateral Agent
or (B)(I) to authenticate a record acknowledging that it will take possession of such New York Collateral for the benefit of the Collateral
Agent and (II) to then acquire possession of such New York Collateral in the State of New York;

 

(4)               
in the case of any account which constitutes a "deposit account" under Article 9 of the UCC, by causing the Securities
Intermediary to continuously identify in its books and records the security interest of the Collateral Agent in such account and, except
as may be expressly provided herein to the contrary, establishing dominion and control over such account in favor of the Collateral Agent;
and

 

(5)               
in all cases, by filing or causing the filing of a financing statement with respect to such Collateral with the Delaware Secretary
of State.

 

(c)               
Remedies, Etc. During the period in which an Event of Default shall have occurred and be continuing, the Collateral Agent
shall (but only if and to the extent directed in writing by the Required Financing Providers, with a copy to the Company) do any of the
following:

 

(1)               
Exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it,
all the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral) and also may,
without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at
any of the Collateral Agent's or its designee's offices or elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Collateral Agent or a designee of the Collateral Agent (acting at the direction of the Required Financing Providers) may
deem commercially reasonable. The Company agrees that, to the extent notice of sale shall be required by law, at least ten (10) days'
prior notice to the Company of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification. The Collateral Agent shall not be obligated to make any sale of the Collateral regardless of notice of sale having
been given. The Collateral Agent or its designee may adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

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(2)               
Transfer all or any part of the Collateral into the name of the Collateral Agent or a nominee thereof.

 

(3)               
Enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or
compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party
with respect thereto.

 

(4)               
Endorse any checks, drafts, or other writings in the Company's name to allow collection of the Collateral.

 

(5)               
Take control of any proceeds of the Collateral.

 

(6)               
Execute (in the name, place and stead of any of the Company) endorsements, assignments, stock powers and other instruments of conveyance
or transfer with respect to all or any of the Collateral.

 

(7)               
Perform such other acts as may be reasonably required to do to protect the Collateral Agent's rights and interest hereunder.

 

(8)               
Without limitation to the foregoing, exercise any available rights and remedies under the Equity Pledge Agreement and the Asset
Pledge Agreement.

 

(d)               
Compliance with Restrictions. The Company and the Portfolio Manager agree that in any sale of any of the Collateral whenever
an Event of Default shall have occurred and be continuing, the Collateral Agent or its designee are hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by counsel in writing is necessary in order to avoid any violation
of Applicable Law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require
that such prospective bidders and purchasers have certain qualifications, and restrict such prospective bidders and purchasers to persons
who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any governmental regulatory
authority or official, and the Company and the Portfolio Manager further agree that such compliance shall not, in and of itself, result
in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent be liable
or accountable to the Company or the Portfolio Manager for any discount allowed by the reason of the fact that such Collateral is sold
in good faith compliance with any such limitation or restriction.

 

(e)               
Private Sale. The Collateral Agent shall incur no liability as a result of a sale of the Collateral, or any part thereof,
at any private sale pursuant to clause (c) above conducted in a commercially reasonable manner. The Company and the Portfolio Manager
hereby waive any claims against each Agent and Financing Provider arising by reason of the fact that the price at which the Collateral
may have been sold at such a private sale was less than the price which might have been obtained at a public sale.

 

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(f)                
Collateral Agent Appointed Attorney-in-Fact. The Company hereby appoints the Collateral Agent as the Company's attorney-in-fact
(it being understood that the Collateral Agent shall not be deemed to have assumed any of the obligations of the Company by this appointment),
with full authority in the place and stead of the Company and in the name of the Company, from time to time in the Collateral Agent's
discretion (exercised at the written direction of the Administrative Agent or the Required Financing Providers, as the case may be), after
the occurrence and during the continuation of an Event of Default, to take any action and to execute any instrument which the Administrative
Agent or the Required Financing Providers may deem necessary or advisable to accomplish the purposes of this Agreement. The Company hereby
acknowledges, consents and agrees that the power of attorney granted pursuant to this clause is irrevocable during the term of this Agreement
and is coupled with an interest.

 

(g)               
Further Assurances. The Company covenants and agrees that, from time to time upon the request of the Collateral Agent (as
directed by the Administrative Agent), the Company will execute and deliver such further documents, and do such other acts and things
as the Collateral Agent (as directed by the Administrative Agent) may reasonably request in order fully to effect the purposes of this
Agreement and to protect and preserve the priority and validity of the security interest granted hereunder or to enable the Collateral
Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral; provided that no such document
may alter the rights and protections afforded to the Company or the Portfolio Manager herein.

 

(h)               
Termination. Upon the payment in full of all Secured Obligations and termination of the Financing Commitments, the security
interest granted herein shall automatically (and without further action by any party) terminate and all rights to the Collateral shall
revert to the Company. Upon any such termination, the Collateral Agent will, at the Company's sole expense, deliver to the Company, or
cause the Securities Intermediary to deliver, without any representations, warranties or recourse of any kind whatsoever, all certificates
and instruments representing or evidencing all of the Collateral held by the Securities Intermediary hereunder, and execute and deliver
to the Company or its nominee such documents as the Company shall reasonably request to evidence such termination.

 

(i)                
Release of Security Interest upon Disposition of Collateral. Upon any sale, transfer or other disposition of any Collateral
(or portion thereof) that is permitted hereunder, the security interest granted hereunder in such Portfolio Investment or other Collateral
(or the portion thereof which has been sold or otherwise disposed of) shall, immediately upon the sale or other disposition of such Loan
or other Collateral (or such portion) and without any further action on the part of the Collateral Agent or any other Secured Party, be
released. Upon any such release, the Collateral Agent will, at the Company's sole expense, deliver to the Company, or cause the Securities
Intermediary to deliver, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments
representing or evidencing all of the Collateral held by the Securities Intermediary hereunder, and execute and deliver to the Company
or its nominee such documents as the Company shall reasonably request to evidence such release.

 

Article
IX

THE AGENTS

 

Section
9.01.        Appointment of Administrative Agent and Collateral Agent.
Each of the Financing Providers hereby irrevocably appoints each of the Administrative Agent and the Collateral Agent (each, an "Agent"
and collectively, the "Agents") as its agent and authorize such Agents to take such actions on its behalf and to exercise
such powers as are delegated to such Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.
Anything contained herein to the contrary notwithstanding, each Agent and each Financing Provider hereby agree that no Financing Provider
shall have any right individually to realize upon any of the Collateral hereunder, it being understood and agreed that all powers, rights
and remedies hereunder with respect to the Collateral shall be exercised solely by the Collateral Agent for the benefit of the Secured
Parties at the direction of the Administrative Agent.

 

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Each financial institution serving as an Agent hereunder
shall have the same rights and powers in its capacity as a Financing Provider (if applicable) as any other Financing Provider and may
exercise the same as though it were not an Agent, and such financial institution and its Affiliates may accept deposits from, lend money
to and generally engage in any kind of business with the Company as if it were not an Agent hereunder.

 

No
Agent or the Collateral Administrator shall have any duties or obligations except those expressly set forth herein. Without limiting the
generality of the foregoing, (a) no Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except
that the foregoing shall not limit any duty expressly set forth in this Agreement to include such rights and powers expressly contemplated
hereby that such Agent is required to exercise as directed in writing by (i) in the case of the Collateral Agent (A) in respect of the
exercise of remedies under Section 8.02(c), the Required Financing Providers, or (B) in all other cases, the Administrative
Agent or (ii) in the case of any Agent, the Required Financing Providers (or such other number or percentage of the Financing Providers
as shall be necessary under the circumstances as provided herein), and (c) except as expressly set forth herein, no Agent shall have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company that is communicated to
or obtained by the financial institution serving in the capacity of such Agent or any of its Affiliates in any capacity. No Agent shall
be liable for any action taken or not taken by it in the absence of its own gross negligence or willful misconduct or with the consent
or at the request or direction of the Administrative Agent (in the case of the Collateral Administrator and the Collateral Agent only)
or the Required Financing Providers (or such other number or percentage of the Financing Providers that shall be permitted herein to direct
such action or forbearance). None of the Collateral Agent, the Collateral Administrator or the Securities Intermediary shall be deemed
to have knowledge of any Default, Event of Default, Market Value Event, failure of the Borrowing Base Test or failure of the Minimum Equity
Test unless and until a Responsible Officer has received written notice thereof from the Company, a Financing Provider or the Administrative
Agent. None of the Collateral Agent, the Collateral Administrator, the Securities Intermediary or the Administrative Agent shall be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement,
(ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness,
genuineness, value or sufficiency of this Agreement, any other agreement, instrument or document or the Collateral, or (v) the satisfaction
of any condition set forth herein, other than to confirm receipt of items expressly required to be delivered to such Agent. None of the
Collateral Agent, the Collateral Administrator, the Securities Intermediary or the Administrative Agent shall be required to risk or expend
its own funds in connection with the performance of its obligations hereunder if it reasonably believes it will not receive reimbursement
therefor hereunder.

 

Each Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, direction, opinion, document
or other writing reasonably believed by it in good faith to be genuine and to have been signed or sent by the proper person. Each Agent
also may rely upon any statement made to it orally or by telephone and reasonably believed by it in good faith to be made by the proper
person, and shall not incur any liability for relying thereon. Each Agent may consult with legal counsel (who may be counsel for the Company),
independent accountants and other experts, and shall not be liable for any action taken or not taken by it in accordance with the advice
of any such counsel, accountants or experts selected by it with due care.

 

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In the event the Collateral Agent or the Collateral
Administrator shall receive conflicting instruction from the Administrative Agent and the Required Financing Providers, the instruction
of the Required Financing Providers shall govern. Neither the Collateral Administrator nor the Collateral Agent shall have any duties
or obligations under or in respect of any other agreement (including any agreement that may be referenced herein) to which it is not a
party. The grant of any permissive right or power to the Collateral Agent hereunder shall not be construed to impose a duty to act.

 

It
is expressly acknowledged and agreed that neither the Collateral Administrator nor the Collateral Agent shall be responsible for, and
shall not be under any duty to monitor or determine, compliance with the Eligibility Criteria (Schedule 3) or the Concentration
Limitations (Schedule 4) in any instance, to determine if the conditions of "Deliver" have been satisfied or otherwise to monitor
or determine compliance by any other person with the requirements of this Agreement.

 

Each Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents appointed by it. No agent shall be responsible for any misconduct
or negligence on the part of any sub-agent or attorney appointed by such Agent with due care. Each Agent and any such sub-agent may perform
any and all its duties and exercise its rights and powers through their respective Affiliates and the respective directors, officers,
employees, agents and advisors of such person and its Affiliates (the "Related Parties") for such Agent. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent,
and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well
as activities as Administrative Agent or Collateral Agent, as the case may be.

 

Subject
to the appointment and acceptance of a successor as provided in this paragraph, each of the Collateral Administrator, the Collateral Agent,
the Securities Intermediary and the Administrative Agent may resign at any time upon 30 days' notice to each other agent, the Financing
Providers, the Portfolio Manager and the Company. Upon any such resignation, the Required Financing Providers shall have the right (with,
so long as no Event of Default has occurred and is continuing or Market Value Event has occurred, the consent of the Company and the Portfolio
Manager) to appoint a successor. If no successor shall have been so appointed by the Required Financing Providers and shall have accepted
such appointment within thirty (30) days after the retiring Collateral Administrator, Collateral Agent, Securities Intermediary or Administrative
Agent, as applicable, gives notice of its resignation, then the Administrative Agent may, on behalf of the Financing Providers, appoint
a successor which shall be a financial institution with an office in New York, New York, or an Affiliate of any such financial institution.
If no successor shall have been so appointed by the Administrative Agent and shall have accepted such appointment within sixty (60) days
after the retiring agent gives notice of its resignation, such agent may petition a court of competent jurisdiction for the appointment
of a successor. Upon the acceptance of its appointment as Collateral Administrator, Securities Intermediary, Administrative Agent or Collateral
Agent, as the case may be, hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges
and duties of the retiring agent, and the retiring agent shall be discharged from its duties and obligations hereunder. After the retiring
agent's resignation hereunder, the provisions of this Article and Sections 5.03 and 10.04 shall continue in
effect for the benefit of such retiring agent, its sub agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while it was acting as Collateral Administrator, Securities Intermediary, Administrative Agent or Collateral
Agent, as the case may be.

 

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Subject
to the appointment and acceptance of a successor as provided in this paragraph, each of the Collateral Administrator, the Collateral Agent
and the Securities Intermediary may be removed at any time with 30 days' notice by the Company (with the written consent of the Administrative
Agent), with notice to the Collateral Administrator, the Collateral Agent, the Securities Intermediary, the Financing Providers and the
Portfolio Manager. Upon any such removal, the Company shall have the right (with the consent of the Administrative Agent) to appoint a
successor to the Collateral Agent, the Collateral Administrator and/or the Securities Intermediary, as applicable. If no successor to
any such person shall have been so appointed by the Company and shall have accepted such appointment within thirty (30) days after such
notice of removal, then the Administrative Agent may appoint a successor which shall be a financial institution with an office in New
York, New York, or an Affiliate of any such financial institution. Upon the acceptance of its appointment as Collateral Administrator,
Securities Intermediary or Collateral Agent, as the case may be, hereunder by a successor, such successor shall succeed to and become
vested with all the rights, powers, privileges and duties of the removed agent, and the removed agent shall be discharged from its duties
and obligations hereunder. After the removed agent's removal hereunder, the provisions of this Article and Sections 5.03
and 10.04 shall continue in effect for the benefit of such removed agent, its sub agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while it was acting as Collateral Administrator, Securities Intermediary
or Collateral Agent, as the case may be.

 

Upon the request of the Company or the Administrative
Agent or the successor agent, such retiring or removed agent shall, upon payment of its charges then unpaid, execute and deliver an instrument
transferring to such successor agent all the rights, powers and trusts of the retiring or removed agent, and shall duly assign, transfer
and deliver to such successor agent all property and money held by such retiring or removed agent hereunder. Upon request of any such
successor agent, the Company and the Administrative Agent shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor agent all such rights, powers and trusts.

 

Each Financing Provider acknowledges that it has,
independently and without reliance upon any Agent or any other Financing Provider and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Financing Provider also acknowledges
that it will, independently and without reliance upon any Agent or any other Financing Provider and based on such documents and information
as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon
this Agreement, any related agreement or any document furnished hereunder or thereunder.

 

Anything in this Agreement notwithstanding, in no
event shall any Agent, the Collateral Administrator or the Securities Intermediary be liable for special, punitive, indirect or consequential
loss or damage of any kind whatsoever (including lost profits), even if such Agent, the Collateral Administrator or the Securities Intermediary,
as the case may be, has been advised of such loss or damage and regardless of the form of action.

 

Each Agent and the Collateral Administrator shall
not be liable for any error of judgment made in good faith by an officer or officers of such Agent or the Collateral Administrator, unless
it shall be conclusively determined by a court of competent jurisdiction that such Agent or the Collateral Administrator was grossly negligent
in ascertaining the pertinent facts.

 

Each Agent and the Collateral Administrator shall not be responsible
for the accuracy or content of any certificate, statement, direction or opinion furnished to it in connection with this Agreement.

 

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Each Agent and the Collateral Administrator shall
not be bound to make any investigation into the facts stated in any resolution, certificate, statement, instrument, opinion, report, consent,
order, approval, bond or other document or have any responsibility for filing or recording any financing or continuation statement in
any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder.

 

No Agent shall be responsible for delays or failures
in performance resulting from acts beyond its control. Such acts include but are not limited to acts of God, strikes, lockouts, riots
and acts of war. In connection with any payment, the Collateral Agent and the Collateral Administrator are entitled to rely conclusively
on any instructions provided to them by the Administrative Agent.

 

The
rights, protections and immunities given to the Agents in this Section 9.01, Section 9.02(c) and Section 9.02(h)
shall likewise be available and applicable to the Securities Intermediary and the Collateral Administrator.

 

Section
9.02.        Additional Provisions Relating to the Collateral Agent, Securities Intermediary
and the Collateral Administrator.

 

(a)               
Collateral Agent May Perform. The Collateral Agent shall from time to time take such action (at the written direction of
the Administrative Agent or the Required Financing Providers) for the maintenance, preservation or protection of any of the Collateral
or of its security interest therein, provided that the Collateral Agent shall have no obligation to take any such action in the
absence of such direction and shall have no obligation to comply with any such direction if it reasonably believes that the same (1) is
contrary to Applicable Law or (2) might subject the Collateral Agent to any loss, liability, cost or expense, unless the Administrative
Agent or the Required Financing Providers, as the case may be, issuing such instruction makes provision satisfactory to the Collateral
Agent for payment of same.

 

With respect to actions which are incidental to the
actions specifically delegated to the Collateral Agent hereunder, the Collateral Agent shall not be required to take any such incidental
action hereunder, but shall be required to act or to refrain from acting (and shall be fully protected in acting or refraining from acting)
upon the written direction of the Administrative Agent; provided that the Collateral Agent shall not be required to take any action
hereunder at the request of the Administrative Agent, the Required Financing Providers or otherwise if the taking of such action, in the
determination of the Collateral Agent, (1) is contrary to Applicable Law or (2) is reasonably likely to subject the Collateral Agent to
any loss, liability, cost or expense, unless the Administrative Agent or the Required Financing Providers, as the case may be, issuing
such instruction make provision satisfactory to the Collateral Agent for payment of same. In the event the Collateral Agent requests the
consent of the Administrative Agent and the Collateral Agent does not receive a consent (either positive or negative) from the Administrative
Agent within ten (10) Business Days of its receipt of such request, the Administrative Agent shall be deemed to have declined to consent
to the relevant action. Any action to be taken or not taken and any discretion to be exercised by the Collateral Agent under the Asset
Pledge Agreement and the Equity Pledge Agreement will be done solely at the direction of the Administrative Agent.

 

If, in performing its duties under this Agreement,
the Collateral Agent is required to decide between alternative courses of action, the Collateral Agent may request written instructions
from the Administrative Agent as to the course of action desired by it. If the Collateral Agent does not receive such instructions within
five (5) Business Days after it has requested them, the Collateral Agent may, but shall be under no duty to, take or refrain from taking
any such courses of action and shall have no liability in connection therewith except as otherwise provided in this Agreement. The Collateral
Agent shall act in accordance with instructions received after such five (5) Business Day period except to the extent it has already,
in good faith, taken or committed itself to take, action inconsistent with such instructions.

 

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(b)               
Reasonable Care. The Collateral Agent is required to exercise reasonable care in the custody and preservation of any of
the Collateral in its possession, provided that the Collateral Agent shall be deemed to have exercised reasonable care in the custody
and preservation of any of the Collateral if it takes such action for that purpose as the Company reasonably requests at times other than
upon the occurrence and during the continuance of any Event of Default, but failure of the Collateral Agent to comply with any such request
at any time shall not in itself be deemed a failure to exercise reasonable care. The Collateral Agent will not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any liens thereon.

 

(c)               
Collateral Agent Not Liable. Except to the extent arising from the gross negligence, willful misconduct, criminal conduct,
fraud or reckless disregard of the Collateral Agent, the Collateral Agent shall not be liable by reason of its compliance with the terms
of this Agreement with respect to (1) the investment of funds held thereunder in Eligible Investments (other than for losses attributable
to the Collateral Agent's failure to make payments on investments issued by the Collateral Agent, in its commercial capacity as principal
obligor and not as collateral agent, in accordance with their terms) or (2) losses incurred as a result of the liquidation of any Eligible
Investment prior to its stated maturity.

 

(d)               
Certain Rights and Obligations of the Collateral Agent. Without further consent or authorization from any Financing Providers,
the Collateral Agent may execute any documents or instruments necessary to release any lien encumbering any item of Collateral that is
the subject of a sale or other disposition of assets permitted by this Agreement or as otherwise permitted or required hereunder or to
which the Required Financing Providers have otherwise consented. Anything contained herein to the contrary notwithstanding, in the event
of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, any Agent or Financing Provider
may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of the
Financing Providers (but not any Financing Provider in its individual capacity unless the Required Financing Providers shall otherwise
agree), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of
the Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price
for any collateral payable by the purchaser at such sale.

 

(e)               
Collateral Agent, Securities Intermediary and Collateral Administrator Fees and Expenses. The Company agrees to pay to the
Collateral Agent, the Securities Intermediary and the Collateral Administrator such fees as the Administrative Agent, the Collateral Agent,
the Securities Intermediary, the Collateral Administrator and the Portfolio Manager, may agree in writing. The Company further agrees
to pay to the Collateral Agent, the Securities Intermediary and the Collateral Administrator, or reimburse the Collateral Agent, the Securities
Intermediary and the Collateral Administrator for paying, reasonable and documented out-of-pocket expenses, including attorney's fees,
in connection with this Agreement, the Equity Pledge Agreement, the Asset Pledge Agreement and the transactions contemplated hereby or
thereby.

 

(f)                
Execution by the Collateral Agent, the Securities Intermediary and the Collateral Administrator. The Collateral Agent, the
Securities Intermediary and the Collateral Administrator are executing this Agreement solely in their capacity as Collateral Agent, Securities
Intermediary and Collateral Administrator hereunder and in no event shall have any obligation to make any Advance, provide any Financing
or perform any obligation of the Administrative Agent hereunder. Each of the Lenders, the Administrative Agent and the Company hereby
directs the Collateral Agent to execute and deliver the Asset Pledge Agreement and the Equity Pledge Agreement and directs the Securities
Intermediary to execute and deliver the Asset Pledge Agreement.

 

(g)               
Reports by the Collateral Administrator. The Company hereby appoints Virtus Group, LP as Collateral Administrator and directs
the Collateral Administrator to prepare the reports in a form agreed among the Collateral Administrator, Administrative Agent and the
Company. Without limitation to the foregoing, upon the written request (including via email) of the Administrative Agent, which may be
in the form of a standing request, the Collateral Administrator shall provide to the Administrative Agent a copy of the most recent notice
memo, distribution report or similar notice or report received by it in respect of any Portfolio Investment(s) identified by the Administrative
Agent as soon as reasonably practicable after such request is made by the Administrative Agent (or, if such request is a standing request,
as soon as reasonably practicable after such notice or report is received).

 

(h)               
Information Provided to Collateral Agent and Collateral Administrator. Without limiting the generality of any terms of this
Section, neither the Collateral Agent nor the Collateral Administrator shall have liability for any failure, inability or unwillingness
on the part of the Portfolio Manager, the Administrative Agent, the Company or the Required Financing Providers to provide accurate and
complete information on a timely basis to the Collateral Agent or the Collateral Administrator, as applicable, or otherwise on the part
of any such party to comply with the terms of this Agreement, and shall have no liability for any inaccuracy or error in the performance
or observance on the Collateral Agent's or Collateral Administrator's, as applicable, part of any of its duties hereunder that is caused
by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other
party to comply with the terms hereof.

 

    - 77 -

     

    

 

Article
X

MISCELLANEOUS

 

Section
10.01.    Non-Petition; Limited Recourse; Limited Recourse.
Each of the Collateral Agent, the Securities Intermediary, the Collateral Administrator and the Portfolio Manager hereby agrees not to
commence, or join in the commencement of, any proceedings in any jurisdiction for the bankruptcy, winding-up or liquidation of the Company
or any similar proceedings, in each case prior to the date that is one year and one day (or if longer, any applicable preference period
plus one day) after the payment in full of all amounts owing to the parties hereto. The foregoing restrictions are a material inducement
for the parties hereto to enter into this Agreement and are an essential term of this Agreement. The Administrative Agent or the Company
may seek and obtain specific performance of such restrictions (including injunctive relief), including, without limitation, in any bankruptcy,
winding-up, liquidation or similar proceedings. The Company shall promptly object to the institution of any bankruptcy, winding-up, liquidation
or similar proceedings against it and take all necessary or advisable steps to cause the dismissal of any such proceeding; provided
that such obligation shall be subject to the availability of funds therefor. Nothing in this Section 10.01 shall limit the
right of any party hereto to file any claim or otherwise take any action with respect to any proceeding of the type described in this
Section that was instituted by the Company or against the Company by any Person other than a party hereto.

 

Notwithstanding any other provision of this Agreement, no recourse
under any obligation, covenant or agreement of the Company or the Portfolio Manager contained in this Agreement shall be had against any
incorporator, stockholder, partner, officer, director, member, manager, employee or agent of the Company, the Portfolio Manager or any
of their respective Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding,
by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of
the Company and (with respect to the express obligations of the Portfolio Manager hereunder) the Portfolio Manager and that no personal
liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, manager, employee or agent
of the Company, the Portfolio Manager or any of their respective Affiliates (solely by virtue of such capacity) or any of them under or
by reason of any of the obligations, covenants or agreements of the Company or the Portfolio Manager contained in this Agreement, or implied
therefrom, and that any and all personal liability for breaches by the Company or the Portfolio Manager of any of such obligations, covenants
or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder, officer,
director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this
Agreement.

 

Section
10.02.    Notices. All notices
and other communications in respect hereof (including, without limitation, any modifications hereof, or requests, waivers or consents
hereunder) to be given or made by a party hereto shall be in writing (including by electronic mail or other electronic messaging system
of .pdf or other similar files) to the other parties hereto at the addresses for notices specified on the Transaction Schedule (or, as
to any such party, at such other address as shall be designated by such party in a notice to each other party hereto). All such notices
and other communications shall be deemed to have been duly given when (a) transmitted by facsimile, (b) personally delivered, (c) in the
case of a mailed notice, upon receipt, or (d) in the case of notices and communications transmitted by electronic mail or any other electronic
messaging system, upon delivery, in each case given or addressed as aforesaid.

 

Section
10.03.    No Waiver. No failure
on the part of any party hereto to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege
under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The remedies
provided herein are cumulative and not exclusive of any remedies provided by law.

 

Section
10.04.    Expenses; Indemnity; Damage Waiver; Right of Setoff.

 

(a)               
The Company shall pay (1) all fees and reasonable and documented out of pocket expenses incurred by the Agents, the Collateral
Administrator, the Securities Intermediary and their Related Parties, including the fees, charges and disbursements of outside counsel
for each Agent, the Securities Intermediary and the Collateral Administrator, and such other local counsel as required for the Agents,
the Securities Intermediary and the Collateral Administrator, collectively, in connection with the preparation and administration of this
Agreement, the Equity Pledge Agreement, the Asset Pledge Agreement or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (2) all reasonable and documented
out-of-pocket expenses incurred by the Agents, the Securities Intermediary, the Collateral Administrator and the Lenders, including the
fees, charges and disbursements of outside counsel for each Agent, the Securities Intermediary, the Collateral Administrator and such
other local counsel as required for all of them, in connection herewith, including the enforcement or protection of their rights in connection
with this Agreement, including their rights under this Section, the Equity Pledge Agreement or the Asset Pledge Agreement or in connection
with the Financings provided by them hereunder, including all such reasonable and documented out-of pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Financings.

 

    - 78 -

     

    

 

(b)               
The Company shall indemnify the Agents, the Collateral Administrator, the Securities Intermediary, the Lenders and each Related
Party of any of the foregoing persons (each such person being called an "Indemnitee"), against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of
outside counsel for each Indemnitee and such other local counsel as required for any Indemnitees, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (1) the execution or delivery of this Agreement, any other Loan Document
or any agreement or instrument contemplated hereby or thereby, the performance by the parties thereto of their respective obligations
(including, without limitation, any breach of any representation or warranty made by the Company or the Portfolio Manager hereunder (for
the avoidance of doubt, after giving effect to any limitation included in any such representation or warranty relating to materiality
or causing a Material Adverse Effect)) or the exercise of the parties thereto of their respective rights or the consummation of the transactions
contemplated hereby, (2) any Financing or the use of the proceeds therefrom, or (3) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee
is a party thereto or is pursuing or defending any such action; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, fraud, reckless disregard or willful misconduct
of such Indemnitee or (ii) with respect to the Lenders, relate to the performance of the Portfolio Investments. This Section 10.04(b)
shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

(c)               
To the extent permitted by Applicable Law, neither the Company nor any Indemnitee shall assert, and each hereby waives, any claim
against the Company or any Indemnitee, as applicable, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement, instrument
or transaction contemplated hereby, any Financing or the use of the proceeds thereof.

 

(d)               
If an Event of Default shall have occurred and be continuing, each Financing Provider and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by such Financing Provider or Affiliate
to or for the credit or the account of the Company against any of and all the obligations of the Company now or hereafter existing under
this Agreement held by such Financing Provider, irrespective of whether or not such Financing Provider shall have made any demand under
this Agreement and although such obligations may be unmatured. The rights of each Financing Provider under this clause (d) are in addition
to other rights and remedies (including other rights of setoff) which such Financing Provider may have.

 

The rights of the Collateral Agent and the Securities
Intermediary pursuant to this Section 10.04 are not exclusive of the rights of such Persons pursuant to the Equity Pledge Agreement,
the Asset Pledge Agreement or any other Loan Document and under the laws of any jurisdiction outside of the United States.

 

Section
10.05.    Amendments. No amendment,
modification or waiver in respect of this Agreement will be effective unless in writing (including, without limitation, a writing evidenced
by a facsimile transmission or electronic mail) and executed by each of the Company, the Agents, the Collateral Administrator, the Securities
Intermediary, the Required Financing Providers and the Portfolio Manager; provided, however, that any amendment to this
Agreement that the Administrative Agent determines in its commercially reasonable judgment is necessary to effectuate the purposes of
Section 1.04 hereof following the occurrence and during the continuance of an Event of Default or following the occurrence
of a Market Value Event and which would not result in an increase or decrease in the rights, duties or liabilities of the Portfolio Manager
shall not be required to be executed by the Portfolio Manager; provided, further, that the Administrative Agent may waive
any of the Eligibility Criteria and the requirements set forth in Schedule 3 or Schedule 4 in its sole discretion; provided further ,
that none of the Collateral Agent, the Collateral Administrator or the Securities Intermediary shall be required to execute any amendment
that affects its rights, duties, protections or immunities.

 

    - 79 -

     

    

 

Section
10.06.    Successors; Assignments.

 

(a)               
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby, except that the Company may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Portfolio Manager, the Administrative Agent and each Financing Provider (and any attempted assignment
or transfer by the Company without such consent shall be null and void) and the Portfolio Manager may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of the Administrative Agent. Except as expressly set forth
herein, nothing in this Agreement, expressed or implied, shall be construed to confer upon any person any legal or equitable right, remedy
or claim under or by reason of this Agreement.

 

(b)               
Subject to the conditions set forth below, any Lender may assign to one or more banks or other financial institutions (or Affiliates
thereof) or, after the occurrence and during the continuance of an Event of Default or after the occurrence of a Market Value Event, any
other person, all or a portion of its rights and obligations under this Agreement (including all or a portion of its Financing Commitment
and the Advances at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of the Administrative
Agent; provided that no consent of the Administrative Agent shall be required for an assignment of any Financing Commitment to
an assignee that is a Lender (or any Affiliate thereof) with a Financing Commitment immediately prior to giving effect to such assignment.

 

Assignments shall be subject to the following additional
conditions: (A) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and
obligations under this Agreement; (B) the parties to each assignment shall execute and deliver to the Administrative Agent an assignment
and assumption agreement in form and substance acceptable to the Administrative Agent; and (C) unless a Market Value Event has occurred
or an Event of Default has occurred and is continuing, no Lender may assign this Agreement or any of its rights and obligations under
this Agreement to a Person that is primarily engaged in alternative asset management, including, without limitation, any private equity
fund, distressed asset fund or hedge fund, in each case, without the prior written consent of the Company.

 

Subject
to acceptance and recording thereof below, from and after the effective date specified in each assignment and assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such assignment and assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such
assignment and assumption, be released from its obligations under this Agreement (and, in the case of an assignment and assumption covering
all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto as a Lender but
shall continue to be entitled to the benefits of Sections 5.03 and 10.04).

 

The Administrative Agent, acting for this purpose
as an agent of the Company, shall maintain at one of its offices a copy of each assignment and assumption delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the Financing Commitment of, and principal amount of the Advances owing
to, each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be
conclusive absent manifest error, and the parties hereto shall treat each person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available
for inspection by the Company, any Lender and the Portfolio Manager, at any reasonable time and from time to time upon reasonable prior
notice. Upon its receipt of a duly completed assignment and assumption executed by an assigning Lender and an assignee, the Administrative
Agent shall accept such assignment and assumption and record the information contained therein in the Register.

 

    - 80 -

     

    

 

(c)               
Any Lender may, without the consent of the Company or the Administrative Agent, sell participations to one or more banks or other
entities (a "Lender Participant") in all or a portion of such Lender's rights and obligations under this Agreement (including
all or a portion of its Financing Commitment and the Advances owing to it); provided that (1) such Lender's obligations under this
Agreement shall remain unchanged, (2) such Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations and (3) the Company, the Agents and the other Financing Providers shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender
will not, without the consent of the Lender Participant, agree to any Material Amendment that affects such Lender Participant. As used
herein, "Material Amendment" means any amendment, modification or supplement to this Agreement that (i) increases the
Financing Commitment of any Lender, (ii) reduces the principal amount of any Advance or reduces the rate of interest thereon, or reduces
any fees payable hereunder, (iii) postpones the scheduled date of payment of the principal amount of any Advance, or any interest thereon,
or any other amounts payable hereunder, or reduces the amount of, waives or excuses any such payment, or postpones the scheduled date
of expiration of any Financing Commitment, (iv) changes any provision in a manner that would alter the pro rata sharing of payments required
hereby, or (v) changes any of the provisions of this Section or the definition of "Required Financing Providers" or any other
provision hereof specifying the number or percentage of Financing Providers required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder. No Lender Participant shall be a Person that is primarily engaged in alternative
asset management, including, without limitation, any private equity fund, distressed asset fund or hedge fund, in each case, without the
prior written consent of the Company.

 

(d)               
Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Company, maintain a register on
which it enters the name and address of each Lender Participant and the principal amounts (and stated interest) of each Lender Participant's
interest in the Advances or other obligations under this Agreement (the "Participant Register"); provided that
no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Lender Participant
or any information relating to a Lender Participant's interest in any commitments, loans, letters of credit or its other obligations under
any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter
of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Section 1.163-5
of the proposed United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error,
and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all
purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity
as Administrative Agent) shall have no responsibility for maintaining a Participant Register. The Company agrees that each Lender Participant
shall be entitled to the benefits of Sections 3.01(e) and 3.03 (subject to the requirements and limitations therein, including
the requirements under Section 3.03(f) (it being understood that the documentation required under Section 3.03(f) shall
be delivered to the Lender that sells the participation)) to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (d) of this Section; provided that such Lender Participant (A) agrees to be subject to the provisions of
Section 3.01(f) relating to Lenders as if it were an assignee under paragraph (b) of this Section 10.06; and (B) shall not
be entitled to receive any greater payment under Sections 3.01(e) and 3.03, with respect to any participation, than the
Lender that sells the participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment
results from a Change in Law that occurs after the Lender or the Lender Participant acquired the applicable participation. Each Lender
that sells a participation agrees, at the Company's request and expense, to use reasonable efforts to cooperate with the Company to effectuate
the provisions set forth in Section 3.01(f) with respect to any Lender Participant.

 

    - 81 -

     

    

 

Section
10.07.    Governing Law; Submission to Jurisdiction; Etc.

 

(a)               
Governing Law. This Agreement will be governed by and construed in accordance with the law of the State of New York.

 

(b)               
Submission to Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement (collectively, "Proceedings"),
each party hereto 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 object, with respect to such Proceedings, that such court does not have any jurisdiction over such
party. Nothing in this Agreement precludes any party hereto 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.

 

(c)               
Waiver of Jury Trial. EACH OF THE PARTIES HERETO AND THE ADMINISTRATIVE AGENT ON BEHALF OF THE FINANCING PROVIDERS HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section
10.08.    Interest Rate Limitation.
Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Advance, together with all fees, charges
and other amounts which are treated as interest on such Advance under Applicable Law (collectively the "Charges"), shall
exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for, charged, taken, received or reserved
by the Financing Provider holding such Advance in accordance with Applicable Law, the rate of interest payable in respect of such Advance
hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest
and Charges that would have been payable in respect of such Advance but were not payable as a result of the operation of this Section
10.08 shall be cumulated and the interest and Charges payable to such Financing Provider in respect of other Advances or periods shall
be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds
Effective Rate to the date of repayment, shall have been received by such Financing Provider.

 

Section
10.09.    PATRIOT Act. Each Financing
Provider and Agent that is subject to the requirements of the PATRIOT Act hereby notifies the Company that pursuant to the requirements
of the PATRIOT Act, it is required to obtain, verify and record information that identifies the Company, which information includes the
name and address of the Company and other information that will allow such Financing Provider or Agent to identify the Company in accordance
with the PATRIOT Act.

 

Section
10.10.    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 the party whose signature appears thereon, and all of which shall together constitute one and the same instrument.

 

    - 82 -

     

    

 

Section
10.11.    Headings. Article and
Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall
not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

Section
10.12.    Acknowledgement and Consent to Bail-In of Affected Financial Institutions.

 

Notwithstanding anything to the contrary in this Agreement or in any
other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender
that is an Affected Financial Institution arising under this Agreement may be subject to the Write-Down and Conversion Powers of the applicable
Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a) the application of any Write-Down and Conversion
Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that
is an Affected Financial Institution; and

 

(b) the effects of any Bail-In Action on any such
liability, including, if applicable:

 

(1) a reduction in full or in part or cancellation of any
such liability;

 

(2) a conversion of all, or a portion of, such liability
into shares or other instruments of ownership in such Affected Financial Institution, its parent entity, or a bridge institution that
may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu
of any rights with respect to any such liability under this Agreement; or

 

(3) the variation of the terms of such liability in connection
with the exercise of the Write-Down and Conversion Powers of any applicable Resolution Authority.

 

As used herein:

 

"Affected Financial Institution"
means (a) any EEA Financial Institution or (b) any UK Financial Institution.

 

"Bail-In Action" means the exercise
of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

 

"Bail-In Legislation" means (a)
with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of
the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described
in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended
from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing
banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency
proceedings).

 

"EEA Financial Institution" means
(a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any
entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any
institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition
and is subject to consolidated supervision with its parent.

 

"EEA Member Country" means any of
the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

    - 83 -

     

    

 

"EEA Resolution Authority" means
any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including
any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

"EU Bail-In Legislation Schedule"
means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to
time.

 

"Resolution Authority" means an
EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

 

"UK Financial Institution" means
any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom
Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated
by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates
of such credit institutions or investment firms.

 

"UK Resolution Authority" means
the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

 

"Write-Down and Conversion Powers"
means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time
to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the
EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the
Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument
under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any
other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend
any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any
of those powers.

 

[remainder of page intentionally blank]

 

    - 84 -

     

    

 

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

 

		WHITEHORSE FINANCE CREDIT I, LLC, as

 Company
	 	 
		By: WhiteHorse Finance, Inc., its Designated Manager
	 	 
	 	 
		By	 
		Name:
		Title:
	 	 
		WHITEHORSE FINANCE, INC., as Portfolio Manager
	 	 
	 	 
	 	By	 
		Name:
		Title:

 

     

     

    

 

		JPMORGAN CHASE BANK, NATIONAL

 ASSOCIATION, as Administrative Agent
	 	 
	 	 
	 	By	 
		Name:
		Title:

 

     

     

    

 

		CITIBANK, N.A., as Collateral Agent
	 	 
	 	 
	 	By	 
		Name:
		Title:
		 
	 	 
	 	CITIBANK, N.A., as Securities Intermediary
	 	 
		 
	 	By	 
	 	Name:
		Title:
		 
		 
	 	VIRTUS GROUP, LP, as Collateral Administrator
	 	By: Rocket Partner Holdings, LLC,
		   its General Partner
		 
	 	 	 
		By	 
	 	Name:
		Title:
		 
		 
	 	The Financing Providers
	 	 
	
	 	JPMORGAN CHASE BANK, NATIONAL 

ASSOCIATION, as Lender
		 
	 	 
	 	By	 
		Name:
		Title:

 

     

     

    

 

SCHEDULE 1

 

Transaction Schedule

 

	1.	Types of Financing	 	Available	Financing Limit
	 	 	 	 	 	 
	 	Advances	 	yes	 	Prior to a Commitment Increase Date:  U.S.$285,000,000; After a Commitment Increase Date, if any, U.S.$285,000,000 plus the principal amount of each increase in the Financing Commitment set forth in the applicable Commitment Increase Requests up to U.S. $350,000,000 in the aggregate.
	 	 	 	 	 	
     

    Notwithstanding anything in this Agreement to the contrary, not more
    than 20% of the Financing Limit may be utilized in Permitted Non-USD Currencies; provided that not more than 10% of the Financing
    Limit may be utilized in GBP.

     

	2.	Financing Providers	 	Financing Commitment
	 	 	 	 	 	 
	 	Lender:	JPMorgan Chase Bank, National Association	 	
    Prior to a Commitment Increase Date: U.S.$285,000,000; After a Commitment
    Increase Date, if any, U.S.$285,000,000 plus the principal amount of each increase in the Financing Commitment set forth in the
    applicable Commitment Increase Requests up to U.S. $350,000,000 in the aggregate, in each case, as reduced from time to time pursuant
    to Section 4.07

     

    Notwithstanding anything in this Agreement to the contrary, not more
    than 20% of the Financing Limit may be utilized in Permitted Non-USD Currencies; provided that not more than 10% of the Financing
    Limit may be utilized in GBP.

 

    

     

    

 

	 	 	 
	3.	Scheduled Termination Date:	November 22, 20242025
	 	 	 
	4.	Interest Rates	 
	 	 	 
	 	Applicable Margin for Advances in U.S. Dollars:	
    With respect to interest based on the LIBO Rate, 2.502.35%
    per annum.

    With respect to interest based on the Base Rate, 2.502.35%
    per annum.

	 	Applicable Margin for Advances in CAD:	
    With respect to interest based on the CDOR Rate, 2.552.35%
    per annum.

    With respect to interest based on the Base Rate, 2.552.35%
    per annum.

	 	Applicable Margin for Advances in EUR:	
    With respect to interest based on the EURIBOR, 2.502.35%
    per annum.

    With respect to interest based on the Base Rate, 2.502.35%
    per annum.

	 	Applicable Margin for Advances in GBP:	
    With respect to interest based on Daily Simple SONIA, 2.552.35%
    per annum.

    With respect to interest based on the Base Rate, 2.552.35%
    per annum.

	 	 	 
	5.	Account Numbers	 
	 	 	 
	 	Custodial Account:	[***]
	 	Collection Account:	[***]
	 	Expense Reserve Account:	[***]
	 	MV Cure Account:	[***]
	 	Unfunded Exposure Account:	[***]
	 	CAD Collection Account:	[***]
	 	CAD Unfunded Exposure Account:	[***]
	 	EUR Collection Account:	To be set forth in the applicable Account Opening Notice
	 	EUR Unfunded Exposure Account:	To be set forth in the applicable Account Opening Notice
	 	GBP Collection Account:	To be set forth in the applicable Account Opening Notice
	 	GBP Unfunded Exposure Account:	To be set forth in the applicable Account Opening Notice
	 	 	 
	6.	Market Value Trigger:	67.5%

 

    - 2 -

     

    

 

	 	 	 
	7.	Market Value Cure Trigger:	60%
	 	 	 
	8.	Purchases of Restricted Securities	 
	 	 	 
	 	Notwithstanding anything herein to the contrary, no Portfolio Investment may constitute, at the time of initial purchase, a Restricted Security.  As used herein, "Restricted Security" means any security that forms part of a new issue of publicly issued securities (a) with respect to which an Affiliate of any Financing Provider that is a "broker" or a "dealer", within the meaning of the Securities Exchange Act of 1934, participated in the distribution as a member of a selling syndicate or group within 30 days of the proposed purchase by the Company and (b) which the Company proposes to purchase from any such Affiliate of any Financing Provider.  

 

    - 3 -

     

    

 
Addresses for Notices

 

	The Company:	WhiteHorse Finance Credit I, LLC

1450 Brickell Avenue, 31st Floor

Miami, FL  33131	Attn:  Operations

Email:  operations@higcapital.com
	 	 	 
	The Portfolio Manager:	WhiteHorse Finance, Inc.

1450 Brickell Avenue, 31st Floor

Miami, FL  33131	Attn:  Operations

Email:  operations@higcapital.com
	 	 	 
	The Administrative Agent:	JPMorgan Chase Bank, National Association

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd.,

3rd Floor

Newark, Delaware 19713	Attention:  DE_Custom_Business,

attention:  Nick Rapak

Telephone:  (302) 634-4961
	 	 	 
	 	with a copy to	 
	 	JPMorgan Chase Bank, National Association

383 Madison Ave.

New York, New York  10179	Attention:  James Greenfield

Telephone:  212-834-9340

Email:  james.r.greenfield@jpmorgan.com

With a copy to:

de_custom_business@jpmorgan.com

brian.m.larocca@jpmorgan.com

	 	 	 
	The Collateral Agent:	Citibank, N.A.

388 Greenwich Street

New York, NY 10013	Attention:  Agency & Trust

WhiteHorse Finance Credit I, LLC

Telephone:  (713) 693-6677

Email:  jacqueline.suarez@citi.com
	 	 	 
	 	 	 
	The Securities Intermediary:	Citibank, N.A.

388 Greenwich Street

New York, NY 10013	Attention:  Agency & Trust

WhiteHorse Finance Credit I, LLC

Telephone:  (713) 693-6677

Email:  jacqueline.suarez@citi.com
	 	
    Address for delivery of any physical securities:

    Citibank, N.A.

    399 Park Avenue

    Level "B" – Securities Vault

    New York, NY 10022
	Attention:  Mr. Keith Whyte

WhiteHorse Finance Credit I, LLC

Telephone:  (212) 559-1207

all physical securities must be sent by trackable courier services (e.g. UPS or Federal Express)

 

    - 4 -

     

    

 

	The Collateral Administrator:	Virtus Group, LP

1301 Fannin St., Suite 1700

Houston, TX	Attention:  WhiteHorse Finance Credit I, LLC

Telephone:  (713) 993-4300

Facsimile:  (877) 638-9907

Email:  WhitehorseFinCredLLC@virtusllc.com
	 	 	 
	JPMCB:	JPMorgan Chase Bank, National Association

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd., 3rd Floor

Newark, Delaware  19713	Attention:  Robert Nichols

Facsimile:  (302) 634-1092
	 	with a copy to:	 
	 	JPMorgan Chase Bank, National Association

383 Madison Ave.

New York, New York  10179	Attention:  James Greenfield

Telephone:  212-834-9340
	 	 	 
	Each other Financing Provider:	The address (or facsimile number or electronic mail address) provided by it to the Administrative Agent.	 

 

    - 5 -

     

    

 

 

SCHEDULE 2

 

Contents of Notices of Acquisition

 

Each Notice of Acquisition shall include the following information
for the related Portfolio Investment(s):

 

JPMorgan
Chase Bank, National Association,

as Administrative Agent

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd., 3rd Floor

Newark, Delaware 19713

DE_Custom_Business

Attention: Nick Rapak

Email: de_custom_business@jpmorgan.com

brian.m.larocca@jpmorgan.com

 

JPMorgan Chase Bank, National Association,

as Administrative Agent

383 Madison Avenue

New York, New York 10179

Attention: Michael Grogan

Email: NA_Private_Financing_Diligence@jpmorgan.com

 

JPMorgan Chase Bank, National Association,

as Lender

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd., 3rd Floor

Newark, Delaware 19713

DE_Custom_Business

Attention: Robert Nichols

 

cc:

 

Citibank, N.A., as Collateral Agent

Virtus Group, LP, as Collateral Administrator

 

     

     

    

 

Ladies and Gentlemen:

 

Reference is hereby made to the Fifth Amended and
Restated Loan Agreement, dated as of April 28, 2021 (as amended from time to time, the "Agreement"), among WhiteHorse
Finance Credit I, LLC, as borrower (the "Company"), JPMorgan Chase Bank, National Association, as administrative agent
(the "Administrative Agent"), WhiteHorse Finance, Inc., as portfolio manager (the "Portfolio Manager"),
the financing providers party thereto and the collateral agent, collateral administrator and securities intermediary party thereto. Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

 

Pursuant to the Agreement, the Portfolio Manager
hereby [requests approval for the Company to acquire][notifies the Administrative Agent of the Company's intention to acquire] via [Purchase][Substitution]
the following Portfolio Investment(s):

 

	Obligor	Jurisdiction	Currency	Identifier

 (LoanX)	Requested

 Notional

 Amount	Asset

 Class	Current

 Pay

 (Y/N)	Syndication

 Type	Lien	Tranche

 Size	Price	Spread/Coupon	Base

 Rate	Reference

 Rate

 Floor	Maturity	Moody's

 Industry	LTM

 EBITDA

 (in

 millions)	LTM Capital

 Expenditures

 (in millions)	Leverage

 Through

 Tranche

 (Net)	Financial

 Covenants
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

To the extent available, we have included herewith
(1) the material underlying instruments (including the collateral and security documents) relating to each such Portfolio Investment,
(2) audited financial statement for the previous most recently ended three years of the obligor of each such Portfolio Investment, (3)
quarterly statements for the previous most recently ended eight fiscal quarters of the obligor of each such Portfolio Investment, (4)
any appraisal or valuation reports conducted by third parties in connection with the proposed investment by the Company, (5) applicable
 "proof of existence" details (if requested by the Administrative Agent) and (6) the ratio of indebtedness to EBITDA as calculated
by the Portfolio Manager. The Portfolio Manager acknowledges that it will provide such other information from time to time reasonably
requested by the Administrative Agent.

 

	 	Very truly yours,
	 
	 	WHITEHORSE FINANCE, INC., as Portfolio Manager
	 
	 
	 	By	          	 
	 	Name:
	 	Title:

 

    - 2 - 

     

    

 

 

SCHEDULE 3

 

Eligibility Criteria

 

		1.	Each Portfolio Investment is a Senior Secured Loan, Second Lien Loan, FLLO Loan or a debt security and is not a Synthetic Security,
a Zero-Coupon Security, a Structured Finance Obligation, a Participation Interest (other than Initial Portfolio Investments), a Mezzanine
Obligation (or, for the avoidance of doubt, any other unsecured obligation of an obligor) or a Letter of Credit.

 

		2.	Such Portfolio Investment does not require the making of any future advance or payment by the Company to the issuer thereof or any
related counterparty except in connection with a Delayed Funding Term Loan or a Revolving Loan.

 

		3.	Such Portfolio Investment is eligible to be entered into by, sold or assigned to the Company and pledged to the Collateral Agent.

 

		4.	Such Portfolio Investment is denominated and payable in USD, CAD, EUR or GBP.

 

		5.	Such Portfolio Investment is issued by a company organized in an Eligible Jurisdiction and, if such company is not organized in the
United States, such company has submitted to jurisdiction in the United States in the related underlying instrument and the related underlying
instrument is governed by the laws of a State of the United States.

 

		6.	Such Portfolio Investment provides for periodic payments of interest thereon in cash at least semi-annually.

 

		7.	Such Portfolio Investment is not subject to an event of default (as defined in the underlying instruments for such Portfolio Investment)
in accordance with its terms (including the terms of its underlying instruments after giving effect to any grace and/or cure period set
forth in the related loan agreement, but not to exceed five (5) days) and no Indebtedness of the obligor thereon ranking pari passu
with such Portfolio Investment is in default with respect to the payment of principal or interest for which the lenders for such pari
passu Indebtedness have elected to accelerate such Indebtedness, which such default would trigger a default under the related loan
agreement (after giving effect to any grace and/or cure period set forth in the related loan agreement, but not to exceed five (5) days)
(a "Defaulted Obligation").

 

		8.	On the Trade Date, the timely repayment of such Portfolio Investment is not subject to non-credit-related risk as determined by the
Portfolio Manager in its good faith and reasonable judgment.

 

		9.	Such Portfolio Investment is not an equity security and does not provide, on the date of acquisition, for conversion or exchange at
any time over its life into an equity security.

 

		10.	Such Portfolio Investment will not cause the Company or the pool of Collateral to be required to register as an investment company
under the Investment Company Act of 1940, as amended.

 

     

     

    

 

		11.	In the case of a Portfolio Investment that is a Senior Secured Loan, Second Lien Loan or FLLO Loan, (i) the Administrative Agent is
an "Eligible Assignee" (as such term, or comparable term, is defined in the documents evidencing such Portfolio Investment)
and such Portfolio Investment is otherwise permitted to be entered into by, sold or assigned to the Administrative Agent and (ii) if the
Portfolio Manager and the administrative agent in respect of such Portfolio Investment are affiliates, within 30 days following the date
of the Purchase of such Portfolio Investment by the Company (or, if the Fifth A&R Effective Date is later than the date of the Purchase
of such Portfolio Investment, within 30 days following the Fifth A&R Effective Date), the Company shall have delivered to the Administrative
Agent an assignment agreement duly executed by the administrative agent and/or obligor in respect of such Portfolio Investment, naming
the Administrative Agent as assignee.

 

		12.	The Portfolio Investment has been, or substantially concurrently with the acquisition thereof will be, Delivered to the Collateral
Agent.

 

The
following capitalized terms used in this Schedule 3 shall have the meanings set forth below:

 

"Eligible Jurisdictions"
means the United States and any State therein, Canada, the United Kingdom and any country within the European Economic Area.

 

"Letter of Credit" means
a facility whereby (i) a fronting bank ("LOC Agent Bank") issues or will issue a letter of credit ("LC") for or on
behalf of a borrower pursuant to an underlying instrument, (ii) if the LC is drawn upon, and the borrower does not reimburse the LOC Agent
Bank, the lender/participant is obligated to fund its portion of the facility and (iii) the LOC Agent Bank passes on (in whole or in part)
the fees and any other amounts it receives for providing the LC to the lender/participant.

 

"Structured Finance Obligation"
means any obligation issued by a special purpose vehicle and secured directly by, referenced to, or representing ownership of, a pool
of receivables or other financial assets of any obligor, including collateralized debt obligations and mortgage-backed securities.

 

"Synthetic Security"
means a security or swap transaction, other than a participation interest or a letter of credit, that has payments associated with either
payments of interest on and/or principal of a reference obligation or the credit performance of a reference obligation.

 

"Zero-Coupon Security"
means any debt security that by its terms (a) does not bear interest for all or part of the remaining period that it is outstanding or
(b) pays interest only at its stated maturity.

 

    - 2 - 

     

    

 

SCHEDULE 4

 

Concentration Limitations

 

The "Concentration Limitations" shall be satisfied
on any date of determination if, in the aggregate, the Portfolio Investments owned (or in relation to a proposed purchase of a Portfolio
Investment, proposed to be owned) by the Company comply with all the requirements set forth below:

 

		1.	Not more than 5% of the Collateral Principal Amount may constitute the funded principal amount and Unfunded Exposure Amount, collateralized
or uncollateralized, of Portfolio Investments issued by a single obligor and its Affiliates; provided that, the funded principal
amount and Unfunded Exposure Amount, collateralized or uncollateralized, of Portfolio Investments that are Senior Secured Loans issued
by three obligors and their Affiliates may constitute up to 7.5% of the Collateral Principal Amount. Notwithstanding the foregoing, no
obligor shall be deemed an Affiliate of any person solely because they are under the control of the same private equity sponsor or similar
sponsor or because such obligor is owned by a common holding company with an obligor of another obligation so long as the collateral securing
such loans is not common.

 

		2.	Not less than 85% of the Collateral Principal Amount may consist of cash, Eligible Investments representing Principal Proceeds and
the funded principal amount of Senior Secured Loans.

 

		3.	(i) Not more than 15% of the Collateral Principal Amount may consist of FLLO Loans or Second Lien Loans (as determined by the Administrative
Agent in its sole discretion) and (ii) not more than 10% of the Collateral Principal Amount may consist of Second Lien Loans.

 

		4.	Not more than 25% of the Collateral Principal Amount may consist of the funded principal amount of obligations of obligors with an
EBITDA of less than U.S.$10,000,000 for cash flow loans; provided that not more than 0.0% of the Collateral Principal Amount may
consist of the funded principal amount of obligations of obligors with an EBITDA of less than U.S.$5,000,000 for cash flow loans.

 

		5.	Not more than 20% of the Collateral Principal Amount may consist of the funded principal amount of Portfolio Investments that are
issued by obligors that belong to the same Moody's Industry Classification. As used herein, "Moody's Industry Classifications"
means the industry classifications set forth in Schedule 6 hereto, as such industry classifications shall be updated at the option of
the Portfolio Manager (with the consent of the Administrative Agent) if Moody's publishes revised industry classifications.

 

		6.	The Unfunded Exposure Amount, collateralized or uncollateralized, shall not exceed 5% of the Collateral Principal Amount.

 

		7.	Not more than 20% of the Collateral Principal Amount may consist of Portfolio Investments denominated and payable in Permitted Non-USD
Currencies; provided that prior to the receipt of the GBP Account Opening Notice not more than 0.0% and following the receipt of
the GBP Account Opening Notice not more than 10% of the Collateral Principal Amount may consist of Portfolio Investments denominated and
payable in GBP; provided further that prior to the receipt of the EUR Account Opening Notice not more than 0.0% of the Collateral
Principal Amount may consist of Portfolio Investments denominated and payable in EUR.

 

		8.	Not more than 10% of the Collateral Principal Amount may consist of Portfolio Investments whose primary obligor is located in Canada.

 

     

     

    

 

SCHEDULE 5

 

Initial Portfolio Investments

 

     

     

    

 

SCHEDULE 6

 

	Moody's Industry Classifications
	Industry Code	Description
	1	Aerospace & Defense
	2	Automotive
	3	Banking, Finance, Insurance & Real Estate
	4	Beverage, Food & Tobacco
	5	Capital Equipment
	6	Chemicals, Plastics & Rubber
	7	Construction & Building
	8	Consumer goods:  Durable
	9	Consumer goods:  Non-durable
	10	Containers, Packaging & Glass
	11	Energy:  Electricity
	12	Energy:  Oil & Gas
	13	Environmental Industries
	14	Forest Products & Paper
	15	Healthcare & Pharmaceuticals
	16	High Tech Industries
	17	Hotel, Gaming & Leisure
	18	Media:  Advertising, Printing & Publishing
	19	Media:  Broadcasting & Subscription
	20	Media:  Diversified & Production
	21	Metals & Mining
	22	Retail
	23	Services:  Business
	24	Services:  Consumer
	25	Sovereign & Public Finance
	26	Telecommunications
	27	Transportation:  Cargo
	28	Transportation:  Consumer
	29	Utilities:  Electric
	30	Utilities:  Oil & Gas
	31	Utilities:  Water
	32	Wholesale

 

     

     

    

 

EXHIBIT A

 

Form of Request for Advance

 

JPMorgan
Chase Bank, National Association,

as Administrative Agent

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd., 3rd Floor

Newark, Delaware 19713

DE_Custom_Business

Attention: Nick Rapak

Email: de_custom_business@jpmorgan.com

brian.m.larocca@jpmorgan.com

 

JPMorgan Chase Bank, National Association,

as Administrative Agent

383 Madison Avenue

New York, New York 10179

Email: NA_Private_Financing_Diligence@jpmorgan.com

 

JPMorgan Chase Bank, National Association,

as Lender

c/o JPMorgan Services Inc.

500 Stanton Christiana Rd., 3rd Floor

Newark, Delaware 19713

Attention: Robert Nichols

 

cc:

Citibank, N.A., as Collateral Agent

Virtus Group, LP, as Collateral Administrator

 

Ladies and Gentlemen:

 

Reference is hereby made to the Fifth Amended and
Restated Loan Agreement, dated as of April 28, 2021 (as amended from time to time, the "Agreement"), among WhiteHorse
Finance Credit I, LLC, as borrower (the "Company"), JPMorgan Chase Bank, National Association, as administrative agent
(the "Administrative Agent"), WhiteHorse Finance, Inc., as portfolio manager (the "Portfolio Manager"),
the financing providers party thereto and the collateral agent, collateral administrator and securities intermediary party thereto. Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

 

Pursuant to the Agreement, you are hereby notified
of the following:

 

(1)               
The Company hereby requests an Advance under Section 2.03 of the Agreement to be funded on [____________].

 

(2)               
The aggregate amount of the Advance requested hereby is [USD][CAD][EUR][GBP][_________].1

 

(3)               
The Permitted Currency of the Advance requested hereby is [USD][CAD][EUR][GBP].

 

(4)               
The proposed purchases (if any) relating to this request are as follows:

 

     

     

    

 

	Security	Par	Price	Purchased Interest (if any)
	 	 	 	 
	 	 	 	 

 

We
hereby certify that all conditions to the Purchase of such Portfolio Investment(s) set forth in Section 1.03 of the Agreement
have been satisfied or waived as of the related Trade Date (and shall be satisfied or waived as of the related Settlement Date).

 

	 	Very truly yours,
	 
	 	WhiteHorse Finance Credit I, LLC
	 
	 	By: WhiteHorse Finance, Inc., as Portfolio Manager
	 
	 
	 
	 	By	        
	 	Name:
	 	Title:

 

 

1
Note: The requested Financing shall be in an amount such that, after giving effect thereto and the related purchase (if any) of the applicable
Portfolio Investment(s), the Borrowing Base Test and the Minimum Equity Test are each satisfied.

 

    - 2 -Exhibit 4.1

 

 

  

ANNUAL
INFORMATION FORM

 

FOR
THE FINANCIAL YEAR ENDED

DECEMBER 31, 2020

 

June
28, 2021

 

     

     

    

 

TABLE OF CONTENTS

 

	ADVISORIES	1
	GLOSSARY
    OF TERMS	4
	CORPORATE
    STRUCTURE	6
	GENERAL
    DEVELOPMENT OF THE BUSINESS OF THE COMPANY	6
	ThE
    ONGOING BUSINESS OF THE COMPANY	10
	RISK
    FACTORS	19
	DESCRIPTION
    OF CAPITAL STRUCTURE	33
	Market
    for Securities	33
	ESCROWED
    SECURITIES	34
	DIVIDENDS	34
	DIRECTORS
    AND OFFICERS	35
	AUDIT
    COMMITTEE	39
	Legal
    Proceedings AND Regulatory actions	40
	INTERESTS
    OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	41
	AUDITOR,
    TRANSFER AGENT AND REGISTRAR	41
	MATERIAL
    CONTRACTS	41
	INTERESTS
    OF EXPERTS	41
	ADDITIONAL
    INFORMATION	42

 

SCHEDULE

 

A – AUDIT COMMITTEE CHARTER 

 

     

     

    

 

ADVISORIES 

 

In this Annual Information Form ("AIF"),
unless otherwise specified or if the context otherwise requires, references to "we", "us", "our", "its",
 "the Company" or "Draganfly" mean Draganfly Inc. The information in this AIF is stated as at December 31, 2020 unless
otherwise indicated. For additional information and details, readers are referred to the audited consolidated financial statements for
the year ended December 31, 2020 and notes that follow, as well as the accompanying annual Management's Discussion and Analysis ("MD&A"),
which are available on the Canadian Securities Administrator's SEDAR System at www.sedar.com. 

 

Cautionary Statement Regarding
Forward-Looking Information and Statements

 

This AIF contains forward-looking information
and statements (collectively, "forward-looking statements"). These forward-looking statements relate to Draganfly's
current expectations, estimates and projections as to future events or Draganfly's future performance and are provided to allow readers
a better understanding of Draganfly's business and prospects and may not be suitable for other purposes. All statements, other than statements
of historical fact, may be considered forward-looking statements. Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect",
 "may", "will", "project", "predict", "potential", "targeting", "intend",
 "could", "might", "should", "believe" and similar expressions. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated
in, or suggested by, such forward-looking statements. Draganfly believes the expectations reflected in the forward-looking statements
included in this AIF are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. These statements speak only as of the date of this AIF and are expressly qualified, in their
entirety, by this cautionary statement. Draganfly assumes no obligation to revise or update these statements except as required pursuant
to applicable securities laws.

 

In particular, this AIF contains forward-looking
statements pertaining to the following:

 

		·	the
                                            intentions, plans and future actions of the Company;

		·	statements
                                            relating to the business and future activities of the ‎Company;

		·	anticipated
                                            developments in operations of the Company;

		·	market
                                            position, ability to compete and future ‎financial or operating performance of the
                                            Company;

		·	the
                                            timing and amount of funding required to execute the ‎Company's business plans;

		·	capital
                                            expenditures;

		·	the
                                            effect on the Company of any changes to existing or new ‎legislation or policy or government
                                            regulation;

		·	‎the
                                            availability of labour;

		·	requirements
                                            for additional capital;

		·	goals,
                                            strategies and future ‎growth;

		·	the
                                            adequacy of financial resources;

		·	expectations
                                            regarding revenues, ‎expenses and anticipated cash needs‎; and

		·	‎the
                                            impact of the COVID-19 pandemic on the business and operations of the Company.

 

With respect to forward-looking statements contained
in this AIF, the Company has made assumptions regarding, among other things:

 

		·	the
                                            Company's ability to implement its growth strategies;

		·	the
                                            Company's competitive advantages;

		·	the
                                            development of new products and services;

		·	the
                                            Company's ability to obtain and maintain financing on acceptable terms;

		·	the
                                            impact of competition;

		·	changes
                                            in laws, rules and regulations;

		·	the
                                            Company's ability to maintain and renew required licences;

 

Draganfly Inc. | Annual Information
Form      Page 1

     

     

    

 

		·	the
                                            Company's ability to maintain good business relationships with its customers, distributors,
                                            suppliers and other strategic partners;

		·	the
                                            Company's ability to protect intellectual property;

		·	the
                                            Company's ability to manage and integrate acquisitions;

		·	the
                                            Company's ability to retain key personnel; and

		·	the
                                            absence of material adverse changes in the industry or Canadian or global economy, including
                                            as a result of the COVID-19 pandemic.

 

The Company's actual results could differ materially
from those anticipated in the forward-looking statements as a result of the risk factors set forth below and elsewhere in this AIF:

 

		·	operational
                                            risks;‎

		·	failure
                                            to obtain or maintain required regulatory approvals; ‎

		·	regulatory
                                            regime the Company operates in;

		·	risk
                                            associated with acquisitions;‎

		·	reliance
                                            on management and key employees;

		·	changes
                                            in laws, regulations, and guidelines relating to the Company's business, including tax and
                                            accounting ‎requirements;‎

		·	competition
                                            in the industry;‎

		·	uncertainty
                                            and adverse changes in the economy;‎‎

		·	market
                                            price of the Common Shares may not be high enough to create positive return for current ‎investors;‎

		·	no
                                            prior market for the Common Shares; ‎

		·	high
                                            level of price and volume volatility in the capital markets;‎

		·	no
                                            dividends for the foreseeable future;‎

		·	risks
                                            associated with foreign operations in other countries

		·	dilution
                                            as a result of future sale of Common Shares;‎

		·	evolving
                                            market and difficulty of evaluation future prospects;‎

		·	rapid
                                            technological change in the industry;‎

		·	exposure
                                            to information systems security threats

		·	having
                                            defective products;‎

		·	possibility
                                            of data breaches and inadequacy of consumer protection and data privacy policies;‎

		·	increased
                                            research and development costs and reduced profitability as a result;‎

		·	lack
                                            of outside funding available for research and development;‎

		·	shipping
                                            products outside of Canada and approvals required for exporting;‎

		·	potential
                                            litigation;‎

		·	reliance
                                            on business partners;‎

		·	conflict
                                            of interests of the Company's directors and officers;‎

		·	failure
                                            to protect and maintain and the consequential loss of intellectual property rights;‎

		·	adverse
                                            impacts on the Company's reported results of operations as a result of adopting new accounting
                                            ‎standards or interpretations;

		·	changes
                                            in accounting standards and subjective assumptions, estimates and judgments by management
                                            ‎related to complex accounting matters; and

		·	the
                                            other factors considered under "Risk Factors" in this AIF and other filings
                                            made by the Company with Canadian securities authorities.

 

The Company has included the above summary of
assumptions and risks related to forward-looking statements contained in this AIF in order to provide investors with a more complete
perspective on the Company's current and future operations and such information may not be appropriate for other purposes.

 

Additional information on these and other
factors is available in the reports filed by the Company with Canadian securities regulators and available on SEDAR (as defined herein).
The forward-looking statements and information contained in this AIF are made as of the date hereof. 

 

Draganfly Inc. | Annual Information
Form      Page 2

     

     

    

 

Readers are cautioned that the preparation
of financial statements in accordance with generally accepted accounting principles in Canada requires management to make certain judgments
and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates may change, having either
a negative or positive effect on net earnings as further information becomes available and as the economic environment changes. The information
contained in this AIF, including the documents incorporated by reference herein, identifies additional factors that could affect the
operating results and performance of the Company. Readers are encouraged to carefully consider such factors.

 

Readers are also cautioned against placing
undue reliance on forward-looking statements, which are given as of the date expressed in this AIF, or the MD&A disclosure incorporated
by reference herein, and not to use future-oriented information or financial outlooks for anything other than their intended purpose.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The Company undertakes
no obligation to publicly update or revise any forward-looking statements in this AIF or the MD&A or other disclosure incorporated
by reference herein, whether as a result of new information, future events or otherwise, except as required by law.

 

Non-IFRS Measures

 

The Company prepares and reports its consolidated
financial statements in accordance with IFRS (as defined herein). However, this AIF may make reference to certain non-IFRS measures including
key ‎performance indicators used by management. These measures are not recognized measures under IFRS ‎and do not have a
standardized meaning prescribed by IFRS and are therefore unlikely to be comparable ‎to similar measures presented by other companies.
Rather, these measures are provided as additional ‎information to complement those IFRS measures by providing further understanding
of the Company's results of ‎operations from management's perspective. Accordingly, these measures should not be considered in
 ‎isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The ‎Company uses
non-IFRS measures including "gross margins" and "working capital" which may be calculated ‎differently by other
companies. These non-IFRS measures and metrics are used to provide investors with ‎supplemental measures of the Company's operating
performance and liquidity and thus highlight trends in the Company's ‎business that may not otherwise be apparent when relying
solely on IFRS measures. The Company also ‎believes that securities analysts, investors and other interested parties frequently
use non-IFRS measures ‎in the evaluation of companies in similar industries. Management also uses non-IFRS measures and ‎metrics
in order to facilitate operating performance comparisons from period to period, to prepare ‎annual operating budgets and forecasts
and to determine components of executive compensation. For ‎definitions and reconciliations of these non-IFRS measures to the relevant
reported measures, please ‎‎see ‎the "Non-GAAP Measures and Additional GAAP Measures"‎ section of the
MD&A. A copy of the MD&A can be accessed ‎under the Company's ‎profile on SEDAR at www.sedar.com‎.

 

Market, Independent Third
Party and Industry Data

 

Unless otherwise indicated, the Company has obtained
the market and industry data contained in this AIF from its internal research, management's estimates and third-party public information
and other industry publications. While the Company believes such internal research, management's estimates and third-party public information
is reliable, such internal research and management's estimates have not been verified by any independent sources and the Company has
not verified any third party public information. While the Company is not aware of any misstatements regarding the market and industry
data contained in this AIF, such data involves risks and uncertainties and are subject to change based on various factors, including
those described under "Cautionary Statement Regarding Forward-Looking Information and Statements" and "Risk
Factors".

 

Monetary References

 

Except as otherwise indicated, all dollar amounts
in this AIF are expressed in Canadian ‎dollars and references to $ are to Canadian dollars. References to US$ are to United States
dollars‎.

 

Draganfly Inc. | Annual Information
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GLOSSARY
OF TERMS 

 

In this AIF, unless otherwise indicated or the
context otherwise requires, the following terms shall have the indicated meanings. Words importing the singular include the plural and
vice versa and words importing any gender include all genders. A reference to an agreement means the agreement as it may be amended,
supplemented or restated from time to time.

 

"affiliate" or "associate"
when used to indicate a relationship with a person or company, has the meaning set forth in the Securities Act (British Columbia),
as amended, including the regulations promulgated thereunder;

 

"Amalgamation" has the meaning
set out under the heading "General Development of the Business of the Company – Three Year History – Financial year
ended December 31, 2019";‎

 

"BCBCA" means the Business
Corporations Act (British Columbia), as amended, including the regulations promulgated thereunder;

 

"Board of Directors" or "Board"
means the board of directors of the Company, as constituted from time to time, including, where applicable, any committee thereof;

 

"Canadian Securities Laws" means
the securities legislation and regulations, and the instruments, policies, rules, orders, codes, notices and interpretation notes, of
the securities regulation authorities of any applicable jurisdiction, or jurisdictions collectively, in Canada, as well as of the applicable
stock exchanges (including the CSE);

 

"CAGR"‎ means compound
annual growth rate;

 

"CARs" has the meaning set out
under the heading "The Ongoing Business of the Company – Regulatory Framework";

 

"CIPO" means the Canadian Intellectual
 ‎Property Office;

 

"Combination Agreement" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

"Common Shares" means the common
shares without par value in the capital of the Company;

 

"Company" or "Draganfly"
means Draganfly Inc.;

 

"CSE" means the Canadian Securities
Exchange;

 

"DAC" has the meaning set out
under the heading "Corporate Structure – Name, Address and Incorporation";

 

"Draganfly Innovations" means
Draganfly Innovations Inc., a wholly-owned subsidiary of the Company;

 

"Draganfly Innovations USA"
means Draganfly Innovations USA Inc., a wholly-owned subsidiary of the Company;

 

"Dronelogics" means Dronelogics
Systems Inc., a wholly-owned subsidiary of the Company;

 

"Effective Date" means the effective
date of this AIF, being June 28, 2021;

 

"FAA" means Federal Aviation
Administration;

 

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"Former Draganfly" has the meaning
set out under the heading "Corporate Structure – Name, Address and Incorporation";

 

"Former Draganfly Shares" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

‎"IFRS" ‎means International
Financial Reporting Standards as issued by the International Accounting Standards Board, as adopted ‎by the Canadian Accounting
Standards Board‎;

 

"Going Public Transaction" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

"Global UAV Subsidiaries" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
January 1, 2020 to the Effective Date";‎

 

"ITAR" means International Traffic
in Arms Regulations;

 

"NI 51-102" means National
Instrument 51-102 – Continuous Disclosure Obligations of the Canadian Securities Administrators;

 

"NI 52-110" means National
Instrument 52-110 – Audit Committees of the Canadian Securities Administrators;

 

"NPA" has the meaning set out
under the heading "The Ongoing Business of the Company – Regulatory Framework";

 

"OTCQB" means the middle tier
of the United States Over-the-Counter market;

 

"Preferred Shares" has the meaning
set out under the heading "Corporate Structure – Name, Address and Incorporation";

 

"Regulation A+ Offering" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

"Subscription Receipts" has
the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

"Subscription Receipt Offering"
has the meaning set out under the heading "General Development of the Business of the Company – Three Year History –
Financial year ended December 31, 2019";‎

 

"RPAS" means remotely piloted
aircraft systems;

 

"SEDAR" means the System for
Electronic Document Analysis and Retrieval;

 

"SFOC" has the meaning set out
under the heading "The Ongoing Business of the Company – Regulatory Framework";

 

"Small RPAS Advanced" has the
meaning set out under the heading "The Ongoing Business of the Company – Regulatory Framework";

 

"Small RPAS Basic" has the meaning
set out under the heading "The Ongoing Business of the Company – Regulatory Framework";

 

"sUAS" means small unmanned
aircraft systems;

 

Draganfly Inc. | Annual Information
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"Subco" has the meaning set
out under the heading "General Development of the Business of the Company – Three Year History – Financial year ended
December 31, 2019";‎

 

‎"UAV" means unmanned
aerial vehicles;

 

"USPTO" means United States
Patent and ‎Trademark Office; and

 

"UVS" means unmanned vehicle
systems.

 

CORPORATE
STRUCTURE 

 

Name, Address and Incorporation

 

‎The Company was incorporated as Drone
Acquisition Corp. ("DAC") under the BCBCA on June 1, 2018 for the purpose of reorganizing and recapitalizing the business
of Draganfly Innovations Inc. ("Former Draganfly")‎. Effective July 17, 2019, the Company amended its articles
to ‎remove various classes of authorized but unissued preferred shares and replace them with only one class of preferred ‎shares
(the "Preferred Shares"). Effective August 15, 2019, the Company changed its name to "Draganfly Inc." On August
22, 2019, the Company amended its articles to re-designate its Class A Common Shares as Common ‎Shares‎.

 

The Company's head office is located at 2108
St. George Avenue, Saskatoon, Saskatchewan S7M 0K7, and the registered office is located at Suite 2800, Park Place, 666 Burrard Street,
Vancouver, British Columbia V6C 2Z7.

 

Intercorporate Relationships

 

The following chart shows the Company's subsidiaries
as at the Effective Date:‎

 

 

 

GENERAL
DEVELOPMENT OF THE BUSINESS OF THE COMPANY

 

Founded in 1998, Former Draganfly is recognized
as one of the first commercial multi-rotor manufacturers and has a legacy for its innovation and superior customer service. Zenon Dragan
is the founder of Former Draganfly, and is a recognized leading expert on UAV.

 

Former Draganfly introduced its first systems
in 1999 and since evolved and shaped the UAV industry. The company's aircraft are widely used by public safety agencies worldwide and
were one of the first UAV to receive a FAA Certificate of ‎‎Authorization the fall of 2009 with the Mesa County Colorado Sheriff's
Office. In 2012, the Royal Canadian Mounted Police flew one of the company's drones to locate and save the life of an accident victim.
Draganfly aircraft have achieved many industry firsts, including:

  

		·	first public safety UAV to shoot aerial photos documenting a manned aircraft accident in an urban area;

 

		·	first
                                            UAV operated by a public safety organization flown at night to locate and save a life;

 

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		·	first
                                            UAV helicopter to be granted a county wide U.S. FAA Certificate of ‎‎Authorization;

 

		·	named
                                            as a test platform at one of the U.S. FAA's certified test sites; and

 

		·	four
                                            of the first six compliance certifications for its products issued by Transport ‎Canada.

 

Three Year History

 

A detailed description on the significant developments
of the business of the Company over the last three completed financial years is set out below.

 

Financial year ended
December 31, 2018

 

The Company was incorporated under the BCBCA
on June 1, 2018‎ for the purpose of reorganizing and recapitalizing the business of Former ‎Draganfly.

 

Prior to Closing of the Going Public Transaction
(as defined herein), the Company had not conducted any material business since incorporation other than ‎pursuing interests under
a letter of intent with Former Draganfly and entering into the Combination Agreement. The sole business of the Company from the date
of its incorporation until executing the Combination Agreement ‎‎(as defined herein) was to identify and evaluate opportunities
for the acquisition of an interest in suitable drone ‎businesses and, once identified and evaluated, to negotiate an acquisition
subject to applicable corporate and securities ‎laws, so as to complete a transaction. Until the completion of the Going Public
Transaction, the Company did not have a business, business ‎operations or any material assets other than cash.

 

Financial year ended
December 31, 2019

 

On August 15, 2019, DAC, its wholly-owned subsidiary
1187607 B.C. Ltd. ("Subco") and Former Draganfly completed a business combination transaction (the "Going Public
Transaction") pursuant to a ‎business combination agreement dated January 31, 2019 among the Company, Subco and Former
Draganfly (the ‎‎"Combination Agreement") whereby: (i) Former Draganfly completed settlement of certain
overdue debt in the aggregate ‎of $2,779,726; (ii) Former Draganfly continued to British Columbia (being the corporate law ‎jurisdiction
of the Company and Subco; (iii) Subco amalgamated (the "Amalgamation") with Former ‎Draganfly to form the amalgamated
wholly-owned subsidiary of the Company, Draganfly Innovations Inc.; and (iv) the Company changed its name to "Draganfly Inc."‎

 

Under the Amalgamation, holders of common shares
of Former Draganfly ("Former Draganfly Shares") (other than ‎dissenting shareholders) received 1.794 Common Shares
for each Former Draganfly Share held by such Former ‎Draganfly shareholder. Consequently, the Company owns 100% of Draganfly Innovations
and the Former Draganfly ‎shareholders became shareholders of the Company.

 

‎‎The Company completed a non-brokered
private placement offering on May 22, 2019 and August 6, 2019 (the "Subscription Receipt Offering") of securities raising
aggregate gross proceeds of $7,025,749.50 through the issuance of 14,051,499 ‎subscription receipts of the Company ("Subscription
Receipts") at a price of $0.50 per Subscription Receipt. The ‎Subscription Receipt Offering was required in order to satisfy
closing conditions of the Going Public Transaction. Each subscription ‎receipt automatically converted, without payment of additional
consideration and without any ‎further action on the part of the holder, into one unit of the Company upon the completion of the
Going Public Transaction and the listing of the Common Shares on the CSE. Each unit consisted of one Common Share and one transferable
Common ‎Share purchase warrant. Each warrant entitled the holder to purchase one Common Share at a ‎price of $0.50 for a
period 12 months following the issuance of the warrants.

 

‎The Company completed the listing of its
Common Shares for trading on the CSE under ‎the symbol "DFLY" on November 5, 2019.

 

Draganfly Inc. | Annual Information
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The Board and the ‎Company's senior management
were reconstituted in conjunction with the completion of the ‎Going Public Transaction to consists of four directors, Cameron Chell,
Denis Silva, ‎Scott Larson and Olen Aasen, and Cameron Chell as Chairman and CEO and Paul Sun as CFO and Corporate ‎Secretary.

 

On November 7, 2019, the Company announced that
Andrew Hill Card Jr. was appointed to the Board.

 

On November 15, 2019, the Company completed the
listing of its Common Shares for trading ‎on the Frankfurt Stock Exchange under the trading symbol "3U8".

 

Financial year ended
December 31, 2020

 

On January 9, 2020, the Company completed the
listing of its Common Shares for trading ‎on the OTCQB Venture Market of the OTC Markets under the symbol "DFLYF".

 

On March 26, 2020, the Company announced that
it had been selected as the exclusive global systems integrator for a project with Vital Intelligence Inc., a healthcare data services
and deep learning company in conjunction with the University of South Australia, using technology developed with help from the Australian
Department of Defence Science and Technology Group.

 

On April 30, 2020, the Company completed the
acquisition of all of the shares of Dronelogics Systems Inc. for a purchase price of $2,000,0000 paid by way of a cash payment of $500,000
and 3,225,438 Common Shares at a deemed price of $0.50 per Common Share. In connection with the acquisition, Justin Hannewyk, President
of Dronelogics, was appointed to the Board.

 

‎On June 18, 2020, the Company announced
that John M. Mitnick was appointed to the Board.

 

On July 3, 2020, the Company announced that Scott
Larson, a director of the Company, was appointed President of the Company.

 

On July 6, 2020, Draganfly completed a non-brokered
private placement of 961,538 Common Shares at a price of $0.52 per Common Share for gross proceeds of $500,000.

 

On July 16, 2020, Draganfly completed a shares
for debt transaction for payment of a third party strategic vendor's invoices. Draganfly issued an aggregate of 555,409 Common Shares
at a deemed price of $0.55 per Common Share to settle $305,475.03 of outstanding debt.

 

On November 10, 2020, the Company announced that
its wholly-owned subsidiary Dronelogics, entered into lease agreements with the wholly-owned subsidiaries of Global UAV Technologies,
Pioneer Arial Surveys Ltd. and High Eye Aerial Imaging Inc. (the "Global UAV Subsidiaries"), pursuant to which Dronelogics
will lease all of the assets of the Global UAV Subsidiaries with an exclusive option to purchase the assets at any time during the term
of the lease agreements. Pursuant to the lease agreements, Dronelogics paid an initial deposit of $50,000 upon signing and will pay four
quarterly lease payments to each of the Global UAV Subsidiaries for an aggregate amount of $31,500 per quarter (for a total amount of
$126,000 during the term of the lease agreements). In the event the Company exercises the option, it is required to pay the remainder
of the lease payments outstanding as well as $220,000 in Common Shares based on a 30 day volume weighted average price per Common Share
following the execution of the lease agreements, for aggregate consideration of $396,000. On ‎January
28‎, 2021, the Company notified the Global UAV Subsidiaries that it would be terminating the lease ‎agreements and no longer
pursuing this transaction.‎

 

On December 2, 2020, the Company announced that
it had completed an initial closing of its Regulation A+ offering of units of the Company (the "Regulation A+ Offering").
The Company issued 2,556,496 units at price of US$0.47 per unit for gross proceeds in the amount of US$1,201,553 in the first closing.
Each unit is comprised of one Common Share and one Common Share purchase warrant, with each warrant entitling the holder to acquire one
Common Share at a price of US$0.71 per Common Share until November 30, 2022. The Common Shares and Warrants issued in connection with
the offering are subject to a nine month hold period which will expire on August 30, 2021.

 

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On December 22, 2020, the Company announced that
it had been selected by Coldchain Technology Services, LLC ("Coldchain") to immediately develop and provide flight services
of a robust vaccine delivery payload for use in critical regions for drone delivery of the COVID-19 vaccine.

 

January 1, 2021 to the Effective Date

 

On January 6, 2021, the Company announced the
awarding of a new patent for a vertical take-off and landing (VTOL) cargo delivery drone with variable center of gravity.

 

On January 21, 2021, the Company announced that
it had been selected to provide engineering and development services for a drone-based air support defense system for Integrated Launcher
Solutions Inc. ("ILS"). The Company entered into a memorandum of understanding with ILS with the objective to create
the terms and conditions surrounding a project management and development agreement for the production of ILS's multi-launching air support
defence system.

 

On March 2, 2021, the Company announced that
it will be the exclusive supplier of drones to Woz ED's drone program across its ‎national K-12 curriculum with the expected deployment
of approximately 3000 drones in ‎‎2021‎. The Company entered into a memorandum of understanding with Woz ED with the
objective to create the terms and conditions surrounding a business agreement. The memorandum of understanding automatically terminates
after 60 days; however, the Company anticipates entering into a definitive agreement with Woz ED during the third quarter of 2021.

 

On March 9, 2021, the Company announced that
it had completed the final closing of the Regulation A+ Offering. The Company issued 32,443,457 units at price of US$0.47 per unit for
gross proceeds in the amount of approximately US$15.3 million in the final closing. Each unit is comprised of one Common Share and one
Common Share purchase warrant, with each warrant entitling the holder to acquire one Common Share at a price of US$0.71 per Common Share
for a period of two years from the date of issuance. The Common Shares and Warrants issued in connection with the offering are subject
to a nine month hold period.

 

On March 9, 2021, the Company also announced
that it has entered into an asset purchase agreement with Vital Intelligence Inc. (“Vital”) to purchase all the assets
of Vital in consideration for: (a) a cash payment of $500,000 with $50,000 paid upon execution of the asset purchase agreement, $200,000
to be paid at closing and $250,000 to be paid on the six-month anniversary date of closing; and (b) 6,000,000 units of the Company with
each unit being comprised of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder
to acquire one common share for a period of 24 months following closing at an exercise price of $2.67 per common share and the Company
will be able to accelerate the expiry date of the warrants after one year in the event the underlying common shares have a value of at
least 30% greater than the exercise price of the warrants. The units will be held in escrow following closing with 1,500,000 units being
released at closing and the remainder to be released upon the Company reaching certain revenue milestones received from the purchased
assets. The Company completed the acquisition on March 25, 2021.

 

On March 23, 2021, the Company announced that
it signed a services deal to deploy EagleEyeTM AI flight services with Windfall Geotek Inc. Windfall Geotek Inc. contractually agreed
to have Draganfly provide $1,000,000 in flight services over the course of the next year with $500,000 already directly funded and allocated.

 

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On May 13, 2021, the Company announced that it
entered into a definitive agreement with Coldchain to develop, deploy and operate solutions for the delivery of medical supplies, medicine,
and vaccines. The definitive agreement provides for phase one of a planned five-phase roll-out for the comprehensive development, deployment,
and operation of a medical drone delivery service as well as the development of a solution for the timely delivery of medical supplies,
medicine, and vaccines. Phase one will also include working with various regulatory bodies, including the FAA, to obtain licenses and
approvals for initial non-commercial beta test delivery routes. Phase one has a value of US$125,000, to be executed over a maximum of
10 months and the parties have agreed to negotiate an extension to the definitive agreement for phase two prior to the expiry of phase
one. Under phase two, Coldchain will commit to purchasing no less than US$625,000 in equipment and services from Draganfly.

 

On May 19, 2021, the Company announced that it
signed a contract with ILS for the development, prototyping, and eventual production of a non-lethal 40 mm ‎multi-‎launching
systems that can be mounted and deployed from drones, drone systems, robots, ‎robotic systems, and other stationary platforms or
similar systems. As part of the contract, Draganfly has provided ILS with strategic vendor financing of US$150,000 to assist in the development
of the project and in consideration ILS has granted Draganfly a worldwide royalty equal to 8% of the gross revenue received from the
project for a period of five years from earlier of the repayment date or maturity date of the loan. The loan is secured against the intellectual
property related to the project.

 

Significant Acquisitions
During 2020

 

Draganfly did not complete any significant acquisitions
during its most recently completed financial year for which disclosure is required under Part 8 of NI 51-102.

 

ThE
ONGOING BUSINESS OF THE COMPANY 

 

‎General

 

The Company is an award-winning, industry-leading
manufacturer, contract engineering, and product development ‎company within the UAV space, serving the public safety, agriculture,
industrial inspections, and mapping and surveying ‎markets. The Company is driven by passion, ingenuity, and the need to provide
efficient solutions and first-class ‎services to its customers around the world with the goal of saving time, money, and lives.
 ‎

 

The business of the Company is conducted through
three wholly-owned subsidiaries: (a) Draganfly Innovations Inc.; (b) ‎Draganfly Innovations USA Inc.; and (c) Dronelogics Systems
Inc.

 

The business of Draganfly Innovations and Draganfly
Innovations USA is the provision of engineering services and ‎manufacture of commercial UAV, RPAS, and ‎UVS and software,
serving the public safety, agriculture, industrial inspections, and ‎mapping and surveying markets. ‎

 

‎Dronelogics is a solutions integrator
for custom robotics, hardware and software that provides a wide scope of ‎services including sales, training, rentals, maintenance,
flying and data processing services. ‎

 

Drone Industry Overview

 

Drones or UAV have rapidly evolved from a military
origin to commercial and civil government applications from security to farming. The increased automation of drones provides additional
value to existing workflows, triggering more widespread adoption. A global shift to sustainable and eco-friendly options has further
increased demand for drone usage. Lastly, regulatory amendments are anticipated to have an ongoing impact on the drone industry. According
to Drone Industry Insights, the commercial and private drone market could grow from US$22.5 billion in 2020 to US$42.8 billion in 2025,
representing CAGR of 13.8%.

 

Draganfly Inc. | Annual Information
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Drone applications are being utilized in multiple
industries on a global basis. A portion of manned military aircraft (MMA) created the drone industry as a safe, inexpensive option. Defense
will remain the largest market over the foreseeable future. However, the mobile phone industry created an affordable technology stack
for drones. The ability to carry a camera enabled many people to utilize the platforms for media production and beyond. That demand initiated
in the consumer market and has migrated along with technological advancements into the growth of commercial drone industry.

 

The major segments of the drone market are drone
hardware, software and services. Drone hardware are the physical goods, including drone platforms, aerial mobility platforms and components
and systems. The software segment includes flight planning, navigation and computer vision, unmanned traffic management (UTM), fleet
operations, ecosystems, networks and software development kits (SDKs). The services aid the drone hardware and software manufacturers.
They include drone service providers (DSPs), system integrators, pilot training providers, retailers and marketplaces, coalitions and
organizations, drone test sites, insurance providers and university/ educational facilities.

 

Drone application methods are being used by a
variety of industries today. There are approximately eight methods that are garnering the most attention: mapping, surveying, inspection,
filming/photography, dispensing/spraying, warehousing, monitoring/detection, and delivery. These applications are being used today by
the civil government, educational facilities, agricultural, construction, health care, real estate, energy, transportation, insurance,
security, and scientific industries. According the Drone Industry Insights, the fastest growing drone application method will be delivery
and is forecasted at 28.6% CAGR over the next five years; however, this will not happen without intense industry scrutiny and regulation.

 

Products and Services

 

The Company can provide its customers with an
entire suite of products and services that include: quad-copters, ‎fixed wing aircrafts, ground based robots, hand held controllers,
flight training, and software used for tracking, live ‎streaming, and data collection.

 

Product sales and engineering services accounted
for 71% and 29%, respectively, of revenues of Draganfly for the financial year ended December 31, 2020. The bulk of engineering service
work is for one ‎large US based customer that subcontracts to Draganfly. The customer's clients tend to be the U.S. government
and ‎military.

 

Draganfly Products

 

‎‎Quadcopters and Multirotors

 

The Company is the longest-running manufacturer
of quadcopters and multirotor drones in the world. Draganfly's quadcopters and multirotor drones include the following:

 

		·	Draganflyer
                                            Commander – a high-endurance, electric, autonomous quadcopter drone built on Draganfly's
                                            patented carbon fiber folding airframe with interchangeable payloads for a variety of missions
                                            requiring high resolution imagery, including surveying, 3D mapping, industrial inspection,
                                            search and rescue, and high-endurance public safety applications.

 

		·	Draganflyer
                                            X4-P – semi-autonomous quadcopter with 18 minute flight time ideal for medium projects.

 

		·	QuantixTM
                                            Mapper – exclusive to Draganfly through its partnership with AeroVironment, it
                                            is a fully-automated drone that is designed for mapping.

 

		·	Tango2 – a high endurance, dual battery, sUAS capable of carrying a wide array of payload
systems. The aircraft utilizes the Draganfly intelligent power management system to extend flight time while increasing safety. This
sUAS is ideal for agricultural monitoring and research, mapping, surveying, environmental monitoring, and search and rescue.

 

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Universal Control System

 

The Draganfly Universal Control System is a complete,
handheld ground control system that is built to integrate with other software and hardware systems. The Draganfly Universal Control System
is designed to provide precise control over sUAS helicopters, fixed-wing, and ground-based robots. Draganfly software provides sophisticated
flight planning, automated takeoff, grid following, waypoints, landing, data collection, and video downlink.

 

Software

 

The Draganfly Surveyor drone flight planning
software is an intuitive, easy to use, application that enables customers to quickly plan, fly, and process meaningful data. Based on
the project, camera type, optics, and altitude, the drone software determines the appropriate camera shutter interval, aircraft speed,
and flight plan to capture the optimum required photo overlap to generate 2D and 3D maps and models. The Draganfly Surveyor directly
integrates with Pix4Dmapper for survey-grade results and can be used alongside other third party photogrammetry programs.

 

Vital Intelligence

 

Draganfly operates in partnership with Vital
Intelligence Inc. to install standalone and airborne health assessment systems at locations such as universities, hotels, casinos, family
entertainment complexes, shopping centers, and other high-traffic locations. These systems effectively measure social distancing and
visitors' vital signs like temperature, cough, and respiratory rate to identify high-risk visitors. Vital Intelligence is a data platform
that turns an existing camera into a touchless symptom detection system, measuring vital signs and social distancing. Draganfly integrates
this technology into a variety of platforms and camera systems – both on the ground and in the air – to assess people coming
into and traveling throughout a facility.

 

Draganfly Services

 

Custom Engineering

 

Draganfly is a contract engineering partner for
government agencies, enterprise organizations, academic institutions, and businesses of all sizes. The Draganfly team's truest capabilities
are actualized during the engineering process as hardware designers, software designers, engineers, project managers, and vertical-specific
experts come together to build custom drone solutions for its partners. Draganfly's end-to-end engineering services include:

 

		·	Hardware
                                            design: Component, product, and system design.

 

		·	Software
                                            design: Custom software and interface design.

 

		·	Development:
                                            Including integration with third party platforms, PixX4D, Pixhawk, Ardupilot, DJI ‎and
                                            more.

 

		·	Modeling:
                                            3D design and modeling of mechanical components.

 

		·	ITAR
                                            equipment management: Approved handling and integration of ITAR, and Controlled Goods technologies.

 

		·	Support:
                                            Testing, training, documentation, and repairs.

 

Draganfly Inc. | Annual Information
Form      Page 12

     

     

    

 

Training

 

Draganfly offers custom-designed training packages
that are tailored to specific operations and use cases. The Company also offers basic training for new UAV owners, up to advanced classes
for users who understand the fundamentals and are looking for new ways to increase flight efficiency or comply with federal regulations.

 

Flight Services

 

Draganfly has a team of qualified pilots that
conduct flights on behalf of its customers. The team specializes in working with emergency services including police, fire, and search
and rescue personnel. Draganfly also supports industrial applications, utility and power companies, environmental and agricultural entities
and others.

 

Varigard Spraying Services

 

Draganfly operates in partnership with Varigard
LLC, a leader in natural and organic disinfectants, to administer a sanitization spraying service in large public venues by misting a
surface spray across the entire venue in four to six hours.

 

Principal Markets

 

Draganfly has more than 20 years of experience
designing and manufacturing professional drones for military, public safety, energy, agriculture, and insurance. Draganfly has sold products
and services to over 50 ‎countries but predominantly focuses on the North American market given its geographical location.

 

Military and Government

 

Military and government contractors partner with
Draganfly to improve personnel and infrastructure safety. Draganfly works with partners to design and manufacture custom airframes, design
and develop payloads, and manage complex flight operations. Draganfly team members hold advanced pilot certificates and are approved
to fly in controlled airspace and at airports. Since the Company's development team is cleared by Canada's Controlled Goods Program,
the team is permitted to handle ITAR equipment and technologies, and the Company's facilities are built to protect those technologies
and ensure they are only handled by approved personnel.

 

Public Safety

 

In 2013, the Draganflyer was the first drone
to save a human life. Years later, the Company is still a leader in using drone technology to keep the public safe. Draganfly works with
its partners to identify unknowns, such as substances, spills, packages, and chemicals while not putting human lives at risk‎.
Draganfly builds aerial and ground systems with custom payloads and sensors to scan scenes, survey public events, locate objects, and
clear debris faster and more safely than on-the-ground manpower. The Company also empowers its partners to maximize existing infrastructures
via custom API integrations that ensure Draganfly's technology enhances their safety systems.

 

Environmental and Energy

 

Draganfly offers a suite of commercial UAV solutions
for energy companies and those servicing the energy market, like surveyors and consultants. Draganfly equips energy companies with the
hardware and software they need to optimize existing operations, improve safety, and respond after a natural disaster. Partners can use
Draganfly hardware and 3D modeling software to remotely inspect sites that would put human lives at risk. They also conduct environmental
monitoring with Draganfly's sample collection solutions, assessing water and ground pollution, gas composition, infrastructure, and other
environments.

 

Draganfly Inc. | Annual Information
Form      Page 13

     

     

    

 

 

Agriculture

 

Draganfly works with its partners to collect
high-quality data, using multi- and hyper-spectral imaging, 3D modeling, and a suite of sophisticated sensor technology that assesses
environmental factors. Seed companies use Draganfly technology to optimize growth season, measuring seed trial results throughout the
research and development process. Farmers can use Draganfly flight and data collection services to monitor hectares of land year-round,
assessing factors like fertilizer efficiency, weed production, and more.

 

Insurance

 

Insurance companies can use Draganfly technology
for pre-damage baseline and post-event damage assessments of infrastructure to reduce risk when dealing with natural disasters and other
catastrophic events. Property owners, insurers, and reinsurers can leverage Draganfly's flight, data collection, and assessment services
to increase accuracy and speed when inspecting a site.

 

Operations

 

Canadian Operations

 

Draganfly Innovations' products are manufactured
at its machine shop within its leased head office based in Saskatoon, Saskatchewan, Canada. Draganfly Innovations operates the fully
operational facility located at 2108 St. George Avenue, Saskatoon, SK S7M 0K7. This facility is to be used only for the purposes of Draganfly
Innovations operating its business of design, development, production, distribution, sale and/or licensing of drones or robots, or such
other use as permitted by the landlord from time to time.

 

Dronelogic's services are provided through its
leased space located at Unit 319, 2999 Underhill Avenue, Burnaby, British Columbia.

 

‎United States Operations

 

‎The Company, through its wholly-owned
subsidiary, Draganfly Innovations USA, has a management office in ‎Raleigh, North Carolina that currently conducts business in
the state of North Carolina in the United States. ‎

 

Competitive Conditions

 

Although Draganfly is acknowledged as the pioneer
that first developed the commercial multi rotor helicopter, there ‎are now many drone hardware companies in the World. As technology
 ‎has improved and costs for hardware and software have come down, the line between consumer and commercial ‎drones has blurred.
Historically, Draganfly has serviced early adopters in the public safety industry. At this stage of ‎the commercial drone adoption
curve, the average public safety organization (local, regional, and even federal law ‎enforcement, for example), are quite budget
conscious. Hence, these organizations tend to use lower cost drones ‎that have become quite sophisticated that can accomplish most
of their use cases. The dominant company in the industry is ‎DJI, the Chinese drone company that is reputed to own over 70% of
the consumer and now commercial drone ‎market. The majority of DJI's drones are geared towards broad applications involving the
masses. Draganfly has ‎moved away from competing directly with DJI and has chosen to serve niche markets outside of where DJI tends
to ‎be. There are also some organizations that tend to be US based that either prefer or are mandated to not use foreign ‎drones
such as those produced by DJI. Some of these organizations are sensitive to their work being exposed to that ‎of overseas governments
which has at least for the time being, created a niche market for players such as ‎Draganfly. As Draganfly has evolved to move
with the industry trends, the Company now uses DJI drones as part ‎of some of its customization and engineering services work.
Draganfly has also moved into innovative engineering ‎procurement which is very specialized and is currently not aware of any Canadian
and US companies focusing on ‎this industry or its existing customers. As the drone industry matures, this may bring more competitors
to this space or ‎the Company's customers may choose to develop the in-house expertise to do the work that they currently ‎outsource
to Draganfly. However, it is the Company's view that there will be a growing customer base that will ‎require very specialized
work that only a handful of companies can do.‎

 

Draganfly Inc. | Annual Information Form      
Page 14

 

     

     

    

 

Regulatory Framework

 

A new regulatory framework relating to the use
of drones in Canada was published by Transport ‎Canada in January 2019 and came into effect on June 1, 2019. The changes, published
in the ‎Canadian Aviation Regulations ("CARs"), Part IX, introduce new rules based on the weight of the RPA and
the intended operation. This framework creates three broad ‎categories of RPAS: (i) small RPAS in limited (low risk) operations
("Small RPAS Basic"); (ii) ‎small RPAS in advanced (complex) operations ("Small RPAS Advanced");
and (iii) all other RPA ‎operations that fall outside (i) and (ii) above. These regulations focus on foundational issues ‎such
as aircraft marking and registration, pilot knowledge and certification, airworthiness of the ‎aircraft, and flight rules.‎

 

Small RPAS Basic are defined as RPAS weighing
between 250 grams and 25 kilograms and operated in rural ‎and unpopulated areas. These RPAS will require identification markings,
including name, address ‎and contact information of the owner and pilot of the RPA. Pilots must be at least 14 years of ‎age
and must hold a valid Basic RPA licence that is specific to small drones. Additional ‎restrictions are imposed that include that
the RPA cannot operate: (i) within approximately 30 meters of ‎people or open-air assemblies of people, (ii) above 400 feet, (iii)
within approximately 1.85 kilometers of ‎heliports or (iv) within approximately 5.5 kilometers of airports. These regulations require
the RPA to ‎always be operated within visual line-of-sight.‎

 

Small RPAS Advanced are defined as RPAS weighing
between 250 grams and 25 kilograms and operated in ‎urban and/or populated areas. These RPAS will require identification, marking
and registration ‎with Transport Canada as well as meeting specified design standards acceptable to Transport ‎Canada. The
RPA will be assigned a unique identification/registration number issued by Transport ‎Canada. Pilots must be at least 16 years
of age and must hold a valid Advanced RPAS licence ‎that is specific to small drones. Approval for operation must be granted by
Air Traffic Control ‎when operating in controlled airspace or near controlled aerodromes. A set of flight rules must be ‎followed
at all times for these more complex operations. Restrictions, including distances from ‎people, are determined based on the safety
certification of the RPA being operated. The RPA ‎must always be operated within visual line-of-sight.‎

 

The current legislation utilizes a similar Special
Flight Operations Certificate ("SFOC") application ‎process, as the previous regulations, to approve any operations
that do not fit within the ‎regulatory regime set out above, such as operating beyond visual-line-of-sight. For those wishing ‎to
operate outside of the regulatory framework set out in CARs, part IX, there will be a variety of ‎SFOC application processes tailored
to the nature and use of the RPA. The more complex and ‎risky the proposed operation, the more thorough and detailed the SFOC application
process.‎

 

Those operators requiring an SFOC must apply
to the Transport Canada Civil Aviation Regional ‎Office at least 30 working days prior to the date of the proposed RPAS operation.
Transport ‎Canada has wide discretion in reviewing and approving SFOC applications; however, to date the ‎Company has never
been refused an SFOC for which it has applied. The purpose of the SFOC ‎application review is to ensure that the proposed operation
is safe and associated risks have ‎been adequately mitigated by the Company.‎

 

In April 2020, Transport Canada published a
Notice of Proposed Amendment ("NPA") as the first ‎step in the publication of new regulations for beyond
visual line-of-sight operations. The NPA ‎provided a synopsis of the high-level policies Transport Canada is proposing to
support beyond ‎visual line-of-sight operations in lower risk environments such as remote and isolated areas. ‎These new
regulations will also provide clear direction and guidance on the use of heavier aircraft ‎‎(up to 650 kilograms),
operations at higher altitudes than currently permitted in CARs, Part IX, and will ‎set the foundation for an operator
certification program. Once published, these regulations will ‎permit routine beyond visual-line-of-sight operations without
the need for the Company to request ‎specific permission for each operation, as is currently required with the current SFOC
process. ‎The first draft of these regulations were expected to be published in Canada Gazette in Spring of
 ‎‎2021; however, as at the Effective Date the first draft has not been published.‎

 

Draganfly Inc. | Annual Information Form      Page
15

 

     

     

    

 

The Company is currently fully compliant with
all current regulatory requirements and has applied ‎for, and received Transport Canada approval for several SFOCs.

 

Components

 

The Company obtains hardware components, various
subsystems and systems, and raw materials from a limited group of suppliers. The Company does not have long-term agreements with any
of these suppliers that obligate such suppliers to continue to sell components, subsystems, systems or products to the Company. The Company's
reliance on these suppliers involves significant risks and uncertainties, including whether suppliers will provide an adequate supply
of required raw materials, components, subsystems, or systems of sufficient quality, will increase prices for the raw materials, components,
subsystems or systems, and will perform their obligations on a timely basis. See "Risk Factors".

 

Intangible Properties

 

Intangibles such as patents, software, specific
technology know-how, and applications expertise all have a significant effect on the Company's business. At present, drone delivery technology
cannot be purchased as an off-the-shelf solution; therefore, the Company has been focused on developing proprietary technology which
meets or exceeds anticipated Canadian government requirements. By virtue of being the first commercial ‎UAV company in the industry,
the Company's subsidiary, Draganfly Innovations, holds valuable commercial patents. ‎

 

As at the Effective Date, the Company has the
following patents and patents pending in the application stage in its portfolio and intends to continue to expand and grow its intellectual
property portfolio:

 

	Title	Country	Application
    No.	Issue
    Date	Patent
    No.	Status
	Multi
                                            Rotor UAV With Compact Folding

     

    Rotor Arms

     
	Canada	2,917,434	4/23/2019	2,917,434	Issued
	Unmanned
                                            Rotary Wing Aircraft With

     

    Compact Folding Rotor Arms

     
	Canada	2,876,630	N/A	N/A	Pending
	Vehicle
    with Aerial and Ground Mobility	Canada	2,787,279	10/22/2013	2,787,279	Issued
	Vertical
                                            Takeoff and Landing Unmanned

     

    Aircraft System

     
	Canada	2,935,793

     

     

     
	N/A	N/A	Issued
	Wheel
    with Folding Segments	Canada	2,787,075	10/29/2013	2,787,075	Issued
	Action
                                            Camera System for Unmanned Aerial

     

    Vehicle

     
	United
    States	15/707,752	1/22/2019	10,187,580	Issued
	Action
                                            Camera System for Unmanned Aerial

     

    Vehicle

     
	United
    States	14/533,995	9/19/2017	9,769,387	Issued
	Cascade
    Recognition for Personal Tracking via Unmanned Aerial Vehicle (UAV)	United
    States	14/642,370	7/18/2017	9,710,709	Issued
	Cascade
    Recognition for Personal Tracking via Unmanned Aerial Vehicle (UAV)	United
    States	15/651,672	2/13/2018	9,892,322	Issued

 

Draganfly Inc. | Annual Information Form      
Page 16

 

     

     

    

 

	Cascade
    Recognition for Personal Tracking via Unmanned Aerial Vehicle (UAV)	United
    States	15/894,292	10/8/2019	10,438,062	Issued
	Dual
    Rotor Helicopter with Tilted Rotational Axes	United
    States	12/458,608	11/8/2011	8,052,081	Issued
	Helicopter
    with Folding Rotor Arms	United
    States	13/200,825	10/23/2012	8,292,215	Issued
	Multi
    Rotor UAV With Compact Folding Rotor Arms	United
    States	14/994,080	7/31/2018	10,035,581	Issued
	Pixel
    Based Image Tracking System For Unmanned Aerial Vehicle (UAV) Action Camera System	United
    States	15/256,193	10/10/2017	9,785,147	Issued
	Pixel
    Based Image Tracking System for Unmanned Aerlal Vehicle (UAV) Action Camera System	United
    States	14/825,956	9/13/2016	9,442,485	Issued
	Real
    Time Noise Reduction System for Dynamic Motor Frequencies Aboard an Unmanned Aerial Vehicle (UAV)	United
    States	14/642,496	11/8/2016	9,489,937	Issued
	System
    and Method for Adaptive Y Axis Power Usage and Non Linear Battery Usage for Unmanned Aerial Vehicle Equipped with Action Camera System	United
    States	14/825,914	12/6/2016	9,511,878	Issued
	Tandem
    Wing Aircraft System with Shrouded Propeller	United
    States	15/584,815	8/13/2019	10,377,488	Issued
	Vehicle
    with Aerial and Ground Mobility	United
    States	14/641,468	3/21/2017	9,598,171	Issued
	Vehicle
    with Aerial and Ground Mobility	United
    States	13/846,074	3/31/2015	8,991,740	Issued
	Vertical
    Take Off And Landing (VTOL) Aircraft Having Variable Center Of Gravity	United
    States	15/706,158	10/20/2020	10,807,707	Issued
	Vertical
    Takeoff and Landing Unmanned Aircraft System	United
    States	15/164,718	8/28/2018	10,059,442	Issued
	Visually
    Intelligent Camera Device with Peripheral Control Outputs	United
    States	14/939,369	8/6/2019	10,375,359	Issued
	Wheel
    with Folding Segments	United
    States	13/739,419	6/17/2014	8,753,155	Issued

 

As at the Effective Date, the Company also has
the following registered trademarks and pending applications‎:

 

	Description
    	Name/Title	Official
    No.	Governmental
    Entity
	Trademark
    Application (Status: Filed)	DRAGANFLY	1,972,336	CIPO
	Registered
    Trademark	DRAGANFLYER
    EXPLORE	TMA1,025,742	CIPO

 

Draganfly Inc. | Annual Information Form      
Page 17

 

     

     

    

 

	Registered
    Trademark	DRAGANFLYER
    APEX	TMA1,025,624	CIPO
	Registered
    Trademark	DRAGANFLYER
    COMMANDER	TMA1,008,809	CIPO
	Registered
    Trademark	DRAGANFUEL	TMA997,118	CIPO
	Registered
    Trademark	DRAGANFLY
    INNOVATIONS	TMA908,564	CIPO
	Registered
    Trademark	DRAGANFLYER	TMA906,939	CIPO
	Registered
    Trademark	DRAGANFLY
    & DESIGN  	TMA905,935	CIPO
	Registered
    Trademark	DRAGANFLY	TMA1,071,582	CIPO
	Registered
    Trademark	DRAGANFLY	TMA1,069,670	CIPO
	Registered
    Trademark	DRAGANFLYER
    GUARDIAN	TMA904,883	CIPO
	Registered
    Trademark	DRAGANVIEW	TMA886,217	CIPO
	Trademark
    Application (Status: Application Accepted, Published for Opposition)	DRAGANFLYER
    APEX	86750092	USPTO
	Trademark
    Application (Status: Application Accepted, Under Examination)	DRAGANFLY	86648412	USPTO
	Registered
    Trademark	DRAGANFLYER
    COMMANDER	5760146	USPTO
	Registered
    Trademark	DRAGANFUEL	5563360	USPTO
	Registered
    Trademark	DRAGANFLY
    INNOVATIONS	5130969	USPTO
	Registered
    Trademark	DRAGANFLYER	4920316	USPTO
	Registered
    Trademark	DRAGANFLY
    & Design 	5130970	USPTO
	Registered
    Trademark	DRAGANFLYER
    GUARDIAN	4995725	USPTO
	Registered
    Trademark	DRAGANVIEW	4920317	USPTO
	Trademark
    Application (Status: Application Accepted, Under Examination)	DRAGANFLY	88488410	USPTO

 

Specialized Skill and Knowledge

 

There is a specialized skill required for the
development, operations, maintenance, sales and marketing of the Company's technology. The Company's current staff possesses the necessary
skills and knowledge required for the Company's business; however, additional employees may be added to staff as needed. All operational
staff hold the appropriate licences and certificate as mandated by Transport Canada.

 

Changes to Contracts

 

During the year ended December 31, 2019, the
Company derived 81% of its revenues from one custom engineering customer; however, as a result of the COVID pandemic, this customer reduced
a number of its projects‎ and the Company ceased to receive orders after the first quarter of the year ended December 31, 2020.
The Company may receive orders from this customer in the future; however, there is no assurance that ‎any future orders will be
received. No aspect of Draganfly's business is anticipated to be affected in the current financial year by renegotiation or termination
of any contract.

 

Draganfly Inc. | Annual Information Form      
Page 18

 

     

     

    

 

Employees/Consultants

 

As at December 31, 2020 and as of the Effective
Date, the Company had 22 employees and three full-time and part-time consultants whose services were, and continue to be, used on a regular
basis for day-to-day operations.

 

Reorganizations

 

On August 15, 2019, the Company completed the
Going Public Transaction. See "General Development of the Business of the Company – Three Year History – Financial
year ended December 31, 2019‎".

 

RISK
FACTORS

 

The following specific factors could materially
adversely affect the Company and should be considered ‎when deciding whether to make an investment in the Company. The risks and
uncertainties described in ‎this AIF and the information incorporated by reference herein are those the Company currently believes
to be material, ‎but they are not the only ones the Company will face. If any of the following risks, or any other risks and uncertainties
that the Company has not identified or that it currently considers not to be material, actually occur or become material ‎risks,
the Company's business, prospects, financial condition, results of operations and cash flows, and consequently ‎the price of the
Common Shares could be materially and adversely affected. In all these cases, the trading ‎price of the Company's securities could
decline, and prospective investors could lose all or part of their investment.‎

 

Investors should carefully consider the risk
factors set out below and consider all other information ‎contained herein and in the Company's other public filings before making
an investment decision.‎

 

Any reference to "the Company" or "Draganfly"
in the risk factors refers to the Company and its ‎subsidiaries together on a consolidated basis. ‎

 

Risks Related to the Company,
its Business and Industry

 

‎The Company
has a history of losses.

 

The Company has incurred net losses from the
inception of its business until the Effective Date. The Company cannot assure that it can become profitable or avoid net losses in the
future or that there will be any earnings or revenues in any future quarterly or other periods. The Company expects that its operating
expenses will increase as it grows its business, including expending substantial resources for research, development and marketing. As
a result, any decrease or delay in generating revenues could result in material operating losses.

 

A shareholder's holding in the Company
may be diluted if the Company issues additional Common ‎Shares or other securities in the future.‎

 

‎The Company may issue additional
Common Shares or other securities in the future, which may dilute a ‎shareholder's holding in the Company. ‎The Company's
articles permit the issuance of an unlimited ‎number of Common Shares, and shareholders have no pre-‎emptive rights in connection
with further ‎issuances of any securities. The directors of the Company have the discretion to ‎determine if an ‎issuance
of Common Shares or other securities is warranted, the price at which any such securities are ‎issued and the other ‎terms
of issue of Common Shares or securities. In addition, the Company's may ‎issue additional Common Shares upon the exercise of incentive
stock options to ‎acquire Common ‎Shares under its share compensation plan, which will result in further dilution to shareholders.
In addition, ‎the issuance of Common Shares or other securities in any potential ‎future acquisitions, if any, may also ‎result
in further dilution to shareholder interests.‎

 

Draganfly Inc. | Annual Information Form      
Page 19

 

     

     

    

 

The Company expects to incur substantial
research and development costs and devote significant resources to ‎identifying and commercializing new products and services,
which could significantly reduce its profitability and ‎may never result in revenue to the Company.‎

 

‎The Company's future growth depends on
penetrating new markets, adapting existing products to new applications, ‎and introducing new products and services that achieve
market acceptance. The Company plans to incur ‎substantial research and development costs as part of its efforts to design, develop
and commercialize new ‎products and services and enhance its existing products. The Company believes that there are significant
opportunities in a number of business areas. Because the Company accounts for research and development costs as ‎operating expenses,
these expenditures will adversely affect its earnings in the future. Further, the Company's ‎research and development programs
may not produce successful results, and its new products and services may not ‎achieve market acceptance, create any additional
revenue or become profitable, which could materially harm the ‎Company's business, prospects, financial results and liquidity.‎

 

The Company's adoption of new business
models could fail to produce any financial returns.‎

 

‎Forecasting the Company's revenues and
profitability for new business models is inherently uncertain and ‎volatile. The Company's actual revenues and profits for its
business models may be significantly less ‎than the Company's forecasts. Additionally, the new business models could fail for one
or more of the ‎Company's products and/or services, resulting in the loss of Company's investment in the development and ‎infrastructure
needed to support the new business models, and the opportunity cost of diverting management and ‎financial resources away from
more successful businesses.‎

 

The Company will be affected by operational
risks and may not be adequately insured for certain risks.‎

 

‎The Company will be affected by a number
of operational risks and the Company may not be adequately insured ‎for certain risks, including: labour disputes; catastrophic
accidents; fires; blockades or other acts of social activism; ‎changes in the regulatory environment; impact of non-compliance
with laws and regulations; natural phenomena, ‎such as inclement weather conditions, floods, earthquakes and ground movements.
There is no assurance that the ‎foregoing risks and hazards will not result in damage to, or destruction of, the Company's technologies,
personal ‎injury or death, environmental damage, adverse impacts on the Company's operation, costs, monetary losses, ‎potential
legal liability and adverse governmental action, any of which could have an adverse impact on the ‎Company's future cash flows,
earnings and financial condition. Also, the Company may be subject to or affected ‎by liability or sustain loss for certain risks
and hazards against which the Company cannot insure or which the ‎Company may elect not to insure because of the cost. This lack
of insurance coverage could have an adverse ‎impact on the Company's future cash flows, earnings, results of operations and financial
condition.‎

 

The
Company operates in evolving markets, which makes it difficult to evaluate the Company's business and ‎future prospects.‎

 

‎The Company's UAVs are sold in rapidly
evolving markets. The commercial UAV market is in early stages of ‎customer adoption. Accordingly, the Company's business and future
prospects may be difficult to evaluate. The ‎Company cannot accurately predict the extent to which demand for its products and
services will increase, if at all. ‎The challenges, risks and uncertainties frequently encountered by companies in rapidly evolving
markets could ‎impact the Company's ability to do the following:‎

 

		·	generate
                                            sufficient revenue to reach and maintain profitability;‎

		·	acquire
                                            and maintain market share;‎

		·	achieve
                                            or manage growth in operations;‎

		·	develop
                                            and renew contracts;‎

		·	attract
                                            and retain additional engineers and other highly-qualified personnel;‎

		·	successfully
                                            develop and commercially market new products;‎

 

Draganfly Inc. | Annual Information Form      
Page 20

 

     

     

    

 

		·	adapt
                                            to new or changing policies and spending priorities of governments and government agencies;
                                            and

		·	access
                                            additional capital when required and on reasonable terms.‎

 

If the Company fails to address these and other
challenges, risks and uncertainties successfully, its business, results ‎of operations and financial condition would be materially
harmed.‎

 

The Company operates
in a competitive market.

 

The Company faces competition and new competitors
will continue to emerge throughout the world. Services offered by the Company's competitors may take a larger share of consumer spending
than anticipated, which could cause revenue generated from the Company's products and services to fall below expectations. It is expected
that competition in these markets will intensify.

 

If competitors of the Company develop and market
more successful products or services, offer competitive products or services at lower price points, or if the Company does not produce
consistently high-quality and well-received products and services, revenues, margins, and profitability of the Company will decline.

 

The Company's ability to compete effectively
will depend on, among other things, the Company's pricing of services and equipment, quality of customer service, development of new
and enhanced products and services in response to customer demands and changing technology, reach and quality of sales and distribution
channels and capital resources. Competition could lead to a reduction in the rate at which the Company adds new customers, a decrease
in the size of the Company's market share and a decline in its customers. Examples include but are not limited to competition from other
companies in the UAV industry.

 

In addition, the Company could face increased
competition should there be an award of additional licenses in jurisdictions in which the Company operates in.

 

The markets in which the Company competes
are characterized by rapid technological change, which requires ‎the Company to develop new products and product enhancements,
and could render the Company's existing ‎products obsolete. ‎

 

‎Continuing technological changes in the
market for the Company's products could make its products less ‎competitive or obsolete, either generally or for particular applications.
The Company's future success will depend ‎upon its ability to develop and introduce a variety of new capabilities and enhancements
to its existing product and ‎service offerings, as well as introduce a variety of new product offerings, to address the changing
needs of the ‎markets in which it offers products. Delays in introducing new products and enhancements, the failure to choose ‎correctly
among technical alternatives or the failure to offer innovative products or enhancements at competitive ‎prices may cause existing
and potential customers to purchase the Company's competitors' products.‎

 

If the Company is unable to devote adequate resources
to develop new products or cannot otherwise successfully ‎develop new products or enhancements that meet customer requirements
on a timely basis, its products could lose ‎market share, its revenue and profits could decline, and the Company could experience
operating losses.‎

 

Failure to obtain necessary regulatory
approvals from Transport Canada or other governmental agencies, or ‎limitations put on the use of small UAV in response to public
privacy concerns, may prevent the Company from ‎expanding sales of its small UAV to non-military customers in Canada.‎

 

‎Transport Canada is responsible for establishing,
managing, and developing safety and security ‎standards and regulations for civil aviation in Canada, and includes unmanned civil
aviation ‎‎(drones). Civil operations include law enforcement, scientific research, or use by private sector ‎companies
for commercial purposes. The Canadian Aviation Regulations (CARs) govern civil ‎aviation safety and security in Canada, and by
extension govern operation of drones in Canada ‎to an acceptable level of safety.‎

 

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While Transport Canada has been a leader in the
development of regulations for the commercial ‎use of RPAS, and continues to move forward rapidly with its regulatory development,
it has ‎acknowledged the challenge of regulations keeping pace with the rapid development in ‎technology and the growing
demand for commercial RPAS use, particularly in the beyond visual ‎line-of-sight environment. In 2012, the Canadian Aviation Regulation
Advisory Council UAS ‎working group released its Phase 2 report which outlined a proposed set of revision to the CARs ‎to
permit Beyond Visual Line of Sight (BVLOS) operations. This report was the basis for the recently released NPA on lower ‎risk beyond
visual line-of-sight.‎

 

Failure to obtain necessary regulatory approvals
from Transport Canada or other governmental ‎agencies, including the granting of certain SFOCs, or limitations put on the use of
RPAS in ‎response to public safety concerns, may prevent the Company from testing or operating its ‎aircraft and/or expanding
its sales which could have an adverse impact on the Company's ‎business, prospects, results of operations and financial condition.‎

 

There are risks associated
with the regulatory regime and permitting requirements of the Company's Business.‎

 

‎A significant portion of the Company's
business is based on the operation of RPAS. The operation of ‎RPAS poses a risk or hazard to airspace users as well as personnel
on the ground. As ‎the RPAS ‎industry is rapidly developing, the regulatory environment for RPAS is constantly evolving to
keep pace. ‎‎As such, whenever a policy change with respect to operating regulations occurs, there is a risk that the ‎Company
 ‎could find itself to be in non-compliance with these new regulations. While the Company ‎endeavours to take all ‎necessary
action to reduce the risks associated with the operations of RPAS and ‎to remain well-informed and up-‎to-date on any addendums
and changes to the applicable regulations, ‎there is no assurance that an incident ‎involving an RPAS or the Company's non-compliance
would not ‎create a significant current or future liability for ‎the company.‎

 

The regulation of RPAS operations within the
Canadian domestic airspace is still evolving and is expected ‎to continue to change ‎with the proliferation of RPAS, advancements
in technology, and standardization within the ‎industry. ‎Changes to the regulatory regime may be disruptive and result in
the Company needing to adopt ‎‎significant changes in its operations and policies, which may be costly and time-consuming,
and may ‎materially ‎adversely affect the Company's ability to manufacture and make delivery of its products and ‎services
in a timely ‎fashion.‎

 

The Company's business and research and development
activities are subject to oversight by Transport ‎Canada, the federal ‎institution responsible for transportation policies
and programs, including the rules in ‎the CARs. Currently, Transport Canada requires that any non-recreational operators of RPAS
have a ‎‎SFOC. The Company's ability to develop, test, demonstrate, and sell products and ‎services depends on ‎its
ability to acquire and maintain a valid SFOC.‎

 

‎In addition, there exists public concern
regarding the privacy implications of Canadian commercial and ‎law ‎enforcement use of small UAV. This concern has included
calls to develop explicit written policies ‎and procedures ‎establishing UAV usage limitations. There is no assurance that
the response from ‎regulatory agencies, customers and ‎privacy advocates to these concerns will not delay or restrict the
 ‎adoption of small UAV by prospective non-military customers‎.‎

 

The Company may be
subject to the risks associated with future acquisitions.

 

As part of the Company's overall business strategy,
the Company may pursue select strategic acquisitions that would provide additional product or service offerings, additional industry
expertise, and a stronger industry presence in both existing and new jurisdictions. Any such future acquisitions, if completed, may expose
the Company to additional potential risks, including risks associated with: (a) the integration of new operations, services and personnel;
(b) unforeseen or hidden liabilities; (c) the diversion of resources from the Company's existing business and technology; (d) potential
inability to generate sufficient revenue to offset new costs; (e) the expenses of acquisitions; or (f) the potential loss of or harm
to relationships with both employees and existing users resulting from its integration of new businesses. In addition, any proposed acquisitions
may be subject to regulatory approval.

 

Draganfly Inc. | Annual Information Form      
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‎The Company's inability to retain
management and key employees could impair the future success of the Company.

 

The Company's future success depends substantially
on the continued services of its executive officers and its key development personnel. If one or more of its executive officers or key
development personnel were unable or unwilling to continue in their present positions, the Company might not be able to replace them
easily or at all. In addition, if any of its executive officers or key employees joins a competitor or forms a competing company, the
Company may lose experience, know-how, key professionals and staff members as well as business partners. These executive officers and
key employees could develop drone technologies that could compete with and take customers and market share away from the Company.

 

A significant growth
in the number of personnel would place a strain upon the Company's management and resources.

 

The Company may experience a period of significant
growth in the number of personnel that could place a strain upon its management systems and resources. The Company's future will depend
in part on the ability of its officers and other key employees to implement and improve financial and management controls, reporting
systems and procedures on a timely basis and to expand, train, motivate and manage its workforce. The Company's current and planned personnel,
systems, procedures and controls may be inadequate to support its future operations.

 

The Company faces
uncertainty and adverse changes in the economy.‎

 

‎Adverse changes in the economy could negatively
impact the Company's business. Future economic distress may ‎result in a decrease in demand for the Company's products, which could
have a material adverse impact on the ‎Company's operating results and financial condition. Uncertainty and adverse changes in
the economy could also ‎increase costs associated with developing and publishing products, increase the cost and decrease the availability
of ‎sources of financing, and increase the Company's exposure to material losses from bad debts, any of which could ‎have
a material adverse impact on the financial condition and operating results of the Company.‎

 

COVID-19‎

 

At the beginning of the year 2020 the outbreak
of the novel strain of coronavirus, specifically identified ‎as COVID-19, resulted in governments worldwide enacting emergency
measures to combat the spread of ‎the virus. These measures, which include the implementation of travel bans, self-imposed quarantine
 ‎periods and physical distancing, have caused material disruption to businesses globally resulting in an ‎economic slowdown.
Global equity markets have experienced significant volatility and weakness. ‎Governments and central banks have reacted with significant
monetary and fiscal interventions designed ‎to stabilize economic conditions. The duration and impact of the COVID-19 outbreak
is unknown at this ‎time, as is the efficacy of the government and central bank interventions. ‎

 

Due to the worldwide COVID-19 outbreak, material
uncertainties may come into existence that could ‎materially and adversely affect the business of the Company. The Company cannot
accurately predict ‎the future impact COVID-19 may have on, among others, the: (i) global oil prices, (ii) demand for drone ‎delivery
services, (iii) severity and the length of potential measures taken by governments to manage the ‎spread of the virus and their
effect on labour availability and supply lines, (iv) availability of essential ‎supplies, (v) purchasing power of the Canadian
dollar, or (vi) ability of the Company to obtain necessary ‎financing. Despite global vaccination efforts, it is not possible to
reliably estimate the length and ‎severity of these developments and the impact on the financial results and condition of the Company
in ‎the future.‎

 

Draganfly Inc. | Annual Information Form      
Page 23

 

     

     

    

 

The COVID-19 outbreak
or similar global health crises could affect the Company's ability to access sources of ‎capital.‎

 

‎The extent to which COVID-19 could impact
the Company's operations, financial condition, liquidity, results of operations, and ‎cash flows is highly uncertain and cannot
be predicted. Negative financial results, uncertainties in the market, and a ‎tightening of credit markets, caused by COVID-19,
or a recession, could have a material adverse effect on the Company's ‎liquidity and ability to obtain financing in the future.‎

 

COVID-19 or similar
pandemics could adversely impact the Company's business and/or its ability to complete reporting ‎obligations.‎

 

If a pandemic, epidemic, or outbreak of an infectious
disease including the recent outbreak off ‎respiratory illness ‎caused by a novel coronavirus such as COVID-19 or other public
health crisis were to ‎affect the Company's facilities, staff, ‎accountants or advisors, our business could be adversely
and ‎materially affected. Such a pandemic could result in mandatory social ‎distancing, travel bans, and ‎quarantine
restrictions, and this may limit access to the Company's employees and professional ‎advisors. ‎These factors may hamper
the Company's efforts to comply with it filing obligations with the ‎CSE or as required under Canadian Securities Laws‎.‎

 

‎‎The Company may be subject
to the risks associated with foreign operations in other countries.

 

The Company's primary revenues are expected to
be achieved in Canada and the US. However, the Company may expand to markets outside of North America and become subject to risks normally
associated with conducting business in other countries. As a result of such expansion, the Company may be subject to the legal, political,
social and regulatory requirements and economic conditions of foreign jurisdictions. The Company cannot predict government positions
on such matters as foreign investment, intellectual property rights or taxation. A change in government positions on these issues could
adversely affect the Company's business.

 

If the Company expands its business to foreign
markets, it will need to respond to rapid changes in market conditions, including differing legal, regulatory, economic, social and political
conditions in these countries. If the Company is not able to develop and implement policies and strategies that are effective in each
location in which it does business, then the Company's business, prospects, results of operations and financial condition could be materially
and adversely affected.

 

There are tax risks
the Company may be subject to in carrying on business in Canada.

 

The Company is considered to have been carrying
on business in Canada for purposes of the Income ‎Tax Act (Canada). Since the Company is operating in a new and developing
industry there is a risk that ‎foreign governments may look to increase their tax revenues or levy additional taxes to level the
playing ‎field for perceived disadvantages to traditional brick and mortar businesses. There is no guarantee that ‎governments
will not impose such additional adverse taxes in the future‎.

 

If critical components
or raw materials used to manufacture the Company's products become scarce or ‎unavailable, then the Company may incur delays in
manufacturing and delivery of its products, which could ‎damage its business.‎

 

‎The Company obtains hardware components,
various subsystems and systems from a limited group of suppliers. ‎The Company does not have long-term agreements with any of these
suppliers that obligate it to continue to sell ‎components, subsystems, systems or products to the Company. The Company's reliance
on these suppliers ‎involves significant risks and uncertainties, including whether its suppliers will provide an adequate supply
of ‎required components, subsystems, or systems of sufficient quality, will increase prices for the components, ‎subsystems
or systems and will perform their obligations on a timely basis.‎

 

Draganfly Inc. | Annual Information Form      
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‎In addition, certain raw materials and
components used in the manufacture of the Company's products are ‎periodically subject to supply shortages, and its business is
subject to the risk of price increases and periodic delays ‎in delivery. Similarly, the market for electronic components is subject
to cyclical reductions in supply. If the ‎Company is unable to obtain components from third-party suppliers in the quantities and
of the quality that it ‎requires, on a timely basis and at acceptable prices, then it may not be able to deliver its products on
a timely or ‎cost-effective basis to its customers, which could cause customers to terminate their contracts with the Company,
 ‎increase the Company's costs and seriously harm its business, results of operations and financial condition. ‎Moreover,
if any of the Company's suppliers become financially unstable, then it may have to find new suppliers. ‎It may take several months
to locate alternative suppliers, if required, or to redesign the Company's products to ‎accommodate components from different suppliers.
The Company may experience significant delays in ‎manufacturing and shipping its products to customers and incur additional development,
manufacturing and other ‎costs to establish alternative sources of supply if the Company loses any of these sources or is required
to redesign ‎its products. The Company cannot predict if it will be able to obtain replacement components within the time ‎frames
that it requires at an affordable cost, if at all.‎

 

Natural outdoor elements such as wind and
precipitation may have a material adverse effect on the ‎use and effectiveness of the Company's products.

 

The Company's business will involve the operation
and flying of UAVs, a technology based product ‎used outside. As such, the business is subject to various risks inherent in a technology-based
 ‎businesses operated in outdoor conditions, including faulty parts, break-downs and crashes. Although ‎the Company anticipates
the use of its UAVs in good climactic conditions and that adequate flying ‎conditions will be monitored by trained personnel, there
can be no assurance that unpredictable natural ‎outdoor elements will not have a material adverse effect on the use and effectiveness
of its products.‎

 

The Company's products may be subject to
the recall or return. 

 

Manufacturers and distributors of products are
sometimes subject to the recall or return of their products ‎‎for a variety of reasons, including product defects, safety
concerns, packaging issues and inadequate ‎or inaccurate ‎labeling disclosure. If any of the Company's equipment were to
be recalled due to an ‎alleged product ‎defect, safety concern or for any other reason, the Company could be required to
incur ‎unexpected expenses of the recall ‎and any legal proceedings that might arise in connection with the ‎recall.
The Company may lose a significant ‎amount of sales and may not be able to replace those sales ‎at an acceptable margin or
at all. In ‎addition, a product recall may require significant management time ‎and attention. Additionally, product recalls
may lead to ‎increased scrutiny of the Company's operations ‎by Transport Canada or other regulatory agencies, requiring
 ‎further management time and attention and ‎potential legal fees, costs and other expenses.‎‎

 

‎‎If the Company releases defective
products or services, its operating results could suffer.‎

 

‎Products and services designed and released
by the Company involve extremely complex software ‎programs, and ‎are difficult to develop and distribute. While the Company
has quality controls in place to ‎detect and prevent defects in its ‎products and services before they are released, these
quality controls ‎are subject to human error, ‎overriding, and reasonable resource constraints. Therefore, these quality
 ‎controls and preventative measures may ‎not be effective in detecting and preventing defects in the ‎Company's products
and services before they have been released into ‎the marketplace. In such an ‎event, the Company could be required, or decide
voluntarily, to suspend the availability of the product or ‎services, which could significantly harm its business and operating
results‎.‎

 

Draganfly Inc. | Annual Information Form      
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‎The Company's products and services
are complex and could have unknown defects or errors, which may give ‎rise to legal claims against the Company, diminish its brand
or divert its resources from other purposes.‎

 

The Company's UAVs rely on complex avionics,
sensors, user-friendly interfaces and tightly integrated, ‎electromechanical designs to accomplish their missions. Despite testing,
the Company's products have contained ‎defects and errors and may in the future contain defects, errors or performance problems
when first introduced, ‎when new versions or enhancements are released, or even after these products have been used by the Company's
 ‎customers for a period of time. These problems could result in expensive and time-consuming design modifications ‎or warranty
charges, delays in the introduction of new products or enhancements, significant increases in the ‎Company's service and maintenance
costs, exposure to liability for damages, damaged customer relationships and ‎harm to the Company's reputation, any of which could
materially harm the Company's results of operations and ‎ability to achieve market acceptance. In addition, increased development
and warranty costs could be substantial ‎and could significantly reduce the Company's operating margins.‎

 

‎The existence of any defects, errors,
or failures in the Company's products or the misuse of the Company's ‎products could also lead to product liability claims or lawsuits
against it. A defect, error or failure in one of the ‎Company's UAV could result in injury, death or property damage and significantly
damage the Company's ‎reputation and support for its UAV in general. The Company anticipates this risk will grow as its UAV begins
to be ‎used in Canadian domestic airspace and urban areas. The Company's UAV test systems also have the potential to ‎cause
injury, death or property damage in the event that they are misused, malfunction or fail to operate properly ‎due to unknown defects
or errors.‎

 

‎Although the Company maintains insurance
policies, it cannot provide any assurance that this insurance will be ‎adequate to protect the Company from all material judgments
and expenses related to potential future claims or ‎that these levels of insurance will be available in the future at economical
prices or at all. A successful product ‎liability claim could result in substantial cost to us. Even if the Company is fully insured
as it relates to a particular claim, the ‎claim could nevertheless diminish the Company's brand and divert management's attention
and resources, which ‎could have a negative impact on the Company's business, financial condition and results of operations.‎

 

Shortfalls in available
external research and development funding could adversely affect the Company.‎

 

‎The Company depends on its research and
development activities to develop the core technologies used in its UAV ‎products and for the development of the Company's future
products. A portion of the Company's research and ‎development activities can depend on funding by commercial companies and the
Canadian government. Canadian ‎government and commercial spending levels can be impacted by a number of variables, including general
 ‎economic conditions, specific companies' financial performance and competition for Canadian government ‎funding with other
Canadian government-sponsored programs in the budget formulation and appropriation ‎processes. Moreover, the Canadian, federal
and provincial governments provide energy rebates and incentives to ‎commercial companies, which directly impact the amount of
research and development that companies ‎appropriate for energy systems. To the extent that these energy rebates and incentives
are reduced or eliminated, ‎company funding for research and development could be reduced. Any reductions in available research
and ‎development funding could harm the Company's business, financial condition and operating results.‎

 

The Company could
be prohibited from shipping its products to certain countries if it is unable to obtain ‎Canadian government authorization regarding
the export of its products, or if current or future export laws limit ‎or otherwise restrict the Company's business.‎

 

The Company must comply with Canadian federal
and provincial laws regulating the export of its products. In ‎some cases, explicit authorization from the Canadian government
is needed to export its products. The export ‎regulations and the governing policies applicable to the Company's business are subject
to change. The Company ‎cannot provide assurance that such export authorizations will be available for its products in the future.
 ‎Compliance with these laws has not significantly limited the Company's operations or sales in the recent past, but ‎could
significantly limit them in the future. Non-compliance with applicable export regulations could potentially ‎expose the Company
to fines, penalties and sanctions. If the Company cannot obtain required government ‎approvals under applicable regulations, the
Company may not be able to sell its products in certain international ‎jurisdictions, which could adversely affect the Company's
financial condition and results of operations.‎

 

Draganfly Inc. | Annual Information Form      
Page 26

 

     

     

    

 

Negative consumer perception regarding
the Company's products‎ could have a material adverse effect on the demand for the Company's ‎products and the business,
results of operations, financial condition and cash flows of the Company.

 

The Company believes the UAV industry is highly
dependent upon consumer perception regarding the ‎safety, efficacy, and quality of the UAV used. Consumer perception of these products
can be ‎significantly influenced by scientific research or findings, regulatory investigations, litigation, media attention, ‎and
other publicity regarding the use of UAV. There can be no assurance that future scientific research, ‎findings, regulatory proceedings,
litigation, media attention, or other research findings or publicity will be ‎favourable to the UAV market. Future research reports,
findings, regulatory proceedings, litigation, media ‎attention or other publicity that are perceived as less favourable than, or
that question, earlier research ‎reports, findings or publicity could have a material adverse effect on the demand for the Company's
 ‎products and the business, results of operations, financial condition and cash flows of the Company. The ‎dependence upon
consumer perceptions means that adverse scientific research reports, findings, ‎regulatory proceedings, litigation, media attention
or other publicity, whether or not accurate or with merit, ‎could have a material adverse effect on the Company, the demand for
the Company's products, and the ‎business, results of operations, financial condition and cash flows of the Company. Further, adverse
 ‎publicity reports or other media attention regarding the safety, the efficacy, and quality of UAV based surveys in general, or
the Company's products specifically, ‎could have a material adverse effect.‎

 

If the Company fails ‎‎to successfully
promote its product brand, this could have a material adverse ‎effect on the Company's business, prospects, ‎‎financial
condition and results of operations‎.

 

The Company believes that brand recognition is
an important factor to its success. If the Company fails ‎‎to promote its brands successfully, or if the expenses of doing
so are disproportionate to any increased ‎‎net sales it achieves, it would have a material adverse effect on the Company's
business, prospects, ‎‎financial condition and results of operations. This will depend largely on the Company's ability to
 ‎‎maintain trust, be a technology leader, and continue to provide high-quality and secure technologies, ‎‎products
and services. Any negative publicity about the Company or its industry, the quality and reliability of the Company's technologies, products
and services, the Company's risk management ‎‎processes, changes to the Company's technologies, products and services, its
ability to effectively ‎‎manage and resolve customer complaints, its privacy and security practices, litigation, regulatory
activity, and the experience of sellers and buyers with the Company's products or services, could adversely affect the Company's reputation
and the confidence in and use of the ‎‎Company's technologies, products and services. Harm to the Company's brand can arise
from ‎‎many sources, including; failure by the Company or its partners to satisfy expectations of service and quality; inadequate
protection of sensitive information; compliance failures and claims; litigation and ‎‎other claims; employee misconduct;
and misconduct by the Company's partners, service ‎‎providers, or other counterparties. If the Company does not successfully
maintain a strong and trusted brand, its business could be materially and adversely affected.‎ ‎

 

The Company may be subject to electronic
communication security risks.

 

A significant potential vulnerability of electronic
communications is the security of transmission of confidential information over public networks. Anyone who is able to circumvent the
Company's security measures could misappropriate proprietary information or cause interruptions in its operations. The Company may be
required to expend capital and other resources to protect against such security breaches or to alleviate problems caused by such breaches.

 

The Company's business
could be adversely affected if its consumer protection and data privacy practices are not ‎perceived as adequate or there are breaches
of its security measures or unintended disclosures of its consumer data.‎

 

‎The rate of privacy law-making is accelerating
globally and interpretation and application of consumer protection ‎and data privacy laws in Canada, the United States, Europe
and elsewhere are often uncertain, contradictory and in ‎flux. As business practices are being challenged by regulators, private
litigants, and consumer protection agencies ‎around the world, it is possible that these laws may be interpreted and applied in
a manner that is inconsistent with ‎the Company's data and/or consumer protection practices. If so, this could result in increased
litigation government ‎or court imposed fines, judgments or orders requiring that the Company change its practices, which could
have an ‎adverse effect on its business and reputation. Complying with these various laws could cause the Company to incur ‎substantial
costs or require it to change its business practices in a manner adverse to its business.‎

 

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‎The Company relies on its business
partners, and they may be given access to sensitive and proprietary ‎information in order to provide services and support to the
Company's teams.‎

 

‎The Company relies on various business
partners, including third-party service providers, vendors, licensing partners, ‎development partners, and licensees, among others,
in some areas of the Company's business. In some cases, these ‎third parties are given access to sensitive and proprietary information
in order to provide services and support to the ‎Company's teams. These third parties may misappropriate the Company's information
and engage in ‎unauthorized use of it. The failure of these third parties to provide adequate services and technologies, or the
failure ‎of the third parties to adequately maintain or update their services and technologies, could result in a disruption to
 ‎the Company's business operations. Further, disruptions in the financial markets and economic downturns may ‎adversely affect
the Company's business partners and they may not be able to continue honoring their obligations ‎to the Company. Alternative arrangements
and services may not be available to the Company on commercially ‎reasonable terms or the Company may experience business interruptions
upon a transition to an alternative partner ‎or vendor. If the Company loses one or more significant business partners, the Company's
business could be ‎harmed.‎

 

If the Company fails
to protect, or incur significant costs in defending, its intellectual property and other ‎proprietary rights, the Company's business,
financial condition, and results of operations could be materially ‎harmed.‎

 

‎The Company's success depends, in large
part, on its ability to protect its intellectual property and other proprietary ‎rights. The Company relies primarily on patents,
trademarks, copyrights, trade secrets and unfair competition laws, ‎as well as license agreements and other contractual provisions,
to protect the Company's intellectual property and ‎other proprietary rights. However, a portion of the Company's technology is
not patented, and the Company may ‎be unable or may not seek to obtain patent protection for this technology. Moreover, existing
Canadian legal ‎standards relating to the validity, enforceability and scope of protection of intellectual property rights offer
only ‎limited protection, may not provide the Company with any competitive advantages, and may be challenged by ‎third parties.
The laws of countries other than Canada may be even less protective of intellectual property rights. ‎Accordingly, despite its
efforts, the Company may be unable to prevent third parties from infringing upon or ‎misappropriating its intellectual property
or otherwise gaining access to the Company's technology. Unauthorized ‎third parties may try to copy or reverse engineer the Company's
products or portions of its products or otherwise ‎obtain and use the Company's intellectual property. Moreover, many of the Company's
employees have access to ‎the Company's trade secrets and other intellectual property. If one or more of these employees leave
to work for ‎one of the Company's competitors, then they may disseminate this proprietary information, which may as a result ‎damage
the Company's competitive position. If the Company fails to protect its intellectual property and other ‎proprietary rights, then
the Company's business, results of operations or financial condition could be materially ‎harmed. From time to time, the Company
may have to initiate lawsuits to protect its intellectual property and other ‎proprietary rights. Pursuing these claims is time
consuming and expensive and could adversely impact the ‎Company's results of operations.‎

 

‎In addition, affirmatively defending the
Company's intellectual property rights and investigating whether the ‎Company is pursuing a product or service development that
may violate the rights of others may entail significant ‎expense. Any of the Company's intellectual property rights may be challenged
by others or invalidated through ‎administrative processes or litigation. If the Company resorts to legal proceedings to enforce
its intellectual property ‎rights or to determine the validity and scope of the intellectual property or other proprietary rights
of others, then the ‎proceedings could result in significant expense to the Company and divert the attention and efforts of the
 ‎Company's management and technical employees, even if the Company prevails.‎

 

Draganfly Inc. | Annual Information Form      
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Obtaining and maintaining
the Company's patent protection depends on compliance with various procedural, document ‎submission, fee payment, and other requirements
imposed by governmental patent agencies, and its patent ‎protection could be reduced or eliminated for non-compliance with these
requirements.‎

 

‎The CIPO and various foreign national
or international patent agencies ‎require compliance with a number of procedural, documentary, fee payment, and other similar provisions
during ‎the patent application process. Periodic maintenance fees on any issued patent are due to be paid to the CIPO and ‎various
foreign national or international patent agencies in several stages over the lifetime of the patent. While an ‎inadvertent lapse
can in many cases be cured by payment of a late fee or by other means in accordance with the ‎applicable rules, there are situations
in which non-compliance can result in abandonment or lapse of the patent or ‎patent application, resulting in partial or complete
loss of patent rights in the relevant jurisdiction. Non-compliance ‎events that could result in abandonment or lapse of patent
rights include, but are not limited to, failure to timely file ‎national and regional stage patent applications based on the Company's
international patent application, failure to respond to ‎official actions within prescribed time limits, non-payment of fees, and
failure to properly legalize and submit ‎formal documents. If the Company fails to maintain the patents and patent applications
covering its product candidates, its ‎competitors might be able to enter the market, which would have a material adverse effect
on the Company's business. ‎

 

While a patent may be granted by a national patent
office, there is no guarantee that the granted patent is valid. ‎Options exist to challenge the validity of a patent which, depending
upon the jurisdiction, may include re-‎examination, opposition proceedings before the patent office, and/or invalidation proceedings
before the relevant ‎court. Patent validity may also be the subject of a counterclaim to an allegation of patent infringement.‎

 

Pending patent applications may be challenged
by third parties in protest or similar proceedings. Third parties can ‎typically submit prior art material to patentability for
review by the patent examiner. Regarding Patent Cooperation ‎Treaty applications, a positive opinion regarding patentability issued
by the International Searching Authority does ‎not guarantee allowance of a national application derived from the Patent Cooperation
Treaty application. The ‎coverage claimed in a patent application can be significantly reduced before the patent is issued, and
the patent's ‎scope can be modified after issuance. It is also possible that the scope of claims granted may vary from jurisdiction
 ‎to jurisdiction.‎

 

The grant of a patent does not have any bearing
on whether the invention described in the patent application would ‎infringe the rights of earlier filed patents. It is possible
to both obtain patent protection for an invention and yet still ‎infringe the rights of an earlier granted patent.‎

 

The Company may be
sued by third parties for alleged infringement of their proprietary rights, which could be ‎costly, time-consuming and limit the
Company's ability to use certain technologies in the future.‎

 

‎The Company may become subject to claims
that its technologies infringe upon the intellectual property or other ‎proprietary rights of third parties. Any claims, with or
without merit, could be time-consuming and expensive, and ‎could divert the Company's management's attention away from the execution
of its business plan. Moreover, any ‎settlement or adverse judgment resulting from these claims could require the Company to pay
substantial amounts ‎or obtain a license to continue to use the disputed technology, or otherwise restrict or prohibit the Company's
use of ‎the technology. The Company cannot assure that it would be able to obtain a license from the third party asserting ‎the
claim on commercially reasonable terms, if at all, that the Company would be able to develop alternative ‎technology on a timely
basis, if at all, or that the Company would be able to obtain a license to use a suitable ‎alternative technology to permit the
Company to continue offering, and the Company's customers to continue ‎using, the Company's affected product. An adverse determination
also could prevent the Company from offering ‎its products to others. Infringement claims asserted against the Company may have
a material adverse effect on its ‎business, results of operations or financial condition.‎

 

Draganfly Inc. | Annual Information Form           Page
29

 

     

     

    

 

‎The Company
may not be able to protect its intellectual property rights throughout the world.‎

 

‎Filing, prosecuting, and defending patents
on all of the Company's product candidates throughout the world would be ‎prohibitively expensive. Therefore, the Company has filed
applications and/or obtained patents only in key markets ‎including the United States and Canada. Competitors may use the Company's
technologies in jurisdictions where it has not ‎obtained patent protection to develop their own products and their products may
compete with products of the Company.‎‎

 

The Company's senior management team has
limited experience managing a public company, and regulatory compliance ‎may divert its attention from the day to day management
of its business.‎

 

‎The individuals who now constitute the
Company's senior management team have relatively limited experience managing a ‎publicly traded company and limited experience
complying with the increasingly complex laws pertaining to public ‎companies compared to senior management of other publicly traded
companies. The Company's senior management team ‎may not successfully or efficiently manage its transition as a recently listed
public company subject to significant ‎regulatory oversight and reporting obligations under Canadian Securities Laws. In particular,
these new obligations ‎will require substantial attention from the Company's senior management and could divert their attention
away from the ‎day to day management of its business.‎

 

The Company may experience adverse effects
on its reported results of operations as a result of adopting new accounting ‎standards or interpretations.‎

 

‎‎The Company's implementation of
and compliance with changes in accounting rules, including new accounting rules and ‎interpretations, could adversely affect its
reported financial position or operating results or cause unanticipated ‎fluctuations in our reported operating results in future
periods.‎

 

‎Failure
to adhere to the Company's financial reporting obligations and other public company requirements could adversely ‎affect the market
price of the Common Shares.‎

 

‎Upon receiving a final receipt for the
non-offering final prospectus dated October 23, 2019, the Company ‎became subject to ‎reporting and other obligations under
applicable Canadian Securities Laws, including ‎National Instrument 52-109 – Certification of Disclosure in Issuers' ‎Annual
and Interim Filings, and the rules ‎of any stock exchange on which ‎the Common Shares are listed. These reporting and
other obligations ‎will place significant demands on the Company's management, administrative, operational and ‎accounting
resources. If the Company is unable to meet such ‎demands in a timely and effective manner, ‎its ability to comply with its
financial reporting obligations ‎and other rules applicable to reporting issuers ‎could be impaired. Moreover, any failure
to maintain effective ‎internal controls could cause the Company ‎to fail to satisfy its reporting obligations or result
in material misstatements in its ‎financial statements. If ‎the Company cannot provide reliable financial reports or prevent
fraud, its reputation and operating ‎‎results could be materially adversely affected which could also cause investors to
lose confidence in its ‎reported ‎financial information, which could result in a reduction in the trading price of the Common
 ‎Shares.‎

 

In addition, the Company does not expect that
its disclosure controls and procedures and internal ‎controls over financial reporting will ‎prevent all errors or fraud.
A control system, no matter how well ‎designed and implemented, can provide only ‎reasonable, not absolute, assurance that
the control ‎system's objectives will be met. Further, the design of a control ‎system must reflect the fact that there ‎are
resource constraints, and the benefits of controls must be considered ‎relative to their costs. Due to ‎the inherent limitations
in all control systems, no evaluation of controls can provide ‎absolute assurance ‎that all control issues within an organization
are detected. The inherent limitations include the ‎realities that ‎judgments in decision-making can be faulty, and that
breakdowns can occur because of simple errors ‎or ‎mistakes. Controls can also be circumvented by individual acts of certain
persons, by collusion of two ‎or more ‎people or by management override of the controls. Due to the inherent limitations
in a control ‎system, ‎misstatements due to errors or fraud may occur and may not be detected in a timely manner or ‎at
all‎.‎

 

Draganfly Inc. | Annual Information Form           Page
30

 

     

     

    

 

‎Changes
in accounting standards and subjective assumptions, estimates and judgments by management related to ‎complex accounting matters
could significantly affect the Company's reported financial results or financial condition.‎

 

‎Generally accepted accounting principles
and related accounting pronouncements, implementation guidelines and ‎interpretations with regard to a wide range of matters that
are relevant to the Company's business, including but not limited to ‎revenue recognition, impairment of goodwill and intangible
assets, inventory, income taxes and litigation, are highly ‎complex and involve many subjective assumptions, estimates and judgments.
Changes in these rules or their ‎interpretation or changes in underlying assumptions, estimates or judgments could significantly
change the Company's reported ‎financial performance or financial condition in accordance with generally accepted accounting principles.‎

 

If the Company is
required to write down goodwill and other intangible assets, the Company's financial ‎condition and results could be negatively
affected. ‎

 

‎Goodwill impairment arises when there
is deterioration in the capabilities of acquired assets to generate cash flows, ‎and the fair value of the goodwill dips below
its book value. The Company is required to review its goodwill for ‎impairment at least annually. Events that may trigger goodwill
impairment include deterioration in economic ‎conditions, increased competition, loss of key personnel, and regulatory action.
Should any of these occur, an impairment of ‎goodwill relating to the acquisition of Dronelogics could have a negative effect on
the assets of the ‎Company.‎

 

From time to time,
the Company may become involved in legal proceedings, which could adversely affect the ‎Company.‎

 

‎The Company may, from time to time in
the future, become subject to legal proceedings, claims, litigation and ‎government investigations or inquiries, which could be
expensive, lengthy, and disruptive to normal business ‎operations. In addition, the outcome of any legal proceedings, claims, litigation,
investigations or inquiries may be ‎difficult to predict and could have a material adverse effect on the Company's business, operating
results, or ‎financial condition.‎

 

The Company's directors
and officers may have conflicts of interest in conducting their duties.

 

Because directors and officers of the Company
are or may become directors or officers of other ‎reporting companies or have significant shareholdings in other technology companies,
the directors and ‎officers of the Company may have conflicts of interest in conducting their duties. The Company and its ‎directors
and officers will attempt to minimize such conflicts. In the event that such a conflict of interest ‎arises at a meeting of the
directors of the Company, a director who has such a conflict will abstain from ‎voting for or against a particular matter in which
the director has the conflict. In appropriate cases, the ‎Company will establish a special committee of independent directors to
review a particular matter in ‎which several directors, or officers, may have a conflict. In determining whether or not the Company
will ‎participate in a particular program and the interest therein to be acquired by it, the directors will primarily ‎consider
the potential benefits to the Company, the degree of risk to which the Company may be ‎exposed and its financial position at that
time. Other than as indicated, the Company has no other ‎procedures or mechanisms to deal with conflicts of interest.‎

 

Executive officers and directors may have rights
to indemnification from the Company, including ‎pursuant to directors' and officers' liability insurance policies, that will survive
termination of their ‎agreements‎.

 

Forward-Looking Statements
and Information May Prove Inaccurate

 

Shareholders and prospective investors are cautioned
not to place undue reliance on the Company's forward-looking statements. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risk and uncertainties, of both a general and specific nature, that could cause actual results to differ
materially from those suggested by the forward-looking statements or contribute to the possibility that predictions, forecasts or projections
will prove to be materially inaccurate. Additional information on the risks, assumptions and uncertainties related to forward-looking
statements and information are found under the heading "Cautionary Statement Regarding Forward-Looking Information and Statements"
in this AIF.

 

Draganfly Inc. | Annual Information Form           Page
31

 

     

     

    

 

Risks Related to the Securities of the Company

 

There is no assurance that resale of the
Company's Common Shares will result in a positive return ‎for existing ‎investors.‎

 

‎The Common Shares are currently publicly
traded on the CSE, the ‎OTCQB and the Frankfurt Stock Exchange. There can be no ‎assurance that the publicly-traded market
price of ‎the Common Shares will be high enough to create a ‎positive return for any investors. Further, there can be ‎no
assurance that the Common Shares will be ‎sufficiently liquid so as to permit investors to sell any of their position in the ‎Company
without adversely ‎affecting the stock price. In such event, the probability of any resale of the Common ‎Shares would be
 ‎significantly diminished. As well, the continued operation of the Company will be dependent upon its ‎ability to ‎procure
additional financing in the short term and to generate operating revenues in the longer ‎term. There can be ‎no assurance
that any such financing can be obtained or that any revenues can be ‎generated. If the Company is unable ‎to obtain such
additional financing or generate sufficient revenues, ‎investors may be unable to sell their Common Shares ‎and any investment
in the Company may be lost.‎

 

‎The market for securities has experienced
a high level of price and volume volatility and market ‎prices are ‎subject to wide fluctuations.‎

 

‎In recent years, the securities markets
in the United States and Canada have experienced a high level of ‎price and ‎volume volatility, and the market prices of
securities of many companies have experienced ‎wide fluctuations in ‎price which have not necessarily been related to the
operating performance, ‎underlying asset values or prospects of ‎such companies. There can be no assurance that continuing
 ‎fluctuations in price will not occur. It may be ‎anticipated that any quoted market for the Common Shares ‎will be
subject to market trends generally, ‎notwithstanding any potential success of the Company in ‎creating revenues, cash flows
or earnings. The value of ‎the Common Shares will be affected by such ‎volatility. ‎An active public market for the
Common Shares may never develop or otherwise be sustained. ‎If an active public market for the Common Shares does not develop or,
if one develops but it is not ‎sustained, the liquidity of a shareholder's investment in the Common Shares may be very limited
and the ‎share price may decline.‎

 

‎The Company has not paid any dividends
to date.‎

 

‎To date, the Company has not paid any
dividends on its outstanding shares. Any decision to pay ‎dividends on the ‎shares of the Company will be made by the Board
on the basis of its earnings, financial ‎requirements ‎and other conditions.‎

 

Global financial conditions have been volatile
and in some cases the access to capital markets has ‎been restricted.‎

 

Current global financial conditions have been
subject to increased volatility and in some cases the ‎access to financial markets has been restricted. These factors may impact
the ability of the Company to ‎obtain equity or debt financing in the future and, if obtained, on terms favourable to the Company.
If ‎these levels of volatility and market instability continue, the Company's operations could be adversely ‎impacted and
the value and the price of the Common Shares could continue to be adversely affected.‎

 

Draganfly Inc. | Annual Information Form           Page
32

 

     

     

    

 

DESCRIPTION
OF CAPITAL STRUCTURE

 

Common Shares

 

The Company's authorized share structure consists
of: (i) an unlimited number of Common Shares; and (ii) an unlimited ‎number of Preferred Shares, issuable in series.‎

 

As of the date hereof, 135,166,934 Common Shares
are issued and outstanding (86,093,361 as at December 31, 2020). Each Common Share entitles the holder ‎to receive notice of and
attend all meetings of the shareholders. Each Common Share carries the right to one vote. The ‎holders of Common Shares are entitled
to receive any dividends declared by the Company in respect of the Common ‎Shares at such time and in such amount as may be determined
by the Board, in its discretion. In the event of the ‎liquidation, dissolution, or winding up of the Company, whether voluntary
or involuntary, holders of Common Shares ‎are also entitled to participate, rateably, in the distribution of the assets of the
Company, subject to the rights of the ‎holders of any other class of shares ranking in priority to the Common Shares. ‎

 

As of the date hereof, nil Preferred Shares are
issued and outstanding (nil as at December 31, 2020). The Preferred Shares may be issuable in series ‎and the directors may, from
time to time before the issue of any Preferred Shares of any particular series, define and ‎attach special rights, privileges,
restrictions, and conditions to the Preferred Shares of any series, including voting rights, ‎entitlement to dividends, and redemption,
conversion, and exchange rights. In the event of the liquidation, dissolution, or ‎winding up of the Company, whether voluntary
or involuntary, holders of Preferred Shares will rank on a parity with ‎holders of the Preferred Shares of every other series and
be entitled to preference over the Common Shares and over ‎any other shares of the Company ranking junior to the Preferred Shares.‎

 

Market
for Securities

 

Trading Price and Volume
of Common Shares

 

The Common Shares are listed and posted for trading
on the CSE under the symbol "DFLY". The following table sets forth the price range (high and low prices) in Canadian dollars
of the Common Shares and volume traded on the CSE, for the periods indicated.

 

	2020	 	 	 
	January	0.75	0.52	1,124,846
	February	1.15	0.73	3,053,583
	March	0.94	0.51	2,211,638
	April	1.00	0.65	4,788,090
	May	0.84	0.61	3,507,431
	June	0.78	0.57	3,256,891
	July	0.69	0.58	1,877,623
	August	0.62	0.44	1,644,167
	September	1.00	0.53	3,241,425
	October	0.65	0.52	1,787,844
	November	0.59	0.46	2,430,663
	December	0.90	0.40	13,739,095
	2021	 	 	 
	January	4.05	0.77	57,004,303
	February	4.25	2.13	19,737,329
	March	2.99	1.80	7,126,997
	April	2.48	1.37	4,962,527
	May	2.11	1.46	4,383,044
	June
    1 - 28	2.08	1.59	3,436,383

 

Draganfly Inc. | Annual Information Form           Page
33

 

     

     

    

 

Prior Sales

 

The following table summarizes the issuances
of unlisted securities for the year ended December 31, 2020:

 

	Date
    of Issuance	Securities	Number
    of Common

    ‎Shares Issued/Issuable

     or Aggregate Amount  	Exercise
    Price per

    ‎Security 

    ‎‎($)‎
	April
    30, 2020	Stock
    Options(1)	445,000	0.50
	April
    30, 2020	Stock
    Options(1)	600,000	0.77
	July
    3, 2020	Stock
    Options(1)	1,000,000	0.64
	November
    24, 2020	Stock
    Options(1)	165,000	0.50
	November
    24, 2020	Restricted
    Share Units(1)	865,000	N/A
	November
    30, 2020	Warrants(2)	2,556,496	US$0.71
	December
    11, 2020	Stock
    Options(1)	250,000	0.43

 

Notes:

 

	(1)	Issued pursuant to the share compensation plan of the Company‎.
	(2)	Issued pursuant to the Regulation A+ Offering.

 

ESCROWED
SECURITIES

 

The following table summarizes the Company's
securities that remain in escrow or subject to restrictions ‎on transfer as of the Effective Date: ‎

 

	Designation
    of Class	Number
    of securities held in
 escrow or that are subject to
 contractual restriction on
 transfer	Percentage
    of Class(3)
	Common
    Shares	3,018,904(1)	2.2%
	Common
    Shares	21,609,560(2)	16.4%

 

Notes:

 

	(1)	In connection with the listing of the Common Shares for trading on
                                                                         the CSE, an aggregate of 6,708,671 Common Shares were deposited in escrow with TSX Trust Company (Endeavor Trust Corporation‎
                                                                         subsequently replaced TSX Trust Company as escrow agent). 10% of such Common Shares were released from escrow on the date the Common
                                                                         Shares were listed on the CSE, and 15% will be release from escrow every six months thereafter, subject to acceleration provisions
                                                                         provided for in National Policy 46-201 – Escrow for Initial Public Offerings.
	(2)	Pursuant to the
                                            terms of the Combination Agreement, certain shareholders of Former Draganfly and the Company
                                            agreed to voluntary trading restrictions on their Common Shares for a period of three years
                                            with 5% of such Common Shares released on the date of listing of the Common Shares on the
                                            CSE and then 15% released every six months thereafter until month 36 when the remaining 20%
                                            will be released.
	(3)	Percentages
                                            based on ‎135,166,934 ‎Common Shares issued and outstanding as of the Effective
                                            Date‎.

 

DIVIDENDS

 

The Company has not declared or paid a dividend.
Other than the requirements of the BCBCA, there are ‎no restrictions on the Company that would prevent it from paying a dividend.
However, as of the Effective Date, the Board of Directors intends to retain any future earnings (when available) for reinvestment in
 ‎the Company's business, and therefore, it has no current intention to declare or pay dividends on the ‎Common Shares in
the foreseeable future. Any future determination to pay dividends on the Common ‎Shares will be at the sole discretion of the Board
of Directors after considering a variety of factors and ‎conditions existing from time to time including its earnings, financial
condition and other relevant factors‎.

 

Draganfly Inc. | Annual Information Form           Page
34

 

     

     

    

 

DIRECTORS
AND OFFICERS

 

As at the date hereof, the Board is comprised
of seven individuals. The following table sets forth the names and municipalities of residence of the current directors and executive
officers of the Company, their respective positions and offices with the Company and the date first appointed or elected as a director
and/or officer and their principal occupation(s) within the past five years.

 

Name, Occupation and Security
Holding

 

	Name
    

    and Municipality 

    of Residence	Position
    Held 

    and Date Appointed	Principal
    Occupation within the past five years‎
	Cameron
    Chell

    Bowen Island, British Columbia, Canada	Chief
    Executive Officer, Chairman and a Director 

    (August 14, 2019)	Chairman
                                            and Chief Executive Officer of the ‎Company since August 2019; ‎‎co-founder
                                            of ‎Business Instincts Group Inc‎., a Calgary-based ‎Venture ‎Creation
                                            Firm, since 2009; co-founder ‎of Cold Bore Technologies Inc. ‎from ‎February
                                            ‎‎2013 to present; Chairman and founder of ‎TraxOne Inc. ‎from ‎September
                                            2016 to present; ‎a director and an advisor to KodakCoin from ‎‎May 2017
                                            to present; Chairman and co-‎founder of CurrencyWorks Inc. ‎from ‎November
                                            2017 to present; director and co-‎founder of Slyce Inc. from ‎January 2012 to
                                            ‎January 2017‎.

                                                                                 

	Scott
    Larson(1)(2)

    Burnaby, British Columbia, Canada	President
    (July 3, 2020) and a Director 

    (August 14, 2019)	President
                                            of the Company since July 2020; ‎former Chief Executive Officer of Kater ‎Technologies,
                                            a Vancouver-based mobility as ‎a service (MaaS) company building out an ‎integrated
                                            intermodal transportation ‎platform ‎incorporating public transportation, buses,
                                            ‎taxis and ride hailing vehicles into a single ‎service, from January 2019 to
                                            March 2020; ‎former Chief Executive Officer of ‎Helios Wire, ‎a satellite
                                            company building out a space-‎enabled IoT/M2M network‎, from 2016 to 2019; ‎and
                                            former Chief Executive Officer and ‎founder of UrtheCast ‎Corp. from 2010 to
                                            2015‎.

                                                                                 

	Olen
    Aasen(1)(2)

    Vancouver, British Columbia, Canada	Director

    (August 14, 2019)

     

     

     
	General
    Counsel at King & Bay West ‎‎Management Corp. ‎since February ‎‎2011‎.
	Andrew
    Hill Card Jr.

    Jaffrey, New Hampshire, United States	Director

    (November 7, 2019)

     

     

     
	Interim
                                            Chief Executive Officer of the George ‎& Barbara Bush Foundation ‎since June
                                            2020; ‎Chairman of the National Endowment for ‎Democracy ‎‎(NED),
                                            a non-profit organization ‎‎dedicated to the growth and strengthening ‎of
                                            ‎democratic institutions around the world, since ‎‎January 2018; and ‎President
                                            of Franklin ‎Pierce University in New Hampshire from ‎January ‎‎2015
                                            through July 2016‎.

                                                                                 

	Justin
    Hannewyk

    Vancouver, British Columbia, Canada	Director

    (April 30, 2020)

     

     
	President
    of Dronelogics, a ‎wholly-owned subsidiary of the Company, ‎since ‎‎2009; President of Candrone from ‎January
    2009 to present; and an ‎independent ‎consultant to enterprise clients with respect to ‎the integration of ‎drones
    for over 10 years‎.
	John
    M. Mitnick

    McLean, Virginia, United States	Director

    (June 18, 2020)

     

     

     
	Member
    of Board of Directors of Valaurum, ‎Inc., March 2016 to February ‎‎2018 and since ‎October 2019; General
    Counsel of the U.S. ‎Department of ‎Homeland Security from ‎February 2018 to September 2019; and Senior ‎‎Vice
    President, General Counsel, and ‎Secretary of The Heritage Foundation ‎from ‎March 2014 to February 2018‎.

 

Draganfly Inc. | Annual Information Form           Page
35

 

     

     

    

 

	Name
    

    and Municipality 

    of Residence	Position
    Held 

    and Date Appointed	Principal
    Occupation within the past five years‎
	Denis Silva(1)(2)

    Vancouver, British Columbia, Canada	Director

    (August 14, 2019)

     

    
	Corporate
    and securities partner with the law ‎firm DLA Piper (Canada) ‎LLP ‎since July 2020; ‎and ‎partner at
    the law firm Gowling WLG ‎‎(Canada) LLP ‎from 2015 to 2020‎.
	Paul
    Sun

    Oakville, Ontario, Canada	Chief
    Financial Officer and Corporate Secretary

    (August 14, 2019)	Chief
                                            Financial Officer of the Company since August 2019; Chief Financial Officer of Former ‎Draganfly
                                            since July 2015; and Managing Director, ‎Institutional Equity Sales at Beacon Securities
                                            Limited‎ from January 2013 to December 2014.

                                                                                 

	John
    Bagocius

    Jupiter, Florida, United States	Senior Vice President, Sales

    (July 14, 2020)

     
	Senior
    Vice President, Sales of the Company since July 2020; VP of Sales for the Public Safety & Commercial UAS groups ‎for FLIR
    Systems from January 2019 to March 2020; VP of Sales, North America Public Safety & Commercial UAS Solutions for Aeryon Labs
    Inc. from June 2017 until December 2018; and various leadership positions in Sales, Product Management, and Business Development
    for ‎Crossmatch Technologies from June 2000 to June 2017. ‎

 

Notes:

 

		(1)	Member
                                            of the Audit Committee. 

		(2)	Member
                                            of the Nominating and Corporate Governance Committee.

 

As at the Effective Date, the directors and senior
officers of Draganfly, as a group, beneficially own or control, directly or indirectly, 7,725,810 Common Shares or 5.7% of the issued
and outstanding Common Shares.

 

The directors listed above will hold office until
the next annual meeting of the Company or until their successors are elected or appointed.

 

Corporate Cease Trade
Orders, Bankruptcies, Penalties or Sanctions

 

To the knowledge of management, no director or
executive officer as at the date hereof, is or was within 10 years before the date hereof, a director, chief executive officer or chief
financial officer of any company (including Draganfly), that (a) was subject to an order that was issued while the director or executive
officer was acting in the capacity as director, chief executive officer or chief financial officer, or (b) was subject to an order that
was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which
resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial
officer. For the purposes hereof, "order" means (a) a cease trade order, (b) an order similar to a cease trade order, or (c)
an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more
than 30 consecutive days.

 

To the knowledge of management, other than as
disclosed herein, no director or executive officer of Draganfly, or a shareholder holding a sufficient number of securities of Draganfly
to affect materially the control of the company (a) is, as at the date hereof, or has been within the 10 years before the date hereof,
a director or executive officer of any company (including Draganfly) that, while that person was acting in that capacity, or within a
year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or
insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager
or trustee appointed to hold its assets, or (b) has, within the 10 years before the date hereof, become bankrupt, made a proposal under
any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with
creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

 

Draganfly Inc. | Annual Information Form           Page
36

 

     

     

    

 

By Order of the Supreme Court of Newfoundland
and Labrador dated June 17, 2020, Deloitte Restructuring Inc. ‎was appointed as the receiver and manager of all current and future
assets, undertakings, and properties of the ‎Kami Mine Limited Partnership, Kami General Partner Limited, and Alderon Iron Ore
Corp. The receivership was ‎initiated by a secured creditor of the Kami Mine Limited Partnership after its failure to refinance
the secured debt ‎due to the COVID-19 pandemic. Mr. Aasen was Corporate Secretary of Alderon Iron Ore Corp. and Secretary and ‎Director
of Kami General Partner Limited until April 28, 2020.‎

 

Penalties or Sanctions

 

Other than as disclosed herein‎, no director,
executive officer or shareholder holding a sufficient number of securities of Draganfly to materially affect the control of the Company
has been subject to: (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory
authority or has entered into a settlement agreement with a securities regulatory authority; or (ii) any other penalties or sanctions
imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

 

Pursuant to a settlement agreement (the "Settlement
Agreement") dated November 6, 1998 that Cameron Chell, Chief Executive Officer, Chairman and a director of the Company, signed
with the Alberta Stock Exchange (the "ASE"), Mr. Chell agreed to the following sanctions:

 

		·	prohibition
                                            against ASE Approval (as defined in the General By-law of the ASE) in any capacity for a
                                            period of five years commencing November 6, 1998;

 

		·	a
                                            fine in the sum of $25,000;

 

		·	strict
                                            supervision for a period of two years following re-registration in any capacity; and

 

		·	close
                                            supervision for a period of one year following the period of strict supervision described
                                            above.

 

The matters respecting the Settlement Agreement
are as set forth in an ASE Notice to Members dated November 12, 1998, which provides that:

 

		·	representations
                                            were made by the promoter of a company to one of Mr. Chell's clients that he would only be
                                            permitted to purchase securities in the initial public offering of that company if he would
                                            agree to purchase additional securities in the secondary market following the listing on
                                            the ASE and, in or around March or April, 1996, Mr. Chell disclosed confidential information
                                            to the promoter of that company concerning a client's account with respect to a cheque returned
                                            NSF to Mr. Chell's employer;

 

		·	the
                                            investment objectives for two of Mr. Chell's clients were amended without prior knowledge
                                            or consent of such clients and purchases and sales of securities were subsequently executed
                                            in the accounts of such clients which were unsuitable for the clients given the stated investment
                                            objectives for the accounts prior to the amendment of such investment objectives;

 

		·	Mr.
                                            Chell executed a total of 21 transactions in the accounts of two of Mr. Chell's clients without
                                            prior knowledge or authorization of such clients;

 

		·	the
                                            signature on the new client account form for one of Mr. Chell's clients, which purported
                                            to be that of the client was not in fact the signature of the client nor did such client
                                            have any knowledge of any changes made to the investment objectives for his account(s);

 
	 	•	on or about June 10, 1996, the address for the account
    of one of Mr. Chell's clients was changed to Mr. Chell's local post office box address without such client's knowledge and while
    the client was resident in Ontario. As a result, during the period of June 10 to and including September, 1996, the client did not
    receive any trade confirmations or accounts statements with respect to her accounts with Mr. Chell;

 

Draganfly Inc. | Annual Information Form
           Page 37

 

     

     

    

 

		·	on
                                            or about March 19, 1996, Mr. Chell permitted one of his clients to acquire approximately
                                            4% of the total initial public offering by a company, contrary to the rules of the ASE;

 

		·	on
                                            or about October 19, 1996, Mr. Chell purchased securities of a company in the account of
                                            one of his clients without disclosing the involvement of his brother as president of that
                                            company;

 

		·	on
                                            or about June 23, 1996, the private placement questionnaire and undertaking completed in
                                            connection with the purchase by one of Mr. Chell's clients and filed with the ASE disclosed
                                            that Mr. Chell's client was a resident of Alberta when in fact such client was a resident
                                            of Ontario. Mr. Chell knew or ought to have known that it contained a misstatement of fact
                                            in that regard;

 

		·	during
                                            the period of the summer, 1996 to and including May 1997, Mr. Chell's day to day involvement
                                            as the president and chairman of Coffee.Com Interactive Café Corp. ("Coffee.Com")
                                            as well as being a shareholder was not disclosed to Mr. Chell's employer;

 

		·	further,
                                            Mr. Chell purchased securities offerings via private placement by Coffee.Com for certain
                                            of his clients without fully disclosing his involvement with that company to such clients;

 

		·	on
                                            or about March 18 and June 19, 1996, Mr. Chell executed purchase of securities for Ontario
                                            residents. At the time of such purchases, Mr. Chell knew or ought to have known that he was
                                            not registered in the province of Ontario;

 

		·	during
                                            the summer of 1996, Mr. Chell represented to the ASE that certain purchasers of securities
                                            offered via private placement were close friends and business associates when he knew or
                                            ought to have known that such representations were untrue; and

 

		·	during
                                            the period of June 19, 1996 and to and including May 1, 1997, Mr. Chell failed to obtain
                                            the prior approval of his employer for advertisements and sales literature distributed by
                                            Mr. Chell regarding Coffee.Com.

 

Conflicts of Interest

 

There are potential conflicts of interest to
which the directors and officers of Draganfly will be subject to in connection with the operations of Draganfly. In particular, certain
of the directors and officers of Draganfly are involved in managerial or director positions with other companies whose operations may,
from time to time, be in direct competition with those of Draganfly or with entities which may, from time to time, provide financing
to, or make equity investments in, competitors of Draganfly.

 

In accordance with the applicable corporate and
securities legislation, directors who have a material interest or any person who is a party to a material contract or a proposed material
contract with Draganfly are required, subject to certain exceptions, to disclose that interest and generally abstain from voting on any
resolution to approve the contract. In addition, the directors are required to act honestly and in good faith with a view to the best
interests of Draganfly. Certain of the directors and each of the executive officers of Draganfly have either other employment or other
business or time restrictions placed on them and accordingly, these directors of Draganfly will only be able to devote part of their
time to the affairs of Draganfly. To the extent that conflicts of interest arise, such conflicts will be resolved in accordance with
the provisions of the applicable corporate law.

 

Draganfly Inc. | Annual Information Form           Page
38

 

     

     

    

 

 

AUDIT
COMMITTEE

 

Audit Committee Charter

 

The full text of the Company's Audit Committee
Charter is included as Schedule A to the AIF.

 

Audit Committee Composition

 

The following are the members of the Audit Committee as at the date
hereof:

 

	Scott
    Laron (Chair)	Not
    Independent(1)	Financially
    Literate(1)
	Olen
    Aasen	Independent(1)	Financially
    Literate(1)
	Denis
    Silva	Not
    Independent(1)	Financially
    Literate(1)

 

Note:

 

(1)       As
defined by NI 52-110.

 

Relevant Education and
Experience

 

Scott Larson

 

Mr. Larson brings over 20 years of combined corporate
finance, technology development and ‎entrepreneurial experience to the Board. Formerly CEO of Kater, a Vancouver-based mobility
as a service ‎‎(MaaS) company building out an integrated intermodal transportation platform incorporating public ‎transportation,
buses, taxis and ride haling vehicles into a single service. Previously, Mr. Larson has been ‎CEO and co-founder of Helios Wire,
a satellite company building out a space-enabled IoT/M2M network, ‎and was CEO/Co-Founder of UrtheCast. Mr. Larson helped scale
the company from its inception, taking it ‎public on the Toronto Stock Exchange, raising $200 million, and leading the company
to 250 employees ‎over five years with seven offices around the world‎.

 

Olen Aasen

 

Mr. Aasen is a corporate and securities lawyer
with more than 15 years of experience in corporate, securities ‎and regulatory matters. He has been the Corporate Secretary, General
Counsel or Vice President, Legal at ‎various Canadian and U.S. listed companies. Mr. Aasen obtained a J.D. from the University
of British ‎Columbia in 2006 and was called to the British Columbia Bar in 2007. Mr. Aasen was also appointed to the ‎‎2016
Legal 500 GC Powerlist for Canada‎.

 

Denis Silva

 

Mr.
Silva is a corporate and securities partner with 12 years of experience in corporate, securities, mining and regulatory legal experience
and has acted for a wide variety of companies listed on Canadian and US exchanges, with a focus on technology and mining. Mr. Silva holds
a BA from the University of British Columbia, MPA from Queen's University and LLB from University of Windsor.

 

Each member of the Audit Committee has:

 

		·	an
                                            understanding of the accounting principles used by the Company to prepare its financial statements,
                                            and the ability to assess the general application of those principles in connection with
                                            estimates, accruals and reserves;

 

		·	experience
                                            with analyzing or evaluating financial statements that present a breadth and level of complexity
                                            of accounting issues that are generally comparable to the breadth and complexity of issues
                                            that can reasonably be expected to be raised by the Company's financial statements, or experience
                                            actively supervising individuals engaged in such activities; and

 

		·	an
                                            understanding of internal controls and procedures for financial reporting.

 

Draganfly
Inc. | Annual Information Form          Page 39

 

     

     

    

 

Audit Committee Oversight

 

At no time since the commencement of the Company's
financial year ended December 31, 2020, was a recommendation of the Committee to nominate or compensate an external auditor not adopted
by the Board of Directors.

 

Reliance on Certain Exemptions

 

At no time since the commencement of the Company's
financial year ended December 31, 2020, has the Company relied on any exemption from NI 52-110, including Section 2.4 of NI 52-110 (De
Minimis Non-Audit Services), or an exemption granted under Part 8 of NI 52-110.

 

The Company has relied upon the exemption provided
by section 6.1 of NI 52-110 which exempts venture issuers from the requirement to comply with the restrictions on the composition of
its audit committee.

 

Pre-Approval Policies
and Procedures

 

The Audit Committee is authorized by the Board
to review the performance of the Company's external auditors and approve in advance provision of services other than auditing and to
consider the independence of the external auditors, including reviewing the range of services provided in the context of all consulting
services bought by the Company. The Audit Committee is authorized to approve any non-audit services or additional work which the Chairman
of the Audit Committee deems as necessary who will notify the other members of the Audit Committee of such non-audit or additional work.

 

External Auditor Service
Fees

 

The aggregate fees billed by the Company's external
auditors in each of the last two fiscal years for audit fees are as follows:

 

	Financial
    Year Ending	Audit
                                            Fees(1)

                                                                                ($)
	Audit
                                            Related Fees(2)

                                                                                ($)
	Tax
                                            Fees(3)
  ($)
 
	All
                                            Other Fees(4)

                                                                                ($)

	2020	94,000	8,925	4,000	-
	2019	46,000	--	2,500	--

 

Notes:

 

		(1)	"Audit Fees" include fees
                                            necessary to perform the annual audit and quarterly reviews of our financial statements.
                                            Audit Fees include fees for review of tax provisions and for accounting consultations on
                                            matters reflected in the financial statements. Audit Fees also include audit or other attest
                                            services required by legislation or regulation, such as comfort letters, consents, reviews
                                            of securities filings and statutory audits.

		(2)	"Audit-Related Fees" for
                                            assurance and related services that are reasonably related to the performance of the audit
                                            or review of the Company's financial statements and are not reported as audit fees. The services
                                            provided in this category include due diligence assistance, accounting consultations on proposed
                                            transactions, and consultation on International Financial Reporting Standards conversion.

		(3)	"Tax Fees" include fees for
                                            all tax services other than those included in "Audit Fees" and "Audit-Related
                                            Fees". This category includes fees for tax compliance, tax planning and tax advice.

		(4)	"All Other Fees" includes
                                            all fees other than those reported as Audit Fees, Audit-Related Fees or Tax Fees.

 

Legal
Proceedings AND Regulatory actions

 

Draganfly is not, and has not been at any time
within the most recently completed financial year, a party to any legal proceedings, nor is or was Draganfly's property the subject of
any legal proceedings, known or contemplated, that involves a claim for damages exclusive of interest and costs that met or exceeded
10% of the Company's current assets.

 

Further, there have not been any (a) penalties
or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority during
the year ended December 31, 2020, (b) any other penalties or sanctions imposed by a court or regulatory body against the Company that
would likely be considered important to a reasonable investor in making an investment decision, or (c) settlement agreements entered
into by the Company before a court relating to securities legislation or with a securities regulatory authority during the year ended
December 31, 2020.

 

Draganfly Inc. | Annual Information Form           Page
40

 

     

     

    

 

INTERESTS
OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

 

Other than as set forth herein, or as previously
disclosed, the Company is not aware of any material interests, ‎direct or indirect, by way of beneficial ownership of securities
or otherwise, of any director or executive officer ‎or any shareholder holding more than 10% of the Common Shares or any associate
or affiliate of any of the ‎foregoing in any transaction within the three most recently completed financial years or during the
current ‎financial year or any proposed or ongoing transaction of the Company which has or will materially affect the ‎Company‎.

 

AUDITOR,
TRANSFER AGENT AND REGISTRAR

 

The auditors of the Company are Dale Matheson
Carr-Hilton Labonte LLP, Chartered Professional Accountants, 1500-1700, 1140 W Pender Street, Vancouver, BC V6E 4G1.

 

Endeavor Trust Corporation is the transfer agent
and registrar for the Common Shares at its principal office in Vancouver, British Columbia.

 

MATERIAL
CONTRACTS

 

There are no material contracts entered into
by Draganfly within the most recently completed financial year, or ‎before the most recently completed financial year but which
are still in effect, other than contracts entered into ‎in the ordinary course of business‎.

 

INTERESTS
OF EXPERTS

 

There is no person or company whose profession
or business gives authority to a statement made by such person or company and who is named as having prepared or certified a statement,
report or valuation described or included in a filing, or referred to in a filing, made under NI 51-102 by the Company during, or
related to, the Company's most recently completed financial year other than Dale Matheson Carr-Hilton Labonte LLP, the Company's auditors.

 

Dale Matheson Carr-Hilton Labonte LLP are the
auditors of the Company and have confirmed that they are independent with respect to the Company within the meaning of the relevant rules
and related interpretations prescribed by the relevant bodies in Canada and any applicable legislation or regulations.

 

Denis Silva, a director of the Company, is a
lawyer at DLA Piper (Canada) LLP, which law firm provides legal services to the Company. As of the date hereof, the associates and partners
of DLA Piper (Canada) LLP, as a group, beneficially own, directly or indirectly, less than 1% of the outstanding Common Shares.

 

Draganfly Inc. | Annual Information Form            
Page 41

 

     

     

    

 

ADDITIONAL
INFORMATION

 

Additional information relating to the Company
may be found on SEDAR at www.SEDAR.com.‎

 

Additional information, including directors'
and officers' remuneration and indebtedness, principal holders of ‎Draganfly's securities and securities authorized for issuance
under equity compensation plans, where applicable, ‎will be contained in ‎Draganfly's information circular for the next annual
meeting of shareholders that involves the ‎election of directors and additional information as provided in ‎Draganfly's comparative
financial statements for its ‎most recently completed financial year. Draganfly will provide this information to any person, upon
request made ‎to the Chief Financial Officer of ‎Draganfly at 2108 St. George Avenue Saskatoon, Saskatchewan S7M 0K7. The
 ‎documents will also be located on SEDAR at www.sedar.com.‎

 

Additional financial information is provided
in the Company's comparative financial statements and ‎management's discussion and analysis for the period ended December 31, 2020,
which are also available on ‎SEDAR.‎

 

Draganfly Inc. | Annual Information Form           Page
42

 

     

     

    

 

SCHEDULE A

 

DRAGANFLY INC.

AUDIT COMMITTEE CHARTER

 

PURPOSE

 

Senior management of Draganfly Inc. (the “Company”),
as overseen by its Board of Directors (the ‎‎“Board”), has primary responsibility for the Company’s
financial reporting, accounting systems and ‎internal controls. The Audit Committee (the “Committee”) is a standing
committee of the Board ‎established for the purposes of overseeing:‎

 

		(a)	the quality and integrity of the Company’s financial and accounting
reporting processes, audits of the financial statements of the Company, and internal accounting and financial control systems of the Company;‎

 

		(b)	the external auditor’s qualifications and independence;‎

 

		(c)	management's responsibility for assessing the effectiveness of internal controls;
and‎

 

		(d)	the Company’s compliance with legal and regulatory requirements in
connection with financial and accounting matters.

 ‎ 

     

     

    

 

COMPOSITION AND OPERATION

 

	1.	The Committee shall be composed of at least three
members, each of whom: 

 

		(a)	must be an “Independent Director”
(as defined in the Definitions section of this Charter), taking into account the rules and regulations of any securities regulatory authorities
and/or stock exchanges that may be applicable to the Company;

 

		(b)	must not accept any consulting, advisory, or
other compensatory fee from the Company (or any subsidiary) other than for board or committee service; 

 

		(c)	must not be an “Affiliated Person”
(as defined in the Definitions section of this Charter) of the Company or any of its subsidiaries;

 

		(d)	must not have participated in the preparation
of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years; and

 

		(e)	must be Financially Literate.

 

In addition, at least
one member will be a “Committee Financial Expert” (as defined in the Definitions section of this Charter).

 

The foregoing requirements
are subject to any exemptions, exceptions, cure periods or phase-in accommodations that may be available to the Company under applicable
securities laws and stock exchange rules.

 

	2.	The members of the Committee shall be appointed
by the Board to serve one-year terms and are permitted to serve an unlimited number of consecutive terms.

 

	3.	The Committee shall appoint a chair (the “Chair”)
from among its members who shall be an independent director. If the Chair is not present at any meeting of the Committee, one of the other
Committee members present at the meeting shall be chosen to preside at the meeting.

 

	4.	The Committee will make every effort to meet
at least four times per year and each member is entitled to request that an additional meeting be called, which will be held within two
weeks of the request for such meeting. A quorum at meetings of the Committee shall be two members present in person or by telephone. The
Committee may also act by unanimous written consent of its members as described under the heading “Authority” in this
Charter.

 

	5.	The external auditor may request the Chair to
call a meeting of the Committee to consider any matter that the auditor believes should be brought to the attention of the directors or
the shareholders of the Company. In addition to the external auditor, each committee chair, members of board, as well as the Chief Executive
Officer (“CEO”) and the Chief Financial Officer (“CFO”) shall be entitled to request the Chair to
call a meeting, which meeting shall be held within two weeks of the request.

 

	6.	Notice of the time and place of every meeting
shall be given in writing or by email communication to each member of the Committee at least 24 hours prior to the time fixed for
such meeting.

 

	7.	The Committee shall fix its own procedure at
meetings, keep records of its proceedings and provide a verbal report to the Board routinely at the next regularly scheduled Board meeting
and shall provide copies of finalized minutes of meetings to the Corporate Secretary to be kept with the official minute books of the
Company.

 

	8.	The Committee will review and approve its minutes
of meetings and copies will be made available to the external auditor or its members as requested.

 

	9.	In camera sessions will be scheduled for each
regularly scheduled quarterly Committee meeting, and as needed from time to time.

 

	10.	On an ad-hoc basis, the Committee may also meet
separately with the Chief Executive Officer and the Chief Financial Officer and such other members of management as they may deem necessary.

 

     

     

    

 

RESPONSIBILITIES AND DUTIES

 

Overall Committee:‎

 

To fulfill its responsibilities and duties the
Committee will:

 

		(a)	review this Charter periodically, but at least
once per annum, and recommend to the Board any necessary amendments;

 

		(b)	review and, where necessary, recommend revisions
to the Company’s disclosure in the Company’s public disclosures and securities filings (including its Management Information
Circular) regarding Committee’s composition and responsibilities and how they are discharged;

 

		(c)	assist the Board in the discharge of its responsibilities
relating to the quality, acceptability and integrity of the Company’s accounting policies and principles, reporting practices and
internal controls;

 

		(d)	review and recommend approval by the Board of
all significant and material financial disclosure documents to be released by the Company, including but not limited to, quarterly and
annual financial statements and management discussion and analysis, annual reports, Form 40-F, annual information forms, and prospectuses
containing material information of a financial nature; and

 

		(e)	oversee the relationship and maintain a direct
line of communication with the Company’s internal and external auditors and assess their respective performance.

 

Public Filings, Policies and Procedures:

 

The Committee is responsible for:

 

		(a)	ensuring adequate procedures are in place for
the review of the Company’s disclosure of financial information extracted or derived from the Company’s financial statements
and periodically assess the Company’s disclosure controls and procedures, and management’s evaluation thereof, to ensure that
financial information is recorded, processed, summarized and reported within the time periods required by law; 

 

		(b)	reviewing disclosures made to the Committee by
the CEO and the CFO during their certification process for any significant deficiencies in the design or operation of internal controls
or material weakness therein and any fraud involving management or other employees who have a significant role in internal controls; and

 

		(c)	reviewing with management and the external auditor
any correspondence with securities regulators or other regulatory or government agencies which raise material issues regarding the Company’s
financial reporting or accounting policies. 

 

     

     

    

 

External Auditors

 

The responsibilities and duties of the Committee
as they relate to the external auditor are to:

 

		(a)	consider and make recommendations to the Board
with respect to the appointment, compensation, and retention of the external auditor to be nominated for appointment by shareholders at
each annual general meeting of the Company;

 

		(b)	review the performance of the external auditor
and, where appropriate, recommend to the Board the removal of the external auditor;

 

		(c)	confirm the independence and effectiveness of
the external auditor, which will require receipt from the external auditor of a formal written statement delineating all relationships
between the auditor and the Company and any other factors that might affect the independence of the auditor; 

 

		(d)	oversee the work of the external auditor generally,
and review and report to the Board on the planning and results of external audit work, including: 

 

		(i)	the external auditor’s engagement letter
or other reports of the auditor;

 

		(ii)	the reasonableness of the estimated fees and
other compensation to be paid to the external auditor;

 

		(iii)	the form and content of the quarterly and annual
audit report, which should include, inter alia:

 

(A)              
a summary of the Company’s internal controls and procedures;

 

(B)              
any material issues raised in the most recent meeting of the Committee; and

 

(C)              
any other related audit, review or attestation services performed for the Company by the external auditors.

 

		(e)	actively engage in dialogue with the external
auditor with respect to any disclosed relationships or services that may affect the independence and objectivity of the external auditor
and take, or recommend the Board take, appropriate actions to oversee the independence of the external auditor;

 

		(f)	monitor the relationship between management and
the external auditor and resolve any disagreements between them regarding financial reporting; and

 

		(g)	engage the external auditor in discussions regarding
any amendments to critical accounting policies and practices; alternative treatments of financial information within generally accepted
accounting principles related to material items that have been discussed with management, including any potential ramifications and the
preferred treatment by the independent auditor; and lastly, written communication between management and the independent auditor, including
but not limited to, the management letter and schedule of adjusted differences.

 

     

     

    

 

Internal Controls and Financial Reporting

 

The Committee will:

 

		(a)	obtain reasonable assurance from discussions
with (and/or reports from) management, and reports from the external auditors that the Company’s financial and accounting systems
are reliable and that the prescribed internal controls are operating effectively;

 

		(b)	in consultation with the external auditor, the
CEO, the CFO, and where necessary, other members of management, review the integrity of the Company’s financial reporting process
and the internal control structure;

 

		(c)	review the acceptability of the Company’s
accounting principles and direct the auditors’ examinations to particular areas of question or concern, as required;

 

		(d)	request the auditors to undertake special examinations
(e.g., review compliance with conflict of interest policies) when it deems necessary;

 

		(e)	together with management, review control weaknesses
identified by the external and internal auditors;

 

		(f)	review the appointments of the CFO and other
key financial executives; and

 

		(g)	during the annual audit process, consider if
any significant matters regarding the Company’s internal controls and procedures over financial reporting, including any significant
deficiencies or material weaknesses in their design or operation, need to be discussed with the external auditor, and review whether internal
control recommendations made by the auditor have been implemented by management.

 

Ethical and Legal Compliance

 

The responsibilities and duties of the Committee
as they relate to compliance and risk management are to:

 

		(a)	obtain reasonable assurances as to the integrity
of the CEO and other senior management and that the CEO and other senior management strive to create a culture of integrity throughout
the Company;

 

		(b)	review the adequacy, appropriateness and effectiveness
of the Company’s policies and business practices which impact on the integrity, financial and otherwise, of the Company, including
those relating to hedging, insurance, accounting, information services and systems and financial controls, and management reporting; 

 

		(c)	receive a report from management on tax issues
and planning, including compliance with the Company’s source deduction obligations and other remittances under applicable tax or
other legislation; 

 

		(d)	review annually the adequacy and quality of the
Company’s financial and accounting staffing, including the need for and scope of internal audit reviews (if any); 

 

		(e)	establish procedures for a) the receipt, retention
and treatment of complaints received by the Company regarding accounting, internal controls, or auditing matters; and b) the confidential,
anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters. 

 

     

     

    

‎

		(f)	review any complaints and concerns received regarding
accounting, internal controls, or auditing matters or with respect to the Company’s Code of Ethical Conduct, and the investigation
and resolution thereof, and provide all relevant information relating to such complaints and concerns to the Nominating and Governance
Committee;

 

		(g)	review and monitor the Company’s compliance
with applicable legal and regulatory requirements related to financial reporting and disclosure;

 

		(h)	review all “related party transactions”
(as such term is defined under applicable securities laws and stock exchange rules) for any potential conflicts of interest; and

 

		(i)	carry the responsibility for reviewing reports from management, external auditors with respect to
                                                                               the Company’s compliance with the laws and regulations having a material impact on financial reporting and disclosure,
                                                                               including: tax and financial reporting laws and regulations; legal withholding requirements; environmental; and any other laws and
                                                                               regulations which expose directors to liability.

 

AUTHORITY

 

		1.	The Committee shall have the authority to:

 

		(a)	engage independent counsel and other advisors
as it determines necessary to carry out its duties;

 

		(b)	set and pay the compensation for the external
auditor engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company;

 

		(c)	set and pay the compensation for any independent
counsel and other advisors employed by the Committee; 

 

		(d)	incur ordinary administrative expenses that are
necessary or appropriate in carrying out its duties; and

 

		(e)	communicate directly with the external auditors.

 

		2.	The Committee shall have the power, authority
and discretion delegated to it by the Board which shall not include the power to change the membership of or fill vacancies in the Committee.

 

		3.	A resolution approved in writing by the members
of the Committee shall be valid and effective as if it had been passed at a duly called meeting. Such resolution shall be filed with the
minutes of the proceedings of the Committee and shall be effective on the date stated thereon or on the latest date stated in any counterpart.

 

		4.	The Board shall have the power at any time to
revoke or override the authority given to or acts done by the Committee except as to acts done before such revocation or act of overriding
and to terminate the appointment or change the membership of the Committee or fill vacancies in it as it shall see fit.

 

		5.	The Committee shall have unrestricted and unfettered
access to all Company personnel and documents and shall be provided with the resources necessary to carry out its responsibilities.

 

		6.	At the invitation of the Chair, one or more officers
or employees of the Company may, and if required by the Committee, shall attend a meeting of the Committee.

 

		7.	The Committee shall have the authority to obtain
advice and assistance from outside legal, accounting or financials advisors in its sole discretion.

 

     

     

    

 

DEFINITIONS

 

Capitalized terms used in this Charter and not
otherwise defined have the meaning attributed to them below:

 

“Affiliated Person” means an
 “affiliate” of, or a person “affiliated” with, a specified person, which is a person that directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

 

“Committee Financial Expert”
means a person who has the following attributes:

 

		(a)	past employment experience in finance or accounting;

 

		(b)	requisite professional certification in accounting;
or

 

		(c)	or any other comparable experience or background
which results in the individual's financial sophistication, including being or having been a chief executive officer, chief financial
officer or other senior officer with financial oversight responsibilities.

 

“Executive Officer” means the
Company’s president, principal financial officer, principal accounting officer (or, if there is no such accounting officer, the
controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration
or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions
for the Company.

 

“Family Member” means a person's
spouse, parents, children, siblings, mothers and fathers-in-law, sons and daughters-in-law, brothers and sisters-in-law, and anyone (other
than domestic employees) who shares such person's home.

 

“Financially Literate” means
the ability to read and understand a set of fundamental financial statements, including the Company’s balance sheet, income statement,
and cash flow statement, that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth
and complexity of the issues that can reasonably be expected to be raised in the Company’s financial statements.

 

“Independent Director” means
a director that is “independent” as the term is defined in both National Instrument 52-110 - Audit Committees (“NI
52-110”) and Nasdaq Rule 5605(a)(2), as each may be amended from time to time, and being a person other than an Executive Officer
or employee of the Company or any other individual having a relationship which, in the opinion of the Company's board of directors, would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The following persons shall not
be considered independent:

 

		(a)	a director who is, or at any time during the
past three years was, employed by the Company;

 

		(b)	a director who accepted or who has a Family Member
who accepted any compensation from the Company in excess of $120,000 during any period of twelve consecutive months within the three years
preceding the determination of independence, other than the following:

 

		(i)	compensation for board or board committee service;

 

		(ii)	compensation paid to a Family Member who is an
employee (other than an Executive Officer) of the Company; or

 

		(iii)	benefits under a tax-qualified retirement plan,
or non-discretionary compensation.

 

Provided, however, that in addition to the requirements contained
in this paragraph (B), audit committee members are also subject to additional, more stringent requirements under Rule 5605(c)(2).

 

		(c)	a director who is a Family Member of an individual
who is, or at any time during the past three years was, employed by the Company as an Executive Officer;

 

		(d)	a director who is, or has a Family Member who
is, a partner in, or a controlling Shareholder or an Executive Officer of, any organization to which the Company made, or from which the
Company received, payments for property or services in the current or any of the past three fiscal years that exceed 5% of the recipient's
consolidated gross revenues for that year, or $200,000, whichever is more, other than the following:

 

		(i)	payments arising solely from investments in the
Company's securities; or

 

		(ii)	payments under non-discretionary charitable contribution
matching programs.

 

		(e)	a director of the Company who is, or has a Family
Member who is, employed as an Executive Officer of another entity where at any time during the past three years any of the Executive Officers
of the Company serve on the compensation committee of such other entity; or

 

		(f)	a director who is, or has a Family Member who
is, a current partner of the Company's outside auditor, or was a partner or employee of the Company's outside auditor who worked on the
Company's audit at any time during any of the past three years.

 

Adopted by the Board on August 19, 2019, and amended Updated and Approved,
2021.

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