Document:

Exhibit 10.25

 

EXECUTION VERSION

 

	

    	

    	

    
	
 
    	
 
    	
 
    
	
Wells   Fargo Bank, National Association
   Wells Fargo Securities, LLC
   550 S. Tryon Street, 6th Floor
   Charlotte, NC 28202
    	
Bank   of America, N.A.
   Merrill Lynch, Pierce, Fenner & Smith
   Incorporated
   214 N. Tryon Street
   Charlotte, NC 28255
    	
JPMorgan Chase Bank, N.A.
    383   Madison Ave.
    New York, NY 10179
    
	
 
    	
 
    	
 
    
	

    	

    	

    
	
 
    	
 
    	
 
    
	
Capital   One, National Association
   1680 Capital One Drive
   10th Floor
   McLean, VA 22102
    	
PNC   Bank, National Association
   PNC Capital Markets LLC
   The Tower at PNC Plaza
   300 Fifth Avenue
   Pittsburgh, PA 15222-2724
    	
Citizens   Bank, N.A.
   1215 Superior Avenue
   Cleveland, OH 44114
    

 

CONFIDENTIAL

 

May 3, 2017

 

JBG SMITH Properties LP
 c/o JBG SMITH Properties

2345 Crystal Drive, Suite 1100

Arlington, Virginia 22202

 

	
 
    	
Re:
    	
Commitment Letter
    
	
 
    	
 
    	
$1.40 Billion Senior   Unsecured Credit Facilities
    

 

Ladies and Gentlemen:

 

You have advised Wells Fargo Bank, National Association (“Wells Fargo Bank”), Wells Fargo Securities, LLC (“Wells Fargo Securities” and, together with Wells Fargo Bank, the “Wells Fargo Parties”), Bank of America, N.A. (“Bank of America”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (together with any affiliates it deems appropriate to provide the services contemplated herein, “MLPF&S” and, together with Bank of America, the “Bank of America Parties”), JPMorgan Chase Bank, N.A. (“JPMorgan”), Capital One, National Association (“Capital One”), PNC Bank, National Association (“PNC Bank”), PNC Capital Markets LLC (“PNC Capital” and, together with PNC Bank, the “PNC Parties”) and Citizens Bank, N.A. (“Citizens”) (the Wells Fargo Parties, the Bank of America Parties, JPMorgan, Capital One, the PNC Parties and Citizens are herein sometimes collectively referred to as the “Bank Parties” or “we” or “us”) that JBG SMITH Properties LP (the “Borrower” or “you”), seeks financing for ongoing working capital requirements and other general corporate purposes, all as more fully described in the Summary of Terms and Conditions attached hereto as Annex A (the “Term Sheet”).  This Commitment Letter (as defined below) describes the general terms and conditions for

 

 

senior unsecured credit facilities of up to $1.40 billion to be provided to the Borrower consisting of (a) a five and one-half-year term loan facility of up to $200 million (the “Term A-1 Loan Facility”), (b) a seven-year term loan facility of up to $200 million (the “Term A-2 Loan Facility”, and, collectively with the Term A-1 Loan Facility, the “Term  Loan Facilities”) and (c) a revolving credit facility of up to $1.0 billion (the “Revolving Credit Facility” and, collectively with the Term Loan Facilities, the “Senior Credit Facilities”).

 

As used herein, the term “Transactions” means, collectively, the combination transactions described in and made pursuant to that certain Master Transaction Agreement dated as of October 31, 2016 by and among Vornado Realty Trust, Vornado Realty L.P., JBG Properties, Inc., and JBG/Operating Partners, L.P. (the “Master Transaction Agreement”), the initial borrowings and other extensions of credit under the Senior Credit Facilities, and the payment of fees, commissions and expenses in connection therewith.  This letter, including the Term Sheet, is hereinafter referred to as the “Commitment Letter”.  The date on which the Senior Credit Facilities are closed is referred to as the “Closing Date”.

 

1.                                      Commitment Letter.

 

(a)                                 You have requested that Wells Fargo Bank, Bank of America, JPMorgan, Capital One, PNC Bank and Citizens (collectively, the “Lead Lenders”) commit to provide a portion of the Senior Credit Facilities.  Based upon and subject to the terms and conditions of this Commitment Letter, including without limitation, the terms and conditions contained in the Term Sheet:

 

(i)                                     Wells Fargo Bank hereby commits to provide $225 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility) and $50 million of the aggregate principal amount of the Term A-2 Loan Facility (the “Wells Fargo Commitment”);

 

(ii)                                  Bank of America hereby commits to provide $250 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility)  (the “Bank of America Commitment”);

 

(iii)                               JPMorgan hereby commits to provide $250 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility) (the “JPMorgan Commitment”);

 

(iv)                              Capital One hereby commits to provide $175 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility) and $50 million of the aggregate principal amount of the Term A-2 Loan Facility (the “Capital One Commitment”);

 

(v)                                 PNC Bank hereby commits to provide $150 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility) and $50 million of the aggregate principal amount of the Term A-2 Loan Facility (the “PNC Commitment”);

 

(vi)                              Citizens hereby commits to provide $150 million of the aggregate principal amount of the Revolving Credit Facility and the Term A-1 Loan Facility (to be allocated ratably between the Revolving Credit Facility and the Term A-1 Loan Facility) and $50 million of the aggregate principal amount of the Term A-2 Loan Facility (the “Citizens Commitment” and together with the Wells Fargo

 

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Commitment, the Bank of America Commitment, the JPMorgan Commitment, the Capital One Commitment and the PNC Commitment, the “Commitments”).

 

The Commitments of the Lead Lenders are several and not joint and several, and no Lead Lender shall have any liability for the failure of any other Lead Lender to provide its Commitment.

 

(b)

 

(i)                                     Wells Fargo Securities, MLPF&S and  JPMorgan, each acting alone or through or with affiliates selected by it, will act as joint lead bookrunners (each, in such capacities, a “Revolving Credit Bookrunner” and, collectively, the “Revolving Credit Bookrunners”), and Wells Fargo Securities, MLPF&S, JPMorgan, Capital One, PNC Capital and Citizens, each acting alone or through or with affiliates selected by it, will act as joint lead arrangers (each, in such capacities, a “Revolving Credit Arranger” and, collectively, the “Revolving Credit Arrangers”), in connection with arranging and syndicating the Revolving Credit Facility;

 

(ii) Wells Fargo Securities, MLPF&S and  JPMorgan, each acting alone or through or with affiliates selected by it, will act as joint lead bookrunners (each, in such capacities, a “Term A-1 Bookrunner” and, collectively, the “Term A-1 Bookrunners”), and Wells Fargo Securities, MLPF&S, JPMorgan, Capital One, PNC Capital and Citizens, each acting alone or through or with affiliates selected by it, will act as joint lead arrangers (each, in such capacities, a “Term A-1 Arranger” and, collectively, the “Term A-1 Arrangers”), in connection with arranging and syndicating the Term A-1 Loan Facility; and

 

(iii) Wells Fargo Securities, Capital One, PNC Capital and Citizens, each acting alone or through or with affiliates selected by it, will act as joint lead bookrunners (each, in such capacities, a “Term A-2 Bookrunner” and, collectively, the “Term A-2 Bookrunners”, and together with the Revolving Credit Bookrunners and the Term A-1 Bookrunners, each a “Bookrunner” and collectively, the “Bookrunners”), and Wells Fargo Securities, Capital One, PNC Capital and Citizens, each acting alone or through or with affiliates selected by it, will act as joint lead arrangers (each, in such capacities, a “Term A-2 Arranger” and, collectively, the “Term A-2 Arrangers”, and together with the Revolving Credit Arrangers and the Term A-1 Arrangers, each an “Arranger” and collectively, the “Arrangers”), in connection with arranging and syndicating the Term A-2 Loan Facility.

 

You acknowledge and agree that (i) the commitments of JPMorgan to act as a co-syndication agent and to provide the Revolving Facility and the Term A-1 Loan Facility may be assumed by an affiliated bank and (ii) JPMorgan, in its capacity as a Bookrunner and/or as an Arranger, may perform its responsibilities hereunder through one or more of its affiliates, including J.P. Morgan Securities LLC.

 

Wells Fargo Securities will have “left” and “highest” placement in any and all marketing materials and documentation used in connection with the Senior Credit Facilities and shall hold the leading role and responsibilities conventionally associated with “left” and “highest” placement, including maintaining sole physical books in respect of the Senior Credit Facilities.  MLPF&S and JPMorgan will each have the top “right” and second “highest” placement and shall appear (with MLPF&S appearing to the left of JPMorgan) at the same level as Wells Fargo Securities in any and all marketing materials and documentation used in connection with the Senior Credit Facilities.  The Revolving Credit Bookrunners shall use their commercially reasonable efforts to secure commitments for the Revolving Credit Facility, the Term A-1 Bookrunners shall use their commercially reasonable efforts to secure commitments for the Term A-1 Loan Facility and the Term A-2 Bookrunners shall use their commercially reasonable efforts to secure commitments for the Term A-2 Loan Facility, in each case, from a syndicate of banks, financial institutions and other entities (such banks, financial institutions and other entities committing to each such

 

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Senior Credit Facility, including the Lead Lenders, the “Lenders”) upon the terms and subject to the conditions set forth in this Commitment Letter.  The applicable Bookrunners shall have the right, in consultation with you, to award the titles to other co-agents or arrangers who are Lenders that provide (or whose affiliates provide) commitments in respect of the Revolving Credit Facility, the Term A-1 Loan Facility or the Term A-2 Loan Facility, as applicable; provided, that no other agent, co-agent, bookrunner or arranger other than the Bookrunners and the Arrangers shall have rights in respect of the management of the syndication of the Senior Credit Facilities.  No additional agents, co-agents, bookrunners or arrangers will be appointed and no other titles will be awarded without the prior written consent of the Bookrunners.

 

(c)                                  Wells Fargo Bank will act as the sole administrative agent (in such capacity, the “Administrative Agent”) for the Senior Credit Facilities.

 

(d)                                 Bank of America and JPMorgan will act as co-syndication agents with respect to the Revolving Credit Facility and the Term A-1 Loan Facility and Capital One, PNC Bank and Citizens will act as co-syndication agents for the Term A-2 Loan Facility (collectively, in such capacities, the “Syndication Agents”).

 

(e)                               Effective upon your agreement to and acceptance of this Commitment Letter and until the later of (x) the expiration or termination of this Commitment Letter and (y) the sixtieth (60th) day after the Closing Date, you will not (nor will JBG Smith Properties (the “REIT”) or any of your or its subsidiaries) solicit, initiate, entertain or permit, or enter into any discussions with any other bank, investment bank, financial institution, person or entity in respect of any structuring, arranging, underwriting, offering, placing, or syndicating of all or any portion of the Senior Credit Facilities or any other senior credit financing similar to, or as a replacement of, all or any portion of the Senior Credit Facilities (other than procurement of (x) property-level secured debt (including customary recourse and non-recourse guarantees thereof) by the REIT, the Borrower or any of their subsidiaries or (y) debt securities issued by the Borrower convertible into common or preferred equity of the REIT that could not reasonably be expected to compete with the syndication of, or could impair the syndication of, the Senior Credit Facilities) without our prior written consent.  For clarity, the requirements of this Section 1(e) and Section 2(b) below shall not apply to any structuring, arranging, underwriting, offering, placing, or syndicating of (x) any financing for Vornado Realty Trust, Vornado Realty L.P. or any of their subsidiaries (or assets thereof) that will not be the REIT or any subsidiary of the REIT (or assets thereof) on or after the Closing Date or (y) any common equity and convertible preferred equity issuances.

 

2.                                      Conditions.  The Commitments of the Lead Lenders and the undertakings of the Bookrunners and the Arrangers hereunder are subject to the satisfaction of each of the following conditions precedent in a manner reasonably acceptable to the Bank Parties:

 

(a)                                 your written acceptance, and compliance with the terms and conditions, of fee letters dated the date hereof from the applicable Bank Parties to you (the “Fee Letters”) pursuant to which you agree to pay, or cause to be paid, to the Bank Parties for their respective accounts and for the account of the Lenders certain fees and expenses and to fulfill certain other obligations in connection with the Senior Credit Facilities;

 

(b)                                 after the date hereof and until the Closing Date, neither the REIT nor the Borrower, nor any of their subsidiaries shall have announced, offered, arranged, syndicated or issued any debt securities (including convertible debt securities) or bank financing (other than (x) the Senior Credit Facilities, (y) procurement of property-level secured debt (including customary recourse and non-recourse guarantees thereof) by the REIT, the Borrower or any of their subsidiaries or (z) debt securities issued by the Borrower convertible into common or preferred equity of the REIT that could not reasonably be expected

 

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to compete with the syndication of, or could impair the syndication of, the Senior Credit Facilities) without our prior written consent;

 

(c)                                  since December 31, 2016, there not having occurred any material adverse change in the business, assets, liabilities, financial condition or results of operations of the REIT, the Borrower and their subsidiaries (taken as a whole), the Vornado Included Interests or the JBG Included Interests (as such terms are defined in the Master Transaction Agreement);

 

(d)                                 our having completed confirmatory legal and ERISA due diligence concerning the REIT, the Borrower and their subsidiaries, the Vornado Included Interests and the JBG Included Interests, in each case, in scope and with the results in all respects reasonably satisfactory to the Arrangers;

 

(e)                                  the accuracy and completeness in all material respects of all representations and warranties that the REIT, the Borrower and their affiliates make in writing to the Bank Parties and your compliance in all material respects with the terms of this Commitment Letter and the Fee Letters;

 

(f)                                   the satisfaction of all other conditions described herein, in the Term Sheet and in the Fee Letters;

 

(g)                                  the Arrangers shall have received (i) at least 15 days prior to the Closing Date, (x) audited consolidated financial statements of the Vornado Included Interests and (y) audited consolidated financial statements of the JBG Included Interests, in each case, for each of the two fiscal years immediately preceding the Combination Transactions (and ending at least ninety days prior to the Combination Transactions); (ii) as soon as internal financial statements are available, and in any event at least 15 days prior to the Closing Date, unaudited consolidated financial statements of the Vornado Included Interests and the JBG Included Interests (collectively, the “Included Interests”) for the fiscal quarter ended March 31, 2017; (iii) to the extent internal financial statements are available prior to the Closing Date, unaudited consolidated financial statements of the Included Interests for the fiscal quarter ended June 30, 2017; (iv) to the extent available to the REIT or any of its subsidiaries, customary additional audited and unaudited financial statements for all probable or pending acquisitions by the REIT or any of its subsidiaries; and (v) customary pro forma consolidated financial statements of the REIT for the 12-month period ending on the last day of the most recently completed four-fiscal quarter period for which financial statements of the Included Interests were delivered under the preceding clauses (i), (ii) or, to the extent available, (iii), prepared after giving effect to the Transactions and the other transactions contemplated hereby to be consummated on the Closing Date as if the Transactions and such other transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such income statements), in each case meeting the requirements of Regulation S-X of the Securities Act of 1933, as amended, which financial information, in the case of each of clauses (i) through (v) shall be reasonably acceptable to the Bank Parties; and

 

(h)                                 the Bookrunners (a) shall have received all information relating to the REIT and its subsidiaries and the Included Interests as is required or otherwise reasonably requested to prepare a customary confidential information memorandum (in a form and scope consistent with the information contained in confidential information memoranda used by the Bookrunners (or any of their affiliates) for syndicated credit facilities of a type similar to the Senior Credit Facilities, the “Required Information”) for the syndication of the Senior Credit Facilities and (b) shall have been afforded a period of 45 days from the later of (x) the date of this Commitment Letter and (y) the date of the receipt of such Required Information.

 

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3.                                      Syndication.

 

(a)                                 The Bookrunners intend and reserve the right to syndicate the Senior Credit Facilities and you acknowledge and agree that the Bookrunners intend to commence syndication efforts promptly following your acceptance of this Commitment Letter and the Fee Letters and to continue such syndication to the Closing Date (or such earlier date on which the Commitment Letter shall expire or be terminated).

 

(b)                                 You agree to actively assist the Bookrunners in achieving a syndication of the Senior Credit Facilities that is satisfactory to us and you.  To assist the Bookrunners in their syndication efforts, you agree that you will, and will cause your representatives and non-legal advisors to (i) promptly provide the Bank Parties and the other Lenders upon request all information available to you and reasonably deemed necessary by the Bookrunners to assist the Bookrunners and each Lender in their evaluation of the Transactions and to complete the syndication, (ii) make available to prospective Lenders senior management of the REIT and the Borrower on reasonable prior notice and at reasonable times and places, (iii) host, with the Bookrunners, one or more meetings with prospective Lenders at mutually agreed times and locations, (iv) assist, and cause the REIT and your and the REIT’s affiliates and advisors to assist, the Bookrunners in the preparation of one or more confidential information memoranda and other marketing materials to be used in connection with the syndication, and (v) use your commercially reasonable efforts to ensure that the syndication efforts of the Bookrunners benefit materially from your existing lending relationships.

 

(c)                                  The Bookrunners and/or one or more of their affiliates will exclusively manage, in consultation with you, all aspects of the syndication of the Senior Credit Facilities, including decisions as to the selection and number of potential Lenders to be approached, when they will be approached, whose commitments will be accepted, any titles offered to the Lenders and the final allocations of the commitments and any related fees among the Lenders, and the Bookrunners and the Arrangers will exclusively perform all functions and exercise all authority as is customarily performed and exercised in such capacities as Bookrunners or Arrangers, as applicable, which such commitments, allocations, titles and fees shall, unless otherwise agreed by the Borrower, follow the syndication strategy shared by Wells Fargo Securities with the Borrower prior to the date hereof (the “Syndication Strategy”).  The final selection of Lenders and final allocations of commitments in respect of the Senior Credit Facilities as of the Closing Date will be subject to your approval (such approval not to be unreasonably withheld, conditioned or delayed).  Notwithstanding the foregoing the Initial Lenders may assign portions of their commitments hereunder to one or more other persons (each, an “Assignee”) that will assume such portions of its commitments; provided that, solely to the extent such assignment was approved by you (such approval not to be unreasonably withheld, conditioned or delayed), upon the effectiveness of any such assignment to and assumption by an Assignee that becomes either a party hereto or a party to the applicable Financing Documentation (including pursuant to a joinder agreement or other legally binding agreement), each assigning Initial Lender will be released from the portions of its commitments so assigned and assumed (such assignments to be allocated, as among the Initial Lenders, in the manner determined by the Bookrunners in consultation with you and consistent with the Syndication Strategy) (each such approved Assignee, an “Approved Assignee”; it being understood that any institution identified in the Syndication Strategy is hereby deemed to be an Approved Assignee.  No Lender shall receive compensation from you or the REIT with respect to the Senior Credit Facilities outside the terms contained herein and in the Fee Letters in order to obtain its commitment to participate in the Senior Credit Facilities and no Lender shall receive compensation that is more than the compensation being paid to the Lead Lenders in respect of their Commitments.

 

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4.                                      Information.

 

(a)                                 You represent, warrant and covenant that (i) all written information and data (other than the Projections, as defined below, forward looking information and information of a general economic or industry nature) concerning the REIT, the Borrower, and their subsidiaries and the Transactions that has been or will be made available to the Bank Parties or the Lenders by you, or any of your representatives, subsidiaries or affiliates (or on your or their behalf) (the “Information”), when taken as a whole, is, and in the case of Information made available after the date hereof, will be complete and correct in all material respects as of the date made available and does not, and in the case of Information made available after the date hereof, will not contain any untrue statement of a material fact or when taken together with all other information previously furnished thereto, omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not materially misleading and (ii) all financial projections concerning the REIT, the Borrower, and their subsidiaries that have been or will be made available to the Bank Parties or the Lenders by you, or any of your representatives, subsidiaries or affiliates (or on your or their behalf) (the “Projections”) have been and will be prepared in good faith based upon assumptions believed by you to be reasonable at the time made available to the Bank Parties or the Lenders by the REIT, it being understood that the Projections are not to be viewed as facts or guaranties of future performance, that actual results may vary materially from the Projections and that you make no representation that the Projections will in fact be realized.  You agree that if, at any time prior to the Closing Date you become aware that any of the representations and warranties contained in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations and warranties were being made, at such time, then you will promptly supplement the Information and the Projections so that such representations are correct in all material respects under those circumstances.  We will be entitled to use and rely upon, without responsibility to independently verify, the Information and the Projections.

 

(b)                                 You acknowledge that (i) the Bank Parties on your behalf will make available the Information, Projections and other marketing materials and presentations, including confidential information memoranda (collectively, the “Informational Materials”), to the potential Lenders by posting the Informational Materials on Intralinks, SyndTrak Online or by other similar electronic means (collectively, the “Electronic Means”) and (ii) certain prospective Lenders (“Public Lenders”; all other Lenders, “Private Lenders”) may not wish to receive material non-public information (within the meaning of the United States federal securities laws, “MNPI”) with respect to the REIT, the Borrower or their affiliates or any of their respective securities, and who may be engaged in investment and other market-related activities with respect to such entities’ securities.  At the request of the Bookrunners, (A) you will assist, and cause the REIT and your and their affiliates and advisors to assist, the Bookrunners in the preparation of Informational Materials to be used in connection with the syndication of the Senior Credit Facilities to Public Lenders, which will not contain MNPI (the “Public Informational Materials”), (B) you will identify and conspicuously mark any Public Informational Materials “PUBLIC”, it being understood that all Informational Materials not identified by you as “PUBLIC” or not included in public filings made by you or any of your subsidiaries with the Securities and Exchange Commission shall be deemed to be “PRIVATE AND CONFIDENTIAL” unless you otherwise advise the Bookrunners. Notwithstanding the foregoing, you agree that the Bank Parties may distribute the following documents to all prospective Lenders (including Public Lenders) on your behalf, unless you advise the Bank Parties in writing (including by email) within a reasonable time prior to their intended distributions that such material should not be distributed to Public Lenders:  (w) administrative materials for prospective Lenders such as lender meeting invitations and funding and closing memoranda, (x) notifications of changes to Senior Credit Facilities’ terms, (y) financial information regarding the REIT, the Borrower and their subsidiaries (other than Projections) (so long as such information is distributed in a manner consistent with the immediately preceding sentence) and (z) other materials intended for prospective Lenders after the initial distribution of the Informational Materials, including drafts and final versions of the credit agreement and

 

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other loan documents for the Senior Credit Facilities (the “Financing Documentation”).  If you advise the Bookrunners in writing (including by e-mail) that any of the foregoing items (other than the Financing Documentation) should not be distributed to Public Lenders, then the Bank Parties will not distribute such materials to Public Lenders without further discussions with you.  Before distribution of any Informational Materials (a) to prospective Private Lenders, you shall provide the Bookrunners with a customary letter authorizing the dissemination of the Informational Materials and confirming as of the date of the Informational Materials the accuracy and completeness in all material respects of the Information contained therein, when taken as a whole, and (b) to prospective Public Lenders, you shall provide the Bookrunners with a customary letter authorizing the dissemination of the Public Informational Materials and confirming as of the date of the Public Informational Materials the accuracy in all material respects of the Information contained therein, when taken as a whole, and the absence of MNPI therefrom.  In the event that any Public Lender becomes a Lender under the Senior Credit Facilities, it shall designate one or more persons who are entitled to view materials containing MNPI to the same extent as Private Lenders.

 

5.                                      Indemnification.

 

You agree to indemnify and hold harmless the Bank Parties and each of their respective affiliates, directors, officers, employees, partners, representatives, advisors and agents and each of their respective heirs, successors and assigns (each, an “Indemnified Party”) from and against any and all actions, suits, losses, claims, damages, liabilities and expenses of any kind or nature (including reasonable and documented out-of-pocket legal expenses as described below), joint or several, to which such Indemnified Party may become subject or that may be incurred or asserted or awarded against such Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (i) any matters contemplated by this Commitment Letter, the Transactions or any related transaction (including, without limitation, the execution and delivery of this Commitment Letter, the Fee Letters, the Financing Documentation and the closing of the Transactions) or (ii) the use or the contemplated use of the proceeds of the Senior Credit Facilities, and will reimburse each Indemnified Party for all reasonable and documented out-of-pocket expenses (including reasonable and documented out-of-pocket attorneys’ fees, expenses and charges of one primary counsel to the Indemnified Parties, one specialty counsel to the Indemnified Parties in each relevant specialty, one local counsel to the Indemnified Parties in each relevant local jurisdiction and in the case of an actual or perceived conflict of interest, one additional counsel to the affected Indemnified Parties that are similarly situated in each relevant jurisdiction) on demand as they are incurred in connection with any of the foregoing; provided that no Indemnified Party shall have any right to indemnification for any of the foregoing to the extent resulting from (i) such Indemnified Party’s own gross negligence, bad faith or willful misconduct or material breach of its obligations hereunder or under the Financing Documentation, in each case, as determined by a final non-appealable judgment of a court of competent jurisdiction or (ii) any dispute solely among the Indemnified Parties (other than any claims against an Indemnified Party in its capacity as an agent or arranger or any similar role hereunder or under the Senior Credit Facilities) and not directly resulting from any act or omission of you, the REIT or any of your or their respective subsidiaries or affiliates.  In the case of an investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by you, your equity holders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated.  You also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort, or otherwise) to you or your affiliates or to your or their respective equity holders or creditors arising out of, related to or in connection with any aspect of the transactions contemplated hereby, except to the extent such liability is determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s own gross negligence,

 

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bad faith or willful misconduct or material breach of its obligations hereunder or under the Financing Documentation.  Each of the Bank Parties shall only have liability to you (as opposed to any other person), and each of the Bank Parties shall be liable solely in respect of its own Commitment for the Senior Credit Facilities, on a several, and not joint, basis with any other Lender.  No Indemnified Party shall be liable to the REIT, you, your affiliates or any other person for any special, indirect, consequential or punitive damages that may be alleged as a result of this Commitment Letter, the Fee Letters, the Financing Documentation or any other element of the Transactions.  No Indemnified Party shall be liable to the REIT, you, your affiliates or any other person for any damages arising from the use by others of Informational Materials or other materials obtained by Electronic Means, except to the extent resulting from the gross negligence, bad faith or willful misconduct of such Indemnified Party as determined in a final, non-appealable judgment by a court of competent jurisdiction.  You shall not, without the prior written consent of each Indemnified Party affected thereby (which consent will not be unreasonably withheld), settle any threatened or pending claim or action that would give rise to the right of any Indemnified Party to claim indemnification hereunder unless such settlement (a) includes a full and unconditional release of all liabilities arising out of such claim or action against such Indemnified Party, (b) does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnified Party and (c) requires no action on the part of the Indemnified Party other than its consent.  If (i) you are required to indemnify an Indemnified Party pursuant to the terms of this Commitment Letter and (ii) you have provided evidence reasonably satisfactory to such Indemnified Party that you have the financial wherewithal to reimburse such Indemnified Party for any amount paid by such Indemnified Party with respect to the applicable indemnity proceeding, such Indemnified Party shall not settle or compromise any such indemnity proceeding without your prior written consent (which consent shall not be unreasonably withheld or delayed).

 

6.                                      Expenses.  You shall reimburse each of the Bank Parties, from time to time on demand for all reasonable and documented out-of-pocket costs and expenses (including, without limitation, reasonable and documented out-of-pocket legal fees and expenses and due diligence expenses) of the Bank Parties and all reasonable printing, reproduction, document delivery, travel, CUSIP, Intralinks, SyndTrak Online and communication costs incurred in connection with the syndication and execution of the Senior Credit Facilities and the preparation, review, negotiation, execution, delivery and enforcement of this Commitment Letter, the Fee Letters and the Financing Documentation; provided, however, that the expenses of legal counsel shall be limited to one law firm identified by the Administrative Agent (and if necessary, one local counsel identified by the Administrative Agent in any relevant material jurisdiction).

 

7.                                      Confidentiality.

 

(a)                                 This Commitment Letter and the Fee Letters (collectively, the “Commitment Documents”) and the existence and contents hereof and thereof shall be confidential and may not be disclosed or publicly announced by you in whole or in part to any person without our prior written consent, except for (i) the disclosure hereof or thereof on a confidential basis to the REIT, the Borrower and any of their subsidiaries and any directors, officers, employees, accountants, attorneys and other professional advisors of the REIT, the Borrower and any of their subsidiaries who have agreed to maintain the confidentiality of the Commitment Documents for the purpose of evaluating, negotiating or entering into the Transactions or are otherwise bound by confidentiality obligations by virtue of employment conditions or standards of professional conduct or (ii) as otherwise required by law (in which case, you agree, to the extent permitted by law, to inform us promptly in advance thereof); provided that you may disclose, after your acceptance of the Commitment Documents, (A) the existence and contents of this Commitment Letter (including the Term Sheet) and the existence but not the contents of any Fee Letter (other than the aggregate amount of fees paid or payable thereunder as part of projections, pro forma information and a generic disclosure of aggregate sources and uses) in any required filings with the Securities and Exchange Commission and other applicable regulatory authorities and stock exchanges;

 

9

 

and (B) the Term Sheet to any ratings agency in connection with the Transactions.  The Bank Parties shall be permitted to use information related to the syndication and arrangement of the Senior Credit Facilities in connection with obtaining a CUSIP number, and, with your prior written approval, in marketing, press releases or other transactional announcements or updates provided to investor or trade publications, subject, in each case, to confidentiality obligations set forth herein; provided, however, that, subsequent to the Closing Date, your approval shall not be required for “tombstones” and other similar references to the Senior Credit Facilities in pitch materials prepared by any of the Bank Parties.

 

(b)                                 Each Bank Party agrees that it will use all information provided to it by or on behalf of you hereunder solely for the purpose of providing the services which are the subject of this Commitment Letter and shall treat confidentially all such information and shall not publish, disclose or otherwise divulge, such information; provided that nothing herein shall prevent any Bank Party from disclosing any such information (i) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case such Bank Party, to the extent permitted by law, rule and regulation and reasonably practicable, agrees to inform you promptly thereof prior to disclosure), (ii) upon the request or demand of any regulatory authority or self-regulatory body having jurisdiction or oversight over such Bank Party or any of their respective affiliates, their business or operations (in which case such Bank Party, to the extent permitted by law, rule and regulation and reasonably practicable, agrees to inform you promptly thereof prior to disclosure except with respect to any audit or examination conducted by both accountants or any governmental bank regulatory authority exercising examination or regulatory authority), (iii) to the extent that such information becomes publicly available other than by reason of improper disclosure or violation of this Commitment Letter by such Bank Party or any of its affiliates, (iv) to the extent that such information is received by such Bank Party from a third party that is not to their knowledge subject to confidentiality obligations to you or the REIT, or your or their respective affiliates, (v) to the extent that such information is independently developed by such Bank Party, (vi) to such Bank Party’s affiliates and their respective officers, directors, employees, legal counsel, independent auditors, accountants, professionals and other experts or agents or representatives solely in connection with the Transactions who are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential (and each of us shall be responsible for such persons’ compliance with this paragraph), (vii) to any of its respective affiliates solely in connection with the Transactions (provided that such affiliate is informed of the confidential nature of such information and has been advised of its obligation to keep information of this type confidential, and each of us shall be responsible for our respective affiliates’ compliance with this paragraph), (viii) to potential Lenders, participants or assignees or any potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any of their affiliates or any of their respective obligations, in each case who agree to be bound by the terms of this paragraph (or substantially similar language) which agreement may be in writing or by “click through” agreement or another affirmative action on the part of the recipient to access such information and acknowledge its confidentiality obligation in respect thereof pursuant to customary syndication practice, (ix) for purposes of establishing a “due diligence” defense or (x) to enforce their respective rights hereunder or under the Fee Letters.  The Bank Parties’ obligations under this paragraph shall automatically terminate (and, if applicable, be superseded by the confidentiality provisions in the Financing Documentation) upon the earlier of (x) two years following the date of the Commitment Letter and (y) execution and delivery of the Financing Documentation and initial funding thereunder.

 

(c)                                  The Bank Parties hereby notify you that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot Act”), each of them is required to obtain, verify and record information that identifies the Borrower, the REIT and their subsidiaries which information includes your and/or their name and address, tax identification number

 

10

 

and other information that will allow the Bank Parties and the other Lenders to identify you and such other parties in accordance with the Patriot Act.

 

8.             Other Services.

 

(a)           Nothing contained herein shall limit or preclude the Bank Parties or any of their respective affiliates from carrying on any business with, providing banking or other financial services to, or from participating in any capacity, including as an equity investor, in any party whatsoever, including, without limitation, any competitor, supplier or customer of you or any of your affiliates, or any other party that may have interests different than or adverse to such parties.

 

(b)           You acknowledge that the Arrangers and their affiliates (the term “Arrangers” as used in this paragraph being understood to include such affiliates) (i) may be providing debt financing, equity capital or other services (including financial advisory services) to other entities or persons with whom you or your affiliates may have conflicting interests regarding the Transactions and otherwise, (ii) may act, without violation of its contractual obligations to you so long as it does not violate any express contractual obligations set forth herein, as it deems appropriate with respect to such other entities or persons, and (iii) have no obligation in connection with the Transactions to use, or to furnish to you or your affiliates or subsidiaries, confidential information obtained from other entities or persons.

 

(c)           In connection with all aspects of the Transactions, you acknowledge and agree that: (i) the Senior Credit Facilities and any related arranging or other services described in this Commitment Letter are an arm’s-length commercial transaction between you and your affiliates, on the one hand, and the Bank Parties, on the other hand, and you are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the Transactions, (ii) in connection with the process leading to the Transactions, each of the Bank Parties is and has been acting solely as a principal and not as a financial advisor, agent or fiduciary, for you or any of your or the REIT’s affiliates, equity holders, creditors, directors, officers or employees or any other party, (iii) none of the Bank Parties or any affiliate thereof has assumed or will assume an advisory, agency or fiduciary responsibility in your or your affiliates’ favor with respect to any of the Transactions or the process leading thereto (irrespective of whether any Bank Party or any of its affiliates has advised or is currently advising you or your affiliates on other matters) and none of the Bank Parties has any obligation to you or your affiliates with respect to the Transactions except those obligations expressly set forth in this Commitment Letter, (iv) the Bank Parties and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from yours and those of your affiliates and none of the Bank Parties shall have any obligation to disclose any of such interests, and (v) none of the Bank Parties has provided any legal, accounting, regulatory or tax advice with respect to any of the Transactions and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate.  You hereby waive and release, to the fullest extent permitted by law, any claims that you may have against any of the Bank Parties and their respective affiliates with respect to any breach or alleged breach of agency or fiduciary duty.

 

9.             Acceptance/Expiration of Commitment Letter.

 

(a)           This Commitment Letter and the respective Commitments and agreements of the Lead Lenders and the respective undertakings of the Bookrunners and the Arrangers set forth herein shall automatically terminate at 5:00 p.m. (Eastern Time, Standard or Daylight, as applicable) on May 3, 2017 (the “Acceptance Deadline”), without further action or notice unless signed counterparts of this Commitment Letter and the Fee Letters shall have been delivered to Wells Fargo Securities (or, in the case of the applicable Fee Letters, to the applicable Arrangers party thereto) by such time.

 

11

 

(b)           In the event this Commitment Letter is accepted by you as provided in the last paragraph hereof, the respective Commitments and agreements of the Lead Lenders and the respective undertakings of the Bookrunners and the Arrangers set forth herein shall automatically terminate without further action or notice upon the earliest to occur of (i) at 5:00 p.m. (Eastern Time, Daylight or Standard, as applicable) on August 30, 2017 if the Closing Date shall not have occurred by such time and (ii) notice from us or you of a material breach by you or us under this Commitment Letter or any Fee Letter.

 

10.          Survival.  The sections of this Commitment Letter relating to Indemnification, Expenses, Confidentiality, Other Services, Survival and Governing Law shall survive any termination or expiration of this Commitment Letter, the respective Commitments of the Lead Lenders and the respective undertakings of the Bookrunners and the Arrangers set forth herein (regardless of whether definitive Financing Documentation is executed and delivered); provided, that your obligations under such sections (except the section relating to Expenses to the extent such section relates to expenses incurred on or prior to the Closing Date) of this Commitment Letter shall be superseded by any corresponding provisions of such definitive Financing Documentation addressing the matters which are the subject of such sections of this Commitment Letter.  The Sections relating to Syndication and Information shall survive until completion of the syndication of the Senior Credit Facilities, which shall be deemed to have been completed upon the closing of the Senior Credit Facilities unless otherwise agreed in writing by the parties hereto.

 

11.          Governing Law.  THIS COMMITMENT LETTER AND THE FEE LETTERS, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED THERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REFERENCE TO ANY OTHER CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.  THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM OR ACTION ARISING OUT OF THIS COMMITMENT LETTER OR ANY FEE LETTER. The parties hereto hereby agree that any suit or proceeding arising in respect of this Commitment Letter or any Fee Letter or any of the matters contemplated hereby or thereby will be tried exclusively in the U.S. District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, in any state court located in the Borough of Manhattan, New York, New York, and the parties hereto hereby agree to submit to the exclusive jurisdiction of, and venue in, such court.  The parties hereto hereby agree that service of any process, summons, notice or document by registered mail addressed to you or each of the Bank Parties shall be effective service of process against such party for any action or proceeding relating to any such dispute.  The parties hereto irrevocably and unconditionally waive any objection to venue of any such action or proceeding brought in any such court and any claim that any such action or proceeding has been brought in an inconvenient forum.  A final judgment in any such action or proceeding may be enforced in any other courts with jurisdiction over you or each of the Bank Parties.

 

12.          Miscellaneous.  This Commitment Letter and the Fee Letters embody the entire agreement among the Bank Parties and you and your affiliates with respect to the specific matters set forth above and supersede all prior agreements and understandings relating to the subject matter hereof.  Those matters that are not covered or made clear herein, in the Term Sheet or the Fee Letters are subject to mutual agreement of the parties.  No person has been authorized by any of the Bank Parties to make any oral or written statements inconsistent with this Commitment Letter or the Fee Letters.  This Commitment Letter and the Fee Letters shall not be assignable by you or us without the prior written consent of each of the other parties hereto, and any purported assignment without such consent shall be void; provided, that MLPF&S may, without notice to you or any other party, assign its rights and obligations under this Commitment Letter and any Fee Letter to any other registered broker-dealer wholly-owned by Bank of America

 

12

 

Corporation to which all or substantially all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related businesses may be transferred following the date of this Commitment Letter.  This Commitment Letter and the Fee Letters are not intended to benefit or create any rights in favor of any person other than the parties hereto, the Lenders and, with respect to indemnification, each Indemnified Party.  This Commitment Letter and the Fee Letters may be executed in separate counterparts and delivery of an executed signature page of this Commitment Letter and the Fee Letters by facsimile or electronic mail shall be effective as delivery of manually executed counterpart hereof; provided that, upon the request of any party hereto, such facsimile transmission or electronic mail transmission shall be promptly followed by the original thereof.  This Commitment Letter and the Fee Letters may only be amended, modified or superseded by an agreement in writing signed by each of you and the Bank Parties that specifically provides such with reference to this Commitment Letter or the Fee Letters, as applicable.

 

[Signature Pages Follow]

 

13

 

If you are in agreement with the foregoing, please indicate acceptance of the terms hereof by signing the enclosed counterpart of this Commitment Letter and returning it to Wells Fargo Securities, together with executed counterparts of the Fee Letters (or, in the case of the applicable Fee Letters, to the applicable Arrangers party thereto), by no later than the Acceptance Deadline.

 

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew Ricketts
    
	
 
    	
 
    	
Name: Matthew Ricketts
    
	
 
    	
 
    	
Title: Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO SECURITIES, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amit Khimji
    
	
 
    	
 
    	
Name: Amit Khimji
    
	
 
    	
 
    	
Title: Managing   Director
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Wratten
    
	
 
    	
 
    	
Name: Robert J. Wratten
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MERRILL LYNCH, PIERCE,   FENNER & SMITH INCORPORATED
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ananda Reynolds
    
	
 
    	
 
    	
Name: Ananda Reynolds
    
	
 
    	
 
    	
Title: Director
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
 
    	
CAPITAL ONE, NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carl Evenstad
    
	
 
    	
 
    	
Name: Carl Evenstad
    
	
 
    	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Barbara Heubner
    
	
 
    	
 
    	
Name: Barbara Heubner
    
	
 
    	
 
    	
Title: Vice President
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sangeeta Mahadevan
    
	
 
    	
 
    	
Name: Sangeeta   Mahadevan
    
	
 
    	
 
    	
Title: Executive   Director
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
 
    	
PNC BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kinnery Clinebell
    
	
 
    	
 
    	
Name: Kinnery Clinebell
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PNC CAPITAL MARKETS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Miller
    
	
 
    	
 
    	
Name: Michael Miller
    
	
 
    	
 
    	
Title: Managing   Director
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
 
    	
CITIZENS BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Donald W. Woods
    
	
 
    	
 
    	
Name: Donald W. Woods
    
	
 
    	
 
    	
Title: Senior Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIZENS BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Samuel A. Bluso
    
	
 
    	
 
    	
Name: Samuel A. Bluso
    
	
 
    	
 
    	
Title: Managing   Director
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

	
Agreed to and accepted   as of the date first above written:
    	
 
    
	
 
    	
 
    
	
JBG SMITH PROPERTIES LP
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Alan J. Rice
    	
 
    
	
 
    	
Name: Alan J. Rice
    	
 
    
	
 
    	
Title: Senior Vice   President and Secretary
    	
 
    

 

SIGNATURE PAGE TO JBG SMITH PROPERTIES L.P. COMMITMENT LETTER

 

 

Annex A

 

 

SUMMARY OF PRINCIPAL TERMS AND CONDITIONS

 

JBG SMITH PROPERTIES LP

 

Senior Unsecured Credit Facilities

 

MAY 3, 2017

 

This confidential Summary of Terms and Conditions is for discussion purposes only and does not represent a commitment to lend on the part of Wells Fargo Bank, National Association or any of its affiliates. It is not meant to be, nor should it be construed as, an attempt to define all of the terms and conditions regarding the proposed Facilities. It is intended only to outline the primary business points around which such Facilities may be presented for approval. The existence of this Summary of Terms and Conditions and its contents are confidential and shall not be shared by the recipients hereof with any other person or entity without the prior consent of Wells Fargo Securities LLC.

 

	
Borrower:
    	
 
    	
JBG Smith Properties LP, a Delaware limited   partnership (the “Borrower”), the operating partnership of JBG Smith Properties,   a Maryland real estate investment trust (the “REIT”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
None, except as set forth in the section herein entitled   “Recourse”.
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Joint Bookrunners:
    	
 
    	
Wells Fargo Securities LLC (as lead left), Merrill Lynch,   Pierce, Fenner & Smith Incorporated (“MLPF&S”) and   JPMorgan Chase Bank, N.A. (“JPMorgan”) as Joint Bookrunners for the   Revolving Credit Facility and for the Tranche A-1 Term Loan Facility; and   Wells Fargo Securities LLC, Capital One, National Association (“Capital   One”), PNC Capital Markets LLC (“PNC Capital”) and Citizens Bank,   N.A. (“Citizens”) as Joint Bookrunners for the Tranche A-2 Term Loan   Facility (collectively, the “Bookrunners”).
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers:
    	
 
    	
Wells Fargo Securities LLC (as lead left),   MLPF&S, JPMorgan, Capital One, PNC Capital and Citizens as Joint Lead   Arrangers for the Revolving Credit Facility (the “Revolving Facility   Arrangers”); Wells Fargo Securities LLC (as lead left), MLPF&S,   JPMorgan, Capital One, PNC Capital and Citizens as Joint Lead Arrangers for   the Tranche A-1 Term Loan Facility (the “Tranche A-1 Arrangers”); and   Wells Fargo Securities LLC (as lead left), Capital One, PNC Capital and   Citizens as Joint Lead Arrangers for the Tranche A-2 Term Loan Facility (the   “Tranche A-2 Arrangers” and together with the Revolving Facility   Arrangers and the Tranche A-1 Arrangers, the “Arrangers”).
    

 

 

	
Administrative Agent:
    	
 
    	
Wells Fargo Bank, National Association (“Administrative   Agent” or “Wells Fargo”) for the Facilities.
    
	
 
    	
 
    	
 
    
	
Syndication Agents:
    	
 
    	
Bank of America, N.A. (“Bank of America”) and   JPMorgan for the Revolving Credit Facility and the Tranche A-1 Term Loan   Facility; and Capital One, PNC Bank, National Association (“PNC Bank”)   and Citizens for the Tranche A-2 Term Loan Facility.
    
	
 
    	
 
    	
 
    
	
Documentation Agents:
    	
 
    	
[TBD].
    
	
 
    	
 
    	
 
    
	
Purpose:
    	
 
    	
Proceeds of the Facilities shall be used (x) to   pay fees and expenses in connection with the combination transactions (the “Combination   Transactions”) described in and made pursuant to that certain Master   Transaction Agreement, dated October 31, 2016, by and among Vornado   Realty Trust, Vornado Realty L.P., JBG Properties, Inc., and   JBG/Operating Partners, L.P. and (y) for general corporate purposes and   general working capital needs of the Borrower.
    
	
 
    	
 
    	
 
    
	
Initial Lenders:
    	
 
    	
Wells Fargo, Bank of America, JPMorgan, Capital One,   PNC Bank and Citizens.
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
A syndicate of lenders arranged by the Bookrunners,   including the Initial Lenders, acceptable to the Borrower.
    
	
 
    	
 
    	
 
    
	
Facility Types and Commitment Amounts:
    	
 
    	
Up to $1,400,000,000 in senior unsecured credit   facilities (the “Facilities”) comprised of (x) a $1,000,000,000   unsecured, revolving line of credit (the “Revolving Credit Facility”;   and each of the Lenders under the Revolving Credit Facility, the “Revolving   Credit Lenders”), (y) a $200,000,000 five and a half-year senior   unsecured term loan facility (the “Tranche A-1 Term Loan Facility”)   and (z) a $200,000,000 seven-year senior unsecured term loan facility   (the “Tranche A-2 Term Loan Facility” and together with the Tranche   A-1 Term Loan Facility, collectively, the “Term Loan Facilities”; and   each of the Lenders under the Term Loan Facilities, the “Term Loan Lenders”).   The amount of the Revolving Credit Facility at any given time during the term   shall be herein referred to as the “Revolving Credit Facility Amount”.   Subject to the terms of the Facilities documents, the Borrower may borrow,   repay and reborrow amounts under the Revolving Credit Facility only. No   portion of the Term Loan Facilities may be reborrowed upon repayment.
    
	
 
    	
 
    	
 
    
	
Delayed Draw Feature:
    	
 
    	
Advances under each of the Term Loan Facilities   (prior to any increases in the Term Loan Facilities per the accordion feature   described in the paragraph below) will be available in a single borrowing or   multiple borrowings. Advances are to be drawn in accordance with the   following:

 

·                 Tranche A-1 Term Loan Facility Delayed   Draw Period: within 24
    

 

2

 

	
 
    	
 
    	
months of the   Facilities Effective Date subject to the following:

 

·                 25%   drawn on the Facilities Effective Date;

 

·                 Additional   25% drawn within six months of the Facilities Effective Date;

 

·                 Remaining   50% drawn within 24 months of the Facilities Effective Date;

 

·                 Commitment   amounts not drawn within the time periods set forth above shall be   terminated.

 

·                   Tranche A-2 Term   Loan Facility to be drawn within 12 months of the Facilities Effective Date.   Commitment amounts not drawn within 12 months of the Facilities Effective   Date shall be terminated.
    
	
 
    	
 
    	
 
    
	
Accordion:
    	
 
    	
Subject to obtaining additional commitments from   existing Lenders or new lenders approved by the Company, Administrative Agent   and with respect to increases of the Revolving Credit Facility Amount, the   Fronting Banks and the Initial Lenders making Swingline Loans (such approval   not to be unreasonably withheld or delayed), and customary conditions to   effectiveness, including no Default or Event of Default existing as of such   increase, the Borrower shall have the ability to increase the Revolving   Credit Facility Amount, request additional term loans under any existing Term   Loan Facility and/or add one or more new revolving or term loan tranches;   provided that the aggregate amount of the Facilities shall not exceed   $2,000,000,000. Each such increase in the amount of the Facilities shall be   in an increment of not less than $25,000,000 and in the aggregate shall not   exceed $600,000,000. Any increased commitments and incremental facilities   shall be pari passu in right of payment with   the Facilities.
    
	
 
    	
 
    	
 
    
	
Term:
    	
 
    	
Revolving Credit Facility to terminate four   (4) years from the Facilities Effective Date (as the same may be   extended as contemplated in the paragraph below, the “Revolving Credit   Facility Maturity Date”). Tranche A-1 Term Loan Facility to terminate   five and one-half (5.5) years from the Facilities Effective Date. Tranche A-2   Term Loan Facility to terminate seven (7) years from the Facilities   Effective Date.

   The Borrower may extend the Revolving Credit Facility Maturity Date on two   occasions for a period of six months per extension; provided that no   Event of Default exists, all representations and warranties of the Borrower   contained in the Facilities documents shall be true and correct in all   material respects (and in all respects to the extent qualified by 
    

 

3

 

	
 
    	
 
    	
material adverse effect or other materiality   qualifier) on and as of the date of the applicable Extension Notice (except   in those cases where such representation or warranty expressly relates to an   earlier date and except for changes in factual circumstances not prohibited   under the Facilities documents), and the Borrower pays an extension fee equal   to 0.0625% of the Revolving Credit Facility Amount for the first extension and   0.075% of the Revolving Credit Facility Amount for the second extension.
    
	
 
    	
 
    	
 
    
	
Amortization:
    	
 
    	
Interest only until maturity.
    
	
 
    	
 
    	
 
    
	
Required Lenders:
    	
 
    	
Lenders having at least 51% of the aggregate amount   of the sum of the Revolving Credit Facility commitments and the outstanding   principal balance of the Term Loan Facilities, or, if the Revolving Credit   Facility commitments shall have been terminated or reduced to zero, Lenders   holding at least 51% of the aggregate unpaid principal amount of the   outstanding principal balance under the Facilities; provided that in   determining such percentage at any given time, all then existing Defaulting   Lenders will be disregarded and excluded, and the pro rata shares of the   Lenders shall be redetermined, for voting purposes only, to exclude the pro   rata shares of such Defaulting Lenders.
    
	
 
    	
 
    	
 
    
	
Certain Defined Terms:
    	
 
    	
As set forth on Schedule 1 attached hereto and,   except as specifically set forth on such Schedule 1, as set forth more fully   in that certain Amended and Restated Credit Agreement dated November 7,   2016, among Vornado Realty L.P., as the borrower, JPMorgan Chase Bank, N.A.,   as the Administrative Agent, and the lenders party thereto, (as amended or   otherwise modified up to and including the date of this Summary of Terms and   Conditions, the “Existing Credit Agreement”).(1)
    
	
 
    	
 
    	
 
    
	
Interest Rate/Facility Fee:
    	
 
    	
At the Borrower’s option (other than swingline   advances, which shall bear interest at the rate specified in clause (ii)),   (i) LIBOR Interest Rate plus the Applicable Margin, which for LIBOR   Loans is the “LIBOR Spread,” below, or (ii) Base Rate plus the   Applicable Margin, which for Base Rate Loans is the “Base Rate Spread,”   below. From and after the Investment Grade Election, a competitive bid option   (“Money Market Option”) is also available.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Applicable Margin and corresponding Facility Fee   with respect to the Facilities shall be determined based on the ratio of   Total Outstanding Indebtedness to Capitalization Value pursuant to the tables   below titled “Pricing Grid — Leverage”.

 

In the event that the Borrower obtains a credit   rating of BBB-/Baa3 or 
    

 

(1)   Except as set forth in, or contemplated by, this Summary of Terms and Conditions and for operational changes thereto to reflect Wells Fargo’s role as Administrative Agent and other mutually agreed-upon updates to reflect current market practice for similarly-situated borrowers, it is expected that the terms of the Facilities documents shall be substantially consistent with the Existing Credit Agreement.

 

4

 

	
 
    	
 
    	
better from Standard & Poor’s Ratings   Services (“S&P”) or Moody’s Investors Services, Inc. (“Moody’s”)   applicable to the senior, unsecured, non-credit enhanced long-term debt of   the Borrower (an “Investment Grade Rating”) during the term of the   Revolving Credit Facility and/or the Term Loan Facilities, at the one-time   irrevocable election of the Borrower (the “Investment Grade Election”)   upon written notice to the Administrative Agent and the Lenders, the   Applicable Margin and corresponding Facility Fee shall be based on the   Borrower’s long-term unsecured senior debt ratings from Moody’s, S&P,   Fitch or another nationally recognized rating agency as follows: The   Applicable Margin and corresponding Facility Fee shall be determined based on   the level corresponding to the lower of the highest two ratings; provided   that if the higher two ratings are from S&P and Moody’s, then the   Applicable Margin and corresponding Facility Fee shall be determined based on   the higher of such two ratings. During any period for which the Borrower has   received a rating from only one rating agency, the Applicable Margin and   corresponding Facility Fee shall be determined based on such rating so long   as such rating is from either S&P or Moody’s. During any period that the   Borrower has (a) no rating from any rating agency or (b) received a   rating from only one rating agency that is neither S&P or Moody’s, the   Applicable Margin and corresponding Facility Fee for purposes of this clause   (b) shall be determined based on Level 5.
    

 

Pricing Grid — Leverage

 

	
Ratio of Total
   Outstanding
   Indebtedness
   to
   Capitalization
   Value
    	
 
    	
LIBOR
   Spread
   for
   Tranche
   A-1
   Term
   Loan
   Facility
    	
 
    	
Base
   Rate
   Spread
   for
   Tranche
   A-1
   Term
   Loan
   Facility
    	
 
    	
LIBOR
   Spread
   for
   Tranche
   A-2
   Term
   Loan
   Facility
    	
 
    	
Base
   Rate
   Spread
   for

Tranche
   A-2
   Term
   Loan
   Facility
    	
 
    	
LIBOR
   Spread for
   Revolving

Credit
   Facility
    	
 
    	
Base Rate
   Spread for
   Revolving
   Credit
   Facility
    	
 
    	
Facility
   Fee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
<30%
    	
 
    	
1.200
    	
%
    	
0.200
    	
%
    	
1.550
    	
%
    	
0.550
    	
%
    	
1.100
    	
%
    	
0.100
    	
%
    	
0.150
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
> 30 and <35%
    	
 
    	
1.200
    	
%
    	
0.200
    	
%
    	
1.650
    	
%
    	
0.650
    	
%
    	
1.100
    	
%
    	
0.100
    	
%
    	
0.150
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
>35% and <40%
    	
 
    	
1.300
    	
%
    	
0.300
    	
%
    	
1.700
    	
%
    	
0.700
    	
%
    	
1.150
    	
%
    	
0.150
    	
%
    	
0.200
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
>40% and <45%
    	
 
    	
1.350
    	
%
    	
0.350
    	
%
    	
1.750
    	
%
    	
0.750
    	
%
    	
1.200
    	
%
    	
0.200
    	
%
    	
0.200
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
>45% and <50%
    	
 
    	
1.400
    	
%
    	
0.400
    	
%
    	
1.900
    	
%
    	
0.900
    	
%
    	
1.250
    	
%
    	
0.250
    	
%
    	
0.200
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
>50% and <55%
    	
 
    	
1.500
    	
%
    	
0.500
    	
%
    	
2.050
    	
%
    	
1.050
    	
%
    	
1.300
    	
%
    	
0.300
    	
%
    	
0.300
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
>55%
    	
 
    	
1.700
    	
%
    	
0.700
    	
%
    	
2.350
    	
%
    	
1.350
    	
%
    	
1.500
    	
%
    	
0.500
    	
%
    	
0.300
    	
%
    

 

5

 

Pricing Grid - Ratings

 

	
Level
    	
 
    	
S&P/Moody’
   s/Fitch
   Rating
    	
 
    	
LIBOR
   Spread
   for
   Tranche
   A-1
   Term
   Loan
   Facility
    	
 
    	
Base
   Rate
   Spread
   for
   Tranche
   A-1
   Term
   Loan
   Facility
    	
 
    	
LIBOR
   Spread
   for
   Tranche
   A-2
   Term
   Loan
   Facility
    	
 
    	
Base 
   Rate
   Spread
   for
   Tranche
   A-2
   Term
   Loan
   Facility
    	
 
    	
LIBOR
   Spread for
   Revolving
   Credit
   Facility
    	
 
    	
Base Rate
   Spread for
   Revolving
   Credit
   Facility
    	
 
    	
Facility
   Fee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
A-/A3 or better
    	
 
    	
0.900
    	
%
    	
0.000
    	
%
    	
1.500
    	
%
    	
0.500
    	
%
    	
0.825
    	
%
    	
0.000
    	
%
    	
0.125
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2
    	
 
    	
BBB+/Baa1
    	
 
    	
0.950
    	
%
    	
0.000
    	
%
    	
1.550
    	
%
    	
0.550
    	
%
    	
0.875
    	
%
    	
0.000
    	
%
    	
0.150
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3
    	
 
    	
BBB/Baa2
    	
 
    	
1.100
    	
%
    	
0.100
    	
%
    	
1.650
    	
%
    	
0.650
    	
%
    	
1.000
    	
%
    	
0.000
    	
%
    	
0.200
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4
    	
 
    	
BBB-/Baa3
    	
 
    	
1.350
    	
%
    	
0.350
    	
%
    	
1.900
    	
%
    	
0.900
    	
%
    	
1.200
    	
%
    	
0.200
    	
%
    	
0.250
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5
    	
 
    	
<BBB-/Baa3/ Unrated
    	
 
    	
1.750
    	
%
    	
0.750
    	
%
    	
2.450
    	
%
    	
1.450
    	
%
    	
1.550
    	
%
    	
0.550
    	
%
    	
0.300
    	
%
    

 

	
 
    	
 
    	
Base Rate to be defined as the highest of   (x) Administrative Agent’s Prime Rate on the applicable date,   (y) the Federal Funds Rate plus 0.50% on the applicable date, and   (z) the LIBOR Interest Rate for one-month plus 1.00%; provided that if   as so determined the Base Rate shall be less than zero, such rate shall be   deemed to be zero for the purposes of the Facilities documents.
    
	
 
    	
 
    	
 
    
	
Default Interest Rates:
    	
 
    	
For Base Rate Loans, shall be the Base Rate plus the   Applicable Margin plus 2%, and for LIBOR Loans, shall be the LIBOR Interest   Rate plus the Applicable Margin plus 2% until the end of the relevant   Interest Period, and thereafter the Base Rate plus the Applicable Margin plus   2%.
    
	
 
    	
 
    	
 
    
	
LIBOR Options:
    	
 
    	
One, three, or six months, or a period of one week,   in each case not to extend beyond the applicable maturity date for such loan.
    
	
 
    	
 
    	
 
    
	
Interest Payment
   Period:
    	
 
    	
Interest will be payable monthly in arrears on Base   Rate Loans. Interest on LIBOR Loans will be payable at the end of the   applicable interest period, but in no event less frequently than every three   months. Interest on Money Market Loans will be payable in arrears at the end   of the applicable interest period, but in no event less frequently than   quarterly. The Facilities will include customary market provisions concerning   computation of LIBOR (including that if the LIBOR rate is less than zero,   such rate shall be deemed to be zero), adjustments for reserves and capital   adequacy, liquidity and yield protection and indemnification (as more fully   described under the heading “Increased Costs”). If LIBOR is for any reason   unavailable (as determined by the Administrative Agent), then following the   expiration of any then existing LIBOR interest periods, amounts outstanding   under the Facilities will bear interest at a per annum rate equal to the Base   Rate during the period of such unavailability. Only eight (8) (with   respect to the Revolving Credit 
    

 

6

 

	
 
    	
 
    	
Facility) and five (5) (with respect to the   Term Loan Facilities) discrete segments of a Lender’s pro rata portion of   LIBOR Loans for a designated Interest Period may be outstanding at any one   time.
    
	
 
    	
 
    	
 
    
	
Fees:
    	
 
    	
Certain fees in connection with the Facilities will   be as specified on Exhibit A attached hereto.
    
	
 
    	
 
    	
 
    
	
Money Market Loans:
    	
 
    	
For so long as the Borrower’s senior unsecured   credit rating is investment grade from S&P or Moody’s, the Borrower may   request Money Market Loans not to exceed 50% of the aggregate Revolving   Credit Facility commitments, in the minimum amount of $5,000,000 and larger   multiples of $1,000,000. The Revolving Credit Lenders may, but have no   obligation to, make such offers and the Borrower may, but has no obligation   to, accept such offers. Any Lender making a Money Market Loan is hereinafter   referred to as a “Designated Lender.”
    
	
 
    	
 
    	
 
    
	
Swingline Loans:
    	
 
    	
At the Borrower’s option, the Initial Lenders will   jointly make Swingline Loans, upon same day notice by the Borrower, in   amounts of $3,000,000 or greater and in multiples of $1,000,000, not to   exceed $75,000,000; provided, that the aggregate principal amount of   Swingline Loans owing to any Initial Lender shall not exceed the lesser of   (a) $12,500,000 and (b) the commitment of such Initial Lender under   the Revolving Credit Facility, minus the aggregate outstanding principal   amount of extensions of credit (including Swingline Loans and Letters of   Credit) made by such Initial Lender under the Revolving Credit Facility. The   commitments for Swingline Loans will be shared equally by the Initial   Lenders. Swingline Loans are subject to the availability under the Revolving   Credit Facility.
    
	
 
    	
 
    	
 
    
	
Letters of Credit:
    	
 
    	
Letters of Credit shall be issued by one (or more,   if necessary) of the Fronting Banks in an amount of at least $100,000 in each   case, or such lesser amount as may be agreed to by the applicable Fronting   Bank; provided, that, unless such Fronting Bank shall otherwise   consent thereto, no Fronting Bank shall be obligated to issue letters of   credit in an aggregate amount greater than $25,000,000 at any time. Without   the consent of the Administrative Agent, no Letter of Credit shall have an   expiration date later than 12 months following the issuance date (without   regard to any automatic renewal provisions thereof) and in no event later   than one year beyond the Revolving Credit Facility Maturity Date.   Notwithstanding the above restriction, in the event any Letters of Credit are   issued and outstanding on the date that is fourteen (14) days prior to the   Revolving Credit Facility Maturity Date, the Borrower shall deliver by wire   transfer of immediately available funds a cash deposit in the amount of such   Letters of Credit. Such funds shall be held by Administrative Agent and   applied to repay the amount of each drawing under such Letters of Credit on   or after the Revolving Credit Facility Maturity Date. Such funds, with any   interest earned thereon, will be returned to the Borrower (and may be   returned from time to time with
    

 

7

 

	
 
    	
 
    	
respect to any applicable Letter of Credit) on the   earlier of (a) the date that the applicable Letter of Credit or Letters   of Credit expire in accordance with their terms; and (b) the date that   the applicable Letter of Credit or Letters of Credit are cancelled. The   Letter of Credit usage shall be limited to the lesser of (i) $150,000,000   minus the face amount of all other Letters of Credit then issued and   outstanding, and (ii) the available Revolving Credit Commitments.
    
	
 
    	
 
    	
 
    
	
Letter of Credit
   Fronting Banks:
    	
 
    	
The Fronting Banks will be the Initial Lenders and   any other institution designated by the Borrower from among those   institutions identified by the Administrative Agent as permissible Fronting   Banks, including Lenders affiliated with any passive Arrangers appointed for   the Facilities, and willing to act as a Fronting Bank. The commitments for Letters   of Credit will be shared equally by the Fronting Banks, and the Borrower and   the Fronting Banks shall use reasonable efforts, to the extent practical, to   cause any Letters of Credit to be issued by the Fronting Banks on a   proportionate basis in accordance with their respective Letter of Credit   commitments although, for the avoidance of doubt, no single Letter of Credit   will be required to be issued by more than one Fronting Bank unless the   amount of such Letter of Credit will exceed the available Letter of Credit   commitment of the applicable Fronting Bank.
    
	
 
    	
 
    	
 
    
	
Letter of Credit Fees:
    	
 
    	
A rate per annum equal to the Applicable Margin for   LIBOR Loans minus 0.125%, and 2% during the period of continuance of an Event   of Default, times the face amount of the applicable Letter of Credit payable   to the Administrative Agent for the benefit of the Lenders, based on the   available amount of each Letter of Credit, payable quarterly in arrears.
    
	
 
    	
 
    	
 
    
	
Fronting Bank Fee:
    	
 
    	
An amount equal to 0.125% per annum of the issued   and undrawn face amount of each Letter of Credit, payable to each Fronting   Bank for its account, quarterly in arrears.
    
	
 
    	
 
    	
 
    
	
Notice of Committed
   Borrowing:
    	
 
    	
At the time the Borrower requests a loan under the   Revolving Credit Facility or a Term Loan Facility, it shall deliver to   Administrative Agent a borrowing certificate which will state the date of the   loan, the amount of the loan, type of loan, interest period (where   applicable), and certify the accuracy of all representations and warranties   in all material respects and in all respects to the extent qualified by   material adverse effect or other materiality qualifier (except in those cases   where such representation or warranty expressly relates to an earlier date   and except for changes in factual circumstances not prohibited under the   Facilities documents) and that no Default or Event of Default has occurred   and is continuing.
    
	
 
    	
 
    	
 
    
	
Defaulting Lender:
    	
 
    	
Substantially conforming to the standard “defaulting   lender” provisions set forth in the Existing Credit Agreement.
    

 

8

 

	
Conditions Precedent to the Initial Extension of   Credit:
    	
 
    	
The effective date of the Facilities and the   Lender’s obligation to make the initial advance under any of the Facilities   (the “Facilities Effective Date”) is subject to customary closing   conditions for Facilities of this nature (as determined in the good faith   judgment of the Administrative Agent), including:

·                      Negotiation and execution of   satisfactory closing documentation
    ·                      Accuracy of   representations and warranties
    ·                      No Default   or Event of Default
    ·                      Customary   opinions of counsel to the Borrower

·                        Payment of   fees required to be paid as of the Facilities Effective Date and expenses for   which invoices have been presented on or prior to the Facilities Effective   Date

·                      The Combination Transactions   shall have been consummated

·                        Receipt and   review of pro forma compliance certificate and financial projections for the   REIT’s consolidated operations calculated as of the most recent quarter   ending at least 50 days prior to the Facilities Effective Date (or fiscal   year ending at least 95 days prior to the Facilities Effective Date,   whichever is later)

·                        The   Form 10 filed with respect to the REIT’s common stock shall have become   effective and the REIT’s common stock shall have been approved for listing on   the New York Stock Exchange

·                        Compliance   with the PATRIOT Act and other “know-your-customer” rules and   regulations (provided, the Lenders shall have requested and received any such   know-your-customer documentation at least ten (10) business days and   seven (7) business days, respectively, prior to the Facilities Effective   Date).
    
	
 
    	
 
    	
 
    
	
Conditions to All Advances:
    	
 
    	
Customary for Facilities of this nature, including:

·                        Accuracy of   all representations and warranties in all material respects and in all   respects to the extent qualified by material adverse effect or other   materiality qualifier (except in those cases where such representation or   warranty expressly relates to an earlier date and except for changes in   factual circumstances not prohibited under the Facilities documents)

·                        No Default   or Event of Default has occurred and is continuing

·                        Notice of   Committed Borrowing delivered in advance three (3) LIBOR business days   for LIBOR Loans, same business day for Base Rate Loans (made by 11:00   a.m. (Eastern time)), and same business day for Swingline Loans (made by   2:00 p.m. (Eastern time))

·                        Incremental   Borrowing Amounts: $1,000,000, or an integral multiple of $100,000 in excess   thereof
    
	
 
    	
 
    	
 
    
	
Closing Into Escrow:
    	
 
    	
Once the parties have negotiated the terms of the   definitive Facilities documents, but no sooner than 120 days prior to the   anticipated closing date, the Borrower, the Lenders and the Administrative   Agent may, if requested by the Borrower, execute and deliver into escrow   signature 
    

 

9

 

	
 
    	
 
    	
pages to the Facilities documents prior to the   consummation of Combination Transactions (the date of such delivery into   escrow being the “Escrow Date”). Release of such signature   pages from escrow will be conditioned upon (i) the Form 10   filed with respect to the REIT’s common stock having become effective;   (ii) the Combination Transactions having occurred; (iii) the REIT’s   common stock having been approved for listing on the New York Stock Exchange;   (iv) delivery of updated disclosure schedules, if any, to credit   agreement for the Facilities in form and substance reasonably satisfactory to   the Administrative Agent and the Lenders; and (v) satisfaction (as   determined in the good faith judgment of the Administrative Agent) or waiver   of the other conditions precedent described above to the Facilities Effective   Date (which other conditions will not include absence of a material adverse   change in the financial or credit markets). If the conditions to release of   such signature pages have not been satisfied within 120 days of the   Escrow Date, the escrow shall terminate and the signature pages shall be   returned to the respective parties without the Facilities documents being   deemed delivered by the parties.
    
	
 
    	
 
    	
 
    
	
Optional Commitment
   Reduction:
    	
 
    	
Reductions of all or any portion of the Commitments   under the Facilities, in any event, in integral multiples of $1,000,000, may   be made at any time. Each such reduction under the Facilities shall be   irrevocable, and the amounts so reduced may not be borrowed or reborrowed.
    
	
 
    	
 
    	
 
    
	
Voluntary
   Prepayments:
    	
 
    	
The Facilities may be voluntarily prepaid, in whole   or in part, by the Borrower, subject to customary breakage costs incurred for   repayments of LIBOR Loans made prior to the expiration of the applicable   interest period and, with respect to the Tranche A-2 Term Loan Facility only,   the Prepayment Fee described on Exhibit A hereto.

 

Prepayments will be allowed with respect to   (a) Base Rate Loans and Money Market Loans bearing interest at the Base   Rate, upon same business day notice and (b) LIBOR Loans, upon three   business days’ notice, in each case, in a minimum amount of $1,000,000 (or   such lesser amount if being prepaid in full).
    
	
 
    	
 
    	
 
    
	
Representations and
   Warranties:
    	
 
    	
Consistent with those set forth more fully in the   Existing Credit Agreement (subject to revisions as may be mutually agreed),   including:

·                        Valid   existence, power and authority

·                        No   conflicts; compliance with law

·                        Enforceability   of Facilities documents

·                      No litigation with expectation of   material adverse effect

·                      Good title to properties

·                      Payment of taxes

·                      ERISA compliance

·                      No default on outstanding   judgments or orders

·                      No defaults under other   agreements with expectation of material 
    

 

10

 

	
 
    	
 
    	
adverse effect

·                      Non-holding company/investment   company status
    ·                      Environmental   compliance
    ·                      Solvency
    ·                      Fair   presentation of financial information

·                        Valid   existence of Subsidiaries subject in its entirety (other than with respect to   any Guarantor) to Material Adverse Change qualification

·                      Maintenance of insurance
    ·                      Full   disclosure
    ·                      Use of   proceeds
    ·                      Governmental   approvals
    ·                      Principal   offices

·                        REIT status   of the REIT, which (or a wholly owned Subsidiary of the REIT) shall be the   general partner of the Borrower

·                      No Default or Event of Default
    ·                      Labor   matters
    ·                      Anti-corruption   laws and sanctions
   •                      Neither the   Borrower, the REIT nor any Guarantor is an EEA Financial Institution
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants:
    	
 
    	
Consistent with those   set forth more fully in the Existing Credit Agreement (subject to revisions   as may be mutually agreed), including:
    ·                        Maintenance   of existence
    ·                      Maintenance   of books and records
    ·                      Maintenance   of insurance
    ·                      Compliance   with law, including anti-corruption laws and sanctions
    ·                      Right of   inspection
    ·                      Payment of   taxes
    ·                      Environmental   compliance
    ·                      Maintenance   of properties

·                        Financial   and other reporting (including provisions that such reporting covenants may   be satisfied by filing the same in electronic format with the SEC, by posting   the same on its website or by other means of electronic delivery (and, except   with respect to financial statements, Borrower shall not be required to provide   notice to the Administrative Agent or any Lender of the filing or posting of   such information)), including:

·              annual and quarterly   financials

·              certification of   financial compliance and absence of default

·              notice of litigation   in respect of the loan documents or any other litigation that, if adversely   determined, is likely to result in a material adverse change; default and   event of default; sale or acquisition of assets in excess of $500,000,000;   material adverse change; material environmental matters; change in credit   rating (applicable after the Investment Grade Election)
    

 

11

 

	
 
    	
 
    	
·              delivery of copies of   proxy statements and other shareholder deliveries

·              if reasonably requested   by the Administrative Agent: rent rolls, capital expenditure summaries, and   other information reasonably requested

·              Use of proceeds and   conduct of business to ensure compliance with anti-corruption laws and   sanctions
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
Consistent with those set forth more fully in the   Existing Credit Agreement (subject to revisions as may be mutually agreed),   including:

·                        No merger or   consolidation by the Borrower or the REIT (except where the Borrower or the   REIT is the surviving entity or in a transaction of which the purpose is to   redomesticate such entity in another United States jurisdiction) or sale or   other disposition of the Borrower’s or the REIT’s assets substantially as an   entirety (whether now owned or hereafter acquired), without the consent of   the Required Lenders, which consent shall not be unreasonably withheld

·                        No   liquidation, winding-up or dissolution of the Borrower or the REIT or   discontinuance of its business, without the consent of the Required Lenders,   which consent shall not be unreasonably withheld

·                        No amendment   to the governing documents of the Borrower which would be reasonably likely   to have a material adverse effect, without the consent of the Required   Lenders, which consent shall not be unreasonably withheld

·                        So long as   the REIT is not a guarantor of the Facilities, no incurrence of Indebtedness   or change in business activities of the REIT, no acquisition of any material   assets by the REIT other than additional interests in the Borrower and as   otherwise permitted by the Borrower’s partnership agreement, in each case   subject to materiality exceptions to be mutually agreed.

·                        Cash and   other property may only be distributed to the REIT by the Borrower in   anticipation of payment by the REIT of dividends to its shareholders.
    
	
 
    	
 
    	
 
    
	
Financial Covenants:
    	
 
    	
The Borrower shall not permit (in each case measured   as of the end of each quarter):

 

·                        Total   Outstanding Indebtedness to exceed 60% of Capitalization Value at the end of   any calendar quarter; provided, however, with respect to any   period in which the Borrower or any of its Consolidated Businesses or UJVs   have acquired Real Property Assets, Total Outstanding Indebtedness to   Capitalization Value for such quarter and the next three (3) succeeding   quarters may increase to 65%, provided such ratio does not exceed 60%   for the quarter immediately thereafter; for purposes of this covenant,   (i) 
    
	
 
    	
 
    	
 
    

 

12

 

	
 
    	
 
    	
Total   Outstanding Indebtedness shall be adjusted by deducting therefrom an amount   equal to the lesser of (x) Total Outstanding Indebtedness that by its   terms is either (1) scheduled to mature (including by reason of the   election of the borrower of such debt to call such debt prior to maturity) on   or before the date that is 24 months from the date of calculation, or   (2) convertible Debt with the right to put all or a portion thereof on   or before the date that is 24 months from the date of calculation, and   (y) Unrestricted Cash and Cash Equivalents, and (ii) Capitalization   Value shall be adjusted by deducting therefrom the amount by which Total   Outstanding Indebtedness is adjusted under clause (i); for purposes of   determining Capitalization Value for this covenant only, (A) costs and   expenses incurred during the applicable period with respect to acquisitions   that failed to close and were abandoned during such period, and   (B) Unrestricted Cash and Cash Equivalents shall be adjusted to deduct   therefrom $35,000,000 and without inclusion of the Borrower’s Pro Rata Share   of any Cash or Cash Equivalents owned by any UJV;

·                        Ratio of   Combined EBITDA to Fixed Charges to be less than 1.50:1.00;

·                        Ratio of Unencumbered   Combined EBITDA to Unsecured Interest Expense to be less than 1.50:1.00;

·                        Ratio of   Unsecured Indebtedness to Capitalization Value of Unencumbered Assets to   exceed 60%; provided, however, with respect to any period in   which the Borrower or any of its Consolidated Businesses or UJVs have   acquired Real Property Assets, Unsecured Indebtedness to Capitalization Value   of Unencumbered Assets for such quarter and the next three   (3) succeeding quarters may increase to 65%, provided such ratio   does not exceed 60% for the quarter immediately thereafter; for purposes of   this covenant, (i) Unsecured Indebtedness shall be adjusted by deducting   therefrom an amount equal to the lesser of (x) Unsecured Indebtedness   that by its terms is either (1) scheduled to mature (including by reason   of the election of the borrower of such debt to call such debt prior to   maturity) on or before the date that is 24 months from the date of   calculation, or (2) convertible Debt with the right to put all or a   portion thereof on or before the date that is 24 months from the date of   calculation, and (y) Unrestricted Cash and Cash Equivalents or such   lesser amount of Unrestricted Cash and Cash Equivalents as the Borrower shall   specify solely for this purpose (the “Unsecured Indebtedness Adjustment”),   and (ii) Capitalization Value shall be adjusted by deducting therefrom the   amount by which Unsecured Indebtedness is adjusted under clause (i); for   purposes of determining Capitalization Value of Unencumbered Assets for this   covenant only, (A) costs and expenses incurred during the applicable   period 

 
    

 

13

 

	
 
    	
 
    	
with respect to   acquisitions that failed to close and were abandoned during such period, and   (B) Unrestricted Cash and Cash Equivalents shall be adjusted to deduct   therefrom $35,000,000 as well as any Unrestricted Cash and Cash Equivalents   used to determine the “Secured Indebtedness Adjustment” described below, and   without inclusion of the Borrower’s Pro Rata Share of any Cash or Cash   Equivalents owned by any UJV;

·                        Ratio of   Secured Indebtedness to Capitalization Value to exceed 50%; for purposes of   this covenant, (i) Secured Indebtedness shall be adjusted by deducting   therefrom an amount equal to the lesser of (x) Secured Indebtedness that   by its terms is either (1) scheduled to mature (including by reason of   the election of the borrower of such debt to call such debt prior to   maturity) on or before the date that is 24 months from the date of   calculation, or (2) convertible Debt with the right to put all or a   portion thereof on or before the date that is 24 months from the date of   calculation, and (y) Unrestricted Cash and Cash Equivalents or such   lesser amount of Unrestricted Cash and Cash Equivalents as the Borrower shall   specify solely for this purpose (the “Secured Indebtedness Adjustment”)   and (ii) Capitalization Value shall be adjusted by deducting therefrom   the amount by which Secured Indebtedness is adjusted under clause (i); for   purposes of determining Capitalization Value for this covenant only,   (A) costs and expenses incurred during the applicable period with   respect to acquisitions that failed to close and were abandoned during such   period, and (B) Unrestricted Cash and Cash Equivalents shall be adjusted   to deduct therefrom $35,000,000 as well as any Unrestricted Cash and Cash   Equivalents used to determine the “Unsecured Indebtedness Adjustment”   described above, without inclusion of the Borrower’s Pro Rata Share of any   Cash or Cash Equivalents owned by any UJV.

·                        Notwithstanding   anything contained herein to the contrary, any Debt of the REIT shall be   deemed to be Debt of the Borrower (provided that the same shall be without   duplication), for purposes of calculating the financial covenants set forth   herein.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
The following shall be “Events of Default”,   consistent with those set forth more fully in the Existing Credit Agreement   (subject to revisions as may be mutually agreed), including:

·                        Failure to   pay principal when due;

·                        Failure to   pay interest when due or fees or any other amount, and such failure continues   for a period of (i) in the case of interest, five days after the due   date, and (ii) in the case of fees, five days after notice from the   Administrative Agent;

·                        Any   representation, warranty, certification or statement in the Facilities   documents or any Borrower deliveries is incorrect in any material respect (or   in any respect to the extent qualified by material adverse effect or other   materiality qualifier);

 
    

 

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·                        Failure to   perform negative covenants, financial covenants or the affirmative covenants   with respect to preservation of existence with respect to the REIT, the   Borrower or any Guarantor and use of proceeds;

·                        Failure to   comply with any other covenant within 30 days after notice, subject to   extension if reasonably necessary (not to extend beyond the maturity date)   and the Borrower is diligently prosecuting cure;

·                        A default   under other Debt by the Borrower due to the Borrower’s failure (a) to   pay any Debt the Recourse component of which to the Borrower is equal to or   greater than $50,000,000 when due after the expiration of any applicable   grace period, or (b) to perform or observe other terms, covenants and   conditions under agreements relating to any such Debt, when required to be performed   or observed, if the effect of such failure is to accelerate, or permit the   acceleration of, after notice or lapse of time or both, the maturity of such   Debt, or any such Debt shall be declared due and payable or required to be   prepaid (other than regularly scheduled prepayment or customary non-default   events, such as mandatory prepayments triggered by asset sales or casualty   events) prior to stated maturity;

·                        Insolvency   proceeding or bankruptcy event of the Borrower or the REIT;

·                        One or more judgments,   decrees or orders for the payment of money aggregating in excess of   $50,000,000 is rendered against the Borrower or the REIT and continues in   effect for 60 days without being vacated, discharged, satisfied or stayed or   bonded pending appeal (excluding (x) amounts for which insurance   coverage has not been denied by the applicable carrier and   (y) judgments, decrees or orders in respect of Debt that is not Recourse   to the Borrower or the REIT);

·                        If any of   the following events shall occur or exist with respect to any Plan:   (a) any Prohibited Transaction; (b) any Reportable Event;   (c) the filing under Section 4041 of ERISA of a notice of intent to   terminate any Plan or the termination of any Plan; (d) receipt of notice   of an application by the PBGC to institute proceedings under   Section 4042 of ERISA for the termination of, or for the appointment of   a trustee to administer, any Plan, or the institution by the PBGC of any such   proceedings; (e) a condition exists which gives rise to imposition of a   lien under Section 412(n) or (f) of the Code on the Borrower,   the REIT or any ERISA Affiliate, and in each case above, if either   (1) such event or conditions, if any, result in the Borrower, the REIT   or any ERISA Affiliate being subject to any tax, penalty or other liability   to a Plan, the PBGC or otherwise (or any combination thereof), which in the   aggregate exceeds or is reasonably likely to exceed $20,000,000, and the same   continues unremedied or unpaid for a period of forty-five (45) consecutive
    

 

15

 

	
 
    	
 
    	
days or   (2) such event or conditions, if any, is reasonably likely to result in   the Borrower, the REIT or any ERISA Affiliate being subject to any tax,   penalty or other liability to a Plan, the PBGC or otherwise (or any   combination thereof), which in the aggregate exceeds or may exceed   $20,000,000 and such event or condition is unremedied, or such tax, penalty   or other liability is not reserved against or the payment thereof otherwise   secured to the reasonable satisfaction of the Administrative Agent, for a   period of forty-five (45) consecutive days after notice from the   Administrative Agent;

·                        Assets of   the Borrower or the REIT at any time constitute “plan assets” for purposes of   ERISA;

·                        Change of   control, to include, (i) any person or group is or becomes the   beneficial owner, directly or indirectly, of more than 40% of the total   voting power of the then outstanding voting stock of the REIT;   (ii) during any period of 12 consecutive months, individuals who at the   beginning of any such 12-month period constituted the Board of Trustees of   the REIT (together with any new trustees whose election by such Board or   whose nomination for election by the shareholders of the REIT was approved by   a vote of a majority of the trustees then still in office who were either   trustees at the beginning of such period or whose election or nomination for   election was previously so approved) cease for any reason to constitute at   least a majority of the Board of Trustees of the REIT; (iii) the REIT   shall cease to own or control, directly or indirectly, more than 50% of the   outstanding equity interests of the Borrower; or (iv) the REIT, or a   wholly owned subsidiary of the REIT, shall cease to be the sole general   partner of the Borrower or shall cease to have the sole and exclusive power   to exercise all management and control over the Borrower substantively in the   same manner as provided for in the Borrower’s partnership agreement as   contained in the Form 10 most recently filed with the SEC prior to the   Escrow Date, except as a result of a transaction expressly permitted under   the Facilities documents; and

·                        The REIT   shall fail at any time to (i) maintain at least one class of its common   shares with has trading privileges on the New York Stock Exchange or the   American Stock Exchange or is the subject of price quotations in the   over-the-counter market as reported by the National Association of Securities   Dealers Automated Quotation System, or (ii) maintain its status as a self-directed   and self-administered REIT, and in either case such failure shall remain for   thirty (30) consecutive calendar days after notice thereof.

 

Notwithstanding the   foregoing, in the event of a Default or Event of Default arising as a result   of the determination of any asset, Consolidated Business or UJV as an   Unencumbered Asset at any particular time of reference, if such Default or   Event of Default is 
    

 

16

 

	
 
    	
 
    	
capable of being cured   solely by the exclusion of such asset, Consolidated Business or UJV as an   Unencumbered Asset, the Borrower shall be permitted a period not to exceed fifteen   (15) days from the earlier of (x) the date upon which a responsible   officer of the Borrower obtains knowledge of such Default or Event of Default   (as applicable) or (y) the date upon which the Borrower has received   written notice of such Default or Event of Default from the Administrative   Agent to remove such asset, Consolidated Business or UJV as an Unencumbered   Asset upon delivery of each of the following: (i) written notice thereof   and (ii) a compliance certificate excluding such asset, Consolidated   Business or UJV as an Unencumbered Asset and evidencing compliance with the   financial covenants for the periods such asset, Consolidated Business or UJV   was determined to be an Unencumbered Asset.
    
	
 
    	
 
    	
 
    
	
Recourse:
    	
 
    	
The Facilities will be a direct senior, unsecured,   recourse obligation of (i) the Borrower and (ii) any Subsidiary of   the REIT solely in the event such Subsidiary is a borrower or a guarantor of,   or otherwise has a payment obligation in respect of, any Unsecured   Indebtedness in excess of $1,000,000 (the foregoing collectively, the “Guarantors”,   and individually, a “Guarantor”); provided, that the guarantee   requirement shall not apply to (a) subordinated intercompany Unsecured   Indebtedness owing to the REIT, (b) intercompany Unsecured Indebtedness   between or among the Borrower and its Subsidiaries, (c) Unsecured   Indebtedness of any non-wholly owned Subsidiary the incurrence of which was   not subject to the control or affirmative consent of the Borrower or any of   its Subsidiaries unless such non-wholly owned Subsidiary of the Borrower   guarantees Unsecured Indebtedness described above of the REIT or any wholly   owned Subsidiary of the REIT. The Guarantors shall unconditionally guaranty   all of the Borrower’s obligations under and in connection with the Facilities,   including certain cash management obligations and hedging obligations.

 

In no event shall the REIT have any personal   liability under the Facilities, either individually or as general partner of   the Borrower, by application of applicable law or otherwise, except to the   extent the REIT misappropriates funds, rents or insurance proceeds or engages   in willful misconduct or fraud; provided, however, that the REIT shall   unconditionally guaranty all of the Borrower’s obligations under and in   connection with the Facilities if the REIT is a borrower or a guarantor of,   or otherwise has a payment obligation in respect of, any Unsecured   Indebtedness.
    
	
 
    	
 
    	
 
    
	
Indemnification:
    	
 
    	
The Borrower will indemnify the   Lender(s) against all losses, liabilities, claims, damages (excluding   lost profits or other consequential damages), or expenses to the extent   provided in the Existing Credit Agreement (subject to customary exceptions   with respect to any indemnified party 
    

 

17

 

	
 
    	
 
    	
for gross negligence, bad faith or willful   misconduct of such indemnified party, as determined by a court of competent   jurisdiction in a final, non-appealable judgment, a material breach by such   indemnified party of its obligations under the Facilities documentation, as   determined by a court of competent jurisdiction in a final, non-appealable   judgment, and any dispute solely among indemnified parties (except in   connection with claims or disputes (1) against the Administrative Agent   and/or any Bookrunner or any Arranger in their respective capacities relating   to whether the conditions to any credit event have been satisfied,   (2) against the Administrative Agent, any Bookrunner and/or any Arranger   in their respective capacities with respect to a defaulting lender or the   determination of whether a Lender is a defaulting lender, (3) against   the Administrative Agent, any Bookrunner and/or the Arrangers in their   respective capacities as such and (4) directly resulting from any act or   omission on part of the REIT, the Borrower, any Guarantor or any other   Subsidiary, and without duplication of tax and yield maintenance matters   otherwise addressed pursuant to the other provisions of the Facilities   documentation). If (i) the Borrower is required to indemnify an   indemnified party pursuant the terms of the Facilities documentation and   (ii) Borrower has provided evidence reasonably satisfactory to such   indemnified party that the Borrower has the financial wherewithal to   reimburse such indemnified party for any amount paid by such indemnified   party with respect to the applicable indemnity proceeding, such indemnified   party shall not settle or compromise any such indemnity proceeding without   the prior written consent of the Borrower (which consent shall not be   unreasonably withheld or delayed).
    
	
 
    	
 
    	
 
    
	
Amendments, Waivers and Voting:
    	
 
    	
Amendments and waivers with respect to the loan   documents shall require the signature of the Required Lenders and the   Administrative Agent; provided that (a) no amendment, waiver or   consent shall, unless in writing and signed by all of the Lenders, do any of   the following: (1) increase or decrease the Commitment of any Lender   (except for a ratable decrease in the Commitments of all Lenders),   (2) reduce principal, interest or fees or any other amount due under the   Facilities documents (other than a waiver of default interest and changes in   calculation of the ratio of Total Outstanding Indebtedness to Capitalization   Value that may indirectly affect pricing), (3) postpone any date fixed   for payment of such principal, interest or fees, (4) change the   definition of Required Lenders, (5) modify the Lender voting provisions,   (6) waive any default in payment or any bankruptcy default, (7) release   all or substantially all of the Guarantors or permit assignment by the   Borrower of its rights under the Facilities documents or (8) permit the   expiration date of any Letter of Credit to be later than the first   anniversary of the Revolving Credit Facility Maturity Date; (b) any   amendment or waiver of provisions relating to the time specified for payment   of principal, interest and fees with respect to Money Market Loans shall be   binding upon a Designated Lender only if signed by such Designated Lender and   (c) any amendment

 
    

 

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or waiver of provisions relating solely to the   rights or obligations of the Revolving Credit Lenders or a tranche of Term   Loan Lenders, and not any other Lenders, shall only require the signature of   Revolving Credit Lenders or the Term Loan Lenders for such tranche, as   applicable, having 51% of the aggregate Revolving Credit Facility commitments   (or, if the Revolving Credit Facility commitments shall have been terminated   or reduced to zero, Revolving Credit Lenders holding at least 51% of the   aggregate outstanding principal balance of the Revolving Credit Facility) or   outstanding principal balance of such tranche of Term Loan Facility, as   applicable.

 

In addition, the Facilities documentation will   contain customary lender replacement provisions for, among other things,   non-consenting lenders, defaulting lenders, increased cost lenders or the   illegality or suspension asserted by any Lender to fund or maintain LIBOR   Loans (and “amend and extend” provisions allowing for the extension of the   maturity of the commitments of consenting Lenders in exchange for   consideration payable only to such consenting Lenders). The Facilities   documentation will also permit amendments and/or supplements jointly agreed   to by the Borrower and the Administrative Agent to cure any ambiguity,   omission, mistake or defect in any provision of the Facilities documentation.
    
	
 
    	
 
    	
 
    
	
Assignments and
   Participations:
    	
 
    	
The Lenders shall be permitted to sell   participations in their loans and commitments to one or more banks or other   permitted institutions, prior to an Event of Default in minimum amounts of   not less than $5,000,000, and during the continuance of an Event of Default,   in any amount. To the extent provided in each participation agreement,   participants shall have the same benefits as the Lenders with respect to   yield protection and increased cost provisions. The Lenders shall be   permitted to assign their loans and commitments only to one or more Eligible   Assignees, subject to the consent of the Administrative Agent, the Fronting   Banks, the Initial Lenders and, if no Event of Default is continuing, the   Borrower (which consent in each case shall not be unreasonably withheld or   delayed). A fee of $3,500 shall be payable by the assignor to the   Administrative Agent upon any assignment.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
So long as no Event of Default shall have occurred   and be continuing, no Lender shall be permitted to enter into an assignment   of, or sell a participation interest in, its rights and obligations which   would result in such Lender holding a Commitment without participants of less   than Ten Million Dollars ($10,000,000) which minimum amount shall be reduced   pro rata as a result of a cancellation or reduction of the aggregate   Commitments; provided, however, that no Lender shall be   prohibited from assigning its entire Commitment so long as such assignment is   otherwise permitted.
    

 

19

 

	
EU Bail-In Provisions:
    	
 
    	
The loan document for the Facilities will include   customary EU Bail-In provisions.
    
	
 
    	
 
    	
 
    
	
Expenses:
    	
 
    	
The Borrower will pay all reasonable and documented   out-of-pocket costs and expenses of the Administrative Agent and, solely in   connection with the initial closing and syndication of the Facilities, the   Bookrunners associated with the preparation, due diligence, administration,   syndication and enforcement of all documentation executed in connection with   the Facilities, including, without limitation, the reasonable and documented   out-of-pocket legal fees of counsel to the Administrative Agent and costs and   expenses in connection with the use of SyndTrak, IntraLinks, Inc.   or other similar information transmission systems in connection with the   Facilities documentation, regardless of whether or not the Facilities close.   The Borrower will also pay the expenses of the Administrative Agent, the   Bookrunners, the Arrangers and each Lender (but in the case of legal counsel,   subject to customary limitations in relation to the sharing of one legal   counsel for the Administrative Agent, the Bookrunners, the Arrangers and such   Lenders taken together absent a conflict of interest) in connection with the   “workout” or enforcement of any loan documentation for the Facilities. Other   than to the extent constituting a condition to the closing of the Facilities,   expense reimbursement obligations shall be due and payable not later than 15   business days following receipt of a reasonably detailed invoice therefor.
    
	
 
    	
 
    	
 
    
	
Increased Costs:
    	
 
    	
Facilities documents to contain customary provisions   protecting the Lenders in the event of adoption or changes in withholding or   other taxes and in the event of the unavailability of funding, illegality,   capital adequacy, liquidity, increased costs and funding losses as a result   of any future law, regulation, guideline or directive or interpretation   thereof (including (x) the Dodd-Frank Wall Street Reform and Consumer   Protection Act and all regulations, guidelines and rules issued   thereunder and (y) all requests, rules, regulations, guidelines,   interpretations or directives promulgated by the Bank for International   Settlements, the Basel Committee on Banking Supervision (or any successor or   similar authority) or the United States or foreign regulatory authorities, in   each case pursuant to Basel III, in each case, regardless of the date   enacted, adopted, promulgated, implemented or issued, provided, however, that   if the applicable Lender shall have implemented changes prior to the   Facilities Effective Date in response to any such requests, rules, guidelines   or directives, then the same shall not be deemed to be a regulatory change   with respect to such Lender), provided the Lenders are generally imposing a   similar charge on, or otherwise similarly enforcing its agreements with, its   other similarly situated borrowers. The Borrower shall not be obligated to   compensate any Lender for increased costs for any amounts attributable to any   period which is more than 180 days prior to the Lender’s delivery of notice   thereof to the Borrower.
    

 

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Use for Mortgages:
    	
 
    	
Consistent with Section 12.21 of the Existing   Credit Agreement, from time to time, the Borrower may request an advance to   refinance or acquire certain secured mortgage debt of the Borrower and/or its   subsidiaries and, in connection therewith request that such advances be   secured by an amended and restated mortgage (in favor of Administrative Agent   for the benefit of the Lenders) on the mortgaged property and evidenced by a   separate mortgage note executed by the Borrower and/or one or more   Subsidiaries (provided that if the Borrower shall not execute such mortgage   note, the Borrower shall execute a guaranty of such mortgage note), such   mortgage, note and related agreements (including such nondisturbance,   intercreditor, and/or subordination agreements as the Borrower may request   that are reasonably satisfactory to the Administrative Agent) to be in form   and substance reasonably acceptable to Administrative Agent and consistent in   all respect with the terms of the Facilities; provided that (i) no such   mortgage may encumber a property located in a Special Flood Hazard Area, and   (ii) at least seven (7) business days prior to the recordation of   any mortgage, the Borrower shall deliver, or cause to be delivered, to all   Lenders a legal description and special flood hazard determination form for   all property proposed to be encumbered thereby.
    
	
 
    	
 
    	
 
    
	
Bottom-Up Guarantees:
    	
 
    	
At the Borrower’s request from time to time,   Administrative Agent shall accept “bottom-up” guaranties of the Facilities   from limited partners in the Borrower in such amounts and on such terms as   the Borrower shall request, provided that any Administrative Agent shall have   reasonably satisfied itself with respect to applicable “know your customer”   and anti-money laundering rules and regulations, including without   limitation, the Patriot Act and other similar restrictions in respect of any   such proposed guarantor.
    
	
 
    	
 
    	
 
    
	
Governing Law
   and Forum:
    	
 
    	
New York
    
	
 
    	
 
    	
 
    
	
Counsel for the Lenders:
    	
 
    	
Sidley Austin LLP
    

 

21

 

Schedule 1

 

Definitions

 

“Banking Day” means (1) any day except a Saturday or Sunday on which commercial banks are not authorized or required to close in New York City and (2) whenever such day relates to a LIBOR Loan, a Money Market Loan, an Interest Period with respect to a LIBOR Loan or a Money Market Loan, or notice with respect to a LIBOR Loan or Money Market Loan, a day on which dealings in Dollar deposits are carried out in the London interbank market and banks are open for business in London and New York City, and (3) in the case of Letters of Credit transactions for a particular Fronting Bank, any day except a Saturday or Sunday on which commercial banks are not authorized or required to close in the place where its office for issuance or administration of the pertinent Letter of Credit is located and New York City.

 

“Borrower’s Consolidated Financial Statements” means the consolidated balance sheet and related consolidated statements of operations, changes in equity and cash flows, and footnotes thereto, of the Borrower, in each case prepared in accordance with GAAP and as filed with the SEC as SEC Reports.

 

“Borrower’s Pro Rata Share” means an amount determined based on the pro rata ownership of the equity interests of a person by the Borrower and the Borrower’s consolidated subsidiaries.

 

“Capitalized Development Costs” means development cost (including land and building being readied for development or redevelopment expected to commence within the next 12 months) capitalized in accordance with GAAP.  Development costs for a Real Property Business on which development has been completed for at least 24 months or redevelopment has been completed for at least 18 months shall be excluded from Capitalized Development Costs.

 

“Capitalization Value” means, at any time, the sum (without duplication) of:

 

(1) with respect to Real Property Businesses (other than UJVs and Real Property Businesses the value of which is to be included in Capitalization Value under clauses (2) and (3) below), individually determined, the greater of (x) Combined EBITDA from such Real Property Businesses (a) in the case of all Real Property Businesses other than hotels, for the most recently ended calendar quarter, annualized (i.e., multiplied by four), and (b) in the case of hotels, for the most recently ended four consecutive calendar quarters, in both cases, capitalized at a rate of 6.0% per annum, and (y) 75% of the Gross Book Value of such Real Property Businesses;

 

(2) with respect to Real Property Businesses (other than UJVs and Real Property Businesses the value of which is to be included in Capitalization Value under clause (3) below) acquired during the four (4) fiscal quarters most recently ended, the Gross Book Value of such Real Property Business (except for any such Real Property Business which the Borrower has elected in a compliance certificate delivered to the Administrative Agent be included in determinations of Capitalization Value under the immediately preceding clause (1));

 

(3) Capitalized Development Costs (except with respect to any Real Property Business which the Borrower has elected in a compliance certificate delivered to the Administrative Agent prior to

 

22

 

the relevant 18- or 24-month period, as applicable, be included in determinations of Capitalization Value under the preceding clause (1));

 

(4) with respect to Other Investments, which do not have publicly traded shares, the Net Equity Value of such Other Investments;

 

(5) with respect to Real Property UJVs, which do not have publicly traded shares, individually determined, the greater of (x) Combined EBITDA from such Real Property UJVs (a) in the case of all Real Property UJVs other than those owning hotels, for the most recently ended calendar quarter, annualized (i.e., multiplied by four), and (b) in the case of Real Property UJVs owning hotels, for the most recently ended four consecutive calendar quarters, in both cases, capitalized at the rate of 6.0%, less the Borrower’s Pro Rata Share of any Indebtedness attributable to such Real Property UJVs, and (y) the Net Equity Value of such Real Property UJVs (subject to the last sentence of this definition); and

 

(6) without duplication, the Borrower’s Pro Rata Share of Unrestricted Cash and Cash Equivalents, the book value of notes and mortgage loans receivable, and the fair market value of publicly traded securities, at such time, all as determined in accordance with GAAP.

 

For clarity, the parties acknowledge and agree that the calculations pursuant to clause (1)(x) and (y), clause (2), clause (3) and clause (5)(x) and (y) above in this definition are intended to be made on a Real-Property-Asset-by-Real-Property-Asset basis.  For the purposes of this definition, (1) for any Disposition of Real Property Assets by a Real Property Business during any calendar quarter, Combined EBITDA will be reduced by actual Combined EBITDA generated from such asset or assets, (2) the aggregate contribution to Capitalization Value in excess of 35% of the total Capitalization Value from all Real Property Businesses and Other Investments owned by UJVs shall not be included in Capitalization Value, and (3) the aggregate contribution to Capitalization Value from leasing commissions and management and development fees in excess of 15% of Combined EBITDA shall not be included in Capitalization Value. To the extent that liabilities of a Real Property UJV are Recourse to the Borrower or the REIT, then for purposes of clause (5)(y) above, the Net Equity Value of such Real Property UJV shall not be reduced by such Recourse liabilities.

 

“Capitalization Value of Unencumbered Assets” means, at any time, the sum (without duplication) of:

 

(1) with respect to Real Property Businesses (other than UJVs and Real Property Businesses the value of which is to be included in Capitalization Value under clauses (2) and (3) below), individually determined, the greater of (x) Unencumbered Combined EBITDA from such Real Property Businesses (a) in the case of all Real Property Businesses other than hotels, for the most recently ended calendar quarter, annualized (i.e., multiplied by four), and (b) in the case of hotels, the most recently ended four consecutive calendar quarters, in both cases, capitalized at a rate of 6.0% per annum, and (y) 75% of the Gross Book Value of such Real Property Businesses constituting Unencumbered Assets;

 

(2) with respect to Real Property Businesses (other than UJVs and Real Property Businesses the value of which is to be included in Capitalization Value under clause (3) below) constituting

 

23

 

Unencumbered Assets acquired during the four (4) fiscal quarters most recently ended, the Gross Book Value of such Real Property Business (except for any such Real Property Business which the Borrower has elected in a compliance certificate delivered to the Administrative Agent be included in determinations of Capitalization Value under the immediately preceding clause (1));

 

(3) Capitalized Development Costs (except with respect to any Real Property Business which the Borrower has elected in a compliance certificate delivered to the Administrative Agent prior to the relevant 18- or 24-month period, as applicable, be included in determinations of Capitalization Value under the preceding clause (1));

 

(4) with respect to Real Property UJVs, which do not have publicly traded shares, individually determined, the greater of (x) the Unencumbered Combined EBITDA from such Real Property UJVs (a) in the case of Real Property UJVs other than those owning hotels, for the most recently ended calendar quarter, annualized (i.e., multiplied by four), and (b) in the case of Real Property UJVs owning hotels, for the most recently ended four consecutive calendar quarters, in both cases, capitalized at a rate of 6.0% per annum, and (y) the Net Equity Value of such Real Property UJVs constituting Unencumbered Assets; and

 

(5) without duplication, the Borrower’s Pro Rata Share of Unrestricted Cash and Cash Equivalents, the book value of notes and mortgage loans receivable and the fair market value of publicly traded securities that are Unencumbered Assets of the Borrower, at such time, all as determined in accordance with GAAP.

 

For the purposes of this definition, (1) for any Disposition of Real Property Assets by a Real Property Business during any calendar quarter, Unencumbered Combined EBITDA will be reduced by actual Unencumbered Combined EBITDA generated from such asset or assets, (2) the aggregate contribution to Capitalization Value of Unencumbered Assets in excess of 35% of the total Capitalization Value of Unencumbered Assets from the aggregate of all Real Property Businesses owned by UJVs, Real Property Businesses subject to Permitted Transfer Restrictions of the type described in clause (c) of the definition thereof and notes and mortgage loans receivable that are Unencumbered Assets at such time, as determined, in accordance with GAAP, shall not be included in Capitalization Value of Unencumbered Assets, and (3) the aggregate contribution to Capitalization Value of Unencumbered Assets from leasing commissions and management and development fees in excess of 15% of Unencumbered Combined EBITDA shall not be included in Capitalization Value of Unencumbered Assets.

 

“Capital Lease” means any lease which has been or should be capitalized on the books of the lessee in accordance with GAAP.

 

“Cash or Cash Equivalents” means (a) cash; (b) marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof and backed by the full faith and credit of the United States, in each case maturing within one (1) year after the date of acquisition thereof; (c) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within ninety (90) days after the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from any two of S&P, Moody’s or Fitch (or, if at any time no two of the foregoing shall be rating such obligations, then

 

24

 

from such other nationally recognized rating services as are reasonably acceptable to Administrative Agent); (d) domestic corporate bonds, other than domestic corporate bonds issued by the Borrower or any of its Affiliates, maturing no more than two (2) years after the date of acquisition thereof and, at the time of acquisition, having a rating of at least A or the equivalent from any two (2) of S&P, Moody’s or Fitch (or, if at any time no two of the foregoing shall be rating such obligations, then from such other nationally recognized rating services as are reasonably acceptable to Administrative Agent); (e) variable-rate domestic corporate notes or medium term corporate notes, other than notes issued by the Borrower or any of its Affiliates, maturing or resetting no more than one (1) year after the date of acquisition thereof and having a rating of at least A or the equivalent from two of S&P, Moody’s or Fitch (or, if at any time no two of the foregoing shall be rating such obligations, then from such other nationally recognized rating services as are reasonably acceptable to Administrative Agent); (f) commercial paper (foreign and domestic) or master notes, other than commercial paper or master notes issued by the Borrower or any of its Affiliates, and, at the time of acquisition, having a long-term rating of at least A or the equivalent from S&P, Moody’s or Fitch and having a short-term rating of at least A-2 and P-2 from S&P and Moody’s, respectively (or, if at any time neither S&P nor Moody’s shall be rating such obligations, then the highest rating from such other nationally recognized rating services as are reasonably acceptable to Administrative Agent); (g) domestic and foreign certificates of deposit or domestic time deposits or foreign deposits or bankers’ acceptances (foreign or domestic) in Dollars, Hong Kong Dollars, Singapore Dollars, Pounds Sterling, Euros or Yen that are issued by a bank (I) which has, at the time of acquisition, a long-term rating of at least A or the equivalent from S&P, Moody’s or Fitch (or, if at any time no two of the foregoing shall be rating such obligations, then from such other nationally recognized rating services as are reasonably acceptable to Administrative Agent) and (II) if a domestic bank, which is a member of the Federal Deposit Insurance Corporation; (h) overnight securities repurchase agreements, or reverse repurchase agreements secured by any of the foregoing types of securities or debt instruments, provided that the collateral supporting such repurchase agreements shall have a value not less than 101% of the principal amount of the repurchase agreement plus accrued interest; and (i) money market funds invested in investments at least 75% of which consist of the items described in clauses (a) through (h) above.

 

“Code” means the Internal Revenue Code of 1986.

 

“Combined EBITDA” means, for any quarter, the Borrower’s Pro Rata Share of net income or loss plus Interest Expense, income taxes, depreciation and amortization and excluding (x) the effect of extraordinary or non-recurring items (such as, without limitation, (i) gains or losses from asset sales, (ii) gains or losses from debt restructurings or write-ups or forgiveness of indebtedness (including prepayment premiums), and costs and expenses incurred during such period with respect to acquisitions (whether or not consummated) during such period, (iii) severance and non-cash stock based compensation expenses and other restructuring, impairment or one-time changes, and (iv) non-cash gains or losses from foreign currency fluctuations), (y) other non-cash charges (such as, without limitation, share-based compensation), and (z) transaction and restructuring costs and expenses incurred in connection with the Combination Transactions (other than severance costs and expenses) to the extent arising on or prior to the eighteen-month anniversary of the Facilities Effective Date (or such later date as determined by the Administrative Agent in the exercise of its reasonable discretion), all as determined in accordance with GAAP, of Consolidated Businesses and UJVs (provided, however, that for

 

25

 

purposes of determining the ratio of Combined EBITDA to Fixed Charges, Combined EBITDA of UJVs shall exclude UJVs that are not Real Property UJVs), as the case may be, multiplied by four, provided however, that Combined EBITDA shall include only general and administrative expenses that are attributable to the management and operation of the assets in accordance with GAAP and shall not include any corporate general and administrative expenses of the Borrower, the REIT, Consolidated Businesses or UJVs (e.g., salaries of corporate officers).

 

“Consolidated Businesses” means, at any time, the Borrower and Subsidiaries of the Borrower that the Borrower consolidates in its consolidated financial statements prepared in accordance with GAAP, provided, however, that UJVs which are consolidated in accordance with GAAP are not Consolidated Businesses.

 

“Debt” means, at any time, without duplication, (i) all indebtedness and liabilities of a Person for borrowed money, secured or unsecured, including mortgage and other notes payable (but excluding any indebtedness to the extent secured by cash or cash equivalents or marketable securities, or defeased), as determined in accordance with GAAP, and (ii) without duplication, all liabilities of a Person consisting of indebtedness for borrowed money, determined in accordance with GAAP, that are or would be stated and quantified as contingent liabilities in the notes to the consolidated financial statements of such Person as of that date (excluding contingent liabilities constituting Debt that is Without Recourse).  For purposes of determining “Total Outstanding Indebtedness” and “Debt”, the term “without duplication” shall mean (without limitation) that amounts loaned from one Person to a second Person that under GAAP would be consolidated with the first Person shall not be treated as Debt of the second Person.

 

“Default” means any event which with the giving of notice or lapse of time, or both, would become an Event of Default.

 

“Disposition” means a sale (whether by assignment, transfer or Capital Lease) of an asset.

 

“Eligible Assignee” means, subject to customary exceptions for defaulting lenders, the Borrower or any of its Affiliates and natural persons, a Lender, or one or more banks, finance companies, insurance or other financial institutions which (A) has (or, in the case of a bank which is a subsidiary, such bank’s parent has) a rating of its senior debt obligations of not less than Baa1 by Moody’s or a comparable rating by a rating agency acceptable to the Administrative Agent and (B) has total assets in excess of Ten Billion Dollars ($10,000,000,000).

 

“ERISA” means the Employee Retirement Income Security Act of 1974, including the rules and regulations promulgated thereunder.

 

“ERISA Affiliate” means any corporation or trade or business which is a member of the same controlled group of organizations (within the meaning of Section 414(b) of the Code) as the Borrower or the REIT or is under common control (within the meaning of Section 414(c) of the Code) with the Borrower or REIT or is required to be treated as a single employer with the Borrower or the REIT under Section 414(m) or 414(o) of the Code.

 

“Fair Market Value” means, (a) with respect to a security listed on a national securities exchange or the NASDAQ National Market, the price of such security as reported on such exchange or market by any widely recognized reporting method customarily relied upon by financial

 

26

 

institutions and (b) with respect to any other property, the price which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither of which is under pressure or compulsion to complete the transaction.

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions as published by the Federal Reserve Bank of New York for such day provided that (1) if such day is not a Banking Day, the Federal Funds Rate for such day shall be such rate on such transactions on the immediately preceding Banking Day as so published on the next succeeding Banking Day, and (2) if no such rate is so published on such next succeeding Banking Day, the Federal Funds Rate for such day shall be the average of the rates quoted by three Federal Funds brokers to Administrative Agent on such day on such transactions; provided, that, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of the Facilities documents.

 

“Fixed Charges” means, without duplication, in respect of any quarter, the sum of (i) the Borrower’s Pro Rata Share of Interest Expense for such period attributable to Debt in respect of Consolidated Businesses and Real Property UJVs, as well as to any other Debt that is recourse to the Borrower, multiplied by four (4); and (ii) distributions during such period on preferred units of the Borrower, as determined on a consolidated basis, in accordance with GAAP, multiplied by four (4).

 

“GAAP” means accounting principles generally accepted in the United States of America as in effect from time to time, applied on a basis consistent with those used in the preparation of the pro forma financial statements delivered as of the Facilities Effective Date (captioned “Financial Statements”) (except for changes concurred to by the Borrower’s Accountants); provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application of any such change on the operation of such provision, or if the Administrative Agent notifies the Borrower that the Required Banks request an amendment to any provision of the Facilities documents for such purpose, in either case, regardless of whether any such notice is given before or after such change in GAAP or in the application of any such change, then such provision shall be interpreted on the basis of GAAP as in effect and applied for purposes of the Facilities documents immediately before such change shall have become effective.  The calculation of liabilities shall not include any fair value adjustments to the carrying value of liabilities to record such liabilities at fair value pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB standards allowing entities to elect fair value option for financial liabilities. Therefore, the amount of liabilities shall be the historical cost basis, which generally is the contractual amount owed adjusted for amortization or accretion of any premium or discount. Notwithstanding anything in this Agreement to the contrary, the financial covenants shall ignore the adoption of ASU 2016-02 such that Capital Leases shall specifically exclude any operating leases under GAAP as in effect on the Facilities Effective Date and upon the adoption of ASU 2016-02.

 

“Gross Book Value” means the undepreciated book value of assets comprising a business, determined in accordance with GAAP.

 

27

 

“Interest Expense” means, for any quarter, the consolidated interest expense, whether paid, accrued or capitalized (without deduction of consolidated interest income) of the Borrower that is attributable to the Borrower’s Pro Rata Share in its Consolidated Businesses in respect of Real Property Businesses, including, without limitation or duplication (or, to the extent not so included, with the addition of), (1) the portion of any rental obligation in respect of any Capital Lease obligation allocable to interest expense in accordance with GAAP; (2) the amortization of Debt discounts and premiums; (3) any payments or fees (other than up-front fees) with respect to interest rate swap or similar agreements; and (4) the interest expense and items listed in clauses (1) through (3) above applicable to each of the UJVs (to the extent not included above) multiplied by the Borrower’s Pro Rata Share in the UJVs in respect of Real Property Businesses, in all cases as reflected in the Borrower’s Consolidated Financial Statements, provided that there shall be excluded from Interest Expense capitalized interest covered by an interest reserve established under a loan facility (such as capitalized construction interest provided for in a construction loan).  “Interest Expense” shall be determined without regard to the effects thereon of ASC 470-20 with respect to the non-cash portion of interest expense attributable to convertible Debt.

 

“Multiemployer Plan” means a Plan defined as such in Section 3(37) of ERISA to which contributions have been or are required to be made by the Borrower or the REIT or any ERISA Affiliate and which is covered by Title IV of ERISA.

 

“Negative Pledge” means, with respect to a given asset, any provision of a document, instrument or agreement (other than any Facilities document) which prohibits or purports to prohibit the creation or assumption of any Lien on such asset as security for Debt of the Person owning such asset or any other Person (unless such prohibition does not apply to Liens securing the Facilities); provided, however, that (i) an agreement that conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets, (ii) an agreement relating to Unsecured Indebtedness containing restrictions substantially similar to, or taken as a whole, not more restrictive than, the restrictions contained in the Facilities documents (as determined by the Borrower in good faith), (iii) Permitted Transfer Restrictions and (iv) Permitted Sale Restrictions, in each case, shall not constitute a Negative Pledge.

 

“Net Equity Value” means, at any time, the total assets of the applicable business less the total liabilities of such business less the amounts attributable to the minority interest in such business, in each case as determined on a consolidated basis, in accordance with GAAP, subject to the last sentence of the definition of Capitalization Value.

 

“Other Investment” means a Consolidated Business or UJV that does not own primarily Real Property Assets or publicly traded securities, including, without limitation, those entities more particularly set forth on a schedule to be attached to the Facilities documents.

 

“PBGC” means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

 

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“Permitted Sale Restrictions” means obligations, encumbrances or restrictions contained in any Real Property Business or Real Property Asset sale agreement restricting the creation of Liens on, or the sale, transfer or other disposition of Equity Interests or property that is subject to, such Real Property Business or Real Property Asset pending such sale; provided that the encumbrances and restrictions apply only to the Subsidiary or assets that are subject to such Real Property Business or Real Property Asset.

 

“Permitted Transfer Restrictions” means (a) reasonable and customary restrictions on transfer, mortgage liens, pledges and changes in beneficial ownership arising under management agreements and ground leases entered into in the ordinary course of business (including in connection with any acquisition or development of any applicable Real Property Asset, without regard to the transaction value), including rights of first offer or refusal arising under such agreements and leases, in each case, that limit, but do not prohibit, sale or mortgage transactions, (b) reasonable and customary obligations, encumbrances or restrictions contained in agreements not constituting Debt entered into with limited partners or members of the Borrower or of any other Subsidiary of the REIT imposing obligations in respect of contingent obligations to make any tax “make whole” or similar payment arising out of the sale or other transfer of assets reasonably related to such limited partners’ or members’ interest in the Borrower or such Subsidiary pursuant to “tax protection” or other similar agreements, and (c) customary major decision rights in favor of partners or co-investors requiring approvals of transfers, mortgage liens, pledges and changes in beneficial ownership in the ordinary course of business.

 

“Plan” means any employee benefit or other plan (other than a Multiemployer Plan) established or maintained, or to which contributions have been or are required to be made, by the Borrower or the REIT or any ERISA Affiliate and which is covered by Title IV of ERISA or to which Section 412 of the Code applies.

 

“Prohibited Transaction” means any transaction set forth in Section 406 of ERISA or Section 4975 of the Code.

 

“Real Property Asset” means an asset from which income is, or upon completion expected by the Borrower to be, derived predominantly from contractual rent payments under leases with unaffiliated third party tenants, hotel operations, tradeshow operations or leasing commissions and management and development fees, and shall include those investments in mortgages and mortgage participations owned by the Borrower as to which the Borrower has demonstrated to the Administrative Agent, in the Administrative Agent’s reasonable discretion, that Borrower has control of the decision-making functions of management and leasing of such mortgaged properties, has control of the economic benefits of such mortgaged properties, and holds the right to acquire such mortgage properties.

 

“Real Property Business” means a Consolidated Business or UJV that primarily is engaged in the ownership, operation, leasing, management or development or investing in a Real Property Asset.

 

“Real Property UJV” means a UJV that is a Real Property Business.

 

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“Recourse” means, with reference to any obligation or liability, any liability or obligation that is not Without Recourse to the obligor thereunder, directly or indirectly.  For purposes hereof, a Person shall not be deemed to be “indirectly” liable for the liabilities or obligations of an obligor solely by reason of the fact that such person has an ownership interest in such obligor, provided that such person is not otherwise legally liable, directly or indirectly, for such obligor’s liabilities or obligations (e.g. by reason of a guaranty or contribution obligation, by operation of law or by reason of such Person being a general partner of such obligor).  A guaranty of Debt issued by the Borrower or the REIT (as distinguished from a Subsidiary) shall be Recourse, but a guaranty for completion of improvements in connection with Debt shall be deemed Without Recourse, unless and except to the extent of a claim made under such guaranty that remains unpaid.

 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty (30) day notice period is waived by the PBGC.

 

“Secured Indebtedness” means, at any time, that portion of Total Outstanding Indebtedness that is not Unsecured Indebtedness.

 

“Total Outstanding Indebtedness” means, at any time, without duplication, the sum of Debt of the Borrower, the Borrower’s Pro Rata Share of Debt in respect of Consolidated Businesses, and any Debt of UJVs to the extent Recourse to the Borrower, as determined on a consolidated basis in accordance with GAAP.

 

“UJVs” means, at any time, (1) investments of the Borrower that are accounted for under the equity method in the Borrower’s Consolidated Financial Statements prepared in accordance with GAAP and (2) investments of the Borrower in which the Borrower owns less than 50% of the equity interests and that are consolidated in the Borrower’s Consolidated Financial Statements prepared in accordance with GAAP.

 

“Unencumbered Assets” means, collectively, assets, reflected in the Borrower’s Consolidated Financial Statements, owned in whole or in part, directly or indirectly, by the Borrower and not subject to any Lien to secure all or any portion of Secured Indebtedness or to any Negative Pledge, and assets of Consolidated Businesses and UJVs which are not subject to any Lien to secure all or any portion of Secured Indebtedness or to any Negative Pledge (in each case, including without limitation, assets subject to a 1031 exchange transaction on terms to be mutually agreed in the Facilities documentation).

 

“Unencumbered Combined EBITDA” means that portion of Combined EBITDA attributable to Unencumbered Assets; provided that Unencumbered Combined EBITDA shall include only general and administrative expenses that are attributable to the management and operation of the Unencumbered Assets in accordance with GAAP and shall not include any corporate general and administrative expenses of the Borrower, the REIT, Consolidated Businesses or UJVs (e.g., salaries of corporate officers).

 

“Unrestricted Cash and Cash Equivalents” means Cash or Cash Equivalents owned by the Borrower, and the Borrower’s Pro Rata Share of any Cash or Cash Equivalents owned by any Consolidated Businesses or UJV, that are not subject to any pledge, lien or control agreement, less amounts placed with third parties as deposits or security for contractual obligations;

 

30

 

provided that Unrestricted Cash and Cash Equivalents shall (a) not exclude Cash and Cash Equivalents subject to customary rights of set-off and statutory or common law provisions relating to bankers’ liens, and (b) include cash and Cash Equivalents representing the proceeds from the sale of an asset (the “Disposed Asset”; it being understood that no Disposed Asset shall constitute a Real Estate Asset from and after the date of such sale), which proceeds have been escrowed for a period not in excess of 180 days in anticipation of the acquisition of a property in connection with a 1031 exchange transaction, net of related tax obligations for the cancellation of such acquisition and transaction costs and expenses related thereto; provided that to the extent the amount of Unrestricted Cash and Cash Equivalents attributable to this clause (b) shall exceed 50% of the aggregate Unrestricted Cash and Cash Equivalents, such excess shall be excluded.

 

“Unsecured Indebtedness” means, at any time, Total Outstanding Indebtedness that is not secured by a lien on assets of the Borrower, a Consolidated Business or a UJV, as the case may be.

 

“Unsecured Interest Expense” means, for any quarter, the Borrower’s Pro Rata Share of Interest Expense attributable to Total Outstanding Indebtedness constituting Unsecured Indebtedness.

 

“Without Recourse” means, with reference to any obligation or liability, any obligation or liability for which the obligor thereunder is not liable or obligated other than as to its interest in a designated asset or assets only, subject to such exceptions to the non-recourse nature of such obligation or liability (such as, but not limited to, fraud, misappropriation, misapplication and environmental indemnities), as are usual and customary in like transactions involving institutional lenders at the time of the incurrence of such obligation or liability, and including any guaranty  for completion of improvements in connection with Debt, unless and except to the extent of a claim made under such guaranty that remains unpaid.

 

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EXHIBIT A

 

CERTAIN FEES

 

	
Revolving Credit
    	
 
    	
 
    
	
Facility Fee:
    	
 
    	
The Borrower shall   pay the Revolving Credit Lenders a facility fee (determined on a daily basis)   equal to the commitment under the Revolving Credit Facility (whether or not   utilized) times a corresponding per annum rate equal to (a) prior   to the Investment Grade Election, the corresponding Facility Fee as set forth   in the “Pricing Grid — Leverage” and (b) from and after the Investment   Grade Election, the corresponding Facility Fee as set forth in the “Pricing   Grid — Ratings”. Such fee shall be payable quarterly in arrears.
    
	
 
    	
 
    	
 
    
	
Term Loan   Facilities
    	
 
    	
 
    
	
Unused Fee:
    	
 
    	
The Borrower shall   pay the Term Loan Lenders an unused fee (determined on a daily basis) equal   to the unused commitments under the Term Loan Facilities times 0.15%   per annum, such fee commencing to accrue on the 91st day following the   Facilities Effective Date. Such fee shall be payable quarterly in arrears.
    
	
 
    	
 
    	
 
    
	
Prepayment Fee:
    	
 
    	
To the extent the   Borrower voluntarily makes a prepayment of principal on any Tranche A-2 Term   Loan prior to the second anniversary of the Facilities Effective Date, the   Borrower shall pay to the Administrative Agent, for the ratable account of   the Lenders under the Tranche A-2 Term Loan Facility, a prepayment fee equal   to (x) if such prepayment occurs prior to the first anniversary of the   Facilities Effective Date, 2.00% of the principal amount so prepaid, and   (y) if such prepayment occurs on or after the first anniversary of the   Facilities Effective Date but prior to the second anniversary of the   Facilities Effective Date, 1.00% of the principal amount so prepaid. Such fee   shall be due and payable on the date of any such voluntary prepayment. Loans   under the Revolving Credit Facility and Tranche A-1 Term Loans may be prepaid   in full or in part without premium or penalty at any time during the term of   such Facilities.
    
	
 
    	
 
    	
 
    
	
Calculations:
    	
 
    	
Accrued interest   and fees shall be computed on the basis of a year of 360 days and the actual   number of days elapsed, except that interest on Base Rate Loans shall be   computed on the basis of a year of 365 or 366 days, as applicable, and the   actual number of days elapsed.Exhibit 10.1

 

 

[FORM OF AMENDMENT NO. 2 TO SENIOR SECURED
REVOLVING CREDIT AGREEMENT]

 

AMENDMENT NO. 2 TO

SENIOR SECURED REVOLVING CREDIT AGREEMENT

 

This AMENDMENT NO. 2 (this
“Amendment”) dated as of June 16, 2017, is made with respect to the Senior Secured Revolving Credit Agreement,
dated as of October 17, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among CAPITALA FINANCE CORP., a Maryland corporation (the “Borrower”), the several banks
and other financial institutions or entities from time to time party to the Credit Agreement as lenders (the “Lenders”)
and ING CAPITAL LLC (“ING”), as administrative agent for the Lenders under the Credit Agreement (in such capacity,
together with its successors in such capacity, the “Administrative Agent”). Capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Credit Agreement (as amended hereby).

 

WITNESSETH:

 

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

 

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

 

WHEREAS, the Borrower wishes
to prepay in full the pro rata portion of the Loans and other obligations owing to certain lenders under the Credit Agreement
identified in writing by the Administrative Agent to the Borrower (each an “Exiting Lender”) with a corresponding
termination of each such Exiting Lender’s Commitment (the “Prepayment”); and

 

WHEREAS, concurrently with
the Prepayment, each person identified as an “Increasing Lender” on the signature pages hereto (each an “Increasing
Lender”) wishes to increase the aggregate amount of their commitments under the Credit Agreement.

 

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

 

SECTION I AMENDMENTS TO CREDIT AGREEMENT

 

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

 

(a) The Credit
Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example:
stricken text or stricken text) and to add the double-underlined
text (indicated textually in the same manner as the following example: doubled-underlined
text or double-underlined text) as set
forth in the Credit Agreement attached hereto as Annex A.

 

     

     

    

 

(b)
Schedules 1.01(b), 3.11(a), 3.11(b), 3.12(a), 3.12(b) and 6.08 to the Credit Agreement are hereby amended to read as provided
on Schedules 1.01(b) 3.11(a), 3.11(b), 3.12(a), 3.12(b) and 6.08 attached hereto.

 

(c)
Exhibits B and C to the Credit Agreement are hereby amended to read as provided on Exhibits B and C attached hereto.

 

SECTION II MISCELLANEOUS

 

2.1.         Conditions
to Effectiveness of Amendment. This Amendment shall become effective as of the date (such date, the “Effective Date”)
on which each of the following conditions precedent have been satisfied (unless a condition shall have been waived in accordance
with Section 9.02 of the Credit Agreement):

 

(a) Documents.
The Administrative Agent shall have received each of the following documents, each of which shall be reasonably satisfactory to
the Administrative Agent (and to the extent specified below to each Lender) in form and substance:

 

(1) Executed
Counterparts. From each of the Lenders, the Administrative Agent and the Borrower, either (1) a counterpart of this Amendment
signed on behalf of such party or (2) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission
or electronic mail of a signed signature page to this Amendment) that such party has signed a counterpart of this Amendment.

 

(2) Amendment
No. 1 to Guarantee, Pledge and Security Agreement. The Amendment No. 1 to Guarantee, Pledge and Security Agreement, dated as
of the date hereof (the “Amendment No. 1 to GPSA”), with respect to the Guarantee and Security Agreement, duly
executed and delivered by each of the parties thereto.

 

(3) Opinion
of Counsel to the Borrower. A favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of Mayer Brown LLP, counsel for the Obligors, and Sutherland Asbill & Brennan LLP, Maryland counsel for the
Borrower, in each case, in form and substance reasonably acceptable to the Administrative Agent and covering such matters as the
Administrative Agent may reasonably request (and the Borrower hereby instructs such counsel to deliver such opinions to the Lenders
and the Administrative Agent).

 

(4) Officer’s
Certificate. A certificate, dated the Effective Date and signed by a Financial Officer of the Borrower, confirming compliance
with the conditions set forth in Sections 2.1(b) and (c) of this Amendment.

 

     

     

    

 

(5) Corporate
Documents. A certificate of the Chief Financial Officer, secretary or assistant secretary of each Obligor, dated the Effective
Date, certifying that attached thereto are (1) true, correct and complete copies of the organizational documents of each Obligor
certified as of a recent date by the appropriate governmental official, (2) signature and incumbency certificates of the officers
of such Person executing the Amendment and the other Loan Documents to which it is a party, (3) true, correct and complete resolutions
of the Board of Directors of each Obligor approving and authorizing the execution, delivery and performance of this Amendment and
the other Loan Documents to which it is a party or by which it or its assets may be bound as of the Effective Date and, in the
case of the Borrower, authorizing the borrowings under the Credit Agreement, and that such resolutions are in full force and effect
without modification or amendment and (4) a good standing certificate from the applicable Governmental Authority of each Obligor’s
jurisdiction of incorporation, organization or formation and in each jurisdiction in which it is qualified as a foreign corporation
or other entity to do business, each dated a recent date prior to the Effective Date.

 

(6) Fee
Letter. The fee letter, dated as of the date hereof, by and between the Borrower and ING, duly executed and delivered by each
of the parties thereto.

 

(b) Default.
No Default or Event of Default shall have occurred and be continuing immediately before and after giving effect to this
Amendment.

 

(c) Financial
Covenants. The Borrower is in pro forma compliance with each of the covenants set forth in Sections 6.07(a), (b), (d) and
(e) of the Credit Agreement (as amended hereby) at the time of the Effective Date.

 

(d) Liens.
The Administrative Agent shall have received results of a recent lien search in each relevant jurisdiction with respect to
the Obligors, confirming the priority of the Liens in favor of the Collateral Agent created pursuant to the Security
Documents and revealing no liens on any of the assets of the Borrower or its Subsidiaries except for Liens permitted under
Section 6.02 of the Credit Agreement or Liens to be discharged on or prior to the Effective Date pursuant to documentation
satisfactory to the Administrative Agent.

 

(e) Consents.
The Borrower shall have obtained and delivered to the Administrative Agent certified copies of all consents, approvals,
authorizations, registrations, or filings required to be made or obtained by the Borrower and all guarantors in connection
with this Amendment, such consents, approvals, authorizations, registrations, filings and orders shall be in full force and
effect and all applicable waiting periods shall have expired and no investigation or inquiry by any Governmental Authority
regarding this Amendment or any transaction being financed with the proceeds of the Loans shall be ongoing.

 

(f) Solvency
Certificate. On the Effective Date, the Administrative Agent shall have received a solvency certificate (which
certificate may be combined with the certificate set forth in Section 2.1(a)(4)) of a Financial Officer of the
Borrower dated as of the Effective Date and addressed to the Administrative Agent and the Lenders, and in form, scope and
substance reasonably satisfactory to Administrative Agent, with appropriate attachments and demonstrating that both before
and after giving effect to this Amendment and the Transactions, (a) the Borrower will be Solvent on an unconsolidated basis
and (b) each Obligor will be Solvent on a consolidated basis with the other Obligors.

 

     

     

    

 

(g)          Fees,
Expenses and Interest. The Borrower shall have paid in full to the Administrative Agent and the Lenders all fees, expenses
and interest owing related to this Amendment and the Credit Agreement owing on the Effective Date, including any up-front fee due
to any Lender on the Effective Date.

 

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

 

(a)  This
Amendment has been duly authorized, executed and delivered by the Borrower, and constitutes a legal, valid and binding obligation
of the Borrower enforceable in accordance with its terms. The Credit Agreement, as amended by this Amendment, constitutes the legal,
valid and binding obligation of the Borrower enforceable in accordance with its respective terms.

 

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

 

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

 

2.4.         Payment
of Expenses. The Borrower agrees to pay and reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket
costs and expenses incurred in connection with this Amendment, including, without limitation, the reasonable fees, charges and
disbursements of legal counsel to the Administrative Agent (but excluding, for the avoidance of doubt, the allocated costs of internal
counsel).

 

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

 

2.6.         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

     

     

    

 

2.7.         Incorporation
of Certain Provisions. The provisions of Sections 9.01, 9.07, 9.09 and 9.12 of the Credit Agreement are hereby incorporated
by reference mutatis mutandis as if fully set forth herein.

 

2.8.         Effect
of Amendment. This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Credit
Agreement, the Guarantee and Security Agreement or any other Loan Document or an accord and satisfaction in regard thereto. Except
as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise
affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent or the Borrower under the Credit
Agreement or any other Loan Document, and, except as expressly set forth herein, shall not alter, modify, amend or in any way affect
any of the other terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document,
all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed
to entitle any Person to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. This
Amendment shall apply and be effective only with respect to the provisions amended herein of the Credit Agreement. Upon the effectiveness
of this Amendment, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,”
“herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended by this Amendment
and each reference in any other Loan Document shall mean the Credit Agreement as amended hereby. This Amendment shall constitute
a Loan Document.

 

2.9.         Consent
and Affirmation.

 

(a)  Without
limiting the generality of the foregoing, by its execution hereof, the Borrower hereby to the extent applicable as of the Effective
Date (i) consents to this Amendment and the transactions contemplated hereby (including the Prepayment to each Exiting Lender as
described in Section 2.10 and each Increasing Lender increasing its Commitment under the Credit Agreement as described in Section
2.12), (ii) agrees that the Guarantee and Security Agreement and each of the other Security Documents is in full force and effect,
(iii) affirms its obligations under the Guarantee and Security Agreement and confirms its grant of a security interest in its assets
as Collateral for the Secured Obligations (as defined in the Guarantee and Security Agreement), and (iv) acknowledges and affirms
that such grant is in full force and effect in respect of, and to secure, the Secured Obligations (as defined in the Guarantee
and Security Agreement).

 

(b)  Without
limiting the generality of the foregoing, by its execution hereof, each Lender hereby consents to the Amendment No. 1 to GPSA and
to the non-pro-rata commitment reductions and/or payments provided for herein notwithstanding Section 2.15 of the Credit Agreement.

 

     

     

    

 

2.10.       Prepayment
of Exiting Lenders. On the Effective Date, (i) the Commitment of each Exiting Lender shall be terminated and (ii) the Borrower
shall prepay to each Exiting Lender such Exiting Lender’s pro rata portion of the Loans, including (A) all accrued
but unpaid commitment fees relating to such Loans as of such date, (B) all accrued but unpaid interest relating to such Loans as
of such date (in each case, calculated at the rate set forth in the Credit Agreement without giving effect to this Amendment),
and (C) all other amounts, if any, payable under Section 2.13 of the Credit Agreement (without giving effect to this Amendment)
as a result of, and solely in connection with, the Prepayment. Upon the receipt of the Prepayment, each Exiting Lender shall cease
to be a “Lender” under the Credit Agreement, but shall continue to be entitled to the benefits of Sections 2.12, 2.13,
2.14 and 9.03 of the Credit Agreement (without giving effect to this Amendment) with respect to facts and circumstances occurring
prior to the Effective Date.

 

2.11.       Reallocation
of Loans. On the Effective Date, immediately following or substantially contemporaneously with the Prepayment described in
Section 2.10 hereof, the Borrower shall (A) prepay the Loans (if any) that are outstanding immediately prior to the Effective
Date in full (other than any Loans that have already been prepaid pursuant to Section 2.10) and (B) simultaneously borrow
new Loans under the Credit Agreement in an amount equal to such prepayment; provided that with respect to subclauses (A) and (B),
(x) the prepayment to, and borrowing from, any Lender may, at the discretion of the Administrative Agent, be effected by book entry
to the extent that any portion of the amount prepaid to such Lender will be subsequently borrowed from such Lender and (y) the
Lenders shall make and receive payments among themselves, as administered by and in a manner acceptable to the Administrative Agent,
so that, after giving effect thereto, the Loans are held ratably by the Lenders in accordance with the respective Commitments of
such Lenders (as set forth in Schedule 1.01(b) of the Credit Agreement). Each of the Lenders agrees to waive repayment of the amounts,
if any, payable under Section 2.13 of the Credit Agreement as a result of, and solely in connection with, any such prepayment.
Concurrently therewith, the Lenders shall be deemed to have adjusted their participation interests in any outstanding Letters of
Credit so that such interests are held ratably in accordance with their commitments as so revised.

 

2.12.       Increasing
Lenders. On the Effective Date, substantially contemporaneously with the reallocation described in Section 2.11, each Increasing
Lender shall make a payment to the Administrative Agent, for the account of the other Lenders, in an amount calculated by the Administrative
Agent in accordance with such section, so that after giving effect to such payment and to the distribution thereof to other Lenders,
the Loans are held ratably by the Lenders in accordance with Schedule 1.01(b). For the avoidance of doubt, no Lender is required
to become an Increasing Lender.

 

2.13.       Post-Closing
Condition. Not later than the date that is five (5) Business Days after the date hereof, the Administrative Agent shall have
received an updated certificate from the Borrower’s insurance broker or other evidence satisfactory to it that all insurance
required to be maintained pursuant to the Loan Documents is in full force and effect, and, to the extent applicable, together with
endorsements thereto, naming the Collateral Agent on behalf of the Secured Parties as additional insured or lender’s loss
payee, as applicable, in each case, in form and substance reasonably satisfactory to the Collateral Agent.

 

     

     

    

 

2.14.       Release.
The Borrower hereby acknowledges and agrees that: (a) neither it nor any of its Affiliates has any claim or cause of action against
the Administrative Agent, the Collateral Agent or any Lender (or any of their respective Affiliates, officers, directors, employees,
attorneys, consultants or agents) under the Credit Agreement and the other Loan Documents (and each other document entered into
in connection therewith) and the transactions contemplated thereby, and (b) the Administrative Agent, the Collateral Agent and
each Lender has heretofore properly performed and satisfied in a timely manner all of its obligations to the Obligors and their
Affiliates under the Credit Agreement and the other Loan Documents (and each other document entered into in connection therewith)
that are required to have been performed on or prior to the date hereof. Accordingly, for and in consideration of the agreements
contained in this Amendment and other good and valuable consideration, the Borrower (for itself and its Affiliates and the successors,
assigns, heirs and representatives of each of the foregoing) (collectively, the “Releasors”) does hereby fully,
finally, unconditionally and irrevocably release and forever discharge the Administrative Agent, the Collateral Agent, each Lender
and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “Released
Parties”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities,
actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and
of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor
has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing
whatsoever done or omitted to be done on or prior to the date hereof directly arising out of, connected with or related to this
Amendment, the Credit Agreement or any other Loan Document (or any other document entered into in connection therewith), or any
act, event or transaction related or attendant thereto, or the agreements of the Administrative Agent, the Collateral Agent or
any Lender contained therein, or the possession, use, operation or control of any of the assets of the Borrower, or the making
of any Loans or other advances, or the management of such Loans or advances or the Collateral.

 

[Signature pages follow]

 

     

     

    

 

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

 

	 	CAPITALA FINANCE CORP.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	ING CAPITAL LLC,
	 	as Administrative Agent and a Lender
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	FIFTH THIRD BANK,
	 	as an Exiting Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	BANK OF NORTH CAROLINA, 
	 	as a Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	FIRST NATIONAL BANK OF PENNSYLVANIA,
	 	as an Increasing Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	PARK STERLING BANK, 
	 	as an Increasing Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	CAPITAL BANK CORPORATION, 
	 	as a Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	EVERBANK COMMERCIAL FINANCE, INC., 
	 	as a Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	 	FIRST BANK, 
	 	as a Lender
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

 

 

SENIOR SECURED

REVOLVING CREDIT AGREEMENT

 

dated as of

 

October 17, 2014

 

and

 

as
amended by Amendment No. 1 to Senior Secured Revolving Credit Agreement dated as of May 22, 2015 and as amended by Amendment No.
2 to Senior Secured Revolving Credit Agreement dated as of June 16, 2017

 

among

 

CAPITALA FINANCE CORP.

as Borrower

 

The LENDERS Party Hereto

 

and

 

ING CAPITAL LLC

as Administrative Agent,

Arranger and Bookrunner

 

 

 

FIRST
NATIONAL BANK OF PENNSYLVANIA,

as
Documentation Agent

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I           DEFINITIONS 1	 
	SECTION 1.01.	Defined Terms	1
	SECTION 1.02.	Classification of Loans and Borrowings	3233
	SECTION 1.03.	Terms Generally	3233
	SECTION 1.04.	Accounting Terms	3234
	ARTICLE II           THE CREDITS 34	 
	SECTION 2.01.	The Commitments	3334
	SECTION 2.02.	Loans and Borrowings 33.	34
	SECTION 2.03.	Requests for Borrowings 33.	35
	SECTION 2.04.	Funding of Borrowings 34.	36
	SECTION 2.05.	Interest Elections 35.	36
	SECTION 2.06.	Termination, Reduction or Increase of the Commitments 36.	38
	SECTION 2.07.	Repayment of Loans; Evidence of Debt 39.	41
	SECTION 2.08.	Prepayment of Loans 40.	42
	SECTION 2.09.	Fees 43.	44
	SECTION 2.10.	Interest 43.	45
	SECTION 2.11.	Eurocurrency Borrowing Provisions	4446
	SECTION 2.12.	Increased Costs 45.	47
	SECTION 2.13.	Break Funding Payments	4648
	SECTION 2.14.	Taxes 47.	49
	SECTION 2.15.	Payments Generally; Pro Rata Treatment: Sharing of Set-offs 51.	53
	SECTION 2.16.	Defaulting Lenders 53.	55
	SECTION 2.17.	Mitigation Obligations; Replacement of Lenders 54.	56
	ARTICLE III           REPRESENTATIONS AND WARRANTIES 57	 
	SECTION 3.01.	Organization; Powers	5557
	SECTION 3.02.	Authorization; Enforceability	5557
	SECTION 3.03.	Governmental Approvals; No Conflicts	5557
	SECTION 3.04.	Financial Condition; No Material Adverse Effect 56.	58
	SECTION 3.05.	Litigation	5658

 

    	-i-

     

    

 

TABLE
OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	SECTION 3.06.	Compliance with Laws and Agreements	5658
	SECTION 3.07.	Taxes	5759
	SECTION 3.08.	ERISA	5759
	SECTION 3.09.	Disclosure	5860
	SECTION 3.10.	Investment Company Act; Margin Regulations 58.	60
	SECTION 3.11.	Material Agreements and Liens 59.	61
	SECTION 3.12.	Subsidiaries and Investments 59.	61
	SECTION 3.13.	Properties 60.	62
	SECTION 3.14.	Solvency	6062
	SECTION 3.15.	Affiliate Agreements	6062
	SECTION 3.16.	No Default	6062
	SECTION 3.17.	Use of Proceeds	6062
	SECTION 3.18.	Security Documents	6062
	SECTION 3.19.	Compliance with Sanctions	6163
	SECTION 3.20.	Anti-Money Laundering Program	6163
	SECTION 3.21.	Structured Subsidiaries	6163
	SECTION 3.22.	Anti-Corruption Laws	6163
	SECTION 3.23.	Status as Senior Debt; Subordinated Debt	6264
	SECTION 3.24.	EEA Financial Institutions	64
	ARTICLE IV           CONDITIONS 64	 
	SECTION 4.01.	Effective Date	6264
	SECTION 4.02.	Conditions to Each Credit Event	6567
	ARTICLE V           AFFIRMATIVE COVENANTS 68	 
	SECTION 5.01.	Financial Statements and Other Information	6668
	SECTION 5.02.	Notices of Material Events	6971
	SECTION 5.03.	Existence; Conduct of Business	7072
	SECTION 5.04.	Payment of Obligations	7072
	SECTION 5.05.	Maintenance of Properties; Insurance	7072
	SECTION 5.06.	Books and Records; Inspection and Audit Rights 70.	72
	SECTION 5.07.	Compliance with Laws and Agreements	7173

 

    	-ii-

     

    

 

TABLE
OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	SECTION 5.08.	Certain Obligations Respecting Subsidiaries; Further Assurances 71.	74
	SECTION 5.09.	Use of Proceeds	7477
	SECTION 5.10.	Status of RIC and BDC	7577
	SECTION 5.11.	Investment Policies	7577
	SECTION 5.12.	Portfolio Valuation and Diversification Etc	7577
	SECTION 5.13.	Calculation of Borrowing Base	8183
	SECTION 5.14.	Taxes	9193
	ARTICLE VI           NEGATIVE COVENANTS 94	 
	SECTION 6.01.	Indebtedness	9194
	SECTION 6.02.	Liens	9395
	SECTION 6.03.	Fundamental Changes	9396
	SECTION 6.04.	Investments	9598
	SECTION 6.05.	Restricted Payments	9699
	SECTION 6.06.	Certain Restrictions on Subsidiaries	97100
	SECTION 6.07.	Certain Financial Covenants 97.	100
	SECTION 6.08.	Transactions with Affiliates	98101
	SECTION 6.09.	Lines of Business	98102
	SECTION 6.10.	No Further Negative Pledge	98102
	SECTION 6.11.	Modifications of Indebtedness and Affiliate Agreements	99102
	SECTION 6.12.	Payments of Longer-Term Indebtedness	99103
	SECTION 6.13.	Modification of Investment Policies	100103
	SECTION 6.14.	SBIC Guarantee	100103
	SECTION 6.15.	Derivative Transactions	100103
	SECTION 6.16.	Status as Senior Debt; Designation of Other Indebtedness	100103
	SECTION 6.17.	Convertible Indebtedness	101104
	ARTICLE VII           EVENTS OF DEFAULT 104	 
	ARTICLE VIII           THE ADMINISTRATIVE AGENT 107	 
	SECTION 8.01.	Appointment of the Administrative Agent	104107
	SECTION 8.02.	Capacity as Lender	105107

 

    	-iii-

     

    

 

TABLE
OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	SECTION 8.03.	Limitation of Duties; Exculpation	105108
	SECTION 8.04.	Reliance	105108
	SECTION 8.05.	Sub-Agents	106108
	SECTION 8.06.	Resignation; Successor Administrative Agent	106109
	SECTION 8.07.	Reliance by Lenders	106109
	SECTION 8.08.	Modifications to Loan Documents	106109
	ARTICLE IX           MISCELLANEOUS 110	 
	SECTION 9.01.	Notices; Electronic Communications 107.	110
	SECTION 9.02.	Waivers; Amendments 109.	112
	SECTION 9.03.	Expenses; Indemnity; Damage Waiver 111.	114
	SECTION 9.04.	Successors and Assigns 113.	116
	SECTION 9.05.	Survival	118120
	SECTION 9.06.	Counterparts; Integration; Effectiveness; Electronic Execution 118.	121
	SECTION 9.07.	Severability	119121
	SECTION 9.08.	Right of Setoff	119121
	SECTION 9.09.	Governing Law; Jurisdiction; Etc 119.	122
	SECTION 9.10.	WAIVER OF JURY TRIAL	120122
	SECTION 9.11.	Judgment Currency	120123
	SECTION 9.12.	Headings	120123
	SECTION 9.13.	Treatment of Certain Information; Confidentiality 121.	123
	SECTION 9.14.	USA PATRIOT Act	122124
	SECTION 9.15.	Termination	122125
	SECTION 9.16.	Acknowledgment and Consent to Bail-In of EEA Financial Institutions	125
	SECTION 9.17.	Interest Rate Limitation	125

 

    	-iv-

     

    

 

TABLE
OF CONTENTS

(continued)

 

Page

 

	SCHEDULE 1.01(a)	-	Approved Dealers and Approved Pricing Services
	SCHEDULE 1.01(b)	-	Commitments
	SCHEDULE 1.01(c)	-	[Intentionally omitted]
	SCHEDULE 1.01(d)	-	Eligibility Criteria
	SCHEDULE 3.11(a)	-	Material Agreements
	SCHEDULE 3.11(b)	-	Liens
	SCHEDULE 3.12(a)	-	Subsidiaries
	SCHEDULE 3.12(b)	-	Investments
	SCHEDULE 6.08	-	Certain Affiliate Transactions

 

	EXHIBIT A	-	Form of Assignment and Assumption
	EXHIBIT B	-	Form of Borrowing Base Certificate
	EXHIBIT C	-	Form of Promissory Note
	EXHIBIT D	-	Form of Borrowing Request

 

    	-v-

     

    

 

SENIOR SECURED REVOLVING
CREDIT AGREEMENT dated as of October 17, 2014 (this “Agreement”), among CAPITALA FINANCE CORP., a Maryland corporation
(the “Borrower”), the LENDERS party hereto, and ING CAPITAL LLC, as Administrative Agent.

 

WHEREAS, the Borrower has
requested that the Lenders (as defined herein) extend credit to the Borrower from time to time pursuant to the commitments as set
forth herein and the Lenders have agreed to extend such credit upon the terms and conditions hereof.

 

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

 

ARTICLE
I

 

DEFINITIONS

 

SECTION 1.01. Defined
Terms. As used in this Agreement, the following terms have the meanings specified
below and the terms defined in Section 5.13 have the meanings assigned thereto in such section:

 

“2021
Notes” means the Borrower’s 7.125% Unsecured Notes due June 16, 2021 in an aggregate principal amount of approximately
$113,400,000 (without giving effect to any amendment, modification or increase thereto, any refinancing or replacement thereof
or any additional or supplemental issuance thereunder).

 

“ABR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.

 

“Adjusted Borrowing
Base” means the Borrowing Base minus the aggregate amount of Cash and Cash Equivalents included in the Borrowing
Base.

 

“Adjusted Covered
Debt Balance” means, on any date, the aggregate Covered Debt Amount on such date minus the aggregate amount of
Cash and Cash Equivalents included in the Borrowing Base.

 

“Adjusted LIBO Rate”
means, for the Interest Period for any Eurocurrency Borrowing, an interest rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greater of (i) (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory
Reserve Rate for such Interest Period and (ii) zero.

 

“Administrative
Agent” means ING, in its capacity as administrative agent for the Lenders hereunder.

 

“Administrative
Agent’s Account” means an account designated by the Administrative Agent in a notice to the Borrower and the Lenders.

 

    	1

     

    

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Advance Rate”
has the meaning assigned to such term in Section 5.13.

 

“Affiliate”
means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified. Anything herein to the contrary notwithstanding, the
term “Affiliate” of an Obligor shall not include any Person that constitutes an Investment held by any Obligor in the
ordinary course of business.

 

“Affiliate Agreements”
means, collectively, (a) the Investment Advisory Agreement, dated as of September 24, 2013, by and between the Borrower and the
Investment Advisor, and (b) the Administration Agreement, dated as of September 24, 2013, by and between the Borrower and Capitala
Advisors Corp., a North Carolina Corporation.

 

“Affiliate Investment”
means any Investment in a Person in which the Borrower or any of its Subsidiaries owns or controls more than 25% of the Equity
Interests.

 

“Agency Account”
has the meaning assigned to such term in Section 5.08(c)(v).

 

“Agreement”
has the meaning assigned to such term in the preamble of this Agreement.

 

“Alternate Base
Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the
Federal Funds Effective Rate for such day plus 1/2 of 1% and,
(c) the LIBO Rate for deposits in U.S. dollarsDollars
for a period of three (3) months plus 1% and (d) zero.
Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or such LIBO Rate shall
be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate, or such
LIBO Rate, as the case may be.

 

“Anti-Corruption
Laws” has the meaning assigned to such term in Section 3.22.

 

“Applicable Commitment
Fee Rate” means, with respect to any day during the period commencing on the Effective Date and ending on the earlier
of the date the Commitments are terminated and the Revolver Termination Date, a rate per annum equal to:

 

(x) as of the close of business on each day
when utilization is less than the Minimum Utilization Amount, the commitment fee accrued for such day shall be the sum obtained
by adding:

 

(a) 2.50% per annum on the difference
obtained by subtracting:

 

(i) the aggregate outstanding principal
balance of the Loans

 

from 

 

(ii) the Minimum Utilization Amount

 

    	2

     

    

 

plus 

 

(b) 0.50% per annum on the difference
obtained by subtracting:

 

(i) the Minimum Utilization Amount,

 

from

 

(ii) the aggregate Commitments of the
Lenders

 

and 

 

(y) as of the close of business on each day
when utilization is greater than or equal to the Minimum Utilization Amount, the commitment fee accrued for such day shall be 0.50%
per annum on the unutilized portion of the Commitments.

 

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

 

“Applicable Margin”
means, (a) with respect to any ABR Loan, 2.00% per annum; and (b) with respect
to any Eurocurrency Loan, 3.00% per annum, provided that at any time
Obligors’ Net Worth is greater than $175,000,000 (as evidenced by a certificate delivered by a Financial Officer of the Borrower
pursuant to Section 5.01(c)), “Applicable Margin” shall mean (x) with respect to any ABR Loan, 1.75% per annum and
(y) with respect to any Eurocurrency Loan, 2.75% per annum. Any change in the Applicable Margin shall become effective two (2)
Business Days after delivery of such required certificate and shall remain in effect until the date that is two (2) Business Days
after the next certificate is required to be delivered pursuant to Section 5.01(c). At such time, (A) if the certificate delivered
by such Financial Officer evidences that Obligors’ Net Worth is equal to or greater than $175,000,000, then “Applicable
Margin” shall take the meaning set forth in clauses (x) and (y) of this definition, and (B) if the certificate delivered
by such Financial Officer evidences that Obligors’ Net Worth is less than $175,000,000, then “Applicable Margin”
shall take the meaning set forth in clauses (a) and (b) of this definition.

 

“Applicable Percentage”
means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitments. If the
Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently
in effect, giving effect to any assignments pursuant to Section 9.04(b).

 

“Approved Dealer”
means (a) in the case of any Eligible Portfolio Investment that is not a U.S. Government Security, a bank or a broker-dealer registered
under the Securities Exchange Act of 1934 of nationally recognized standing or an Affiliate thereof as set forth on Schedule
1.01(a), (b) in the case of a U.S. Government Security, any primary dealer in U.S. Government Securities as set forth on Schedule
1.01(a), or (c) any other bank or broker-dealer acceptable to the Administrative Agent in its reasonable determination.

 

    	3

     

    

 

“Approved Pricing
Service” means (a) a pricing or quotation service as set forth in Schedule 1.01(a) or (b) any other pricing or
quotation service (i) approved by the Board of Directors of the Borrower, (ii) designated in writing by the Borrower to the Administrative
Agent (which designation shall be accompanied by a copy of a resolution of the Board of Directors of the Borrower that such pricing
or quotation service has been approved by the Borrower), and (iii) acceptable to the Administrative Agent in its reasonable determination.

 

“Approved Third-Party
Appraiser” means any Independent nationally recognized third-party appraisal firm (a) designated by the Borrower in writing
to the Administrative Agent (which designation shall be accompanied by a copy of a resolution of the Board of Directors of the
Borrower that such firm has been approved by the Borrower for purposes of assisting the Board of Directors of the Borrower in making
valuations of portfolio assets to determine the Borrower’s compliance with the applicable provisions of the Investment Company
Act) and (b) acceptable to the Administrative Agent, provided that, in each case to the extent such Approved Third-Party
Appraiser requests or requires a non-reliance letter, confidentiality agreement or similar agreement prior to allowing the Administrative
Agent to review the written valuation report of the Approved Third-Party Appraiser referred to in the first sentence of Section
5.12(b)(ii)(B)(y), such Administrative Agent and such Approved Third-Party Appraiser shall have entered into a letter or agreement
on customary and reasonable terms. Subject to the foregoing, it is understood and agreed that Houlihan Lokey, Duff & Phelps
LLC, Murray, Devine and Company, Lincoln Partners Advisors, LLC, Valuation Research Corporation and McGladrey LLP are acceptable
to the Administrative Agent solely to the extent they are not serving as the Independent Valuation Provider.

 

“Asset Coverage
Ratio” means, on a consolidated basis for Borrower and its Subsidiaries, the ratio which the value of total assets, less
all liabilities and indebtedness not represented by Senior Securities, bears to the aggregate amount of Senior Securities representing
indebtedness of the Borrower and its Subsidiaries (all as determined pursuant to the Investment Company Act and any orders of the
SEC issued to the Borrower thereunder). For clarity, the calculation of the Asset Coverage Ratio shall be made in accordance with
any exemptive order issued by the Securities and Exchange CommissionSEC
under Section 6(c) of the Investment Company Act relating to the exclusion of any Indebtedness of any SBIC Subsidiary from the
definition of Senior Securities only so long as (a) such order is in effect, and (b) no obligations have become due and owing pursuant
to the terms of any Permitted SBIC Guarantee. For the avoidance of doubt, the outstanding utilized notional amount of any Total
Return Swap less all of the cash collateral supporting such Total Return Swap at such time shall be treated as a Senior Security
for the purposes of calculating the Asset Coverage Ratio.

 

“Asset Sale”
means a sale, lease or sub leasesublease
(as lessor or sublessor), sale and leaseback, assignment, conveyance, transfer or other disposition to, or any exchange of property
with, any Person, in one transaction or a series of transactions, of all or any part of any Obligor’s assets or properties
of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired; provided,
however, the term “Asset Sale” as used in this Agreement shall not include the disposition of Portfolio Investments
originated by an Obligor and promptly transferred to a Financing Subsidiary pursuant to the terms of Section 6.03(e) or
(f) hereof.

 

“Assignment and
Assumption” means an Assignment and Assumption entered into by a Lender and an assignee (with the consent of any party
whose consent is required by Section 9.04(b)), and accepted by the Administrative Agent, in the form of Exhibit A
or any other form approved by the Administrative Agent.

 

    	4

     

    

 

“Assuming Lender”
has the meaning assigned to such term in Section 2.06(f).

 

“Availability Period”
means the period from and including the Effective Date to but excluding the earlier of the Revolver Termination Date and the date
of termination of the Commitments in accordance with this Agreement.

 

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

 

“Bail-In
Legislation” means, 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 for such EEA Member Country from time to time which is
described in the EU Bail-In Legislation Schedule.

 

“Bank
Loan” has the meaning assigned to such term in Section 5.13.

 

“Board”
means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Board of Directors”
means, with respect to any person, (a) in the case of any corporation, the board of directors of such person, (b) in the case of
any limited liability company, the board of managers of such person, or if there is none, the Board of Directors of the managing
member of such Person, (c) in the case of any partnership, the Board of Directors of the general partner of such person and (d)
in any other case, the functional equivalent of the foregoing.

 

“Borrower”
has the meaning assigned to such term in the preamble to this Agreement.

 

“Borrowing”
means Loans of the same Type made, converted or continued on the same date and, in the case of Eurocurrency Loans, that have the
same Interest Period.

 

“Borrowing Base”
has the meaning assigned to such term in Section 5.13.

 

“Borrowing Base
Certificate” means a certificate of a Financial Officer of the Borrower, substantially in the form of Exhibit B
and appropriately completed.

 

“Borrowing Base
Deficiency” means, at any date on which the same is determined, the amount, if any, that (a) the aggregate Covered Debt
Amount as of such date exceeds (b) the Borrowing Base as of such date.

 

“Borrowing Request”
means a request by the Borrower for a Borrowing in accordance with Section 2.03, substantially in the form of Exhibit
D hereto or such other form as is reasonably acceptable to the Administrative Agent.

 

    	5

     

    

 

“Business Day”
means any day (a) that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required
by law to remain closed and (b) if such day relates to a borrowing of, a payment or prepayment of principal of or interest on,
a continuation or conversion of or into, or the Interest Period for, a Eurocurrency Borrowing, or to a notice by the Borrower with
respect to any such borrowing, payment, prepayment, continuation, conversion, or Interest Period, that is also a day on which dealings
in deposits denominated in Dollars are carried out in the London interbank market.

 

“Canadian
Issuer” means any Person (i) organized under the laws of Canada or any province thereof, (ii) domiciled in Canada or (iii)
with principal operations or any other material property or other material assets pledged as collateral and located in Canada.

 

“Capital
Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of
(or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required
to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations
shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Cash”
means any immediately available funds in Dollars or in any currency other than Dollars (measured in terms of the Dollar Equivalent
thereof) which is a freely convertible currency.

 

“Cash Equivalents”
means investments (other than Cash) that are one or more of the following obligations:

 

(a)        Short-Term
U.S. Government Securities (as defined in Section 5.13);

 

(b)        investments
in commercial paper maturing within 180 days from the date of acquisition thereof and having, at such date of acquisition, a credit
rating of at least A-1 from S&P and at least P-1 from Moody’s;

 

(c)        investments
in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition
thereof (i) issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office
of any commercial bank organized under the laws of the United States of America or any State thereof, provided that such certificates
of deposit, banker’s acceptances and time deposits are held in a securities account (as defined in the Uniform Commercial
Code) through which the Collateral Agent can perfect a security interest therein and (ii) having, at such date of acquisition,
a credit rating of at least A-1 from S&P and at least P-1 from Moody’s;

 

(d)        fully
collateralized repurchase agreements with a term of not more than 30 days from the date of acquisition thereof for U.S. Government
Securities and entered into with (i) a financial institution satisfying the criteria described in clause (c) of this definition
or (ii) an Approved Dealer having (or being a member of a consolidated group having) at such date of acquisition, a credit rating
of at least A-1 from S&P and at least P-1 from Moody’s; and

 

    	6

     

    

 

(e)        investments
in money market funds and mutual funds which invest substantially all of their assets in Cash or assets of the types described
in clauses (a) through (d) above;

 

provided, that (i) in no event shall
Cash Equivalents include any obligation that provides for the payment of interest alone (for example, interest-only securities
or “IOs”); (ii) if any of Moody’s or S&P changes its rating system, then any ratings included in this
definition shall be deemed to be an equivalent rating in a successor rating category of Moody’s or S&P, as the case may
be; (iii) Cash Equivalents (other than U.S. Government Securities, certificates of deposit or repurchase agreements) shall not
include any such investment representing more than 25% of total assets of the Obligors in any single issuer; and (iv) in no event
shall Cash Equivalents include any obligation that is not denominated in Dollars.

 

“CFC”
means an entity that is a “controlled foreign corporation” of any Obligor within the meaning of Section 957 of the
Code, but only to the extent the Obligor or a subsidiary thereof is a “United States Shareholder” (within the meaning
of Section 951(b) of the Code) of such entity.

 

“Change in Control”
means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning
of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) of shares representing
more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Borrower, (b)
occupation of a majority of the seats (other than vacant seats) on the Board of Directors of the Borrower by Persons who were neither
(i) nominated by the requisite members of the Board of Directors of the Borrower nor (ii) appointed by a majority of the directors
so nominated, (c) the acquisition of direct or indirect Control of the Borrower by any Person or group other than the Investment
Advisor, or (d) the occurrence of an Investment Advisor Departure Event.

 

“Change in Law”
means (a) the adoption of any law, rule or regulation or treaty after the Effective Date, (b) any change in any law, rule or regulation
or treaty or in the interpretation, implementation or application thereof by any Governmental Authority after the Effective Date
or (c) compliance by any Lender (or, for purposes of Section 2.12(b) or Section 2.17(a), by such Lender’s holding
company, if any, or by any lending office of such Lender) with any request, guideline or directive (whether or not having the force
of law) of any Governmental Authority made or issued after the Effective Date; provided that, notwithstanding anything herein
to the contrary, (I) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
in connection therewith and (II) all requests, rules, guidelines or directives promulgated by the Bank For International Settlements,
the Basel Committee on Banking Regulation and Supervisory Practices (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”
regardless of the date enacted, adopted, issued, promulgated or implemented.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

    	7

     

    

 

“Collateral”
has the meaning assigned to such term in the Guarantee and Security Agreement.

 

“Collateral Agent”
means ING in its capacity as Collateral Agent under the Guarantee and Security Agreement, and includes any successor Collateral
Agent thereunder.

 

“Commitment”
means, with respect to each Lender, the commitment of such Lender to make Loans, as such commitment may be (a) reduced or increased
from time to time pursuant to Sections 2.06 and 2.08(c) and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The aggregate amount of each Lender’s Commitment as of
the Second Amendment Effective Date is set forth on Schedule
1.01(b), or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.
The aggregate amount of the Lenders’ Commitments as of the Second
Amendment Effective Date is $50,000,000.114,500,000.

 

“Commitment Increase”
has the meaning assigned to such term in Section 2.06(f).

 

“Commitment Increase
Date” has the meaning assigned to such term in Section 2.06(f).

 

“Consolidated Adjusted
Interest Expense” means, for any period with respect to the Borrower and its Subsidiaries on a consolidated basis, the
sum of (x) cash interest paid in respect of the stated rate of interest (including any default rate of interest, if applicable)
applicable to any Indebtedness plus (y) the net amount paid in cash (or minus the net amount received in cash) under Hedging
Agreements permitted under Section 6.04 relating to interest during such period and to the extent not already taken into
account under clause (x) plus (z) if the Borrower or any of its Subsidiaries is a counterparty to any Total Return Swap,
the net amount paid in cash relating to interest on the outstanding utilized notional amount of such Total Return Swap less all
of the cash collateral supporting such Total Return Swap during such period.

 

“Consolidated EBIT”
means, for any period with respect to the Borrower and its Subsidiaries on a consolidated basis, income (including, for the avoidance
of doubt, interest and fees generated by Total Return Swap reference assets) after deduction of all expenses (including fees and
other amounts actually paid to the Investment Advisor) and other proper charges other than Taxes, Consolidated Interest Expense
and non-cash employee stock options expense and excluding (a) net realized gains or losses (including, for the avoidance of doubt,
in connection with the sale or repayment of Total Return Swap reference assets), (b) net change in unrealized appreciation or depreciation,
(c) gains on re-purchases of Indebtedness, (d) the amount of interest paid-in-kind to the Borrower or any of its Subsidiaries (“PIK”)
to the extent such amount exceeds the sum of (i) PIK interest collected in cash (including any amortization payments on such applicable
debt instrument up to the amount of PIK interest previously capitalized thereon) and (ii) realized gains collected in cash (net
of realized losses); provided that the amount determined pursuant to this clause (d)(ii) shall not be less than zero, all
as determined in accordance with GAAP, and (e) other non-cash charges and gains to the extent included to calculate income.

 

    	8

     

    

 

“Consolidated Interest
Coverage Ratio” means the ratio as of the last day of any fiscal quarter of the Borrower of (a) Consolidated EBIT for
the four fiscal quarter period then ending, taken as a single accounting period, to (b) Consolidated Adjusted Interest Expense
for such four fiscal quarter period.

 

“Consolidated Interest
Expense” means, with respect to a Person and for any period, the sum of (x) the total consolidated interest expense (including
capitalized interest expense and interest expense attributable to Capital Lease Obligations) of such Person and in any event shall
include all interest expense with respect to any Indebtedness in respect of which such Person is wholly or partially liable plus
(y) the net amount payable (or minus the net amount receivable) under Hedging Agreements permitted under Section 6.04 relating
to interest during such period (whether or not actually paid or received during such period) and to the extent not already taken
into account under clause (x) plus (z) if the Borrower or any of its Subsidiaries is a counterparty to any Total Return
Swap, the interest payable (on the outstanding utilized notional amount of such Total Return Swap less all of the cash collateral
supporting such Total Return Swap) during such period (whether or not actually paid or received during such period).

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Control Account”
has the meaning assigned to such term in Section 5.08(c)(ii).

 

“Covered Debt Amount”
means, on any date, the sum of (x) all of the Revolving Credit Exposures of all Lenders on such date, plus (y) the aggregate
amount (including any increase in the aggregate principal amount resulting from payable-in-kind interest) of Other Covered Indebtedness
outstanding on such date.

 

“Covered Taxes”
means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of
the Borrower under any Loan Document and (ii) to the extent not otherwise described in clause (i), Other Taxes.

 

“Custodian”
means U.S. Bank National Association, or any other financial institution mutually agreeable to the Collateral Agent and the Borrower,
as custodian holding documentation for Portfolio Investments and accounts of the Obligors holding Portfolio Investments, on behalf
of the Obligors and, pursuant to the Custodian Agreement, the Collateral Agent. The term “Custodian” includes any agent
or sub-custodian acting on behalf of the Custodian.

 

“Custodian Account”
means an account subject to a Custodian Agreement.

 

“Custodian Agreement”
means a control agreement entered into by and among an Obligor, the Collateral Agent and a Custodian, in form and substance reasonably
acceptable to the Collateral Agent.

 

“DDA Account”
means that certain deposit account having account number XXXXXXXXXXXX maintained as of the Effective Date by the Borrower, as depositor,
with U.S. Bank National Association, as depositary bank.

 

    	9

     

    

 

“DDA Account Control
Agreement” means a control agreement entered into by and among the Borrower, the Collateral Agent and U.S. Bank National
Association, as depositary bank, in form and substance reasonably acceptable to the Collateral Agent, that perfects the security
interest of the Collateral Agent, for the benefit of the Secured Parties under (and as defined in) the Guarantee and Security Agreement,
in the DDA Account.

 

“Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

“Defaulting Lender”
means any Lender that has, as reasonably determined by the Administrative Agent, (a) failed to fund any portion of its Loans within
three (3) Business Days of the date required to be funded by it hereunder, unless, in the case of any Loans, such Lender’s
failure is based on such Lender’s reasonable determination that the conditions precedent to funding such Loan under this
Agreement have not been met, such conditions have not otherwise been waived in accordance with the terms of this Agreement and
such Lender has advised the Administrative Agent in writing (with reasonable detail of those conditions that have not been satisfied)
prior to the time at which such funding was to have been made, (b) notified the Borrower, the Administrative Agent, or any other
Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public
statement that it does not intend to comply with its funding obligations under this Agreement (unless such writing or public statement
states that such position is based on such Lender’s determination that one or more conditions precedent to funding (which
conditions precedent, together with the applicable default, if any, shall be specifically identified in such writing
or public statement) cannot be satisfied), (c) failed, within three (3) Business Days after request by the Administrative
Agent to confirm in writing to the Administrative Agent that
it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans (provided that such
Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative
Agent), (d) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount (other than a de minimis
amount) required to be paid by it hereunder within three (3) Business Days of the date when due, unless the subject of a good faith
dispute, or (e) other than via an Undisclosed Administration, either (i) has been adjudicated as, or determined by any Governmental
Authority having regulatory authority over such Person or its assets to be, insolvent or has a parent company that has been adjudicated
as, or determined by any Governmental Authority having regulatory authority over such Person or its assets to be, insolvent
or, (ii) become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or
similar Person charged with reorganization or liquidation of its business or custodian, appointed for it, or has a parent company
that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian
appointed for it (unless in the case of any Lender referred to in this clause (e) the Borrower and the Administrative Agent shall
be satisfied in the exercise of their respective reasonable discretion that such Lender intends, and has all approvals required
to enable it, to continue to perform its obligations as a Lender hereunder)
or (iii) become the subject of a Bail-In Action; provided that a Lender shall not qualify as a Defaulting Lender
solely as a result of the acquisition or maintenance of an ownership interest in such Lender or its parent company, or of the exercise
of control over such Lender or any Person controlling such Lender, by a Governmental Authority or instrumentality thereof, or solely
as a result of an Undisclosed Administration, so long as such ownership interest or Undisclosed Administration does not result
in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments
or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm
any contracts or agreements made with such Lender. Any determination
by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (e) above, and of
the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be
a Defaulting Lender as of the date established therefor by the Administrative Agent in a written notice of such determination,
which shall be delivered by the Administrative Agent to the Borrower and each Lender promptly following such determination. 

 

    	10

     

    

 

“Disqualified Equity
Interests” means Equity Interests of the Borrower that after issuance are subject to any agreement between the holder
of such Equity Interests and the Borrower whereby the Borrower is required to purchase, redeem, retire, acquire, cancel or terminate
such Equity Interests, other than (x) as a result of a change of control, or (y) in connection with any purchase, redemption, retirement,
acquisition, cancellation or termination with, or in exchange for, shares of Equity Interests that are not Disqualified Equity
Interests.

 

“Dollar Equivalent”
means, on any date of determination, with respect to an amount denominated in any currency other than Dollars, the amount of Dollars
that would be required to purchase such amount of such currency on the date two Business Days prior to such date, based upon the
spot selling rate at which the Administrative Agent offers to sell such currency for Dollars in the London foreign exchange market
at approximately 11:00 a.m., London time, for delivery two Business Days later.

 

“Dollars”
or “$” refers to lawful money of the United States of America.

 

“EEA
Financial Institution” means (a) any credit institution or investment firm 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 financial 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.

 

“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.

 

“Effective Date”
means the date on which the conditions specified in Section 4.01 are satisfied
(or waived in accordance with Section 9.02).October
17, 2014.

 

    	11

     

    

 

“Eligible Liens”
means any right of offset, banker’s lien, security interest or other like right against the Portfolio Investments held by
the Custodian pursuant to or in connection with its rights and obligations relating to the Custodian Account, provided that
such rights are subordinated, pursuant to the terms of the Custodian Agreement, to the first priority perfected security interest
in the Collateral created in favor of the Collateral Agent, except to the extent expressly provided therein.

 

“Eligible Portfolio
Investment” means any Portfolio Investment held by any Obligor (and solely for purposes of determining the Borrowing
Base, Cash and Cash Equivalents held by any Obligor) that, in each case, meets all of the criteria set forth on Schedule 1.01(d)
hereto; provided, that no Portfolio Investment, Cash or Cash Equivalent shall constitute an Eligible Portfolio Investment
or be included in the Borrowing Base if the Collateral Agent does not at all times maintain a first priority, perfected Lien (subject
to no other Liens other than Eligible Liens) on such Portfolio Investment, Cash or Cash Equivalent or if such Portfolio Investment,
Cash or Cash Equivalent has not been or does not at all times continue to be Delivered (as defined in the Guarantee and Security
Agreement). Without limiting the generality of the foregoing, it is understood and agreed that any Portfolio Investments that have
been contributed or sold, purported to be contributed or sold or otherwise transferred to any Financing Subsidiary, or held by
any Financing Subsidiary, or which secure obligations of any Financing Subsidiary, shall not be treated as Eligible Portfolio Investments
until distributed, sold or otherwise transferred to the Borrower free and clear of all Liens (other than Eligible Liens). Notwithstanding
the foregoing, nothing herein shall limit the provisions of Section 5.12(b)(i), which provide that, for purposes of this
Agreement, all determinations of whether an Investment is to be included as an Eligible Portfolio Investment shall be determined
on a settlement-date basis (meaning that any Investment that has been purchased will not be treated
as an Eligible Portfolio Investment until such purchase has settled, and any Eligible Portfolio Investment which has been sold
will not be excluded as an Eligible Portfolio Investment until such sale has settled)Settlement-Date
Basis, provided that no such Investment shall be included as an Eligible Portfolio Investment to the extent it
has not been paid for in full.

 

“Equity Interests”
means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests
in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof
to purchase or acquire any such equity interest. As used in this Agreement, “Equity Interests” shall not include convertible
debt unless and until such debt has been converted to capital stock.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with the Borrower or any of its Subsidiaries, is treated
as a single employer under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302 of ERISA and Section 412 of
the Code, is treated as a single employer under Section 414(m) or (o) of the Code.

 

    	12

     

    

 

“ERISA Event”
means (a) any “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder with respect
to a Plan (other than an event for which the 30-day notice period is waived); (b) with respect to any Plan that is intended to
qualify under Section 401(a) of the Code, the notification by the Internal Revenue Service of its intent to disqualify the Plan
or the occurrence of any other event that could reasonably be expected to prevent or cause the loss of such qualification; (c)
with respect to any Plan, the failure to satisfy the applicable minimum funding standard (as defined in Sections 412 and 430 of
the Code or Sections 302 and 303 of ERISA), whether or not waived; (d) the filing pursuant to Section 412(c) of the Code or Section
302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (e) the incurrence by
the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan (other than a standard termination under and in accordance with Section 4041(b) of ERISA);
(f) the receipt by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates from the PBGC or a plan administrator
of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (g) the incurrence
by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates of any Withdrawal Liability; (h) the occurrence
of any nonexempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA with respect to
any Plan; (i) the failure to make any required contribution to a Multiemployer Plan or failure to make by its due date any required
contribution to any Plan; or (j) the receipt by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates
of any notice, or the receipt by any Multiemployer Plan from the Borrower, any of its Subsidiaries or any of their respective ERISA
Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or
is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

 

“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.

 

“Eurocurrency”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans constituting such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate. For clarity, a Loan or Borrowing bearing interest by reference
to clause (c) of the definition of the Alternate Base Rate shall not be a Eurocurrency Loan or Eurocurrency Borrowing.

 

“Event of Default”
has the meaning assigned to such term in Article VII.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

    	13

     

    

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to the Administrative Agent or any Lender or required to be withheld
or deducted from a payment to the Administrative Agent or any Lender, (a) Taxes imposed on (or measured by) its net income or franchise
Taxes, in each case, imposed (i) by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient
is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office
is located, or (ii) as a result of a present or former connection between such recipient and the jurisdiction imposing such Tax
(other than connections solely arising from such recipient 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 Documents, or sold or assigned an interest in any Loan or Loan Document), (b) any branch profits
Taxes imposed by the United States of America or any similar Tax imposed by any other jurisdiction in which the Borrower is located,
(c) in the case of a Lender (other than an assignee pursuant to a request by the Borrower under Section 2.17(b)), any U.S.
federal withholding Tax that is imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement
(or designates a new lending office), except to the extent, other than in a case of failure to comply with Section 2.14(f),
that such Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrower with respect to such withholding Tax pursuant to Section 2.14(a), (d) Taxes
attributable to such recipient’s failure or inability to comply with Section 2.14(f), and (e) any U.S. federal withholding
Taxes imposed under FATCA.

 

“Existing Affiliate
Investments” means the Portfolio Investments by any Obligor existing as of the Effective Date
in Print Direction, Inc. and, subject to Section 6.08(b), any follow-on Investments by any Obligor in Print Direction,
Inc.

 

“Existing Indenture”
means that certain Indenture, dated as of June 16, 2014, between the Borrower, as issuer, and U.S. Bank National Association, as
trustee, as supplemented by the First Supplemental Indenture, dated as of June 16, 2014.

 

“External Quoted
Value” has the meaning set forth in Section 5.12(b)(ii)(A).

 

“External Unquoted
Value” means (i) with respect to Borrower Tested Assets, the Borrower External Unquoted Value and (ii) with respect to
IVP Tested Assets, the IVP External Unquoted Value.

 

“Extraordinary Receipts”
means an amount equal to (a) any cash received by or paid to any Obligor on account of any foreign, United States, state or local
tax refunds, pension plan reversions, judgments, proceeds of settlements or other consideration of any kind in connection with
any cause of action, condemnation awards (and payments in lieu thereof), indemnity payments received not in the ordinary course
of business and any purchase price adjustment received not in the ordinary course of business in connection with any purchase agreement
and proceeds of insurance (excluding, however, for the avoidance of doubt, proceeds of any issuance of Equity Interests by the
Borrower and issuances of Indebtedness by any Obligor), minus (b) any costs, fees, commissions, premiums and expenses incurred
by any Obligor directly incidental to such cash receipts, including reasonable legal fees and expenses; provided, however,
that Extraordinary Receipts shall not include any (i) amounts that the Borrower receives from the Administrative Agent or any
Lender pursuant to Section 2.14(g), (ii) cash receipts to the extent received from proceeds of insurance, condemnation awards
(or payments in lieu thereof), indemnity payments or payments in respect of judgments or settlements of claims, litigation or proceedings
to the extent that such proceeds, awards or payments are received by any Person in respect of any unaffiliated third party claim
against or loss by such Person and promptly applied to pay (or to reimburse such Person for its prior payment of) such claim or
loss and the costs and expenses of such Person with respect thereto, (iii) proceeds of business interruption insurance to the extent
such proceeds constitute compensation for lost earnings, or (iv) indemnity payments or payments in respect of judgments or settlements
of claims, litigation or proceedings to the extent that such payments are received by any Person in respect of any unaffiliated
third party claim against or loss by such Person and promptly applied to pay (or to reimburse such Person for its prior payment
of) such claim or loss and the costs and expenses of such Person with respect thereto.

 

    	14

     

    

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the Effective Date (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
and 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 fiscal or regulatory legislation, rules, or official practices adopted
pursuant to any published intergovernmental agreement entered into in connection with the implementation of such Sections of the
Code.

 

“FCPA”
has the meaning assigned to such term in Section 3.22.

 

“Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates
on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published
on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Financial Officer”
means the chief executive officer, president, chief operating officer, chief financial officer or chief compliance officer of the
Borrower.

 

“Financing Subsidiary”
means (a) any SBIC Subsidiary or (b) any Structured Subsidiary.

 

“Florida Sidecar
Subsidiary” means each of the following Subsidiaries of the Borrower: CSP-Florida Mezzanine Fund I, LLC, a North Carolina
limited liability company, and CapitalSouth Partners Florida Sidecar Fund I, L.P., a Delaware limited partnership, so long as (a)
the aggregate value of the assets of all such Subsidiaries do not exceed $2,000,000; and (b) such Subsidiaries engage only in activities
directly relating to, or in connection with, the holding and management of their respective Portfolio Investments held as of the
Effective Date.

 

“Foreign Lender”
means any Lender that is not (a) a citizen or resident of the United States, (b) a corporation, partnership or other entity created
or organized in or under the laws of the United States (or any jurisdiction thereof) or (c) any estate or trust that is subject
to U.S. federal income taxation regardless of the source of its income.

 

“GAAP”
means generally accepted accounting principles in the United States of America.

 

“Governmental Authority”
means the government of the United States of America, or of any other nation, or 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 body exercising such powers or functions, such as the European Union or the European Central Bank).

 

    	15

     

    

 

“Guarantee”
of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing
or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property securities
or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable
the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit
or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course of business or customary indemnification agreements
entered into in the ordinary course of business in connection with obligations that do not constitute Indebtedness. The amount
of any Guarantee at any time shall be deemed to be an amount equal to the maximum stated or determinable amount of the primary
obligation in respect of which such Guarantee is incurred, unless the terms of such Guarantee expressly provide that the maximum
amount for which such Person may be liable thereunder is a lesser amount (in which case the amount of such Guarantee shall be deemed
to be an amount equal to such lesser amount).

 

“Guarantee and Security
Agreement” means that certain Guarantee, Pledge and Security Agreement, dated as of the Effective Date, between the Borrower,
the Subsidiary Guarantors, the Administrative Agent, each holder (or a representative, agent or trustee therefor) from time to
time of any Secured Longer-Term Indebtedness, and the Collateral Agent.

 

“Guarantee Assumption
Agreement” means a Guarantee Assumption Agreement substantially in the form of Exhibit B to the Guarantee and Security
Agreement among the Collateral Agent and an entity that pursuant to Section 5.08 is required to become a “Subsidiary
Guarantor” under the Guarantee and Security Agreement (with such changes as the Administrative Agent shall request consistent
with the requirements of Section 5.08).

 

“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange protection agreement, commodity price protection agreement
or other interest or currency exchange rate or commodity price hedging arrangement entered into in the ordinary course of business
and not for speculative purposes. For the avoidance of doubt, in no event shall a Hedging Agreement include a total return swap.

 

“Hedging Agreement
Obligations” has the meaning specified in the Guarantee and Security Agreement as in effect on the Effective Date.

 

    	16

     

    

 

“Immaterial Subsidiaries”
means those Subsidiaries of the Borrower that are “designated” as “Immaterial Subsidiaries” by the Borrower
from time to time (it being understood that the Borrower may at any time change any such designation); provided that such
designated Immaterial Subsidiaries shall collectively meet all of the following criteria at all times: (a) such Subsidiaries and
their Subsidiaries do not hold any Eligible Portfolio Investment; (b) the aggregate value of the assets of all such Subsidiaries
and their Subsidiaries do not exceed an amount equal to 3% of the aggregate value of the assets of the Obligors; and (c) the aggregate
revenues of all such Subsidiaries and their Subsidiaries for the most recent period of four consecutive fiscal quarters of such
Subsidiaries and their Subsidiaries for which financial statements required to be delivered pursuant to Section 5.01 do not exceed
an amount equal to 3% of the revenues of the Obligors on a pro forma basis for such period; provided, further that
if the aggregate value of the assets or revenues of all Subsidiaries designated by the Borrower as “Immaterial Subsidiaries”
(and not redesignated) shall as at any such time exceed the limits set forth in clauses (b) and (c) above, then all such Subsidiaries
shall be deemed not to be Immaterial Subsidiaries unless and until the Borrower shall redesignate one or more as not Immaterial
Subsidiaries, in each case in a written notice to the Administrative Agent, and, as a result thereof, the aggregate assets and
revenues of all Subsidiaries still designated as “Immaterial Subsidiaries” do not exceed such limits.

 

“Increasing Lender”
has the meaning assigned to such term in Section 2.06(f).

 

“Indebtedness”
of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits, loans
or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar debt instruments,
(c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by
such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (other than trade
accounts payable and accrued expenses in the ordinary course of business not past due for more than 90 days after the date on which
such trade account payable was due), (e) all Indebtedness of others secured by any Lien on property owned or acquired by such Person,
whether or not the Indebtedness secured thereby has been assumed (with the value of such debt being the lower of the outstanding
amount of such debt and the fair market value of the property subject to such Lien), (f) all Guarantees by such Person of Indebtedness
of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty, (i) the net amount such Person would be obligated for under
any Hedging Agreement if such Hedging Agreement was terminated at the time of determination, (j) all obligations, contingent or
otherwise, with respect to Disqualified Equity Interests, and (k) all obligations, contingent or otherwise, of such Person in respect
of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor (or such Person is not otherwise liable for such Indebtedness). Notwithstanding the foregoing,
“Indebtedness” shall not include (x) purchase price holdbacks arising in the ordinary course of business in respect
of a portion of the purchase price of an asset or Investment to satisfy unperformed obligations of the seller of such asset or
Investment or (y) a commitment arising in the ordinary course of business to make a future Portfolio Investment or fund the delayed
draw or unfunded portion of any existing Portfolio Investment.

 

    	17

     

    

 

“Independent”
when used with respect to any specified Person means the more restrictive of the following: (a) that such Person (i) does not have
any direct financial interest or any material indirect financial interest in the Borrower or any of its Subsidiaries or Affiliates
(including its investment adviser or any Affiliate thereof) other than ownership of publicly traded stock of the Borrower or any
such Subsidiary or Affiliate with a market value not to exceed $1,000,000 and (ii) is not an officer, employee, promoter, underwriter,
trustee, partner, director or a Person performing similar functions of the Borrower or of its Subsidiaries or Affiliates (including
its investment advisor or any Affiliate thereof), (b) that such Person is not an “interested person” as defined in
Section 2(a)(19) of the Investment Company Act.

 

“Independent Valuation
Provider” means any of Duff & Phelps LLC, Murray, Devine and Company, Lincoln Advisors, Houlihan Lokey, Valuation
Research Corporation and Alvarez & Marsal, or any other Independent nationally recognized third-party appraisal firm selected
by the Administrative Agent in its reasonable discretion.

 

“Industry Classification
Group” means any of the classification groups that are currently in effect by Moody’s or may be subsequently established
by Moody’s and provided by the Borrower to the Lenders.

 

“ING”
means ING Capital LLC.

 

“Interest Election
Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.05.

 

“Interest Payment
Date” means (a) with respect to any ABR Loan, each Quarterly Date and (b) with respect to any Eurocurrency Loan, the
last day of each Interest Period therefor and, in the case of any Interest Period of more than three months’ duration, each
day prior to the last day of such Interest Period that occurs at three-month intervals after the first day of such Interest Period.

 

“Interest Period”
means, for any Eurocurrency Loan or Borrowing, the period commencing on the date of such Loan or Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months thereafter; provided, that (a) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day, and (b) any Interest Period that commences on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Loan initially shall be
the date on which such Loan is made and thereafter shall be the effective date of the most recent conversion or continuation of
such Loan, and the date of a Borrowing comprising Loans that have been converted or continued shall be the effective date of the
most recent conversion or continuation of such Loans.

 

“Internal Value”
has the meaning set forth in Section 5.12(b)(ii)(C).

 

    	18

     

    

 

“Investment”
means, for any Person: (a) Equity Interests, bonds, notes, debentures or other securities of any other Person (including convertible
securities) or any agreement to acquire any Equity Interests, bonds, notes, debentures or other securities of any other Person
(including any “short sale” or any sale of any securities at a time when such securities are not owned by the Person
entering into such sale); (b) deposits, advances, loans or other extensions of credit made to any other Person (including purchases
of property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such property to such
Person); or (c) Hedging Agreements.

 

“Investment Advisor”
means Capitala Investment Advisors, LLC, a Delaware limited liability company, or an Affiliate thereof.

 

“Investment Advisor
Departure Event” means any of the following events:

 

(a)        the
Investment Advisor shall cease to be the investment advisor of the Borrower;

 

(b)        Joseph
B. Alala, III shall cease to (x) be the sole manager of the Investment Advisor or (y) Control the Investment Advisor;

 

(c)        any
change in ownership of the Investment Advisor; or

 

(d)        if
any two of the Specified Managers are no longer actively engaged in the business of the Investment Advisor in their current capacities.

 

“Investment Company
Act” means the Investment Company Act of 1940, as amended from time to time.

 

“Investment Policies”
means (a) the investment objectives, policies, restrictions and limitations set forth in the Company’s Prospectus, dated
September 24, 2014, under the headings “Investment Process,” “Deal Generation/Origination,” “Screening,”
“Due Diligence and Underwriting,” “Approval, Documentation and Closing,” and “Ongoing Relationships
with Portfolio Companies” and (b) the investment allocation policy between affiliated investment vehicles managed directly
or indirectly by the Investment Advisor set forth on page 3 of the Company’s Prospectus, dated September 24, 2014, under
the heading “Capitala Investment Advisor”, in each case as amended from time to time pursuant to a Permitted Policy
Amendment.

 

“IVP Supplemental
Cap” has the meaning assigned to such term in Section 9.03(a).

 

“IVP Tested Assets”
has the meaning assigned to such term in Section 5.12(b)(ii)(B)(x).

 

“Lenders”
means the Persons listed on Schedule 1.01(b) (as amended from
time to time pursuant to Section 2.06) as having Commitments and any other Person that shall have become a party hereto
pursuant to an Assignment and Assumption that provides for it to assume a Commitment or to acquire Revolving Credit Exposure, other
than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 

    	19

     

    

 

“LIBO Rate”
means, for any Interest Period, the Intercontinental Exchange Benchmark Administration Ltd. LIBO Rate (or the successor thereto
if the Intercontinental Exchange Benchmark Administration Ltd. is no longer making such rates available) per annum for deposits
in U.S. dollarsDollars
for a period equal to the Interest Period appearing on the display designated as Reuters Screen LIBO01 Page (or such other page
on that service or such other service designated by the Intercontinental Exchange Benchmark Administration Ltd. LIBO Rate (or the
successor thereto if the Intercontinental Exchange Benchmark Administration Ltd. is no longer making such rates available) for
the display of such Administration’s Interest Settlement Rates for deposits in U.S. dollarsDollars)
as of 11:00 a.m., London time on the day that is two Business Days prior to the first day of the Interest Period (or if such Reuters
Screen LIBO01 Page is unavailable for any reason at such time, the rate which appears on the Reuters Screen ISDA Page as of such
date and such time); provided, that if the Administrative Agent determines that the relevant foregoing sources are unavailable
for the relevant Interest Period, LIBO Rate for purposes of this definition shall mean the rate of interest determined by the Administrative
Agent to be the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of the rates per annum at which
deposits in U.S. dollarsDollars
are offered to the Administrative Agent two (2) business days preceding the first day of such Interest Period by leading banks
in the London interbank market as of 11:00 a.m. for delivery on the first day of such Interest Period, for the number of days comprised
therein and in an amount comparable to the amount of the Administrative Agent’s portion of the relevant Eurocurrency Borrowing;
provided further that if the LIBO Rate is less than zero for the relevant Interest Period, such rate shall be deemed to be zero
for such Interest Period.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such
securities, except in favor of the issuer thereof (and, in the case of Portfolio Investments that are equity securities, excluding
customary drag-along, tag-along, right of first refusal and other similar rights in favor of other equity holders of the same issuer).

 

“Loan Documents”
means, collectively, this Agreement, any promissory notes delivered pursuant to Section 2.07(f) and the Security Documents.

 

“Loans”
means the loans made by the Lenders to the Borrower pursuant to this Agreement.

 

“Margin Stock”
means “margin stock” within the meaning of Regulations T, U and X.

 

“Material Adverse
Effect” means a material adverse effect on (a) the business, Portfolio Investments of the Obligors (taken as a whole)
and other assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the Borrower and its
Subsidiaries (other than the Financing Subsidiaries), taken as a whole, or (b) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Administrative Agent and the Lenders thereunder or the ability of the Obligors to perform
their respective obligations thereunder.

 

    	20

     

    

 

“Material Indebtedness”
means (a) Indebtedness (other than the Loans and Hedging Agreements and Total Return Swaps), of any one or more of the Borrower
and its Subsidiaries (including any Financing Subsidiary) in an aggregate principal amount exceeding $2,000,000 and (b) obligations
in respect of one or more Hedging Agreements or other swap or derivative transactions (including any Total Return Swap) under which
the maximum aggregate amount (after giving effect to any netting agreements) that the Borrower and its Subsidiaries would be required
to pay if such Hedging Agreement(s) or other swap or derivative transactions (including any Total Return Swap) were terminated
at such time would exceed $2,000,000.

 

“Maturity Date”
means the date that is the one year anniversary of the Revolver Termination Date.

 

“Maximum
Rate” has the meaning set forth in Section 9.17.

 

“Minimum
Utilization Amount” means, for any day, an amount equal to 40% of the aggregate Commitments of the Lenders as of the
close of business on such day.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto.

 

“Multiemployer Plan”
means a multiemployer plan as defined in Section 3(37) or 4001(a)(3) of ERISA.

 

“Net Asset Sale
Proceeds” means, with respect to any Asset Sale, an amount equal to (a) the sum of Cash payments and Cash Equivalents
received by the Obligors from such Asset Sale (including any Cash or Cash Equivalents received by way of deferred payment pursuant
to, or by monetization of, a note receivable or otherwise, but only as and when so received), minus (b) any costs, fees,
commissions, premiums and expenses actually incurred by any Obligor directly incidental to such Asset Sale and paid in cash to
a Person that is not an Affiliate of any Obligor (or if paid in cash to an Affiliate, only to the extent such expenses are reasonable
and customary), including reasonable legal fees and expenses, minus (c) all taxes paid or reasonably estimated to be payable
as a result of such Asset Sale (after taking into account any tax credits or deductions that are reasonably expected to be available)
minus (d) reserves for indemnification, purchase price adjustments or analogous arrangements reasonably estimated by the
Borrower or the relevant Subsidiary in connection with such Asset Sale; provided that, (i) such reserved amount shall not
be included in the Borrowing Base and (ii) if the amount of any estimated reserves pursuant to this clause (d) exceeds the amount
actually required to be paid in cash in respect of indemnification, purchase price adjustments or analogous arrangements for such
Asset Sale, the aggregate amount of such excess shall constitute Net Asset Sale Proceeds.

 

“Non-Consenting
Lender” has the meaning assigned to such term in Section 9.02(d).

 

“Non-Pledged Financing
Subsidiary” means, with respect to any Financing Subsidiary, the Equity Interest of such Financing Subsidiary is not
subject to a first-priority perfected security interest in favor of the Collateral Agent securing the Secured Obligations under
and as defined in the Guarantee and Security Agreement.

 

“Obligors”
means, collectively, the Borrower and the Subsidiary Guarantors.

 

    	21

     

    

 

“Obligors’
Net Capitalization” means, at any date, the Obligors’ Net Worth at such date, plus the aggregate outstanding
principal amount of Unsecured Longer-Term Indebtedness of the Borrower, minus the amount of proceeds from any issuance of
Unsecured Longer-Term Indebtedness contributed to a non-Obligor Subsidiary.

 

“Obligors’
Net Worth” means, at any date, the Stockholders’ Equity at such date, minus (x) the net asset value held by any
Obligor in any non-Obligor Subsidiary and (y) the net asset value held by any Obligor in any Special Equity Interest.

 

“OFAC”
has the meaning assigned to such term in Section 3.19.

 

“Organization
Documents” means, for any Person, its constituent or organizational documents, including: (a) in the case of any limited
partnership, the certificate of limited partnership and limited partnership agreement for such Person; (b) in the case of any limited
liability company, the articles of formation and operating agreement for such Person; and (c) in the case of a corporation, the
certificate of articles of incorporation and the bylaws or memorandum and articles of association for such Person.

 

“Other
Covered Indebtedness” means, collectively, Secured Longer-Term Indebtedness and Unsecured Shorter-Term Indebtedness
(other than the 2021 Notes).

 

“Other Permitted
Indebtedness” means (a) accrued expenses and current trade accounts payable incurred in the ordinary course of any Obligor’s
business that are not overdue for a period of more than 90 days or which are being contested in good faith by appropriate proceedings,
(b) Indebtedness in respect of judgments or awards that have been in force for less than the applicable period for taking an appeal
so long as such judgments or awards do not constitute an Event of Default under clause (k) of Article VII, (c) Indebtedness
incurred in the ordinary course of business to finance equipment and fixtures; provided that such Indebtedness does not
exceed $100,000 in the aggregate at any time outstanding; and (d) other Indebtedness not to exceed $1,000,000 in the aggregate.

 

“Other Taxes”
means any and all present or future stamp, court, documentary, intangible, recording or filing Taxes or any other excise
or property Taxes, charges or similar levies arising from any payment made under any Loan Document or 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 imposed with respect to an assignment (other than an assignment made pursuant
to Section 2.17(b) as a result of a present or former connection between such Lender and the jurisdiction imposing such
Tax (other than connections solely arising from such Lender having executed, delivered, become a party to, performed is obligations
under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or
enforced any Loan Documents, or sold or assigned an interest in any Loan or Loan Document).

 

“Participant Register”
has the meaning assigned to such term in Section 9.04(f).

 

“PBGC”
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

    	22

     

    

 

“Permitted Equity
Interests” means common stock of the Borrower that after its issuance is not subject to any agreement between the holder
of such common stock and the Borrower where the Borrower is required to purchase, redeem, retire, acquire, cancel or terminate
any such common stock at any time prior to the first anniversary of the later of the Maturity Date (as in effect from time to time)
and the Termination Date.

 

“Permitted Liens”
means (a) Liens imposed by any Governmental Authority for taxes, assessments or charges not yet due or that are being contested
in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Borrower
in accordance with GAAP; (b) Liens of clearing agencies, broker-dealers and similar Liens incurred in the ordinary course of business;
provided that such Liens (i) attach only to the securities (or proceeds) being purchased or sold and (ii) secure only obligations
incurred in connection with such purchase or sale, and not any obligation in connection with margin financing; (c) Liens imposed
by law, such as materialmen’s, mechanics’, carriers’, workmen’s, storage, landlord, and repairmen’s
Liens and other similar Liens arising in the ordinary course of business and securing obligations (other than Indebtedness for
borrowed money) not yet due or that are being contested in good faith and by appropriate proceedings if adequate reserves with
respect thereto are maintained on the books of the Borrower in accordance with GAAP; (d) Liens incurred or pledges or deposits
made to secure obligations incurred in the ordinary course of business under workers’ compensation laws, unemployment insurance
or other similar social security legislation (other than in respect of employee benefit plans subject to ERISA) or to secure public
or statutory obligations; (e) Liens securing the performance of, or payment in respect of, bids, insurance premiums, deductibles
or co-insured amounts, tenders, government or utility contracts (other than for the repayment of borrowed money), surety, stay,
customs and appeal bonds and other obligations of a similar nature incurred in the ordinary course of business; (f) Liens arising
out of judgments or awards that have been in force for less than the applicable period for taking an appeal so long as such judgments
or awards do not constitute an Event of Default; (g) customary rights of setoff and liens upon (i) deposits of cash in favor of
banks or other depository institutions in which such cash is maintained in the ordinary course of business, (ii) cash and financial
assets held in securities accounts in favor of banks and other financial institutions with which such accounts are maintained in
the ordinary course of business and (iii) assets held by a custodian in favor of such custodian in the ordinary course of business,
in the case of each of clauses (i) through (iii) above, securing payment of fees, indemnities, charges for returning items and
other similar obligations; (h) Liens arising solely from precautionary filings of financing statements under the Uniform Commercial
Code of the applicable jurisdictions in respect of operating leases entered into by the Borrower or any of its Subsidiaries in
the ordinary course of business; (i) zoning restrictions, easements, licenses, or other restrictions on the use of any real estate
(including leasehold title), in each case which do not interfere with or affect in any material respect the ordinary course conduct
of the business of the Borrower and its Subsidiaries; (j) purchase money Liens on specific equipment and fixtures, provided
that (i) such Liens only attach to such equipment and fixtures, (ii) the Indebtedness secured thereby is incurred pursuant to clause
(d) of the definition of “Other Permitted Indebtedness” and (iii) the Indebtedness secured thereby does not exceed
the lesser of the cost and the fair market value of such equipment and fixtures at the time of the acquisition thereof; (k) deposits
of money securing leases to which Borrower is a party as lessee made in the ordinary course of business; (l) Eligible Liens and
(m) Liens in favor of any escrow agent solely on and in respect of any cash earnest money deposits made by any Obligor in connection
with any letter of intent or purchase agreement (to the extent that the acquisition or disposition with respect thereto is otherwise
permitted hereunder).

 

    	23

     

    

 

“Permitted Policy
Amendment” is an amendment, modification, termination or restatement of the Investment Policies, that either is (a) approved
in writing by the Administrative Agent (with the consent of the Required Lenders), (b) required by applicable law or Governmental
Authority, or (c) not material.

 

“Permitted SBIC
Guarantee” means a guarantee by the Borrower of SBA Indebtedness of an SBIC Subsidiary on SBA’s then applicable
form; provided that the recourse to the Obligors thereunder is expressly limited only to periods after the occurrence of
an event or condition that is an impermissible change in the control of such SBIC Subsidiary (it being understood that, as provided
in clause (q) of Article VII, it shall be an Event of Default hereunder if any such event or condition giving rise
to such recourse occurs).

 

“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

“Plan”
means (i) any employee benefit plan within the meaning of Section 3(3) of ERISA (other than a Multiemployer Plan) that is subject
to the provisions of Title IV of ERISA or Section 412 of the Code, in respect of which the Borrower, any of its Subsidiaries or
any of their respective ERISA Affiliates is (or would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA, and (ii) any employee benefit plan within the meaning of Section 3(3) of ERISA (other than a
Multiemployer Plan) in respect of which the Borrower or any of its Subsidiaries is (or would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Portfolio Company”
means the issuer or obligor under any Portfolio Investment held by any Obligor.

 

“Portfolio Investment”
means any Investment held by the Borrower and its Subsidiaries in their asset portfolio.

 

“Prime Rate”
means the rate of interest quoted in The Wall Street Journal, Money Rates Section, as the “U.S. Prime Rate”
(or its successor), as in effect from time to time. The Prime Rate is a reference rate and does not necessarily represent the lowest
or best rate actually charged to any customer. The Administrative Agent or any Lender may make commercial loans or other loans
at rates of interest at, above, or below the Prime Rate.

 

“Quarterly Dates”
means the last Business Day of March, June, September and December in each year, commencing on December 31, 2014.

 

“Quoted Investments”
has the meaning set forth in Section 5.12(b)(ii)(A).

 

“Register”
has the meaning set forth in Section 9.04(c).

 

    	24

     

    

 

“Regulations T,
U and X” means, respectively, Regulations T, U and X of the Board of Governors of the Federal Reserve System (or any
successor), as the same may be modified and supplemented and in effect from time to time.

 

“Related Parties”
means, with respect to any specified Person, such Person’s Affiliates and the respective directors, partners, officers, employees,
agents and advisors of such Person and such Person’s Affiliates.

 

“Required Lenders”
means, at any time, subject to Section 2.16(b), Lenders having Revolving Credit Exposures and unused Commitments representing
more than 50% of the sum of the total Revolving Credit Exposures and unused Commitments at such time; provided, that, (a)
if there are only three (3) Lenders at such time, “Required Lenders” shall mean Lenders having Revolving Credit Exposures
and unused Commitments representing more than two-thirds of the sum of the total Revolving Credit Exposures and unused Commitments
at such time and (b) if there are only two (2) Lenders at such time, “Required Lenders” shall mean all Lenders.

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other property) with respect to any shares of any class
of capital stock of the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including
any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination
of any such shares of capital stock of the Borrower or any option, warrant or other right to acquire any such shares of capital
stock of the Borrower (other than any equity awards granted to employees, officers, directors and consultants of the Borrower and
its Affiliates); provided, for clarity, neither the conversion of convertible debt into Permitted Equity Interests nor the purchase,
redemption, retirement, acquisition, cancellation or termination of convertible debt made solely with Permitted Equity Interests
(other than (x) as provided in Section 6.12(b) or (y) interest or expenses,
which may be payable in cash) shall be a Restricted Payment hereunder.

 

“Return of Capital”
means an amount equal to (i) (a) any cash amount (and net cash proceeds of any noncash amount) received by any Obligor at any time
in respect of the outstanding principal of any Portfolio Investment (whether at stated maturity, by acceleration or otherwise),
(b) without duplication of amounts received under clause (a), any net cash proceeds (including net cash proceeds of any noncash
consideration) received by any Obligor at any time from the sale of any property or assets pledged as collateral in respect of
any Portfolio Investment to the extent such net cash proceeds are less than or equal to the outstanding principal balance of such
Portfolio Investment, (c) any cash amount (and net cash proceeds of any noncash amount) received by any Obligor at any time in
respect of any Portfolio Investment that is an Equity Interest (x) upon the liquidation or dissolution of the issuer of such Portfolio
Investment, (y) as a distribution of capital made on or in respect of such Portfolio Investment, or (z) pursuant to the recapitalization
or reclassification of the capital of the issuer of such Portfolio Investment or pursuant to the reorganization of such issuer
or (d) any similar return of capital received by any Obligor in cash (and net cash proceeds of any noncash amount) in respect of
any Portfolio Investment minus (ii) any costs, fees, commissions, premiums and expenses incurred by any Obligor directly incidental
to such Cash receipts, including reasonable legal fees and expenses.

 

    	25

     

    

 

“Revolver Termination
Date” means the date that is the three (3) year anniversary of the
Second Amendment Effective Date, unless extended with the consent of each Lender in its sole and absolute discretion.

 

“Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s
Loans at such time.

 

“RIC”
means a person qualifying for treatment as a “regulated investment company” under Subchapter M of the Code.

 

“S&P”
means Standard & Poor’sS&P
Global Ratings Services, a division of The
McGraw Hill Companies,S&P Global Inc.,
a New York corporation, or any successor thereto.

 

“Sanctioned Country”
means, at any time, a country or territory that is the subject or target of any Sanctions.

 

“Sanctions”
has the meaning assigned to such term in Section 3.19.

 

“SBA”
means the United States Small Business Administration or any Governmental Authority succeeding to any or all of the functions thereof.

 

“SBIC Subsidiary”
means any Subsidiary of the Borrower (or such Subsidiary’s general partner or manager entity) that is (x) either (i) a “small
business investment company” licensed by the SBA (or that has applied for such a license and is actively pursuing the granting
thereof by appropriate proceedings promptly instituted and diligently conducted) under the Small Business Investment Act of 1958,
as amended, or (ii) any wholly-owned, direct or indirect, Subsidiary of an entity referred to in clause (x)(i) of this definition,
and (y) designated in writing by the Borrower (as provided below) as an SBIC Subsidiary, so long as:

 

(a)          other
than pursuant to a Permitted SBIC Guarantee or the requirement by the SBA that the Borrower make an equity or capital contribution
to the SBIC Subsidiary in connection with its incurrence of SBA Indebtedness (provided that such contribution is permitted
by Section 6.03(e) and is made substantially contemporaneously with such incurrence), no portion of the Indebtedness or
any other obligations (contingent or otherwise) of such Person (i) is Guaranteed by the Borrower or any of its Subsidiaries (other
than any SBIC Subsidiary), (ii) is recourse to or obligates the Borrower or any of its Subsidiaries (other than any SBIC Subsidiary)
in any way, or (iii) subjects any property of the Borrower or any of its Subsidiaries (other than any SBIC Subsidiary) to the satisfaction
thereof;

 

(b)          other
than pursuant to a Permitted SBIC Guarantee, neither the Borrower nor any of its Subsidiaries has any material contract, agreement,
arrangement or understanding with such Person other than on terms no less favorable to the Borrower or such Subsidiary than those
that might be obtained at the time from Persons that are not Affiliates of the Borrower or such Subsidiary;

 

    	26

     

    

 

(c)          neither
the Borrower nor any of its Subsidiaries (other than any SBIC Subsidiary) has any obligation to such Person to maintain or preserve
its financial condition or cause it to achieve certain levels of operating results; and

 

(d)          such
Person has not Guaranteed or become a co-borrower under, and has not granted a security interest in any of its properties to secure,
and the Equity Interests it has issued are not pledged to secure, in each case, any indebtedness, liabilities or obligations of
any one or more of the Obligors.

 

Any designation by the Borrower
under clause (y) above shall be effected pursuant to a certificate of a Financial Officer delivered to the Administrative Agent,
which certificate shall include a statement to the effect that, to the best of such Financial Officer’s knowledge, such designation
complied with the foregoing conditions.

 

“SEC”
means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any or all of the functions
thereof.

 

“Second
Amendment Effective Date” means June 16, 2017.

 

“Secured Longer-Term
Indebtedness” means Indebtedness for borrowed money (other than Indebtedness hereunder) of the Borrower (which may be
Guaranteed by Subsidiary Guarantors) that (a) ranks pari- passu with the Loans
and is not secured by any assets of any Obligor other than pursuant to the Security Documents and the holders of which have agreed,
in a manner reasonably satisfactory to the Administrative Agent and the Collateral Agent, to be bound by the provisions of the
Security Documents, (b) has no amortization or mandatory redemption, repurchase or prepayment prior to, and a final maturity date
not earlier than, six months after the Maturity Date (it being understood that the conversion features into Permitted Equity Interests
under convertible notes (as well as the triggering of such conversion and/or settlement thereof solely with Permitted Equity Interests,
except (x) as provided in Section 6.12(b) or (y) in the case of interest or expenses, which may be payable in cash) shall
not constitute “amortization”, “redemption”, “repurchase” or “prepayment” for the
purposes of this definition), and (c) is incurred pursuant to documentation containing financial covenants, covenants governing
the borrowing base, if any, and portfolio valuations, and events of default that are no more restrictive than those set forth in
this Agreement and other terms (other than interest) that are no more restrictive in any material respect upon the Borrower and
its Subsidiaries than those set forth in this Agreement.

 

For the avoidance of doubt,
Secured Longer-Term Indebtedness shall also include any refinancing, refunding, renewal or extension of any Secured Longer-Term
Indebtedness so long as such refinanced, refunded, renewed or extended Indebtedness continues to satisfy the requirements of this
definition.

 

“Security Documents”
means, collectively, the Guarantee and Security Agreement, the Custodian Agreement, all Uniform Commercial Code financing statements
filed with respect to the security interests in personal property created pursuant to the Guarantee and Security Agreement, and
all other assignments, pledge agreements, security agreements, control agreements and other instruments executed and delivered
at any time by any of the Obligors pursuant to the Guarantee and Security Agreement or otherwise providing or relating to any collateral
security for any of the Secured Obligations under and as defined in the Guarantee and Security Agreement.

 

    	27

     

    

 

“Senior Securities”
means senior securities (as such term is defined and determined pursuant to the Investment Company Act and any orders of the SEC
issued to the Borrower thereunder).

 

“Settlement-Date
Basis” means that any Investment that has been purchased will not be treated as an Eligible Portfolio Investment until such
purchase has settled, and any Eligible Portfolio Investment which has been sold will not be excluded as an Eligible Portfolio Investment
until such sale has settled.

 

“Solvent”
means, with respect to any Obligor, that as of the date of determination, both (a) (i) the sum of such Obligor’s debt and
liabilities (including contingent liabilities) does not exceed the present fair saleable value of such Person’s present assets,
(ii) such Obligor’s capital is not unreasonably small in relation to its business as contemplated on the Effective Date and
reflected in any projections delivered to the Lenders or with respect to any transaction contemplated or undertaken after the Effective
Date, and (iii) such Obligor has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that
it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (b) such Obligor
is “solvent” within the meaning given to such term and similar terms under applicable laws relating to fraudulent transfers
and conveyances. 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 (irrespective of whether such contingent liabilities meet the criteria for accrual under
Statement of Financial Accounting Standard No. 5).

 

“Special Equity
Interest” means any Equity Interest that is subject to a Lien in favor of creditors of the issuer or the issuer’s
Affiliates of such Equity Interest, provided that (a) such Lien was created to secure Indebtedness owing by such issuer
or such issuer’s Affiliates to such creditors, (b) such Indebtedness was (i) in existence at the time the Obligors acquired
such Equity Interest, (ii) incurred or assumed by such issuer substantially contemporaneously with such acquisition or (iii) already
subject to a Lien granted to such creditors and (c) unless such Equity Interest is not intended to be included in the Collateral,
the documentation creating or governing such Lien does not prohibit the inclusion of such Equity Interest in the Collateral.

 

“Specified Managers”
means Joseph B. Alala, III, Hunt Broyhill and John F. McGlinn (or another manager or individual reasonably acceptable to the Administrative
Agent and Required Lenders after the death, disability, resignation or termination of the same).

 

“Standard Securitization
Undertakings” means, collectively, (a) customary arms-length servicing obligations (together with any related performance
guarantees), (b) obligations (together with any related performance guarantees) to refund the purchase price or grant purchase
price credits for breach of representations and warranties referred to in clause (c), and (c) representations, warranties, covenants
and indemnities (together with any related performance guarantees) of a type that are reasonably customary in commercial loan securitizations
(in each case in clauses (a), (b) and (c) excluding obligations related to the collectability of the assets sold or the creditworthiness
of the underlying obligors (other than a representation made by an Obligor solely at the time of the initial transfer of the asset,
that such Obligor does not have knowledge of any event that would cause such asset at the time of such initial transfer to be uncollectible)
and excluding obligations that constitute credit recourse).

 

    	28

     

    

 

“Statutory Reserve
Rate” means, for the Interest Period for any Eurocurrency Borrowing, a fraction (expressed as a decimal), the numerator
of which is the number one and the denominator of which is the number one minus the arithmetic mean, taken over each day
in such Interest Period, of the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject for eurocurrency funding
(currently referred to as “Eurocurrency liabilities” in Regulation D). Such reserve percentages shall include those
imposed pursuant to Regulation D. Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to be subject to such
reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time
to any Lender under Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and
as of the effective date of any change in any reserve percentage.

 

“Stockholders’
Equity” means, at any date, the amount determined on a consolidated basis, without duplication, in accordance with GAAP,
of stockholders’ equity for the Borrower and its Subsidiaries at such date.

 

“Structured Subsidiaries”
means a direct or indirect Subsidiary of the Borrower to which any Obligor sells, conveys or otherwise transfers (whether directly
or indirectly) Portfolio Investments, which is formed in connection with, and which continues to exist for the sole purpose of,
such Subsidiary obtaining and maintaining third-party financing from an unaffiliated third party, and which engages in no material
activities other than in connection with the purchase and financing of such assets from the Obligors or any other Person, and which
is designated by the Borrower (as provided below) as a Structured Subsidiary, so long as:

 

(a)        no
portion of the Indebtedness or any other obligations (contingent or otherwise) of such Subsidiary (i) is Guaranteed by any Obligor
(other than Guarantees in respect of Standard Securitization Undertakings), (ii) is recourse to or obligates any Obligor in any
way other than pursuant to Standard Securitization Undertakings or (iii) subjects any property of any Obligor (other than property
that has been contributed or sold or otherwise transferred to such Subsidiary in accordance with the terms Section 6.03(e)
or (f)), directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings or any Guarantee thereof;

 

(b)        no
Obligor has any material contract, agreement, arrangement or understanding with such Subsidiary other than on terms no less favorable
to such Obligor than those that might be obtained at the time from Persons that are not Affiliates of any Obligor, other than fees
payable in the ordinary course of business in connection with servicing loan assets;

 

(c)        no
Obligor has any obligation to maintain or preserve such entity’s financial condition or cause such entity to achieve certain
levels of operating results;

 

    	29

     

    

 

(d)        definitive
documentation relating to a third party financing provided to such Subsidiary by an unaffiliated third party (1) remains in full
force and effect at all times and (2) does not permit such Subsidiary to become an Obligor hereunder;

 

(e)        at
the time of such designation, the Obligors’ Net Worth is at least $125,000,000; and

 

(f)         in
the good faith judgment of the Borrower, such Structured Subsidiary reasonably expects to utilize, in the ordinary course of business,
its assets to obtain or maintain a secured financing from an unaffiliated third party.

 

Any such designation by the
Borrower shall be effected pursuant to a certificate of a Financial Officer delivered to the Administrative Agent, which certificate
shall include a statement to the effect that, to the best of such Financial Officer’s knowledge, such designation complied
with the foregoing conditions. Each Subsidiary of a Structured Subsidiary shall be deemed to be a Structured Subsidiary and shall
comply with the foregoing requirements of this definition.

 

“Subordinated Debt”
means any Indebtedness of the Borrower or any of its Subsidiaries (x) that is subordinated in right of payment to the Loans, (y)
that is secured by a Lien that is subordinated in priority to the Lien securing the Loans or (z) that provides that at the option
of (or upon notice to) any Person such Indebtedness (or the Liens securing such Indebtedness) will be subordinated as contemplated
by clause (x) or (y), including all “Subordinated Indebtedness” as defined in the Existing Indenture.

 

“Subsidiary”
means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation,
limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled
by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Anything herein
to the contrary notwithstanding, the term “Subsidiary” shall not include any Person that constitutes an Investment
held by any Obligor in the ordinary course of business and that is not, under GAAP, consolidated on the financial statements of
the Borrower and its Subsidiaries. Unless otherwise specified, “Subsidiary” means a Subsidiary of the Borrower.

 

“Subsidiary Guarantor”
means any Subsidiary that is or is required to be a Guarantor under the Guarantee and Security Agreement. It is understood and
agreed that, (i) no CFC or Transparent Subsidiary shall be required to be a Subsidiary Guarantor, (ii) subject to Section 5.08(a),
no Financing Subsidiary shall be required to be a Subsidiary Guarantor as long as it remains a Financing Subsidiary as defined
and described herein and (iii) subject to Section 5.08(a), no Florida Sidecar Subsidiary shall be required to be a Subsidiary
Guarantor as long as it remains a Florida Sidecar Subsidiary as defined and described herein.

 

    	30

     

    

 

“Tax Damages”
has the meaning assigned to such term in Section 2.14(d).

 

“Taxes”
means any and 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.

 

“Termination Date”
means the date on which the Commitments have expired or been terminated and the principal of and accrued interest on each Loan
and all fees and other amounts payable hereunder shall have been paid in full (excluding, for the avoidance of doubt, any amount
in connection with any contingent, unasserted indemnification obligations).

 

“Total Return Swap”
means any total return swap entered into by a Financing Subsidiary.

 

“Transactions”
means the execution, delivery and performance by the Borrower of this Agreement and other Loan Documents, the borrowing of Loans,
and the use of the proceeds thereof.

 

“Transparent Subsidiary”
means an entity directly or indirectly owned by an Obligor that has no material assets other than Equity Interests (held directly
or indirectly through other Transparent Subsidiaries) in one or more CFCs.

 

“Two Largest Industry
Classification Groups” means, as of any date of determination, each of the two Industry Classification Groups that a
greater portion of the Borrowing Base has been assigned to each such Industry Classification Group pursuant to Section 5.12(a)
than any other single Industry Classification Group.

 

“Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans constituting
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“Undisclosed Administration”
means, in relation to a Lender, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian
or other similar official by a supervisory authority or regulator under or based on the law in the country where such Lender is
subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed and such
appointment has not been publicly disclosed (including under the Dutch Financial Supervision Act 2007 (as amended from time to
time and including any successor legislation)).

 

“Unfunded Pension
Liability” of any Plan shall mean the excess of a Plan’s benefit liabilities under Section 4001(a)(16) of ERISA
over the current value of such Plan’s assets, determined in accordance with the assumptions used for funding the Plan pursuant
to Section 412 of the Code for the applicable plan year.

 

“Uniform Commercial
Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New
York.

 

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“Unquoted Investments”
has the meaning set forth in Section 5.12(b)(ii)(B).

 

“Unsecured Longer-Term
Indebtedness” means any Indebtedness for borrowed money of an Obligor that (a) has no amortization, or mandatory redemption,
repurchase or prepayment prior to, and a final maturity date not earlier than, six months after the Maturity Date (it being understood
that customary put rights or repurchase or redemption obligations (x) in the case of convertible securities, in connection with
the suspension or delisting of the capital stock of the Borrower or the failure of the Borrower to satisfy a continued listing
rule with respect to its capital stock or (y) arising out of circumstances that would constitute a “fundamental change”
(as such term is customarily defined in convertible note offerings) or be Events of Default under this Agreement shall not be deemed
to be “amortization”, “mandatory redemption”, “repurchase”, “prepayment” or a “final
maturity date” for purposes of this definition), (b) is incurred pursuant to documentation containing financial covenants,
covenants governing the borrowing base, if any, and portfolio valuation, and events of default that are no more restrictive than
those set forth in this Agreement, and other terms substantially comparable to market terms for substantially similar debt of other
similarly situated borrowers as reasonably determined in good faith by the Borrower (it being understood that customary put rights
or repurchase or redemption obligations (x) in the case of convertible securities, in connection with the suspension or delisting
of the capital stock of the Borrower or the failure of the Borrower to satisfy a continued listing rule with respect to its capital
stock or (y) arising out of circumstances that would constitute a “fundamental change” (as such term is customarily
defined in convertible note offerings) or be Events of Default under this Agreement shall not be deemed to be more restrictive
for purposes of this definition), and (c) is not secured by any assets of any Obligor. For the avoidance of doubt, (a) Unsecured
Longer-Term Indebtedness shall also include any refinancing, refunding, renewal or extension of any Unsecured Longer-Term Indebtedness
so long as such refinanced, refunded, renewed or extended Indebtedness continues to satisfy the requirements of this definition
and (b) any payment on account of Unsecured Longer-Term Indebtedness shall be subject to Section 6.12.

 

“Unsecured Shorter-Term
Indebtedness” means, collectively, (a) any Indebtedness for borrowed money of the Borrower or any Subsidiary (other than
a Financing Subsidiary) that is not secured by any assets of any Obligor and that does not constitute Unsecured Longer-Term Indebtedness
and (b) any Indebtedness for borrowed money of the Borrower or any Subsidiary (other than a Financing Subsidiary) that is designated
as “Unsecured Shorter-Term Indebtedness” pursuant to Section 6.11(a). For the avoidance of doubt, Unsecured
Shorter-Term Indebtedness shall also include any refinancing, refunding, renewal or extension of any Unsecured Shorter-Term Indebtedness
so long as such refinanced, refunded, renewed or extended Indebtedness continues to satisfy the requirements of this definition.
The 2021 Notes shall be deemed to be Unsecured Shorter-Term Indebtedness for all purposes of this Agreement. 

 

“U.S. Borrower”
means any Borrower that is a U.S. Person.

 

“U.S. Government
Securities” means securities that are direct obligations of, and obligations the timely payment of principal and interest
on which is fully guaranteed by, the United States or any agency or instrumentality of the United States the obligations of which
are backed by the full faith and credit of the United States and in the form of conventional bills, bonds, and notes.

 

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

 

“USA PATRIOT Act”
has the meaning assigned to such term in Section 3.20.

 

“Value”
has the meaning assigned to such term in Section 5.13.

 

“wholly owned Subsidiary”
of any person shall mean a Subsidiary of such person, all of the Equity Interests of which (other than directors’ qualifying
shares or nominee or other similar shares required pursuant to applicable law) are owned by such person and/or one or more wholly
owned Subsidiaries of such person. Unless the context otherwise requires, “wholly owned Subsidiary Guarantor” shall
mean a wholly owned Subsidiary that is a Subsidiary Guarantor.

 

“Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

 

“Write-Down
and Conversion Powers” means, 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.

 

SECTION 1.02. Classification of Loans and
Borrowings. For purposes of this Agreement, Loans may be classified and referred
to by Type (e.g., an “ABR Loan”). Borrowings also may be classified and referred to by Type (e.g., an “ABR Borrowing”).

 

SECTION 1.03. Terms Generally.
The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any
Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on such successors
and assigns set forth herein), (c) the words “herein”, “hereof’ and “hereunder”, and words
of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d)
all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

 

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SECTION 1.04. Accounting
Terms. GAAP Except as otherwise expressly provided herein, all terms of an accounting
or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower
notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the Effective Date in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose),
then Borrower, Administrative Agent and the Lenders agree to enter into negotiations in good faith in order to amend such provisions
of the Agreement so as to equitably reflect such change to comply with GAAP with the desired result that the criteria for evaluating
the Borrower's financial condition shall be the same after such change to comply with GAAP as if such change had not been made;
provided, however, until such amendments to equitably reflect such changes are effective and agreed to by Borrower,
Administrative Agent and the Required Lenders, the Borrower’s compliance with such financial covenants shall be determined
on the basis of GAAP as in effect and applied immediately before such change in GAAP becomes effective. Notwithstanding the foregoing
or anything herein to the contrary, the Borrower covenants and agrees with the Lenders that whether or not the Borrower may at
any time adopt Financial Accounting Standard No. 159 or Accounting Standard Codification 825, all determinations relating to fair
value accounting for liabilities or compliance with the terms and conditions of this Agreement shall be made on the basis that
the Borrower has not adopted Financial Accounting Standard No. 159 or Accounting Standard Codification 825.

 

ARTICLE
II

 

THE
CREDITS

 

SECTION 2.01. The Commitments.
Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower from time to time during
the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Commitment, (b) the aggregate Revolving Credit Exposure of all of the Lenders exceeding the aggregate
Commitments or (c) the total Covered Debt Amount exceeding the Borrowing Base then in effect. Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans.

 

SECTION 2.02. Loans and
Borrowings.

 

(a)        Obligations
of Lenders. Each Loan shall be made as part of a Borrowing consisting of Loans of the same Type made by the Lenders ratably
in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender
shall be responsible for any other Lender’s failure to make Loans as required.

 

(b)        Type
of Loans. Subject to Section 2.11, each Borrowing shall be constituted entirely of ABR Loans or of Eurocurrency Loans
as the Borrower may request in accordance herewith. Each Loan shall be denominated in Dollars. Each Lender at its option may make
any Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided
that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms
of this Agreement.

 

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(c)        Minimum
Amounts. Each Borrowing shall be in an aggregate amount of $1,000,000 or a larger multiple of $100,000 in excess thereof; provided
that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments. Borrowings
of more than one Type may be outstanding at the same time.

 

(d)        Limitations
on Interest Periods. Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request any
Eurocurrency Borrowing (or to elect to convert to or continue as a Eurocurrency Borrowing) if the Interest Period requested therefor
would end after the Maturity Date.

 

SECTION 2.03. Requests
for Borrowings.

 

(a)        Notice
by the Borrower. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by delivery of
a signed Borrowing Request or by telephone or e-mail (followed promptly by delivery of a signed Borrowing Request) (i) in the case
of a Eurocurrency Borrowing, not later than 12:00 p.m., New York City time, three (3) Business Days before the date of the proposed
Borrowing or (ii) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date
of the proposed Borrowing. Each such request for a Borrowing shall be irrevocable.

 

(b)        Content
of Borrowing Requests. Each request for a Borrowing (whether a written Borrowing Request, a telephonic request or e-mail request)
shall specify the following information in compliance with Section 2.02:

 

(i)         the
aggregate amount of the requested Borrowing;

 

(ii)        the
date of such Borrowing, which shall be a Business Day;

 

(iii)       whether
such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

 

(iv)       in
the case of a Eurocurrency Borrowing, the Interest Period therefor, which shall be a period contemplated by the definition of the
term “Interest Period” and permitted under Section 2.02(d); and

 

(v)        the
location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements
of Section 2.04.

 

(c)        Notice
by the Administrative Agent to the Lenders. Promptly following receipt of a Borrowing Request in accordance with this Section,
the Administrative Agent shall advise each applicable Lender of the details thereof and of the amounts of such Lender’s Loan
to be made as part of the requested Borrowing.

 

(d)        Failure
to Elect. If no election as to the Type of a Borrowing is specified in a request for a Borrowing, then the requested Borrowing
shall be a Eurocurrency Borrowing having an Interest Period of one (1) month. If a Eurocurrency Borrowing is requested but no Interest
Period is specified, the Borrower shall be deemed to have selected an Interest Period of one (1) month’s duration.

 

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SECTION 2.04. Funding
of Borrowings.

 

(a)        Funding
by Lenders. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for
such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting
the amounts so received, in like funds, to an account of the Borrower designated by the Borrower in the applicable Borrowing Request.

 

(b)        Presumption
by the Administrative Agent. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing,
the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a)
of this Section and, in reliance upon such assumption, the Administrative Agent may (in its sole discretion and without any obligation
to do so) make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay
to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including
the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i)
in the case of such Lender, the Federal Funds Effective Rate and (ii) in the case of the Borrower, the interest rate applicable
to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s
Loan included in such Borrowing. Nothing in this paragraph shall relieve any Lender of its obligation to fulfill its commitments
hereunder, and shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.

 

SECTION 2.05. Interest
Elections.

 

(a)        Elections
by the Borrower for Borrowings. Subject to Section 2.03(d), the Loans constituting each Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency Borrowing, shall have the Interest
Period specified in such Borrowing Request. Thereafter, subject to Section 2.05(e), the Borrower may elect to convert such
Borrowing to a Borrowing of a different Type or to continue such Borrowing as a Borrowing of the same Type and, in the case of
a Eurocurrency Borrowing, may elect the Interest Period therefor, all as provided in this Section. The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders (except as provided under Section 2.11(b)), and the Loans constituting each such portion shall be considered
a separate Borrowing.

 

(b)        Notice
of Elections. To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election
by delivery of a signed Interest Election Request in a form approved by the Administrative Agent or by telephone (followed promptly,
but no later than the close of business on the date of such request, by a signed Interest Election Request in a form approved by
the Administrative Agent) by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic
and written notice of election shall be irrevocable.

 

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(c)        Content
of Interest Election Requests. Each telephonic and written notice of election pursuant to Section 2.05(b) shall specify
the following information in compliance with Section 2.02:

 

(i)         the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) of this paragraph shall be specified for each resulting Borrowing);

 

(ii)        the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii)       whether
the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing; and

 

(iv)       if
the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period therefor after giving effect to such election, which shall
be a period contemplated by the definition of the term “Interest Period” and permitted under Section 2.02(d),
provided that there shall be no more than ten (10) separate Borrowings outstanding at any one time.

 

(d)        Notice
by the Administrative Agent to the Lenders. Promptly following receipt of an Interest Election Request, the Administrative
Agent shall advise each applicable Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e)        Failure
to Elect; Events of Default. If the Borrower fails to deliver a timely and complete Interest Election Request with respect
to a Eurocurrency Borrowing prior to the end of the Interest Period therefor, then, unless such Borrowing is repaid as provided
herein, at the end of such Interest Period such Borrowing shall be converted to a Eurocurrency Borrowing having an Interest Period
of one month. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative
Agent, at the request of the Required Lenders, so notifies the Borrower, (i) any Eurocurrency Borrowing shall, at the end of the
applicable Interest Period for such Eurocurrency Borrowing, be automatically converted to an ABR Borrowing and (ii) the Borrower
shall not be entitled to elect to convert or continue any Borrowing into or as a Eurocurrency Borrowing.

 

SECTION 2.06. Termination,
Reduction or Increase of the Commitments.

 

(a)        Scheduled
Termination. Unless previously terminated in accordance with the terms of this Agreement, on the Revolver Termination Date
the Commitments shall automatically be reduced to an amount equal to the aggregate principal amount of the Loans of all Lenders
outstanding on the Revolver Termination Date and thereafter to an amount equal to the aggregate principal amount of the Loans outstanding
after giving effect to each payment of principal thereunder; provided that, for clarity, no Lender shall have any obligation
to make new Loans on or after the Revolver Termination Date, and any outstanding amounts shall be due and payable on the Maturity
Date in accordance with Section 2.07.

 

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(b)        Voluntary
Termination or Reduction. The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided
that (i) each reduction of the Commitments pursuant to this Section 2.06(b) shall be in an amount that is $3,000,000 or
a larger multiple of $100,000 in excess thereof (or an amount less than $3,000,000 if the Commitments are being reduced to zero)
and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.08, the total Revolving Credit Exposures would exceed the total Commitments.

 

(c)        Notice
of Voluntary Termination or Reduction. The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination
or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative
Agent shall advise the applicable Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that
such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower
(by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.

 

(d)        Effect
of Termination or Reduction. Any termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments
shall be made ratably among the Lenders in accordance with their respective Commitments.

 

(e)        [Intentionally
omitted].

 

(f)         Increase
of the Commitments.

 

(i)         Requests
for Increase by Borrower. The Borrower may, at any time prior to the Revolver Termination Date, propose that the Commitments
hereunder be increased (each such proposed increase being a “Commitment Increase”) by notice to the Administrative
Agent specifying each existing Lender (each an “Increasing Lender”) and/or each additional lender (each an “Assuming
Lender”) that shall have agreed to an additional Commitment and the date on which such increase is to be effective (the
“Commitment Increase Date”), which date shall be a Business Day at least three Business Days (or such lesser
period as the Administrative Agent may reasonably agree) after delivery of such notice and at least 30 days prior to the Revolver
Termination Date; provided that each Lender may determine in its sole discretion whether or not it chooses to participate
in a Commitment Increase; provided, further that, subject to the foregoing, each Commitment Increase shall become
effective only upon satisfaction of the following conditions:

 

(A)         the
minimum amount of the Commitment of any Assuming Lender, and the minimum amount of the increase of the Commitment of any Increasing
Lender, as part of such Commitment Increase shall be $5,000,000 or a larger multiple of $1,000,000 in excess thereof (or, in each
case, in such other amounts as agreed to by Administrative Agent),

 

    	38

     

    

 

 

(B)         immediately
after giving effect to such Commitment Increase, the total Commitments of all of the Lenders hereunder shall not exceed $150,000,000200,000,000;

 

(C)         each
Assuming Lender and the Commitment Increase shall be consented to by the Administrative Agent (which consent shall not be unreasonably
withheld);

 

(D)         no
Default shall have occurred and be continuing on such Commitment Increase Date or shall result from the proposed Commitment Increase;
and

 

(E)         the
representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material
respects (other than any representation or warranty already qualified by materiality or Material Adverse Effect, which shall be
true and correct in all respects) on and as of the Commitment Increase Date as if made on and as of such date (or, if any such
representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).

 

(ii)         Effectiveness
of Commitment Increase by Borrower. On the Commitment Increase Date for any Commitment Increase, each Assuming Lender part
of such Commitment Increase, if any, shall become a Lender hereunder as of such Commitment Increase Date with Commitment in the
amount set forth in the agreement referred to in Section 2.06(f)(ii)(y) and the Commitment of any Increasing Lender part
of such Commitment Increase shall be increased as of such Commitment Increase Date to the amount set forth in the agreement referred
to in Section 2.06(f)(ii)(y); provided that:

 

(x)          the
Administrative Agent shall have received on or prior to 11:00 a.m., New York City time, on such Commitment Increase Date (or on
or prior to a time on an earlier date specified by the Administrative Agent) a certificate of a duly authorized officer of the
Borrower stating that each of the applicable conditions to such Commitment Increase set forth in the foregoing paragraph (i) has
been satisfied; and

 

(y)          each
Assuming Lender or Increasing Lender shall have delivered to the Administrative Agent, on or prior to 11:00 a.m., New York City
time on such Commitment Increase Date (or on or prior to a time on an earlier date specified by the Administrative Agent), an agreement,
in form and substance satisfactory to the Borrower and the Administrative Agent, pursuant to which such Lender shall, effective
as of such Commitment Increase Date, undertake a Commitment or an increase of Commitment, as applicable, duly executed by such
Assuming Lender or Increasing Lender, as applicable, and the Borrower and acknowledged by the Administrative Agent.

 

    	39

     

    

 

Promptly following satisfaction
of such conditions, the Administrative Agent shall notify the Lenders (including any Assuming Lenders) thereof and of the occurrence
of the Commitment Increase Date by facsimile transmission or electronic messaging system.

 

(iii)        Recordation
into Register. Upon its receipt of an agreement referred to in clause (ii)(y) above executed by an Assuming Lender or any Increasing
Lender, together with the certificate referred to in clause (ii)(x) above, the Administrative Agent shall, if such agreement has
been completed, (x) accept such agreement, (y) record the information contained therein in the Register and (z) give prompt notice
thereof to the Borrower.

 

(iv)        Adjustments
of Borrowings upon Effectiveness of Increase. On each Commitment Increase Date, the Borrower shall (A) prepay the outstanding
Loans (if any) in full, (B) simultaneously borrow new Loans hereunder in an amount equal to such prepayment; provided that
with respect to subclauses (A) and (B), (x) the prepayment to, and Borrowing from, any existing Lender shall be effected by book
entry to the extent that any portion of the amount prepaid to such Lender will be subsequently borrowed from such Lender and (y)
the existing Lenders, the Increasing Lenders and the Assuming Lenders shall make and receive payments among themselves, in a manner
acceptable to the Administrative Agent, so that, after giving effect thereto, the Loans are held ratably by the Lenders in accordance
with the respective Commitments of such Lenders (after giving effect to such Commitment Increase) and (C) pay to the Lenders the
amounts, if any, payable under Section 2.13 as a result of any such prepayment. The Administrative Agent shall amend Schedule
1.01(b) to reflect the aggregate amount of each Lender’s Commitments (including Increasing Lenders and Assuming Lenders).
Each reference to Schedule 1.01(b) in this Agreement shall be to Schedule 1.01(b) as amended pursuant to this Section.

 

(v)         Terms
of Loans issued on the Commitment Increase Date. For the avoidance of doubt, the terms and provisions of any new Loans issued
by any Assuming Lender or Increasing Lender, and the Commitment Increase of any Assuming Lender or Increasing Lender, shall be
identical to the Loans issued by, and the Commitments of, the Lenders immediately prior to the applicable Commitment Increase Date.

 

SECTION 2.07. Repayment
of Loans; Evidence of Debt.

 

(a)          Repayment.
Subject to, and in accordance with, the terms of this Agreement, the Borrower hereby unconditionally promises to pay to the Administrative
Agent for account of the Lenders the outstanding principal amount of the Loans
and all other amounts due and owing hereunder and under the other Loan Documents on the Maturity Date.

 

(b)          Manner
of Payment. Prior to any repayment or prepayment of any Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings
to be paid and shall notify the Administrative Agent by telephone (confirmed by telecopy or e-mail) of such selection not later
than the time set forth in Section 2.08(e) prior to the scheduled date of such repayment; provided that each repayment
of Borrowings shall be applied to repay any outstanding ABR Borrowings before any other Borrowings. If the Borrower fails to make
a timely selection of the Borrowing or Borrowings to be repaid or prepaid, such payment shall be applied, first, to pay any outstanding
ABR Borrowings and, second, to otherany
remaining Borrowings in the order of the remaining duration of their respective Interest Periods (the Borrowing with
the shortest remaining Interest Period to be repaid first). Each payment of a Borrowing shall be applied ratably to the Loans included
in such Borrowing (except as otherwise provided in Section 2.11(b)).

 

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(c)          Maintenance
of Records by Lenders. Each Lender shall maintain in accordance with its usual practice records evidencing the indebtedness
of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable
and paid to such Lender from time to time hereunder.

 

(d)          Maintenance
of Records by the Administrative Agent. The Administrative Agent shall maintain records in which it shall record (i) the amount
of each Loan made hereunder, the Type thereof and each Interest Period therefor, (ii) the amount of any principal or interest due
and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for account of the Lenders and each Lender’s share thereof.

 

(e)          Effect
of Entries. The entries made in the records maintained pursuant to paragraph (c) or (d) of this Section shall be prima
facie evidence, absent manifest error, of the existence and amounts of the obligations recorded therein; provided
that the failure of any Lender or the Administrative Agent to maintain such records or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. In the event of any conflict
between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

(f)          Promissory
Notes. Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and
its permitted registered assigns) and in a form attached hereto as Exhibit C. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one
or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to
such payee and its permitted registered assigns).

 

SECTION 2.08. Prepayment
of Loans.

 

(a)          Optional
Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part,
without premium or fee (but subject to Section 2.13), subject to the requirements of this Section. Each prepayment in part
under this Section 2.08(a) shall be in a minimum amount of $1,000,000 or a larger multiple of $100,000.

 

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(b)          Mandatory
Prepayments due to Borrowing Base Deficiency. In the event that the amount of total Revolving Credit Exposure exceeds the total
Commitments, the Borrower shall prepay Loans in such amounts as shall be necessary so that the amount of total Revolving Credit
Exposure does not exceed the total Commitments. In the event that at any time any Borrowing Base Deficiency shall exist, promptly
(but in no event later than 5 Business Days), the Borrower shall either prepay (x) the Loans so that the Borrowing Base Deficiency
is promptly cured or (y) the Loans and the Other Covered Indebtedness that
is Secured Longer-Term Indebtedness in such amounts as shall be necessary so that such Borrowing Base Deficiency is
promptly cured (and, as among the Loans and the Other Covered Indebtedness
that is Secured Longer-Term Indebtedness, at least ratably (based on the outstanding principal amount of such indebtedness)
as to payments of Loans in relation to Other Covered Indebtedness that
is Secured Longer-Term Indebtedness); provided, that if within such 5 Business Day period, the Borrower shall
present to the Administrative Agent a reasonably feasible plan which plan is reasonably satisfactory to the Administrative Agent
that will enable any such Borrowing Base Deficiency to be cured within 30 Business Days of the occurrence of such Borrowing Base
Deficiency (which 30-Business Day period shall include the 5 Business Days permitted for delivery of such plan), then such prepayment
or reduction shall be effected in accordance with such plan (subject, for the avoidance of doubt, to the limitations as to the
allocation of such prepayments set forth above in this Section 2.08(b)). Notwithstanding the foregoing, the Borrower shall
pay interest in accordance with Section 2.10(c) for so long as the Covered Debt Amount exceeds the Borrowing Base during
such 30-Business Day period. For clarity, in the event that the Borrowing Base Deficiency is not cured prior to the end of such
5 Business Day period (or, if applicable, such 30- Business Day period), it shall constitute an Event of Default under clause
(a) of Article VIII.

 

(c)          Mandatory
Prepayments due to Certain Events Following Availability Period.

 

(i)          Asset
Sales. In the event that any Obligor shall receive any Net Asset Sale Proceeds at any time after the Availability Period, the
Borrower shall, no later than the third Business Day following the receipt of such Net Asset Sale Proceeds, prepay the Loans in
an amount equal to such Net Asset Sale Proceeds (and the Commitments shall be permanently reduced by such amount); provided,
that with respect to Asset Sales of assets that are not Portfolio Investments, the Borrower shall not be required to prepay the
Loans unless and until (and to the extent that) the aggregate Net Asset Sale Proceeds relating to all such Asset Sales are greater
than $2,000,000.

 

(ii)         Extraordinary
Receipts. In the event (but only to the extent) that the aggregate
amount of all Extraordinary Receipts received by the Obligors at any time after the Availability Period exceeds $2,000,000,
the Borrower shall, no later than the third Business Day following the receipt of such excess Extraordinary Receipts, prepay the
Loans in an amount equal to such excess Extraordinary Receipts (and the Commitments shall be permanently reduced by such amount).

 

(iii)        Returns
of Capital. In the event that any Obligor shall receive any Return of Capital at any time after the Availability Period, the
Borrower shall, no later than the third Business Day following the receipt of such Return of Capital, prepay the Loans in an amount
equal to 100% of such Return of Capital (and the Commitments shall be permanently reduced by such amount).

 

(iv)        Equity
Issuances. In the event that the Borrower shall receive any Cash proceeds from the issuance of Equity Interests of the Borrower
at any time after the Availability Period, the Borrower shall, no later than the third Business Day following the receipt of such
Cash proceeds, prepay the Loans in an amount equal to 100% of such Cash proceeds, net of underwriting discounts and commissions
or other similar payments and other costs, fees, premiums and expenses directly associated therewith, including reasonable legal
fees and expenses (and the Commitments shall be permanently reduced by such amount).

 

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(v)         Indebtedness.
In the event that any Obligor shall receive any Cash proceeds from the issuance of Indebtedness at any time after the Availability
Period, such Obligor shall, no later than the third Business Day following the receipt of such Cash proceeds, prepay the Loans
in an amount equal to 100% of such Cash proceeds, net of underwriting discounts and commissions or other similar payments and other
costs, fees, commissions, premiums and expenses directly associated therewith, including reasonable legal fees and expenses (and
the Commitments shall be permanently reduced by such amount).

 

(d)          Mandatory
Prepayment of Eurocurrency Loans. If the Loans to be prepaid pursuant to Sections 2.08(c)(ii) and (iii) are Eurocurrency
Loans, the Borrower may defer such prepayment (and permanent Commitment reduction) until the last day of the Interest Period applicable
to such Loans, so long as the Borrower deposits an amount equal to an amount required to be prepaid, no later than the third Business
Day following the receipt of such amount, into a segregated collateral account in the name and under the control (within the meaning
of Section 9-104 of the Uniform Commercial Code) of the Administrative Agent pending application of such amount to the prepayment
of the Loans (and permanent reduction of the Commitments) on the last day of such Interest Period.

 

(e)          Notices,
Etc. The Borrower shall notify the Administrative Agent in writing or by telephone (followed promptly by written confirmation)
of any prepayment hereunder (i) in the case of prepayment of a Eurocurrency Borrowing under Section 2.08(a), not later than
11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing
under Section 2.08(a), or any prepayment under Section 2.08(b) or (c), not later than 11:00 a.m., New York
City time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment
date, the principal amount of each Borrowing or portion thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably
detailed calculation of the amount of such prepayment; provided, that, (1) if a notice of prepayment is given in connection
with a conditional notice of termination of the Commitments as contemplated by Section 2.06(c), then such notice of prepayment
may be revoked if such notice of termination is revoked in accordance with Section 2.06(c) and (2) any such notices given
in connection with any of the events specified in Section 2.08(c) may be conditioned upon (x) the consummation of the issuance
of Equity Interests or Indebtedness (as applicable) or (y) the receipt of net cash proceeds from Extraordinary Receipts or Returns
of Capital. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders
of the contents thereof. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
In the event the Borrower is required to make any concurrent prepayments
under both paragraph (b) and also another paragraph of this Section 2.08, any such prepayments shall be applied toward a prepayment
pursuant to paragraph (b) before any prepayment pursuant to any other paragraph of this Section 2.08. Prepayments shall
be accompanied by accrued interest to the extent required by Section 2.10 and shall be made in the manner specified in Section
2.07(b).

 

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(f)          Permitted
Tax Distributions. Notwithstanding anything herein to the contrary, Net Asset Sale Proceeds, Extraordinary Receipts and Return
of Capital required to be applied to the prepayment of the Loans pursuant to Section 2.09(c) shall exclude the amounts estimated
in good faith by the Borrower to be necessary for the Borrower to make distributions sufficient in amount to achieve the objectives
set forth in clauses (i), (ii) and (iii) of Section 6.05(b) hereof, but solely to the extent that the
receipt of such Net Asset Sale Proceeds, Extraordinary Receipts and Return of Capital (as the case may be) results in an increase
in the amounts required to be distributed by the Borrower to achieve such objectives.

 

SECTION 2.09. Fees.

 

(a)          Commitment
Fee. The Borrower agrees to pay to the Administrative Agent for account of each Lender a commitment fee, which shall accrue
at the Applicable Commitment Fee Rate on the unused amount of the Commitment of such Lender, if any, on each day during the period
from and including the Effective Date to the earlier of the date the Commitments terminate and the Revolver Termination Date. Accrued
commitment fees shall be payable in arrears (x) within one Business Day after each Quarterly Date and (y) on the earlier of the
date the Commitments terminate and the Revolver Termination Date, commencing on the first such date to occur after the Effective
Date. 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). For purposes of computing commitment fees, the Commitments shall
be deemed to be used to the extent of the outstanding Loans of all Lenders.

 

(b)          Administrative
Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon between the Borrower and the Administrative Agent.

 

(c)          Payment
of Fees. All fees payable hereunder shall be paid on the dates due, in Dollars and immediately available funds, to the Administrative
Agent for distribution, in the case of facility fees and participation fees, to the Lenders entitled thereto. Fees paid shall not
be refundable under any circumstances absent manifest error. On the Effective Date, the Borrower shall pay (i) all fees required
to be paid on the “Revolving Closing Date” under that certain fee letter, dated October 2, 2014, by and between the
Borrower and ING and (ii) all costs and expenses outstanding on such date and required to be paid pursuant to Section 9.03(a)(i).
On the Second Amendment Effective Date, the Borrower shall pay (x) all
fees required to be paid on the Second Amendment Effective Date under that certain fee letter, dated as of the Second Amendment
Effective Date, by and between the Borrower and ING and (ii) all costs and expenses outstanding on such date required to be paid
pursuant to Section 9.03(a)(i).

 

SECTION 2.10. Interest.

 

(a)          ABR
Loans. The Loans constituting each ABR Borrowing shall bear interest at a rate per annum equal to the Alternate Base Rate plus
the Applicable Margin.

 

(b)          Eurocurrency
Loans. The Loans constituting each Eurocurrency Borrowing shall bear interest at a rate per annum equal to the Adjusted LIBO
Rate for the related Interest Period for such Borrowing plus the Applicable Margin.

 

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(c)          Default
Interest. Notwithstanding the foregoing, if any Event of Default described in clause (a), (b), (d) (only with respect to Section
6.07), (h), (i) or (j) of Article VII has occurred and is continuing, or on demand of the Administrative Agent or the
Required Lenders if any Event of Default described in any other clause of Article VII has occurred and is continuing, or
if the Covered Debt Amount exceeds the Borrowing Base during the 30-Business Day period referred to in Section 2.08(b),
the interest applicable to Loans shall accrue, and any fee or other amount payable by the Borrower hereunder shall bear interest,
after as well as before judgment, at a rate per annum equal to (i) in the case of principal of any Loan, 2% plus the rate otherwise
applicable to such Loan as provided above, or (ii) in the case of any fee or other amount, 2% plus the rate applicable to ABR Loans
as provided in paragraph (a) of this Section.

 

(d)          Payment
of Interest. Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan in Dollars
and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior
to the Maturity Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurocurrency Borrowing prior to the end of the Interest Period therefor,
accrued interest on such Borrowing shall be payable on the effective date of such conversion.

 

(e)          Computation.
All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of
365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Administrative
Agent and such determination shall be conclusive absent manifest error.

 

SECTION 2.11. Eurocurrency
Borrowing Provisions.

 

(a)          Alternate
Rate of Interest. If prior to the commencement of the Interest Period for any Eurocurrency Borrowing:

 

(i)          the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

 

(ii)         the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately
and fairly reflect the cost to such Lenders of making or maintaining their respective Loans included in such Borrowing for such
Interest Period;

 

then the Administrative Agent shall give
notice thereof to the Borrower and the Lenders by telephone, telecopy or e-mail as promptly as practicable thereafter and, until
the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist,
(i) any Interest Election Request that requests the conversion of any Borrowing to, or the continuation of any Borrowing as, a
Eurocurrency Borrowing and such Borrowing (unless prepaid) shall be continued as, or converted to, an ABR Borrowing and (ii) if
any Borrowing Request requests a Eurocurrency Borrowing, such Borrowing shall be made as an ABR Borrowing.

 

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(b)          Illegality.
Without duplication of any other rights that any Lender has hereunder, if any Lender determines that any law has made it unlawful,
or that any Governmental Authority has asserted that it is unlawful for any Lender to make, maintain or fund Loans whose interest
is determined by reference to the LIBO Rate, or to determine or charge interest rates based upon the LIBO Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, then, on notice thereof by such Lender to the Borrower and the Administrative Agent, (i) any obligation
of such Lender to make or continue Eurocurrency Borrowings or to convert ABR Borrowings to Eurocurrency Borrowings shall be suspended,
and (ii) if such notice asserts the illegality of such Lender making or maintaining Eurocurrency Borrowings the interest rate on
which is determined by reference to the LIBO Rate component of the Alternate Base Rate, the interest rate on which ABR Borrowings
of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the
LIBO Rate component of the Alternate Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower
that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, (x) all Eurocurrency Borrowings
of such Lender shall automatically convert to ABR Borrowings (the interest rate which ABR Borrowings of such Lender shall, if necessary
to avoid such illegality, be determined by the Administrative Agent without reference to the LIBO Rate component of the Alternate
Base Rate), either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency
Borrowings to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurocurrency Borrowings (in which
event Borrower shall not be required to pay any yield maintenance, breakage or similar fees) and (y) if such notice asserts the
illegality of such Lender determining or charging interest rates based upon the LIBO Rate, the Administrative Agent shall during
the period of such suspension compute the Alternate Base Rate applicable to such Lender without reference to the LIBO Rate component
thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine
or charge interest rates based upon the LIBO Rate. Upon any such conversion, the Borrower shall also pay accrued interest on the
amount so converted.

 

SECTION 2.12. Increased
Costs.

 

(a)          Increased
Costs Generally. If any Change in Law shall:

 

(i)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted
LIBO Rate); or

 

(ii)         subject
any Lender to any Taxes (other than Covered Taxes and Taxes described in clauses (a)(ii), (c) and (e) of the definition of Excluded
Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities
or capital attributable thereto; or

 

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(iii)        impose
on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or
Eurocurrency Loans made by such Lender or participation therein;

 

and the result of any of the foregoing
shall be to increase the cost to such Lenders of making or maintaining any Eurocurrency Loan (or of maintaining its obligation
to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Borrower will pay to such Lender, in Dollars, such additional amount or amounts as will compensate
such Lender for such additional costs incurred or reduction suffered.

 

(b)          Capital
Requirements. 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 Loans 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 or liquidity position), by an amount deemed to
be material by such Lender, then from time to time the Borrower will pay to such Lender, in Dollars, such additional amount or
amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

 

(c)          Certificates
from Lenders. A certificate of a Lender setting forth the amount or amounts, in Dollars, necessary to compensate such Lender
or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be promptly delivered to
the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof.

 

(d)          Delay
in Requests. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute
a waiver of such Lender’s right to demand such compensation; provided that no Obligor shall be required to compensate
a Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than
six months prior to the date that such Lender notifies the Borrower in writing of any such Change in Law giving rise to such increased
costs or reductions.

 

SECTION 2.13. Break
Funding Payments. In the event of (a) the payment of any principal of any Eurocurrency Loan other than on the last day of
an Interest Period therefor (including as a result of an Event of Default), (b) the conversion of any Eurocurrency Loan other
than on the last day of an Interest Period therefor, (c) the failure to borrow, convert, continue or prepay any Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable under Section
2.08(e) and is revoked in accordance herewith), or (d) the assignment as a result of a request by the Borrower pursuant to
Section 2.17(b) of any Eurocurrency Loan other than on the last day of an Interest Period therefor, then, in any such event,
the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurocurrency
Loan, the loss to any Lender attributable to any such event shall be deemed to include an amount determined by such Lender to
be equal to the excess, if any, of

 

    	47

     

    

 

(i)          the
amount of interest that such Lender would pay for a deposit equal to the principal amount of such Loan referred to in clauses
(a), (b), (c) or (d) of this Section 2.13 denominated in Dollars for the period from the date
of such payment, conversion, failure or assignment to the last day of the then current Interest Period for such Loan (or, in the
case of a failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing,
conversion or continuation) if the interest rate payable on such deposit were equal to the Adjusted LIBO Rate for Dollars for such
Interest Period, over

 

(ii)         the
amount of interest that such Lender would earn on such principal amount for such period if such Lender were to invest such principal
amount for such period at the interest rate that would be bid by such Lender (or an affiliate of such Lender) for deposits denominated
in Dollars from other banks in the Eurocurrency market at the commencement of such period.

 

Payments under this Section shall be made
upon written request of a Lender delivered not later than five Business Days following the payment, conversion, or failure to borrow,
convert, continue or prepay that gives rise to a claim under this Section accompanied by a written certificate of such Lender setting
forth in reasonable detail the amount or amounts that such Lender is entitled to receive pursuant to this Section, which certificate
shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof.

 

SECTION 2.14. Taxes.

 

(a)          Payments
Free of Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document
shall be made free and clear of and without deduction for any Taxes, unless otherwise required by applicable law; provided
that if the Borrower shall be required to deduct or withhold any Taxes from such payments, then (i) the Borrower shall make such
deductions or withholdings, (ii) the Borrower shall timely pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable law and (iii) if such Tax is a Covered Tax, the sum payable shall be increased as necessary
so that after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums
payable under this Section 2.14) the Administrative Agent or Lender receives an amount equal to the sum it would have received
had no such deductions or withholdings been made.

 

(b)          Payment
of Other Taxes by the Borrower. In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

 

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(c)          Indemnification
by the Borrower. The Borrower shall indemnify the Administrative Agent and each Lender for and, within 10 Business Days after
written demand therefor, pay the full amount of any Covered Taxes (including Covered Taxes imposed or asserted on or attributable
to amounts payable under this Section 2.14) payable or paid by the Administrative Agent or such Lender, as the case may
be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Covered
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 Borrower by a Lender 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. To the extent required by any applicable law, the Administrative Agent may withhold from any payment to any
Lender an amount equivalent to any applicable withholding Tax. Without limiting the provisions of Section 2.14(a) or (c),
each Lender shall, and does hereby, agree to indemnify the Administrative Agent, and shall make payable in respect thereof within
30 days after demand therefor, (i) against any and all Taxes and any and all related losses, claims, liabilities and expenses (including
fees, charges and disbursements of any counsel for the Administrative Agent) (collectively, “Tax Damages”) incurred
by or asserted against the Administrative Agent by the Internal Revenue Service or any other Governmental Authority as a result
of the failure of the Administrative Agent to properly withhold Tax from amounts paid to or for the account of such Lender for
any reason (including because the appropriate form was not delivered or not propertyproperly
executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption
from, or reduction of withholding tax ineffective) and (ii) Tax Damages attributable to such Lender’s failure to comply with
the provisions of Section 9.04 relating to the maintenance of a Participant Register. 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 this
Agreement or any other Loan Document against any amount due to the Administrative Agent under this paragraph. The agreements in
this paragraph shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the
replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other obligations.

 

(e)          Evidence
of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this
Section 2.14, the Borrower 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. If the Borrower fails to pay any U.S. federal withholding Taxes that are Excluded
Taxes when due to the appropriate Governmental Authority or fails to remit to the Administrative Agent the required receipts or
other required documentary evidence on account of such Excluded Taxes, the Borrower shall indemnify the Administrative Agent and
each Lender for any incremental Taxes that may become payable by the Administrative Agent or such Lender as a result of such failure.

 

(f)          Status
of Lenders.

 

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(i)          Any
Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments under this Agreement or any
other Loan Documents shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by applicable
law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower 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 requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower 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 2.14(f)(ii)(A) or (B)
or Section 2.14(g) 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, if the Borrower is a U.S. Person,

 

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

 

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

 

		(1)	in the case of a Foreign Lender claiming the benefits of
an income tax treaty to which the United States is a party duly completed executed originals of Internal Revenue Service Form
W-8BEN or Internal Revenue Service Form W-8BEN-E, as applicable, or any successor form establishing an exemption from, or reduction
of, U.S. federal withholding Tax (x) with respect to payments of interest under any Loan Document, pursuant to the “interest”
article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, pursuant to the “business
profits” or “other income” article of such tax treaty,

 

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		(2)	duly completed executed originals of Internal Revenue Service
Form W-8ECI or any successor form certifying that the income receivable pursuant to this Agreement is effectively connected with
the conduct of a trade or business in the United States,

 

		(3)	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, signed under penalties of perjury, to
the effect that such Foreign Lender is not (I) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (II)
a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (III) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code and (y) duly completed executed originals of Internal
Revenue Service Form W-8BEN or Internal Revenue Service Form W-8BEN-E, as applicable (or any successor form), certifying that
the Foreign Lender is not a U.S. Person, or

 

		(4)	any other form as prescribed by applicable law as a basis
for claiming exemption from or a reduction in United States federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required
to be made, including, to the extent a Foreign Lender is not the beneficial owner, duly completed executed originals of Internal
Revenue Service Form W-8IMY accompanied by Internal Revenue Service Form W-8ECI, Internal Revenue Service Form W-8BEN or Internal
Revenue Service Form W-8BEN-E, as applicable, a certificate substantially similar to the certificate described in Section 2.14(f)(ii)(B)(3)(x)
above, Internal Revenue Service 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 Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
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 Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

 

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(g)          If
a payment made to a Lender under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Administrative Agent and the Borrower 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 Administrative Agent or the Borrower, at the time or times prescribed by law and at such time or times reasonably
requested by the Administrative Agent or the Borrower, as may be necessary for the Administrative Agent and the Borrower 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 any such payment. Solely for purposes of this clause (g), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

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

 

(h)          Treatment
of Certain Refunds. If the Administrative Agent or any Lender determines, in its sole discretion exercised in good faith, that
it has received a refund of any Covered Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 2.14, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with
respect to the Covered Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent
or any Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund), provided that the Borrower, upon the request of the Administrative Agent or any Lender, agrees to repay
the amount paid over to the Borrower pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or any Lender in the event the Administrative Agent or any Lender
is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h),
in no event will the Administrative Agent or any Lender be required to pay any amount to the Borrower pursuant to this paragraph
(h) the payment of which would place the Administrative Agent or such Lender in a less favorable net position after-Taxes than
the Administrative Agent or such Lender would have been in if the Tax subject to indemnification and giving rise to such refund
had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such
Tax had never been paid. This paragraph (h) shall not be construed to require the Administrative Agent or any Lender to make available
its Tax returns or its books or records (or any other information relating to its Taxes that it deems confidential) to the Borrower
or any other Person.

 

(i)          Defined
Terms. For purposes of this Section 2.14, the term “applicable law” includes FACTAFATCA.

 

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SECTION 2.15. Payments
Generally; Pro Rata Treatment: Sharing of Set-offs.

 

(a)          Payments
by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest,
fees, or under Sections 2.12, 2.13 or 2.14, or otherwise) or under any other Loan Document (except to the
extent otherwise provided therein) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds,
without set-off, deduction or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative
Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such
payments shall be made to the Administrative Agent at the Administrative Agent’s Account, except as otherwise expressly provided
in the relevant Loan Document and except payments pursuant to Sections 2.12, 2.13, 2.14 and 9.03, which
shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by
it for account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.

 

All amounts owing under
this Agreement (including commitment fees, payments required under Sections 2.12 and 2.13 or under any other Loan
Document (except to the extent otherwise provided therein))
are payable in Dollars.

 

(b)          Application
of Insufficient Payments. If at any time insufficient funds are received by and available to the Administrative Agent to pay
fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, to pay interest and
fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due
to such parties, and (ii) second, to pay principal then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of principal then due to such parties.

 

(c)          Pro
Rata Treatment. Except to the extent otherwise provided herein: (i) each Borrowing shall be made from the Lenders, each payment
of commitment fee under Section 2.09 shall be made for account of the Lenders, and each termination or reduction of the
amount of the Commitments under Section 2.06, Section 2.08 or otherwise shall be applied to the respective Commitments
of the Lenders, pro rata according to the amounts of their respective Commitments; (ii) each Borrowing shall be allocated pro rata
among the Lenders according to the amounts of their respective Commitments (in the case of the making of Loans) or their respective
Loans that are to be included in such Borrowing (in the case of conversions and continuations of Loans); (iii) each payment or
prepayment of principal of Loans by the Borrower shall be made for account of the Lenders pro rata in accordance with the respective
unpaid principal amounts of the Loans held by them; and (iv) each payment of interest on Loans by the Borrower shall be made for
account of the Lenders pro rata in accordance with the amounts of interest on such Loans then due and payable to the respective
Lenders.

 

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(d)          Sharing
of Payments by Lenders. If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment
in respect of any principal of or interest on any of its Loans, resulting in such Lender receiving payment of a greater proportion
of the aggregate amount of its Loans, and accrued interest thereon then due than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans of other Lenders
to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not
be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any
assignee or participant, other than to the Borrower or any
Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing
and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to
the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

(e)          Presumptions
of Payment. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment
is due to the Administrative Agent for account of the Lenders hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders
severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent at the Federal Funds Effective Rate.

 

(f)          Certain
Deductions by the Administrative Agent. If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.04(a) or (b) or 2.15(e), then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 

SECTION 2.16. Defaulting
Lenders.

 

Notwithstanding any provision
of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so
long as such Lender is a Defaulting Lender:

 

(a)          commitment
fees pursuant to Section 2.09(a) shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender
to the extent, and during the period, such Lender is a Defaulting Lender;

 

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(b)          the
Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders, two-thirds
of the Lenders or the Required Lenders have taken or may take any action hereunder or under any other Loan Document (including
any consent to any amendment or waiver pursuant to Section 9.02, except for any amendment or waiver described in Section
9.02(b)(i), (ii) or (iii)), provided that any waiver, amendment or modification requiring the consent of all
Lenders, two-thirds of the Lenders or each affected Lender which affects such Defaulting Lender differently than other Lenders
or affected Lenders (as applicable) shall require the consent of such Defaulting Lender.

 

In the event that the
Administrative Agent and the Borrower each agrees that a Defaulting Lender has adequately remedied all matters that caused such
Lender to be a Defaulting Lender, then, on such date of such agreement,
such Lender shall purchase at par the portion of the Loans of the other Lenders as the Administrative Agent shall determine
may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

 

SECTION 2.17. Mitigation
Obligations; Replacement of Lenders.

 

(a)          Designation
of a Different Lending Office. If any Lender exercises its rights under Section 2.11(b) or requests compensation under
Section 2.12, or if the Borrower is required to pay any Covered Taxes or additional amount to any Lender or any Governmental
Authority for account of any Lender pursuant to Section 2.14, then such Lender shall use reasonable efforts (subject to
overall policy considerations of such Lender) to designate a different lending office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if in the sole reasonable
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12
or 2.14, as the case may be, in the future, or eliminate the circumstance giving rise to such Lender exercising its rights
under Section 2.11(b) and (ii) would not subject such Lender to any cost or expense not required to be reimbursed by the
Borrower and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)          Replacement
of Lenders. If any Lender exercises its rights under Section 2.11(b) or requests compensation under Section 2.12,
or if the Borrower is required to pay any Covered Taxes or additional amount to any Lender or any Governmental Authority for account
of any Lender pursuant to Section 2.14 and, in each case, such Lender has declined or is unable to designate a different
lending office in accordance with Section 2.17(a), or if any Lender becomes a Defaulting Lender, or if any Lender becomes
a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon 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 Section 9.04), all its interests, rights and obligations under this Agreement
and the other Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the
Administrative Agent which consent shall not be unreasonably withheld, conditioned or delayed, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower
(in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section
2.12 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such assignment and delegation if prior thereto, as a result of a waiver
by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

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(c)          Defaulting
Lenders. If any Lender shall fail to make any payment required to be made by it pursuant to Sections 2.04 or 9.03(c),
then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter
received by the Administrative Agent for the account of such Lender for the benefit of the Administrative Agent to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid, and/or (ii) hold any such
amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under
such Sections, in the case of each of clauses (i) and (ii) above, in any order as determined by the Administrative Agent in its
discretion.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents
and warrants to the Lenders that:

 

SECTION 3.01. Organization;
Powers. Each of the Borrower and its Subsidiaries, as applicable, is duly organized or incorporated, validly existing and
in good standing under the laws of the jurisdiction of its organization or incorporation, has all requisite power and authority
to carry on its business as now conducted and is qualified to do business in, and is in good standing in, every jurisdiction where
the failure to do so could reasonably be expected to result in a Material Adverse Effect. There is no existing default under any
charter, by-laws or other organizational documents of Borrower or its Subsidiaries or any event which, with the giving of notice
or passage of time or both, would constitute a default by any party thereunder.

 

SECTION 3.02. Authorization;
Enforceability. The Transactions are within the Borrower’s corporate powers and have been duly authorized by all necessary
corporate and, if required, by all necessary stockholder action and the Board of Directors of the Borrower and its Subsidiaries
have approved the transactions contemplated in this Agreement. This Agreement has been duly executed and delivered by the Borrower
and constitutes, and each of the other Loan Documents to which it is a party when executed and delivered will constitute, a legal,
valid and binding obligation of the Borrower, enforceable in accordance with its terms, except as such enforceability may be limited
by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of
creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

SECTION 3.03. Governmental
Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of registration or filing with, or any
other action by, any Governmental Authority, except for (i) such as have been or will be obtained or made and are in full force
and effect and (ii) filings and recordings in respect of the Liens created pursuant to the Security Documents, (b) will not violate
any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries
or any order of any Governmental Authority (including
the Investment Company Act and the rules, regulations and orders issued by the SEC thereunder), (c) will not violate or result
in a default in any material respect under any indenture, agreement or other instrument binding upon the Borrower or any of its
Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person, and (d) except
for the Liens created pursuant to the Security Documents, will not result in the creation or imposition of any Lien on any asset
of the Borrower or any of its Subsidiaries.

 

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SECTION 3.04. Financial
Condition; No Material Adverse Effect.

 

(a)          Financial
Statements.

 

(i)          The
financial statements delivered to the Administrative Agent and the Lenders by the Borrower pursuant to Section 4.01(c) present
fairly, in all material respects, the consolidated financial position, assets and liabilities, results of operations, changes in
net assets, cash flows and investments of the Borrower and its consolidated Subsidiaries as of the end of and for the applicable
period in accordance with GAAP. On the Effective Date, none of the Borrower or any of its Subsidiaries has any material contingent
liabilities, material liabilities for taxes, material unusual forward or material long-term commitments or material unrealized
or anticipated losses from any unfavorable commitments not reflected in the financial statements referred to above. On the Effective
Date, none of the Borrower or any of its Subsidiaries has any material contingent liabilities, material liabilities for taxes,
material unusual forward or material long-term commitments or material unrealized or anticipated losses from any unfavorable commitments
not reflected in the financial statements referred to above.

 

(ii)         The
financial statements delivered to the Administrative Agent and the Lenders by the Borrower pursuant to Sections 5.01(a)
and (b) present fairly, in all material respects, the consolidated financial position, assets and liabilities, results of
operations, changes in net assets, cash flows and investments of the Borrower and its consolidated Subsidiaries as of the end of
and for the applicable period in accordance with GAAP, subject, in the case of unaudited financial statements, to year-end audit
adjustments and the absence of footnotes. None of the Borrower or any of its Subsidiaries has any material contingent liabilities,
material liabilities for taxes, material unusual forward or material long-term commitments or material unrealized or anticipated
losses from any unfavorable commitments not reflected in such financial statements.

 

(b)          No
Material Adverse Effect. Since December 31, 2013,2016,
there has not been any event, development or circumstance that has had or could reasonably be expected to have a Material Adverse
Effect.

 

SECTION 3.05. Litigation.
There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority now pending against
or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (a) as to which
there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect or (b) that involve this Agreement or the Transactions.

 

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SECTION 3.06. Compliance
with Laws and Agreements. Each of the Borrower and its Subsidiaries is in compliance with all laws, regulations and orders
of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries is subject to any contract or other arrangement,
the performance of which by the Borrower could reasonably be expected to result in a Material Adverse Effect. Neither Borrower
nor its Subsidiaries is in default in any manner under any provision of any agreement or instrument to which it is a party or
by which it or any of its property is or may be bound, and no condition exists which, with the giving of notice or the lapse of
time or both, would constitute such a default, in each case where such default could reasonably be expected to result in a Material
Adverse Effect.

 

SECTION 3.07. Taxes.
Each of the Borrower and its Subsidiaries has timely filed or has caused to be timely filed all U.S. federal, state and local
Tax returns that are required to be filed by it and all other Tax returns that are required to be filed by it and has paid all
Taxes for which it is directly or indirectly liable and any assessments made against it or any of its property and all other Taxes,
fees or other charges imposed on it or any of its property by any Governmental Authority, except such Taxes, fees or other charges
that are being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Borrower or its Subsidiaries, as the case may be. The charges, accruals and reserves on the
books of the Borrower and any of its Subsidiaries in respect of Taxes and other governmental charges are adequate in accordance
with GAAP. Neither the Borrower nor any of its Subsidiaries has given or been requested to give a waiver of the statute of limitations
relating to the payment of any federal, state, local and foreign Taxes or other impositions, and no Tax lien has been filed with
respect to the Borrower or any of its Subsidiaries. There is no proposed Tax assessment against the Borrower or any of its Subsidiaries,
and there is no basis for such assessment.

 

SECTION 3.08. ERISA.
Each Plan is in compliance in form and operation with its terms and with ERISA and the Code (including the Code provisions compliance
with which is necessary for any intended favorable tax treatment) and all other applicable laws and regulations, except as could
not reasonably be expected to result in a Material Adverse Effect. No ERISA Event has occurred or is reasonably expected to occur
that, alone or together with any other ERISA Events that have occurred or are reasonably expected to occur, could reasonably be
expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $2,500,000. (x) With respect
to Plans maintained by Borrower or its Subsidiaries, there exists no Unfunded Pension Liability in the aggregate (taking into
account only such Plans with positive Unfunded Pension Liability) in excess of $2,500,000, and (y) with respect to Plans maintained
by the Borrower, its Subsidiaries or their ERISA Affiliates, there exists no Unfunded Pension Liability in an aggregate amount
(taking into account only such Plans with positive Unfunded Pension Liability) that would reasonably be expected to result in
a Material Adverse Effect (and in no event do the Borrower or its Subsidiaries have actual knowledge of such Unfunded Pension
Liability in excess of $2,500,000). (x) If each of the Borrower and its Subsidiaries were to withdraw from all Multiemployer Plans
in a complete withdrawal as of the date this assurance is given or deemed given, the aggregate withdrawal liability that would
be incurred would not be in excess of $2,500,000, and (y) if each of the Borrower, each of its Subsidiaries and each of their
respective ERISA Affiliates were to withdraw from all Multiemployer Plans in a complete withdrawal as of the date this assurance
is given or deemed given, the aggregate withdrawal liability that would be incurred would not reasonably be expected to have a
Material Adverse Effect (and in no event do Borrower or its Subsidiaries have actual knowledge of such aggregate potential withdrawal
liability that, if incurred, would reasonably be expected to result in liability to the Borrower or its Subsidiaries (including,
without limitation, liability imposed thereon by virtue of ERISA or the Code) in excess of $2,500,000).

 

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SECTION 3.09. Disclosure.

 

(a)          All
written reports, financial statements, certificates and other written information (other than projected financial information,
other forward looking information, information relating to third parties and information of a general economic or general industry
nature) which has been made available to the Administrative Agent or any Lender by or on behalf of the Borrower in connection with
the transactions contemplated by this Agreement or delivered under any Loan Document, taken as a whole, will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein at the
time made and taken as a whole (and after giving effect to all written updates provided by the Borrower to the Administrative Agent
for delivery to the Lenders from time to time) not misleading in light of the circumstances under which such statements were made;
and

 

(b)          All
financial projections, pro forma financial information and other forward-looking information which has been delivered to the Administrative
Agent or any Lender by or on behalf of Borrower in connection with the transactions contemplated by this Agreement or delivered
under any Loan Document are based upon good faith assumptions and, in the case of financial projections and pro forma financial
information, good faith estimates, in each case, believed to be reasonable at the time made, it being recognized that (i) such
financial information as it relates to future events is subject to significant uncertainty and contingencies (many of which are
beyond the control of the Borrower) and are therefore not to be viewed as fact, and (ii) actual results during the period or periods
covered by such financial information may materially differ from the results set forth therein.

 

SECTION 3.10. Investment
Company Act; Margin Regulations.

 

(a)          Status
as Business Development Company. The Borrower is an “investment company” that has elected to be regulated as a
“business development company” within the meaning of the Investment Company Act and has elected to be treated as a
RIC commencing with its taxable year ended December 31, 2013.

 

(b)          Compliance
with Investment Company Act. The business and other activities of the Borrower and its Subsidiaries do not result in a violation
or breach of the provisions of the Investment Company Act or any rules, regulations or orders issued by the SEC thereunder, except
where such breaches or violations, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

 

(c)          Investment
Policies. The Borrower is in compliance in all material respects with the Investment Policies.

 

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(d)          Use
of Credit. Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock,
and no part of the proceeds of any extension of credit hereunder will be used to buy or carry any Margin Stock. On the
Effective Date and the Second Amendment Effective Date, neither the Borrower nor any of its Subsidiaries own any Margin
Stock.

 

SECTION 3.11. Material
Agreements and Liens.

 

(a)          Material
Agreements. Schedule 3.11(a) is a complete and correct list of each credit agreement, loan agreement, indenture, purchase
agreement, guarantee, letter of credit or other arrangement providing for or otherwise relating to any Indebtedness or any extension
of credit (or commitment for any extension of credit) to, or guarantee by, the Borrower or any of its Subsidiaries outstanding
on the Second Amendment Effective Date, and the aggregate
principal or face amount outstanding or that is, or may become, outstanding under each such arrangement is correctly described
in Schedule 3.11(a).

 

(b)          Liens.
Schedule 3.11(b) is a complete and correct list of each Lien securing Indebtedness of any Person outstanding on the Second
Amendment Effective Date covering any property of the Borrower or any of its Subsidiaries, and the aggregate principal
amount of such Indebtedness secured (or that may be secured) by each such Lien and the property covered by each such Lien as of
the Second Amendment Effective Date is correctly described
in Schedule 3.11(b).

 

SECTION 3.12. Subsidiaries
and Investments.

 

(a)          Subsidiaries.
Set forth in Schedule 3.12(a) is a complete and correct list of all of the Subsidiaries of the Borrower as of the
Second Amendment Effective Date together with, for each such Subsidiary, (i) the jurisdiction of organization of such
Subsidiary, (ii) each Person holding ownership interests in such Subsidiary and (iii) the nature of the ownership interests held
by each such Person and the percentage of ownership of such Subsidiary represented by such ownership interests. Except as disclosed
in Schedule 3.12(a), as of the Second Amendment Effective
Date, (x) the Borrower owns, free and clear of Liens, and has the unencumbered right to vote, all outstanding ownership interests
in each Subsidiary shown to be held by it in Schedule 3.12(a), and (y) all of the issued and outstanding capital stock of
each such Subsidiary organized as a corporation is validly issued, fully paid and nonassessable.

 

(b)          Investments.
Set forth in Schedule 3.12(b) is a complete and correct list of all Investments (other than Investments of the types referred
to in clauses (b), (c) and (e) of Section 6.04) held by the Borrower or any of its Subsidiaries in
any Person on the Second Amendment Effective Date and, for
each such Investment, (i) the identity of the Person or Persons holding such Investment, (ii) the nature of such Investment, (iii)
the amount of such Investment, (iv) the rate of interest charged for such Investment and (v) the value assigned to such Investment
by the Board of Directors of the Borrower. Except as disclosed in Schedule 3.12(b), as of the
Second Amendment Effective Date each of the Borrower and its Subsidiaries owns, free and clear of all Liens (other than
Liens permitted pursuant to Section 6.02), all such Investments.

 

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SECTION 3.13. Properties.

 

(a)          Title
Generally. Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal
property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business
as currently conducted or to utilize such properties for their intended purposes.

 

(b)          Intellectual
Property. Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents
and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe
upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect.

 

SECTION 3.14. Solvency.
On the Effective Date and the Second Amendment Effective
Date, and upon the incurrence of any extension of credit hereunder, on any date on which this representation and warranty is made,
(a) the Borrower will be Solvent on an unconsolidated basis, and (b) each Obligor will be Solvent on a consolidated basis with
the other Obligors.

 

SECTION 3.15. Affiliate
Agreements. As of the Second Amendment Effective Date,
the Borrower has heretofore delivered to the Administrative Agent and each of the Lenders true and complete copies of each of
the Affiliate Agreements (including any schedules and exhibits thereto, and any amendments, supplements or waivers executed and
delivered thereunder). As of the Second Amendment Effective
Date, other than the Affiliate Agreements, there is no contract, agreement or understanding between the Borrower or any of its
Subsidiaries on one hand, and any Affiliate of the Borrower or any of its Subsidiaries on the other hand. As of the
Second Amendment Effective Date, the Affiliate Agreements are in full force and effect.

 

SECTION 3.16. No
Default. No Default has occurred and is continuing under this Agreement.

 

SECTION 3.17. Use
of Proceeds. The proceeds of the Loans shall be used for the general corporate purposes of the Borrower and its Subsidiaries
(other than Financing Subsidiaries except as expressly permitted under Section 6.03(e)) in the ordinary course of its business,
making distributions not prohibited by this Agreement and the acquisition and funding (either directly or through one or more
wholly-owned Subsidiary Guarantors) of leveraged loans, mezzanine loans, high yield securities, and other Portfolio Investments,
but excluding, for clarity, Margin Stock.

 

SECTION 3.18. Security
Documents. The Guarantee and Security Agreement is effective to create in favor of the Collateral Agent for the benefit of
the Secured Parties (as defined in the Guarantee and Security Agreement), legal, valid and enforceable Liens on, and security
interests in, the Collateral and, when (i) all appropriate filings or recordings are made in the appropriate offices as may be
required under applicable law and, as applicable, (ii) upon the taking of possession or control by the Collateral Agent of the
Collateral with respect to which a security interest may be perfected by possession or control (which possession or control shall
be given to the Collateral Agent to the extent possession or control by the Collateral Agent is required by the Guarantee and
Security Agreement), the Liens created by the Guarantee and Security Agreement shall constitute fully perfected Liens on, and
security interests in, all right, title and interest of the grantors in the Collateral (other than such Collateral in which a
security interest cannot be perfected under the UCC as in effect at the relevant time in the relevant jurisdiction), in each case
subject to no Liens other than Permitted Liens.

 

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SECTION 3.19. Compliance
with Sanctions. Neither the Borrower nor any of its Subsidiaries nor, to the knowledge of the Borrower, any Affiliate of the
Borrower is (i) subject to sanctions (collectively, “Sanctions”) administered by the United States Department
of the Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, the European
Union, Her Majesty’s Treasury, the United Nations Security Council, or any other relevant sanctions authority or (ii) organized
or resident in a Sanctioned Country. Furthermore, no part of the proceeds of a loan will be used, directly or indirectly, by the
Borrower or, to the knowledge of the Borrower, any Affiliate of the Borrower to finance or facilitate a transaction with a person
subject to Sanctions.

 

SECTION 3.20. Anti-Money
Laundering Program. The Borrower has implemented an anti-money laundering program to the extent required by the Uniting And
Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism, as amended (the “USA
PATRIOT Act”), and the rules and regulations thereunder.

 

SECTION 3.21. Structured
Subsidiaries

 

(a)          There
are no agreements or other documents relating to any Structured Subsidiary binding upon the Borrower or any of its Subsidiaries
(other than such Structured Subsidiary) other than as permitted under the definition thereof.

 

(b)          The
Borrower has not Guaranteed the Indebtedness or other obligations in respect of any credit facility relating to any of the Structured
Subsidiaries, other than pursuant to Standard Securitization Undertakings.

 

SECTION 3.22. Anti-Corruption
Laws. Neither the Borrower nor any Affiliate of the Borrower and, to the Borrower’s knowledge, no director, officer,
agent, employee of the Borrower or any Affiliate of the Borrower has: (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity or to influence official action; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment; or (iv) violated or is in violation of any provision of
the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”)
and any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions (collectively with the FCPA, the “Anti-Corruption Laws”); and each of the Borrower and
any Affiliate of the Borrower have conducted their businesses in compliance with the Anti-Corruption Laws and have instituted
and maintained policies and procedures reasonably designed to ensure, and which are reasonably expected to continue to ensure,
compliance therewith.

 

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SECTION 3.23. Status
as Senior Debt; Subordinated Debt.

 

(a)          The
Loan Documents and all of the obligations thereunder have been designated as “Senior Indebtedness” (or a similar designation,
if applicable) for purposes of all Subordinated Debt.

 

(b)          The
subordination provisions set forth in each agreement (including any indenture) relating to Subordinated Debt are legally valid
and enforceable against the parties thereto, and the obligations of the Obligors under the Loan Documents constitute “Senior
Indebtedness” (or any similar designation, if applicable) thereunder.

 

(c)          As
of the ClosingSecond
Amendment Effective Date, no Subordinated Debt exists, and the Borrower has delivered to the Administrative Agent a
complete and correct copy of all of the documents governing the Indebtedness under the Existing Indenture, including all indentures,
schedules, exhibits, amendments, supplements, modifications, assignments and all other documents delivered pursuant thereto or
in connection therewith. As of each date on or after November 1, 2014, on which this representation and warranty is made, all of
the obligations of the Obligors under the Loan Documents constitute Indebtedness entitled to the benefits of the subordination
provisions contained in the agreements (including indentures) relating to Subordinated Debt.

 

SECTION
3.24. EEA Financial Institutions. No Obligor is an EEA
Financial Institution.

 

ARTICLE
IV

CONDITIONS

 

SECTION 4.01. Effective
Date. The effectiveness of this Agreement on the Effective Date
and of the obligations of the Lenders to make Loans hereunder shall not become effective until completion of each of
the following conditions precedent (unless a condition shall have been waived in accordance with Section 9.02):

 

(a)          Documents.
Administrative Agent shall have received each of the following documents, each of which shall be reasonably satisfactory to the
Administrative Agent (and to the extent specified below to each Lender) in form and substance:

 

(i)          Executed
Counterparts. From each party hereto either (1) a counterpart of this Agreement signed on behalf of such party or (2) written
evidence satisfactory to the Administrative Agent (which may include telecopy or e-mail transmission of a signed signature page
to this Agreement) that such party has signed a counterpart of this Agreement.

 

(ii)         Guarantee
and Security Agreement; Custodian Agreement. The Guarantee and Security Agreement and a Custodian Agreement with respect to
the Borrower’s Custodian Account, each duly executed and delivered by each of the parties thereto, and all other documents
or instruments required to be delivered by the Guarantee and Security Agreement and such Custodian Agreement in connection with
the execution thereof.

 

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(iii)        Opinion
of Counsel to the Borrower. A favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of Mayer Brown LLP, counsel for the Obligors, and Sutherland Asbill & Brennan LLP, Maryland counsel for the
Borrower, in each case, in form and substance reasonably acceptable to the Administrative Agent and covering such matters as the
Administrative Agent may reasonably request (and the Borrower hereby instructs such counsel to deliver such opinions to the Lenders
and the Administrative Agent).

 

(iv)        Corporate
Documents. The Administrative Agent shall have received a certificate of the secretary or assistant secretary of each Obligor,
dated the Effective Date, certifying that attached thereto are (1) true and complete copies of the organizational documents of
each Obligor certified as of a recent date by the appropriate governmental official, (2) signature and incumbency certificates
of the officers of such Person executing the Loan Documents to which it is a party, (3) true and complete resolutions of the Board
of Directors of each Obligor approving and authorizing the execution, delivery and performance of this Agreement and the other
Loan Documents to which it is a party or by which it or its assets may be bound as of the Effective Date and, in the case of the
Borrower, authorizing the borrowings hereunder, and that such resolutions are in full force and effect without modification or
amendment, (4) a good standing certificate from the applicable Governmental Authority of each Obligor’s jurisdiction of incorporation,
organization or formation and in each jurisdiction in which it is qualified as a foreign corporation or other entity to do business,
each dated a recent date prior to the Effective Date, and (5) 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 Obligors, and the authorization
of the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(v)         Officer’s
Certificate. A certificate, dated the Effective Date and signed by a Financial Officer of the Borrower, confirming compliance
with the conditions set forth in Sections 4.02(a), (b), (c) and (d).

 

(b)          Liens.
The Administrative Agent shall have received results of a recent lien search in each relevant jurisdiction with respect to the
Obligors, confirming the priority of the Liens in favor of the Collateral Agent created pursuant to the Security Documents and
revealing no liens on any of the assets of the Borrower or its Subsidiaries except for Liens permitted under Section 6.02
or Liens to be discharged on or prior to the Effective Date pursuant to documentation satisfactory to the Administrative Agent.
All UCC financing statements, control agreements (other than the DDA Account Control Agreement), stock certificates and other documents
or instruments required to be filed or executed and delivered in order to create in favor of the Collateral Agent, for the benefit
of the Administrative Agent and the Lenders, a first-priority perfected (subject to Eligible Liens) security interest in the Collateral
(to the extent that such a security interest may be perfected by filing, possession or control under the Uniform Commercial Code)
shall have been properly filed (or provided to the Administrative Agent) or executed and delivered in each jurisdiction required.

 

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(c)          Financial
Statements. The Administrative Agent and the Lenders shall have received prior to the execution of this Agreement the final
version of the consolidated statements of assets and liabilities and the related consolidated statements of operations, consolidated
statements of changes in net assets, consolidated statements of cash flows and related schedule of investments of the Borrower
and its consolidated Subsidiaries as of and for the fiscal period ended June 30, 2014, all certified in writing by a Financial
Officer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the
Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes. The Administrative Agent and the Lenders shall have received any other financial
statements of the Borrower and its Subsidiaries as they shall have reasonably requested.

 

(d)          Consents.
The Borrower shall have obtained and delivered to the Administrative Agent copies of all consents, approvals, authorizations, registrations,
or filings (other than any filing required under the Exchange Act or the rules or regulations promulgated thereunder, including
any filing required on Form 8-K) required to be made or obtained by the Borrower and all guarantors in connection with the Transactions
and any other evidence reasonably requested by, and reasonably satisfactory to, the Administrative Agent as to compliance with
all material legal and regulatory requirements applicable to the Obligors, and such consents, approvals, authorizations, registrations,
filings and orders shall be in full force and effect and all applicable waiting periods shall have expired and no investigation
or inquiry by any Governmental Authority regarding the Transactions or any transaction being financed with the proceeds of the
Loans shall be ongoing.

 

(e)          No
Litigation. There shall not exist any action, suit, investigation, litigation or proceeding or other legal or regulatory developments
pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or Governmental Authority that relates
to the Transactions or that could reasonably be expected to have a Material Adverse Effect.

 

(f)          Solvency
Certificate. On the Effective Date, the Administrative Agent shall have received a solvency certificate of a Financial Officer
of the Borrower dated as of the Effective Date and addressed to the Administrative Agent and the Lenders, and in form, scope and
substance reasonably satisfactory to Administrative Agent, with appropriate attachments and demonstrating that both before and
after giving effect to the Transactions, (a) the Borrower will be Solvent on an unconsolidated basis and (b) each Obligor will
be Solvent on a consolidated basis with the other Obligors.

 

(g)          Due
Diligence. All customary confirmatory due diligence on the Borrower and its Subsidiaries shall have been completed by the Administrative
Agent and the Lenders and the results of such due diligence shall be satisfactory to the Administrative Agent and the Lenders.
No information shall have become available which the Administrative Agent believes has had, or could reasonably be expected to
have, a Material Adverse Effect.

 

(h)          Default.
No Default shall have occurred and be continuing under this Agreement nor any default or event of default that permits (or which
upon notice, lapse of time or both, would permit) the acceleration of any Material Indebtedness immediately before and after giving
effect to the Transactions, any incurrence of Indebtedness hereunder and the use of the proceeds hereof on a pro forma basis.

 

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(i)          USA
PATRIOT Act. The Administrative Agent shall have received all documentation and other information required by bank regulatory
authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA
PATRIOT Act, as reasonably requested by the Administrative Agent.

 

(j)          Investment
Policies. The Administrative Agent shall have received the Investment Policies as in effect on the Effective Date in form and
substance satisfactory to the Lenders.

 

(k)          Borrowing
Base Certificate. The Administrative Agent shall have received a Borrowing Base Certificate dated as of the Effective Date,
showing a calculation of the Borrowing Base as of the date thereof in form and substance satisfactory to the Administrative Agent.

 

(l)          Custody
Reports. The Administrative Agent shall have received copies of custody reports (including (i) activity reports with respect
to cash and Cash Equivalents included in the calculation of the Borrowing Base and (ii) an itemized list of each Portfolio Investment
held in any Custodian Account owned by the Borrower or any Subsidiary) with respect to any Custodian Account owned by the Borrower
or any of its Subsidiaries.

 

(m)          Insurance
Certificate. The Administrative Agent shall have received a certificate from the Borrower’s insurance broker or other
evidence satisfactory to it that all insurance required to be maintained pursuant to the Loan Documents is in full force and effect.

 

(n)          Other
Documents. The Administrative Agent shall have received such other documents, instruments, certificates, opinions and information
as the Administrative Agent may reasonably request in form and substance satisfactory to the Administrative Agent.

 

(o)          Fees
and Expenses. The Borrower shall have paid in full, to the extent not paid pursuant to Section 2.09 hereof, to the Administrative
Agent and the Lenders all fees and expenses related to this Agreement owing on or prior to the Effective Date, including any up-front
fee due to any Lender on or prior to the Effective Date.

 

(p)          Valuation
Reports. The Administrative Agent shall have received each third party valuation report received by the Borrower on or prior
to the date hereof that attests to the value of any asset of any Obligor as of December 31, 2013 or any date thereafter.

 

SECTION 4.02. Conditions
to Each Credit Event. The obligation of each Lender to make any Loan, including any Loans on the Effective Date, is additionally
subject to the satisfaction of the following conditions:

 

(a)          the
representations and warranties of the Borrower set forth in this Agreement and in the other Loan Documents shall be true and correct
in all material respects (other than any representation or warranty already qualified by materiality or Material Adverse Effect,
which shall be true and correct in all respects) on and as of the date of such Loan, or, as to any such representation or warranty
that refers to a specific date, as of such specific date;

 

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(b)          at
the time of and immediately after giving effect to such Loan, no Default shall have occurred and be continuing;

 

(c)          no
Borrowing Base Deficiency shall exist at the time of and immediately after giving effect to such Loan, and either (i) the aggregate
Covered Debt Amount (after giving effect to such Loan) shall not exceed the Borrowing Base reflected on the Borrowing Base Certificate
most recently delivered to the Administrative Agent or (ii) the Borrower shall have delivered an updated Borrowing Base Certificate
demonstrating that the Covered Debt Amount (after giving effect to such Loan) shall not exceed the Borrowing Base after giving
effect to such Loan as well as any concurrent acquisitions of Portfolio Investments by the Borrower or payment of outstanding Loans
or Other Covered Indebtedness;

 

(d)          after
giving effect to such Loan, the Borrower shall be in pro forma compliance with each of the covenants set forth in Sections 6.07(a),
(b), (d) and (e);

 

(e)          the
Custodian Agreement shall have been duly executed and delivered by the Borrower, the Collateral Agent and the Custodian and all
other control arrangements required at the time by Section 5.08(c)(ii) with respect to the Obligors’ other deposit
accounts and securities accounts shall have been entered into (including the DDA Account Control Agreement, so long as the DDA
Account exists); and

 

(f)          the
proposed date of such Loan shall take place during the Availability Period.

 

Each Borrowing shall
be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in the preceding
sentence.

 

ARTICLE
V

AFFIRMATIVE COVENANTS

 

Until the Termination
Date, the Borrower covenants and agrees with the Lenders that:

 

SECTION 5.01. Financial
Statements and Other Information. The Borrower will furnish to the Administrative Agent for distribution to each Lender:

 

(a)          within
90 days after the end of each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2014), the audited
consolidated statements of assets and liabilities and the related audited consolidated statements of operations, audited consolidated
statements of changes in net assets, audited consolidated statements of cash flows and related audited consolidated schedules of
investments of the Borrower and its Subsidiaries on a consolidated basis as of the end of and for such year, setting forth in each
case in comparative form the figures for the previous fiscal year (to the extent full fiscal year information is available), all
reported on by Ernst & Young LLP or other independent public accountants of recognized national standing to the effect that
such consolidated financial statements present fairly in all material respects the financial condition and results of operations
of the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied (which report shall be
unqualified as to going concern and scope of audit and shall not contain any explanatory paragraph or paragraph of emphasis with
respect to going concern); provided that the requirements set forth in this clause (a) may be fulfilled by providing to
the Administrative Agent for distribution to each Lender the report filed by the Borrower with the SEC on Form 10-K for the applicable
fiscal year;

 

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(b)          within
45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal
quarter ended September 30, 2014), the consolidated statements of assets and liabilities and the related consolidated statements
of operations, consolidated statements of changes in net assets, consolidated statements of cash flows and related consolidated
schedules of investments of the Borrower and its Subsidiaries on a consolidated basis as of the end of and for such fiscal quarter
and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for (or, in the case
of the statement of assets and liabilities, as of the end of) the corresponding period or periods of the previous fiscal year (to
the extent such information is available for the previous fiscal year), all certified by a Financial Officer of the Borrower as
presenting fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence
of footnotes; provided that the requirements set forth in this clause (b) may be fulfilled by providing to the Administrative
Agent for distribution to each Lender the report filed by the Borrower with the SEC on Form 10-Q for the applicable quarterly period;

 

(c)          concurrently
with any delivery of financial statements under clause (a) or (b) of this Section, a certificate of a Financial Officer of the
Borrower (i) to the extent the requirements in clause (a) and (b) are not fulfilled by the Borrower delivering the applicable report
delivered to (or filed with) the SEC, certifying that such statements are consistent with the financial statements filed by the
Borrower with the SEC, (ii) certifying as to whether the Borrower has knowledge that a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (iii) setting forth
reasonably detailed calculations demonstrating compliance with Sections 6.01(b), (c), (d), (e) and
(i), 6.02(f), 6.03(h), 6.04(i), 6.05(b) and (d), and 6.07, (iv) stating whether
any change in GAAP as applied by (or in the application of GAAP by) the Borrower has occurred since the Effective Date (but only
if the Borrower has not previously reported such change to the Administrative Agent) and, if any such change has occurred (and
has not been previously reported to the Administrative Agent), specifying the effect of such change on the financial statements
accompanying such certificate, (v) attaching a list of Subsidiaries as of the date of delivery of such certificate or a confirmation
that there is no change in such information since the date of the last such list and (vi) providing a reconciliation of any difference
between the assets and liabilities of the Borrower and its consolidated Subsidiaries presented in such financing statements and
the assets and liabilities of the Borrower and its Subsidiaries for purposes of calculating the financial covenants in Section
6.07;

 

(d)          as
soon as available and in any event not later than twenty (20) calendar days after the end of each monthly accounting period (ending
on the last day of each calendar month) of the Borrower and its Subsidiaries, a Borrowing Base Certificate as of the last day of
such accounting period (which Borrowing Base Certificate shall include
the metrics contained in the Excel schedule included in the Borrowing Base Certificate delivered to the Administrative Agent for
the accounting period ended March 31, 2017 and such other metrics reasonably requested by the Administrative Agent relating to
each Portfolio Investment in the applicable Borrowing Base (if and to the extent information relating to such metrics is reported
under the documentation for such Portfolio Investment), including but not limited to the leverage ratio of total debt to EBITDA
of the issuer of such Portfolio Investment);

 

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(e)          promptly
but no later than two Business Days after any Financial Officer of the Borrower shall at any time have knowledge that there is
a Borrowing Base Deficiency or knowledge that the Borrowing Base has declined by more than 15% from the Borrowing Base stated in
the Borrowing Base Certificate last delivered by the Borrower to the Administrative Agent, a Borrowing Base Certificate as at the
date such Financial Officer has knowledge of such Borrowing Base Deficiency or decline indicating the amount of the Borrowing Base
Deficiency or decline as at the date such Financial Officer obtained knowledge of such deficiency and the amount of the Borrowing
Base Deficiency or decline as of the date not earlier than two Business Days prior to the date the Borrowing Base Certificate is
delivered pursuant to this paragraph;

 

(f)          promptly
upon receipt thereof copies of all significant written reports submitted to the management or board of directors of the Borrower
by the Borrower’s independent public accountants in connection with each annual, interim or special audit or review of any
type of the financial statements or related internal control systems of the Borrower or any of its Subsidiaries delivered by such
accountants to the management or board of directors of the Borrower;

 

(g)          promptly
after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials sent to
stockholders and filed by the Borrower or any of its Subsidiaries with the SEC or with any national securities exchange, as the
case may be;

 

(h)          within
45 days after the end of each fiscal quarter of the Borrower, all external valuation reports relating to the Eligible Portfolio
Investments (including all valuation reports delivered by the Approved Third-Party Appraiser in connection with the quarterly appraisals
of Unquoted Investments in accordance with Section 5.12(b)(ii)(B)), and any other information relating to the Eligible Portfolio
Investments as reasonably requested by the Administrative Agent or any Lender;

 

(i)          within
45 days after the initial closing of each Eligible Portfolio Investment that is acquired, made or entered into after the Effective
Date, all underwriting memoranda (or, if no underwriting memorandum has been prepared, all materials similar to underwriting memoranda
that are in a form reasonably satisfactory to the Administrative Agent) for such Eligible Portfolio Investment;

 

(j)          to
the extent not otherwise provided by the Custodian, within thirty (30) days after the end of each month, updated copies of custody
reports (including (i) activity reports with respect to cash and Cash Equivalents included in the calculation of the Borrowing
Base and (ii) to the extent available, an itemized list of each Portfolio Investment held in any Custodian Account owned by the
Borrower or any Subsidiary) with respect to any Custodian Account owned by the Borrower or any of its Subsidiaries;

 

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(k)          within
45 days after the end of each fiscal quarter of the Borrower, a certificate of a Financial Officer of the Borrower certifying that
attached thereto is a complete and correct description of all Portfolio Investments as of the date thereof, including, with respect
to each such Portfolio Investment, the name of the Borrower or Subsidiary holding such Portfolio Investment and the name of the
issuer of such Portfolio Investment;

 

(l)          to
the extent such information is not otherwise available in the financial statements delivered pursuant to clause (a) or (b) of this
Section 5.01, upon the reasonable request of the Administrative Agent within 5 Business Days of the due date set forth in
clauses (a) or (b) of this Section for any quarterly or annual financial statements, as the case may be, a schedule prepared in
accordance with GAAP setting forth in reasonable detail with respect to each Portfolio Investment where there has been a realized
gain or loss in the most recently completed fiscal quarter, (i) the cost basis of such Portfolio Investment, (ii) the realized
gain or loss associated with such Portfolio Investment, (iii) the associated reversal of any previously unrealized gains or losses
associated with such Portfolio Investment, (iv) the proceeds received with respect to such Portfolio Investment representing repayments
of principal, and (v) any other amounts received with respect to such Portfolio Investment representing exit fees or prepayment
penalties; and

 

(m)          promptly
following any request therefor, such other information regarding the operations, business affairs and financial condition of the
Borrower or any of its Subsidiaries, or compliance with the terms of this Agreement and the other Loan Documents, as the Administrative
Agent or any Lender may reasonably request.

 

SECTION 5.02. Notices
of Material Events. Upon the Borrower becoming aware of any of the following, the Borrower will furnish to the Administrative
Agent and each Lender prompt written notice of the following:

 

(a)          the
occurrence of any Default (provided that if such Default is subsequently cured within the time periods set forth herein,
the failure to provide notice of such Default shall not itself result in an Event of Default hereunder);

 

(b)          the
filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting
the Borrower or any of its Affiliates that, if adversely determined, could reasonably be expected to result in a Material Adverse
Effect;

 

(c)          (i)
the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $2,500,000, (ii) the existence of
material Unfunded Pension Liabilities (taking into account only Plans with positive Unfunded Pension Liabilities) and (iii) the
existence of material aggregate potential withdrawal liability under Section 4201 of ERISA, if the Borrower, all of its Subsidiaries
and all of their respective ERISA Affiliates were to withdraw completely from any and all Multiemployer Plans; and

 

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(d)          any
other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered
under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting
forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03. Existence;
Conduct of Business. The Borrower will, and will cause each of its Subsidiaries (other than Immaterial Subsidiaries) to, do
or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights,
licenses, permits, privileges and franchises material to the conduct of its business; provided that the foregoing shall
not prohibit any merger, consolidation, liquidation or dissolution not prohibited under Section 6.03.

 

SECTION 5.04. Payment
of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay its obligations, including Tax liabilities
and material contractual obligations, that, if not paid, could reasonably be expected to result in a Material Adverse Effect before
the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith
by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto
in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in
a Material Adverse Effect.

 

SECTION 5.05. Maintenance
of Properties; Insurance. The Borrower will, and will cause each of its Subsidiaries (other than Immaterial Subsidiaries)
to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear
and tear excepted, (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or similar business, operating in the same or similar
locations and (c) after the request of the Administrative Agent, promptly deliver to the Administrative Agent any certificate
or certificates from the Borrower’s insurance broker or other documentary evidence, in each case demonstrating the effectiveness
of, or any changes to, such insurance.

 

SECTION 5.06. Books
and Records; Inspection and Audit Rights.

 

(a)          Books
and Records; Inspection Rights. The Borrower will, and will cause each of its Subsidiaries to, keep books of record and account
in accordance with GAAP. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by
the Administrative Agent or any Lender, upon reasonable prior notice to the Borrower, at the sole expense of the Borrower, to (i)
visit and inspect its properties, to examine and make extracts from its books and records, and (ii) discuss its affairs, finances
and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested,
provided that the Borrower or such Subsidiary shall be entitled to have its representatives and advisors present during
any inspection of its books and records; provided, further, that the Borrower shall not be required to pay for more
than two such visits and inspections in any calendar year unless an Event of Default has occurred and is continuing at the time
of any subsequent visits and inspections during such calendar year.

 

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(b)          Audit
Rights. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by Administrative
Agent (including any consultants, accountants, lawyers and appraisers retained by the Administrative Agent) to conduct evaluations
and appraisals of the Borrower’s computation of the Borrowing Base and the assets included in the Borrowing Base (including,
for clarity, audits of any Agency Accounts, funds transfers and custody procedures), all at such reasonable times and as often
as reasonably requested. The Borrower shall pay the reasonable, documented fees and expenses of representatives retained by the
Administrative Agent to conduct any such evaluation or appraisal; provided that the Borrower shall not be required to pay
such fees and expenses for more than one such evaluation or appraisal during any calendar year unless an Event of Default has occurred
and is continuing at the time of any subsequent evaluation or appraisal during such calendar year; provided, further, that
in relation to any fees or expenses required to be paid by the Borrower in connection with any appraisal under this Section
5.06(b) (but, for the avoidance of doubt, other than valuation reports produced pursuant to Section 5.12(b)(ii)), unless
an Event of Default has occurred and is continuing such fees and expenses shall be subject to the IVP Supplemental Cap. The Borrower
also agrees to modify or adjust the computation of the Borrowing Base and/or the assets included in the Borrowing Base, to the
extent required by the Administrative Agent or the Required Lenders as a result of any such evaluation or appraisal indicating
that such computation or inclusion of assets is not consistent with the terms of this Agreement, provided that if the Borrower
demonstrates that such evaluation or appraisal is incorrect, the Borrower shall be permitted to re-adjust its computation of the
Borrowing Base.

 

(c)          Notwithstanding
the foregoing, nothing contained in this Section 5.06 shall impair or affect the rights of the Administrative Agent under
Section 5.12(b)(ii) in any respect.

 

SECTION 5.07. Compliance
with Laws and Agreements. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations,
including the Investment Company Act (if applicable to such Person), and orders of any Governmental Authority applicable to it
(including orders issued by the SEC) or its property and all indentures, agreements and other instruments, except where the failure
to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. Policies
and procedures will be maintained and enforced by or on behalf of the Borrower that are designed in good faith and in a commercially
reasonable manner to promote and achieve compliance, in the reasonable judgment of the Borrower, by the Borrower and each of its
Subsidiaries and their respective directors, officers, employees and agents with any applicable Anti-Corruption Laws and applicable
Sanctions, in each case giving due regard to the nature of such Person’s business and activities.
The Borrower will, and will cause each of its Subsidiaries to, act in accordance with their respective Organization Documents.

 

SECTION 5.08. Certain
Obligations Respecting Subsidiaries; Further Assurances.

 

(a)          Subsidiary
Guarantors.

 

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(i)          In
the event that (1) the Borrower or any of its Subsidiaries shall form or acquire any new Subsidiary (other than a Financing Subsidiary,
a CFC or a Transparent Subsidiary), or that any other Person shall become a “Subsidiary” within the meaning of the
definition thereof (other than a Financing Subsidiary, a CFC or a Transparent Subsidiary), (2) any Structured Subsidiary shall
no longer constitute a “Structured Subsidiary” pursuant to the definition thereof (including, for the avoidance of
doubt, if such Structured Subsidiary ceases to have, in full force and effect, financing provided by an unaffiliated third party)
(in which case such Person shall be deemed to be a “new” Subsidiary for purposes of this Section 5.08), (3)
any SBIC Subsidiary shall no longer constitute a “SBIC Subsidiary” pursuant to the definition thereof (in which case
such Person shall be deemed to be a “new” Subsidiary for purposes of this Section 5.08), or (4) any Florida
Sidecar Subsidiary shall no longer constitute a “Florida Sidecar Subsidiary” pursuant to the definition thereof (in
which case such Person shall be deemed to be a “new” Subsidiary for purposes of this Section 5.08), the Borrower
will, in each case, on or before thirty (30) days following such Person becoming a Subsidiary or such Financing Subsidiary or,
as applicable, Florida Sidecar Subsidiary, no longer qualifying as such, cause such new Subsidiary or former Financing Subsidiary
or, as applicable, Florida Sidecar Subsidiary, to become a “Subsidiary Guarantor” (and, thereby, an “Obligor”)
under the Guarantee and Security Agreement pursuant to a Guarantee Assumption Agreement and to deliver such proof of corporate
or other action, incumbency of officers, opinions of counsel and other documents as the Administrative Agent shall have reasonably
requested.

 

(ii)         The
Borrower acknowledges that the Administrative Agent and the Lenders have agreed to exclude each Structured Subsidiary as an Obligor
only for so long as such Person qualifies as a “Structured Subsidiary” pursuant to the definition thereof, and thereafter
such Person shall no longer constitute a “Structured Subsidiary” for any purpose of this Agreement or any other Loan
Document.

 

(iii)        The
Borrower acknowledges that the Administrative Agent and the Lenders have agreed to exclude each SBIC Subsidiary as an Obligor only
for so long as such Person qualifies as an “SBIC Subsidiary” pursuant to the definition thereof, and thereafter such
Person shall no longer constitute an “SBIC Subsidiary” for any purpose of this Agreement or any other Loan Document.

 

(iv)        The
Borrower acknowledges that the Administrative Agent and the Lenders have agreed to exclude each Florida Sidecar Subsidiary as an
Obligor only for so long as such Person qualifies as a “Florida Sidecar Subsidiary” pursuant to the definition thereof,
and thereafter such Person shall no longer constitute a “Florida Sidecar Subsidiary” for any purpose of this Agreement
or any other Loan Document.

 

(b)          Ownership
of Subsidiaries. The Borrower will, and will cause each of its Subsidiaries to, take such action from time to time as shall
be necessary to ensure that each of its Subsidiaries is a wholly owned Subsidiary.

 

(c)          Further
Assurances. The Borrower will, and will cause each of the Subsidiary Guarantors to, take such action from time to time as shall
reasonably be requested by the Administrative Agent to effectuate the purposes and objectives of this Agreement. Without limiting
the generality of the foregoing, the Borrower will, and will cause each of the Subsidiary Guarantors, to:

 

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(i)          take
such action from time to time (including filing appropriate Uniform Commercial Code financing statements and executing and delivering
such assignments, security agreements and other instruments) as shall be reasonably requested by the Administrative Agent to create,
in favor of the Collateral Agent for the benefit of the Lenders (and any affiliate thereof that is a party to any Hedging Agreement
entered into with the Borrower) and the holders of any Secured Longer-Term Indebtedness, perfected first-priority security interests
and Liens in the Collateral; provided that any such security interest or Lien shall be subject to the relevant requirements
of the Security Documents;

 

(ii)         with
respect to each deposit account or securities account of the Obligors (other than (A) any such accounts that are maintained by
the Borrower in its capacity as “servicer” for a Financing Subsidiary or any Agency Account, (B) any such accounts
which hold solely money or financial assets of a Financing Subsidiary, (C) any payroll account so long as such payroll account
is coded as such, (D) withholding tax and fiduciary accounts or any trust account maintained solely on behalf of a Portfolio Investment,
and (E) any account in which the aggregate value of deposits therein, together with all other such accounts under this clause (E),
does not at any time exceed $75,000, provided that in the case of each of the foregoing clauses (A) through (E), no other
Person (other than the depository institution at which such account is maintained) shall have “control” over such account
(within the meaning of the Uniform Commercial Code)), cause each bank or securities intermediary (within the meaning of the Uniform
Commercial Code) to enter into such arrangements with the Collateral Agent as shall be appropriate in order that the Collateral
Agent has “control” (within the meaning of the Uniform Commercial Code) over each such deposit account or securities
account (each, a “Control Account”) and in that connection, the Borrower agrees, subject to Sections 5.08(c)(iv)
and (v) below, to cause all cash and other proceeds of Portfolio Investments received by any Obligor to be immediately deposited
into a Control Account (or otherwise delivered to, or registered in the name of, the Collateral Agent) and, both prior to and following
such deposit, delivery or registration such cash and other proceeds shall be held in trust by the Borrower for the benefit and
as the property of the Collateral Agent and shall not be commingled with any other funds or property of such Obligor or any other
Person (including with any money or financial assets of the Borrower in its capacity as “servicer” for a Structured
Subsidiary or any money or financial assets of a Structured Subsidiary, or any money or financial assets of the Borrower in its
capacity as “agent” for any other Bank Loans subject to Section 5.08(c)(v) below);

 

(iii)        cause
the Financing Subsidiaries or any Florida Sidecar Subsidiary to execute and deliver to the Administrative Agent such certificates
and agreements, in form and substance reasonably satisfactory to the Administrative Agent, as it shall determine are necessary
to confirm that such Financing Subsidiary or Florida Sidecar Subsidiary qualifies or continues to qualify as a “Structured
Subsidiary”, an “SBIC Subsidiary”, or a “Florida Sidecar Subsidiary”, as applicable, pursuant to
the definitions thereof;

 

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(iv)        in
the case of any Portfolio Investment consisting of a Bank Loan (as defined in Section 5.13) that does not constitute all
of the credit extended to the underlying borrower under the relevant underlying loan documents and a Financing Subsidiary holds
any interest in the loans or other extensions of credit under such loan documents, (x)(1) cause the interest owned by such Financing
Subsidiary to be evidenced by a separate note or notes which note or notes are either (A) in the name of such Financing Subsidiary
or (B) in the name of the Borrower, endorsed in blank and delivered to the applicable Financing Subsidiary and beneficially owned
by the Financing Subsidiary (or, in the case of a Noteless Assigned Loan (as defined in Section 5.13), cause the interest
owned by such Financing Subsidiary to be evidenced by separate assignment documentation contemplated by paragraph 1(b) of Schedule
1.01(d) in the name of such Financing Subsidiary) and (2) not permit such Financing Subsidiary to have a participation acquired
from an Obligor in such underlying loan documents and the extensions of credit thereunder or any other indirect interest therein
acquired from an Obligor; and (y) ensure that, subject to Section 5.08(c)(v) below, all amounts owing to any Obligor by
the underlying borrower or other obligated party are remitted by such borrower or obligated party (or the applicable administrative
agents, collateral agents or equivalent Person) directly to the Custodian Account and no other amounts owing by such underlying
borrower or obligated party are remitted to the Custodian Account;

 

(v)         in
the event that any Obligor is acting as an agent or administrative agent under any loan documents with respect to any Bank Loan
(or is acting in an analogous agency capacity under any agreement related to any Portfolio Investment) and such Obligor does not
hold all of the credit extended to the underlying borrower or issuer under the relevant underlying loan documents or other agreements,
ensure that (1) all funds held by such Obligor in such capacity as agent or administrative agent is segregated from all other funds
of such Obligor and clearly identified as being held in an agency capacity (an “Agency Account”); (2) all amounts
owing on account of such Bank Loan or Portfolio Investment by the underlying borrower or other obligated party are remitted by
such borrower or obligated party to either (A) such Agency Account or (B) directly to an account in the name of the underlying
lender to whom such amounts are owed (for the avoidance of doubt, no funds representing amounts owing to more than one underlying
lender may be remitted to any single account other than the Agency Account); and (3) within one (1) Business Day after receipt
of such funds, such Obligor acting in its capacity as agent or administrative agent shall distribute any such funds belonging to
any Obligor to the Custodian Account (provided that if any distribution referred to in this clause (c) is not permitted
by applicable bankruptcy law to be made within such one Business Day period as a result of the bankruptcy of the underlying borrower,
such Obligor shall use commercially reasonable efforts to obtain permission to make such distribution and shall make such distribution
as soon as legally permitted to do so);

 

(vi)        cause
the documentation relating to each Investment in Indebtedness described in paragraph 1 of Schedule 1.01(d) to be delivered to the
Custodian as provided therein; and

 

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(vii)       in
the case of any Portfolio Investment held by any Financing Subsidiary, including any cash collection related thereto, ensure that
such Portfolio Investment shall not be held in any Custodian Account, or any other account of any Obligor.

 

SECTION 5.09. Use
of Proceeds. The Borrower will use the proceeds of the Loans only for general corporate purposes of the Borrower and its Subsidiaries
(other than the Financing Subsidiaries except as expressly permitted under Section 6.03(e) or (f)) in the ordinary
course of business, including making distributions not prohibited by this Agreement, making payments on Indebtedness of the Obligors
to the extent permitted under this Agreement, and the acquisition and funding (either directly or through one or more wholly-owned
Subsidiary Guarantors) of leveraged loans, mezzanine loans, high-yield securities, convertible securities, preferred stock, common
stock and other Portfolio Investments; provided that neither the Administrative Agent nor any Lender shall have any responsibility
as to the use of any of such proceeds. No part of the proceeds of any Loan will be used in violation of applicable law or, directly
or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any Margin Stock. On the first
day (if any) an Obligor acquires any Margin Stock or at any other time requested by the Administrative Agent or any Lender, the
Borrower shall furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in Regulation U. Margin Stock shall be purchased by the
Obligors only with the proceeds of Indebtedness not directly or indirectly secured by Margin Stock (within the meaning of Regulation
U), or with the proceeds of equity capital of the Borrower. No Obligor will, to its actual knowledge, directly or indirectly use
the proceeds of the Loans or otherwise make available such proceeds (I) to any Person for the purpose of financing the activities
of any Person currently (A) subject to, or the subject of, any Sanctions or (B) organized or resident in a Sanctioned Country
or (II) for any payments to any governmental official or employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of any Anti-Corruption Laws.

 

SECTION 5.10. Status
of RIC and BDC. The Borrower shall (i) take all actions necessary to qualify as a RIC under
the Code (including making the election to be treated as a RIC for its taxable year ended December 31, 2013) and to thereafter
maintain its qualification as a RIC under the Code, and (ii) at all times maintain its status as a RIC
under the Code and as a “business development company” under the Investment Company Act.

 

SECTION 5.11. Investment
Policies. The Borrower shall at all times be in compliance in all material respects with its Investment Policies.

 

SECTION 5.12. Portfolio
Valuation and Diversification Etc.

 

(a)          Industry
Classification Groups. For purposes of this Agreement, the Borrower shall assign each Eligible Portfolio Investment to an Industry
Classification Group as reasonably determined by the Borrower. To the extent that the Borrower reasonably determines any Eligible
Portfolio Investment is not correlated with the risks of other Eligible Portfolio Investments in an Industry Classification Group,
such Eligible Portfolio Investment may be assigned by the Borrower to an Industry Classification Group that is more closely correlated
to such Eligible Portfolio Investment.

 

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(b)          Portfolio
Valuation Etc.

 

(i)          Settlement
-Date Basis. For purposes of this Agreement, all determinations
of whether a Portfolio Investment is an Eligible Portfolio Investment shall be determined on a settlement-date
basis (meaning that any Portfolio Investment that has been purchased will not be treated as an Eligible Portfolio Investment until
such purchase has settled, and any Eligible Portfolio Investment which has been sold will not be excluded as an Eligible Portfolio
Investment until such sale has settled)Settlement-Date
Basis, provided that no such investment shall be included as an Eligible Portfolio Investment to the extent it
has not been paid for in full.

 

(ii)         Determination
of Values. The Borrower will conduct reviews of the value to be assigned to each of its Eligible Portfolio Investments as follows:

 

(A)         Quoted
Investments External Review. With respect to Eligible Portfolio Investments (including Cash Equivalents) for which market quotations
are readily available and are reflective of an actual trade executed within a reasonable period of such quotation (“Quoted
Investments”), the Borrower shall, not less frequently than once each calendar week, determine the market value of such
Quoted Investments which shall, in each case, be determined in accordance with one of the following methodologies as selected by
the Borrower (each such value, an “External Quoted Value”):

 

(w)          in
the case of public and 144A securities, the average of the bid prices as determined by two Approved Dealers selected by the Borrower,

 

(x)          in
the case of Bank Loans, the average of the bid prices as determined by two Approved Dealers selected by the Borrower or an Approved
Pricing Service which makes reference to at least two Approved Dealers with respect to such Bank Loans,

 

(y)          in
the case of any Quoted Investment traded on an exchange, the closing price for such Eligible Portfolio Investment most recently
posted on such exchange, and

 

(z)          in
the case of any other Quoted Investment, the fair market value thereof as determined by an Approved Pricing Service; and

 

(B)         Unquoted
Investments External Review. With respect to Eligible Portfolio Investments for which market quotations are not readily available
(“Unquoted Investments”):

 

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(x)          Commencing
with the quarter ending December 31, 2014, and for each fiscal quarter thereafter (or such other dates as are reasonably agreed
by the Borrower and the Administrative Agent (provided that such testing dates shall occur not less than quarterly), each
a “Valuation Testing Date”), the Administrative Agent through an Independent Valuation Provider will, solely
for purposes of determining the Borrowing Base, test the values as of such Valuation Testing Date of those Unquoted Investments
that are Portfolio Investments included in the Borrowing Base selected by the Administrative Agent (such selected assets, the “IVP
Tested Assets” and such value, the “IVP External Unquoted Value”); provided that the fair value
of such Portfolio Investments tested by the Independent Valuation Provider as of any Valuation Testing Date shall be approximately
25% (but in no event shall exceed 30%) of the aggregate value of the Unquoted Investments in the Borrowing Base (the determination
of fair value for such percentage thresholds shall be based off of the last determination of value of the Portfolio Investments
pursuant to this Section 5.12 and, for the avoidance of doubt, in the case of any Unquoted Investments acquired during the
calendar quarter, the value shall be as determined pursuant to clause (E)(z)(2) below); provided, further that the
Administrative Agent shall provide written notice to the Borrower, setting forth a description of which Unquoted Investments shall
be IVP Tested Assets as of such Valuation Testing Date, not later than 15 days prior to the Valuation Testing Date. Each such valuation
report shall also include the information required to comply with clause (iii) of paragraph 7 and paragraph 22 of Schedule 1.01(d)
for an IVP Tested Asset (to the extent such provisions are applicable).

 

(y)          With
respect to all Unquoted Investments that are not IVP Tested Assets as of such Valuation Testing Date (the “Borrower Tested
Assets”), the Borrower shall request an Approved Third-Party Appraiser to assist the Board of Directors of the Borrower
in determining the fair market value of the remaining Unquoted Investments, as of each Valuation Testing Date (such value, the
“Borrower External Unquoted Value”), and to provide the Board of Directors with a written independent valuation
report as part of that assistance each quarter; provided, however, that notwithstanding the foregoing, the board
of directors of the Borrower may, without the assistance of an Approved Third-Party Appraiser, determine the fair market value
of such Unquoted Investments so long as the aggregate Value thereof so determined does not at any time exceed 10% of the aggregate
Borrowing Base, except that the fair market value of any Portfolio Investment that has been determined without the assistance of
an Approved Third-Party Appraiser as at the last day of any fiscal quarter shall be deemed to be zero as at the last day of the
immediately succeeding fiscal quarter (but effective upon the date upon which the Borrowing Base Certificate for such last day
is required to be delivered) if an Approved Third-Party Appraiser has not assisted the Board of Directors of the Borrower in determining
the fair market value of such Portfolio Investments, as at such date. Each such valuation report shall also include the information
required to comply with clause (iii) of paragraph 7 and paragraph 22 of Schedule 1.01(d).

 

(C)         Internal
Review. The Borrower shall conduct internal reviews to determine the value of all Eligible Portfolio Investments at least once
each calendar week which shall take into account any events of which the Borrower has knowledge that adversely affect the value
of any Eligible Portfolio Investment (each such value, an “Internal Value”).

 

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(D)         Value
of Quoted Investments. Subject to Sections 5.12(b)(ii)(G) and 5.12(b)(iii), the “Value” of
each Quoted Investment for all purposes of this Agreement shall be the lowest of (1) the Internal Value of such Quoted Investment
as most recently determined by the Borrower pursuant to Section 5.12(b)(ii)(C), (2) the External Quoted Value of such Quoted
Investment as most recently determined pursuant to Section 5.12(b)(ii)(A) and (3) the par or face value of the such Quoted
Investment.

 

(E)         Value
of Unquoted Investments. Subject to Sections 5.12(b)(ii)(G) and 5.12(b)(iii),

 

(x)          if
the Internal Value of any Unquoted Investment as most recently determined by the Borrower pursuant to Section 5.12(b)(ii)(C)
falls below the range of the IVP External Unquoted Value or the Borrower External Unquoted Value of such Unquoted Investment as
most recently determined pursuant to Section 5.12(b)(ii)(B), then the “Value” of such Unquoted Investment for
all purposes of this Agreement shall be deemed to be the lower of (i) the Internal Value and (ii) the par or face value of such
Unquoted Investment;

 

(y)         (i)
if the Internal Value of any Unquoted Investment as most recently determined by the Borrower pursuant to Section 5.12(b)(ii)(C)
falls above the range of the Borrower External Unquoted Value of such Unquoted Investment as most recently determined pursuant
to Section 5.12(b)(ii)(B), then the “Value” of such Unquoted Investment for all purposes of this Agreement shall
be deemed to be the lower of (i) the midpoint of the range of the Borrower External Unquoted Value and (ii) the par or face value
of such Unquoted Investment;

 

(ii) if the
Internal Value of any Unquoted Investment as most recently determined by the Borrower pursuant to Section 5.12(b)(ii)(C)
falls more than 5% above the midpoint of the range of the IVP External Unquoted Value of such Unquoted Investment as most recently
determined pursuant to Section 5.12(b)(ii)(B), then the “Value” of such Unquoted Investment for all purposes
of this Agreement shall be deemed to be the lower of (i) the midpoint of the range of the IVP External Unquoted Value and (ii)
the par or face value of such Unquoted Investment; and

 

(z)         if
the Internal Value of any Unquoted Investment as most recently determined by the Borrower pursuant to Section 5.12(b)(ii)(C)
is within the range of the Borrower External Unquoted Value, or within or not more than 5% above the midpoint of the range of the
IVP External Unquoted Value, of such Unquoted Investment as most recently determined pursuant to Section 5.12(b)(ii)(B),
then the “Value” of such Unquoted Investment for all purposes of this Agreement shall be deemed to be the lower of
(i) the Internal Value and (ii) the par or face value of such Unquoted Investment;

 

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except that:

 

(1)         if
the difference between the highest and lowest Borrower External Unquoted Value in such range exceeds an amount equal to 6% of the
midpoint of such range, the “Value” of such Unquoted Investment shall instead be deemed to be the lowest of (i) the
lowest Borrower External Unquoted Value in such range, (ii) the Internal Value determined pursuant to Section 5.12(b)(ii)(C),
and (iii) the par or face value of such Unquoted Investment; and

 

(2)         if
an Unquoted Investment is acquired during a fiscal quarter, the “Value” of such Unquoted Investment shall be deemed
to be equal to the lowest of (x) the Internal Value of such Unquoted Investment as determined by the Borrower pursuant to Section
5.12(b)(ii)(C), (y) the cost of such Unquoted Investment until such time as the External Unquoted Value of such Unquoted Investment
is determined in accordance with Section 5.12(b)(ii)(B) as at the Valuation Testing Date, and (z) the par or face value
of such Unquoted Investment.

 

(F)         Actions
Upon a Borrowing Base Deficiency. If, based upon such weekly internal review, the Borrower determines that a Borrowing Base
Deficiency exists or that the Borrowing Base has declined by more than 15% from the Borrowing Base stated in the Borrowing Base
Certificate last delivered by the Borrower to the Administrative Agent, then the Borrower shall, promptly and in any event within
two Business Days as provided in Section 5.01(e), deliver a Borrowing Base Certificate reflecting the new amount of the
Borrowing Base and shall take the actions, and make the payments and prepayments (if any), all as more specifically set forth in
Section 2.08(b).

 

(G)         Failure
to Determine Values. If the Borrower shall fail to determine the value of any Eligible Portfolio Investment as at any date
pursuant to the requirements (but subject to the exclusions) of the foregoing sub-clauses (A), (B), (C), (D) or (E) (or if the
Administrative Agent shall fail to determine the value of any Eligible Portfolio Investment as described in the foregoing sub-clause
(B) as a result of any action, inaction or lack of cooperation of the Borrower or any of its Affiliates), then the “Value”
of such Eligible Portfolio Investment as at such date shall be deemed to be zero. Except as provided in the immediately preceding
sentence, if the Administrative Agent shall fail to determine the value of any Eligible Portfolio Investment as at any date pursuant
to clause (B)(x), then the “Value” of such Eligible Portfolio Investment as at such date (subject to clause (iii) below)
shall be the lower of (x) the Internal Value and (y) the par or face value of such Unquoted Investment; provided, however,
that if a Borrower External Unquoted Value has been obtained with respect to such asset for the quarterly period immediately preceding
the current quarterly testing period, then the “Value” of such Eligible Portfolio Investment will be determined as
provided in clause (E) above.

 

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(H)         Initial
Value of Assets. Notwithstanding anything to the contrary contained herein, from the Effective Date until the date when valuation
reports are required to be delivered under Section 5.01(h) for the fiscal quarter ending December 31, 2014, the Value of
any Unquoted Investment included in the Borrowing Base shall be the lower of (i) the Internal Value of such Unquoted Investment
determined by the Borrower pursuant to Section 5.12(b)(ii)(C) and (ii) the par or face value of such Unquoted Investment.

 

(iii)        Supplemental
Testing of Values; Valuation Dispute Resolutions. Notwithstanding the foregoing, the Administrative Agent, individually or
at the request of the Required Lenders, shall at any time have the right to request any Portfolio Investment (other than IVP Tested
Assets as of the most recent Valuation Testing Date) included in the Borrowing Base with a value determined pursuant to Section
5.12(b)(ii) to be independently tested by an Independent Valuation Provider. There shall be no limit on the number of such
appraisals requested by the Administrative Agent. If (x) the value of any Borrower Tested Asset determined pursuant to Section
5.12(b)(ii) is less than the value determined by the Independent Valuation Provider pursuant to this clause, then the value
determined pursuant to Section 5.12(b)(ii) shall continue to be used as the “Value” for purposes of this Agreement
and (y) if the value of any Borrower Tested Asset determined pursuant to Section 5.12(b)(ii) is greater than the value determined
by the Independent Valuation Provider and the difference between such values is (1) less than or equal to 5% of the value determined
pursuant to Section 5.12(b)(ii), then the value determined pursuant to Section 5.12(b)(ii) shall become the “Value”
of such Portfolio Investment, (2) greater than 5% and less than or equal to 20% of the value determined pursuant to Section
5.12(b)(ii), then the “Value” of such Portfolio Investment shall become the average of the value determined pursuant
to Section 5.12(b)(ii) and the value determined by the Independent Valuation Provider, and (3) greater than 20% of the value
determined pursuant to Section 5.12(b)(ii), then either (i) the the “Value”
of such Portfolio Investment shall be the lesser of the two values or (ii) if the Borrower so elects, the Borrower and the Administrative
Agent shall retain (at the Borrower’s sole cost and expense) an additional third party appraiser and, upon completion of
such appraisal, the “Value” of such Portfolio Investment shall be the average of the three valuations (with the average
of the value determined pursuant to Section 5.12(b)(ii) and the value determined by the Independent Valuation Provider to
be used until the third value is obtained). For purposes of this Section 5.12(b)(iii), the “Value” of any Portfolio
Investment for which the Independent Valuation Provider’s value is used shall be the midpoint of the range (if any) determined
by the Independent Valuation Provider.

 

(iv)        Generally
Applicable Valuation Provisions.

 

(A)         The
Independent Valuation Provider shall apply a recognized valuation methodology that is commonly accepted in the Borrower’s
industry for valuing Portfolio Investments of the type being valued and held by the Obligors. Other procedures relating to the
valuation will be reasonably agreed upon by the Administrative Agent and the Borrower.

 

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(B)         All
valuations shall be on a settlement date basisSettlement-Date
Basis. For the avoidance of doubt, the value of any Portfolio Investments determined in accordance with any provision
of this Section 5.12 shall be the Value of such Portfolio Investment for purposes of this Agreement until a new Value for
such Portfolio Investment is subsequently determined in good faith in accordance with this Section 5.12.

 

(C)         Subject
to the last sentence of Section 9.03(a), the documented out-of-pocket costs of any valuation reasonably incurred by the
Administrative Agent under this Section 5.12 shall be at the expense of the Borrower; provided that the Administrative Agent
shall under no circumstances be required to incur expenses under Section 5.12(b)(iii) in excess of the IVP Supplemental
Cap.

 

(D)         The
Administrative Agent shall provide a copy of the final results of any valuation received by the Administrative Agent and performed
by the Independent Valuation Provider or the Approved Third-Party Appraiser to any Lender upon such Lender’s request, except
to the extent that such recipient has not executed and delivered a customary and reasonable non-reliance letter, confidentiality
agreement or similar agreement requested or required by such Independent Valuation Provider or Approved Third-Party Appraiser,
as applicable.

 

(E)         The
foregoing valuation procedures shall only be required to be used for purposes of calculating the Borrowing Base and shall not be
required to be utilized by the Borrower for any other purpose, including the delivery of financial statements or valuations required
under ASC 820 or the Investment Company Act.

 

(c)          Investment
Company Diversification Requirements. The Borrower (together with its Subsidiaries to the extent required by the Investment
Company Act) will at all times comply with the portfolio diversification and similar requirements set forth in the Investment Company
Act applicable to business development companies. The Borrower will at all times, subject to applicable grace periods set forth
in the Code, comply with the portfolio diversification and similar requirements set forth in the Code applicable to RICs.

 

SECTION 5.13. Calculation
of Borrowing Base. For purposes of this Agreement, the “Borrowing Base” shall be determined, as at any
date of determination, as the sum of the products obtained by multiplying (x) the Value of each Eligible Portfolio Investment
by (y) the applicable Advance Rate; provided that:

 

(a)          the
Advance Rate applicable to the aggregate Value of all Eligible Portfolio Investments in their entirety shall be 0% at any time
when the Borrowing Base is composed entirely of Eligible Portfolio Investments issued by less than 12 different issuers; provided
that, at all times prior to the six-month anniversary of the Effective Date, the minimum number of issuers may be 8 as long as
the overall utilization of the Borrowing Base is less than 65% (for these purposes, (i) utilization of the Borrowing Base on any
day means the fraction expressed as a percentage, the numerator of which is the sum of the Covered Debt Amount on such day, and
the denominator of which is the Borrowing Base in effect on such day and (ii) issuers that are affiliates of each other will be
treated as one issuer (unless the affiliation is solely as a result of direct or indirect control by a common private equity or
similar sponsor));

 

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(b)          with
respect to all Eligible Portfolio Investments issued by a single issuer, the Advance Rate applicable to that portion of such Eligible
Portfolio Investments that exceeds 7.5% of the Obligors’ Net Capitalization
shall be 50% of the Advance Rate otherwise applicable to such Eligible Portfolio Investments; provided that the Advance Rate applicable
to that portion of such Eligible Portfolio Investments that exceeds 10% of the Obligors’ Net Capitalization shall
be 0%;

 

(c)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments that are not Cash, Cash Equivalents, Long-Term U.S.
Government Securities or Performing First Lien Bank Loans shall not exceed 70% of the Borrowing Base, and the Borrowing Base shall
be reduced by removing Eligible Portfolio Investments therefrom (but not from the Collateral) to the extent such portion would
otherwise exceed 70% of the Borrowing Base;

 

(d)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments that are not Cash, Cash Equivalents, Long-Term U.S.
Government Securities or Performing First Lien Bank Loans, Performing Second Lien Bank Loans or Performing Last Out Loans shall
not exceed 30% of the Borrowing Base, and the Borrowing Base shall be reduced by removing Eligible Portfolio Investments therefrom
(but not from the Collateral) to the extent such portion would otherwise exceed 30% of the Borrowing Base;

 

(e)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investment acquired after the Effective Date that are Noteless
Assigned Loans shall not exceed 25% of the Borrowing Base, and the Borrowing Base shall be reduced by removing Eligible Portfolio
Investments therefrom (but not from the Collateral) to the extent such portion would otherwise exceed 25% of the Borrowing Base;

 

(f)          if
at any time the Weighted Average Leverage Ratio is greater than 4.75, the Borrowing Base shall be reduced by removing Debt Eligible
Portfolio Investments therefrom (but not from the Collateral) to the extent necessary to cause the Weighted Average Leverage Ratio
to be no greater than 4.75 (subject to all other constraints, limitations and restrictions set forth herein);

 

(g)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments in each of the Industry Classification Groups that
are part of the Two Largest Industry Classification Groups shall, in each case, not exceed 20% of the Borrowing Base, and the Borrowing
Base shall be reduced by removing Eligible Portfolio Investments therefrom (but not from the Collateral) to the extent such portion
would otherwise exceed 20% of the Borrowing Base;

 

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(h)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments in any single Industry Classification Group (other
than each of the Industry Classification Groups that are part of the Two Largest Industry Classification Groups) shall not exceed
15% of the Borrowing Base, and the Borrowing Base shall be reduced by removing Eligible Portfolio Investments therefrom (but not
from the Collateral) to the extent such portion would otherwise exceed 15% of the Borrowing Base;

 

(i)          if
at any time the weighted average maturity of all Debt Eligible Portfolio Investments (based on the fair value of such Eligible
Portfolio Investments to the extent included in the Borrowing Base) exceeds 6.0 years, the Borrowing Base shall be reduced by removing
Debt Eligible Portfolio Investments therefrom (but not from the Collateral) to the extent necessary to cause the weighted average
maturity of all Debt Eligible Portfolio Investments included in the Borrowing Base to be no greater than 6.0 years (subject to
all other constraints, limitations and restrictions set forth herein);

 

(j)          the
portion of the Borrowing Base attributable to Debt Eligible Portfolio Investments with a maturity greater than 7 years shall not
exceed 15% of the Borrowing Base, and the Borrowing Base shall be reduced by removing Eligible Portfolio Investments therefrom
(but not from the Collateral) to the extent such portion would otherwise exceed 15% of the Borrowing Base;

 

(k)          the
portion of the Borrowing Base attributable to PIK Obligations, DIP Loans and Covenant-Lite Loans shall not exceed 15% of the Borrowing
Base, and the Borrowing Base shall be reduced by removing Eligible Portfolio Investments therefrom (but not from the Collateral)
to the extent such portion would otherwise exceed 15% of the Borrowing Base;

 

(l)          if
at any time the Weighted Average Fixed Coupon (after giving effect to any Hedging Agreement) is less than the greater of (i) 8%
and (ii) the one-month LIBO Rate plus 4.5%, the Borrowing Base shall be reduced by removing Debt Eligible Portfolio Investments
therefrom (but not from the Collateral) to the extent necessary to cause the Weighted Average Fixed Coupon to be at least equal
to the greater of (x) 8% and (y) the one-month LIBO Rate plus 4.5% (subject to all other constraints, limitations and restrictions
set forth herein);

 

(m)          if
at any time the Weighted Average Floating Spread (after giving effect to any Hedging Agreement) is less than 4.5%, the Borrowing
Base shall be reduced by removing Debt Eligible Portfolio Investments therefrom (but not from the Collateral) to the extent necessary
to cause the Weighted Average Floating Spread to be at least 4.5% (subject to all other constraints, limitations and restrictions
set forth herein); and

 

(n)          no
portion of the Borrowing Base shall be attributable to (a) any (i) Equity Interests or (ii) warrants, options or other rights for
the purchase or acquisition of Equity Interests, (iii) any Investment in debt Securities that is convertible into or exchangeable
for shares of Equity Interests, (b) any Affiliate Investment (other than an Existing Affiliate
Investment), (c) any Structured Finance Obligation or Finance Lease or (d) investment in a joint venture or other
Person that is in the principal business of making debt or equity investments in other Persons;

 

(o)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments issued by one or more Portfolio Companies with a trailing
twelve-month total debt to EBITDA ratio of greater than 6.0 to 1.0 shall not exceed 15% of the Borrowing Base, and the Borrowing
Base shall be reduced by removing Eligible Portfolio Investments therefrom (but not from the Collateral) to the extent such portion
would otherwise exceed 15% of the Borrowing Base; and

 

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(p)          the
portion of the Borrowing Base attributable to Eligible Portfolio Investments issued by Canadian Issuers in the aggregate shall
not exceed 10% of the Borrowing Base and the Borrowing Base shall be reduced by removing Eligible Portfolio Investments therefrom
(but not from the Collateral) to the extent such portion would otherwise exceed 10% of the Borrowing Base; provided that no credit
shall be given to the Borrowing Base for any Eligible Portfolio Investment issued by a Canadian Issuer if the related Obligor does
not qualify for zero withholding for loans to Canadian borrowers unless the underlying documentation for such Eligible Portfolio
Investment contains customary tax provisions pursuant to which the applicable Canadian Issuer is required to indemnify in full
and/or gross-up in full such Obligor.

 

For all purposes of this
Section 5.13, all issuers of Eligible Portfolio Investments that are Affiliates of one another shall be treated as a single
issuer (unless such issuers are Affiliates of one another solely because they are under the common Control of the same private
equity sponsor or similar sponsor). For the avoidance of doubt, no Portfolio Investment shall be an Eligible Portfolio Investment
unless, among the other requirements set forth in this Agreement, (i) such Investment is subject only to Eligible Liens and (ii)
such Investment is Transferable. In addition, as used herein, the following terms have the following meanings:

 

“Advance Rate”
means, as to any Eligible Portfolio Investment and subject to adjustment as provided above, the following percentages with respect
to such Eligible Portfolio Investment; provided that the Advance Rate
applicable to any Existing Affiliate Investment (as defined below and only to the extent such Existing Affiliate Investment is
also otherwise an Eligible Portfolio Investment) shall be 67% of the Advance Rate otherwise applicable thereto:

 

	Eligible Portfolio Investment	 	Unquoted	 	 	Quoted	 
	Cash and Cash Equivalents (including Short-Term U.S. Government Securities)	 	 	n/a	 	 	 	100	%
	Long-Term U.S. Government Securities	 	 	n/a	 	 	 	85	%
	Performing First Lien Bank Loans	 	 	6065	%	 	 	70	%
	Performing Last Out Loans	 	 	55	%	 	 	65	%
	Performing Second Lien Bank Loans	 	 	50	%	 	 	60	%
	Performing High Yield Securities	 	 	45	%	 	 	55	%
	Performing Mezzanine Investments and Performing Covenant-Lite Loans	 	 	40	%	 	 	50	%
	Performing PIK Obligations and Performing DIP Loans	 	 	35	%	 	 	40	%

 

For
the avoidance of doubt, the categories above are intended to be indicative of the traditional investment types in a fully capitalized
issuer. All determinations of whether a particular Portfolio Investment belongs to one category or another shall be made by the
Borrower on a consistent basis with the foregoing. For example, a secured bank loan at a holding company, whose only assets are
the shares of a fully capitalized operating company, may constitute Mezzanine Investments but would not ordinarily constitute a
Bank Loan. 

 

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“Bank Loans”
means debt obligations (including term loans, revolving loans, debtor-in-possession financings, the funded portion of revolving
credit lines and letter of credit facilities and other similar loans and investments including interim loans, bridge loans and
senior subordinated loans) that are generally provided under a syndicated loan or credit facility or pursuant to any loan agreement
or other similar credit facility, whether or not syndicated.

 

“Capital Stock”
of any Person means any and all shares of corporate stock (however designated) of and any and all other Equity Interests and participations
representing ownership interests (including membership interests and limited liability company interests) in, such Person.

 

“Cash”
has the meaning assigned to such term in Section 1.01 of this Agreement.

 

“Cash Equivalents”
has the meaning assigned to such term in Section 1.01 of this Agreement.

 

“Covenant-Lite
Loan” a Bank Loan that does not require the Portfolio Company thereunder to comply with any financial covenants (including
any covenant relating to a borrowing base, asset valuation or similar asset-based requirement) (regardless of whether compliance
with one or more incurrence covenants is otherwise required by such Bank Loan).

 

“Debt Eligible
Portfolio Investment” means an Eligible Portfolio Investment that is an Investment in Indebtedness.

 

“Defaulted Obligation”
means any Investment in Indebtedness (a) as to which, (x) a default as to the payment of principal and/or interest has occurred
and is continuing for a period of thirty two (32) consecutive days with respect to such Indebtedness (without regard to any grace
period applicable thereto, or waiver thereof) or (y) a default not set forth in clause (x) has occurred and the holders of such
Indebtedness have accelerated all or a portion of the principal amount thereof as a result of such default; (b) as to which a default
as to the payment of principal and/or interest has occurred and is continuing on another material debt obligation of the Portfolio
Company under such Indebtedness which is senior or pari passu in right of payment to such Indebtedness; (c) as to which the Portfolio
Company under such Indebtedness or others have (x) engaged in an out-of-court
restructuring process (including through any provision of the Uniform Commercial Code or other law) for a period of 180 consecutive
days or (y) instituted proceedings to have such Portfolio Company adjudicated bankrupt or insolvent or placed into receivership
and such proceedings have not been stayed or dismissed or such Portfolio Company has filed for protection under Chapter
11 of the United States Bankruptcy Code or under any
foreign bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit
of creditors or similar Person charged with reorganization or liquidation of its business or custodian, appointed for it
(unless, in the case of clause (b) or (c), such Indebtedness is a DIP Loan, in which case it shall not be deemed to be a Defaulted
Obligation under such clause); (d) as to which a default rate of interest has been and continues to be charged for more than 120
consecutive days, or foreclosure on collateral for such Indebtedness has been commenced and is being pursued by or on behalf of
the holders thereof; or (e) as to which the Borrower has delivered written notice to the Portfolio Company declaring such Indebtedness
in default or as to which the Borrower otherwise exercises significant remedies following a default.

 

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“DIP Loan”
means a Bank Loan, whether revolving or term, that is originated after the commencement of a case under Chapter 11 of the Bankruptcy
Code by a Portfolio Company, which is a debtor in possession as described in Section 1107 of the Bankruptcy Code or a debtor as
defined in Section 101(13) of the Bankruptcy Code in such case (a “Debtor”) organized under the laws of the
United States or any state therein and domiciled in the United States, which satisfies the following criteria: (a) the DIP Loan
is duly authorized by a final order of the applicable bankruptcy court or federal district court under the provisions of subsection
(b), (c) or (d) of 11 U.S.C. Section 364; (b) the Debtor’s bankruptcy case is still pending as a case under the provisions
of Chapter 11 of Title 11 of the Bankruptcy Code and has not been dismissed or converted to a case under the provisions of Chapter
7 of Title 11 of the Bankruptcy Code; (c) the Debtor’s obligations under such loan have not been (i) disallowed, in whole
or in part, or (ii) subordinated, in whole or in part, to the claims or interests of any other Person under the provisions of 11
U.S.C. Section 510; (d) the DIP Loan is secured and the Liens granted by the applicable bankruptcy court or federal district court
in relation to the Loan have not been subordinated or junior to, or pari passu with, in whole or in part, to the Liens of
any other lender under the provisions of 11 U.S.C. Section 364(d) or otherwise; (e) the Debtor is not in default on its obligations
under the loan; (f) neither the Debtor nor any party in interest has filed a Chapter 11 plan with the applicable federal bankruptcy
or district court that, upon confirmation, would (i) disallow or subordinate the loan, in whole or in part, (ii) subordinate, in
whole or in part, any Lien granted in connection with such loan, (iii) fail to provide for the repayment, in full and in cash,
of the loan upon the effective date of such plan or (iv) otherwise impair, in any manner, the claim evidenced by the loan; (g)
the DIP Loan is documented in a form that is commercially reasonable; (h) the DIP Loan shall not provide for more than 50% (or
a higher percentage with the consent of the Required Lenders) of the proceeds of such loan to be used to repay prepetition obligations
owing to all or some of the same lender(s) in a “roll-up” or similar transaction; (i) no portion of the DIP Loan is
payable in consideration other than cash; and (j) no portion of the DIP Loan has been credit bid under Section 363(k) of the Bankruptcy
Code or otherwise. For the purposes of this definition, an order is a “final order” if the applicable period for filing
a motion to reconsider or notice of appeal in respect of a permanent order authorizing the Debtor to obtain credit has lapsed and
no such motion or notice has been filed with the applicable bankruptcy court or federal district court or the clerk thereof.

 

“EBITDA”
means the consolidated net income of the applicable Person (excluding extraordinary gains and extraordinary losses (to the extent
excluded in the definition of “EBITDA” in the relevant agreement relating to the applicable Eligible Portfolio Investment))
for the relevant period plus, without duplication, the following to the extent deducted in calculating such consolidated net income
in the relevant agreement relating to the applicable Eligible Portfolio Investment for such period: (i) consolidated interest charges
for such period, (ii) the provision for Federal, state, local and foreign income taxes payable for such period, (iii) depreciation
and amortization expense for such period, and (iv) such other adjustments included in the definition of “EBITDA”
(or similar defined term used for the purposes contemplated herein) in the relevant agreement relating to the applicable Eligible
Portfolio Investment, provided that such adjustments are usual and customary and substantially comparable to market terms for substantially
similar debt of other similarly situated borrowers at the time such relevant agreements are entered into as reasonably determined
in good faith by the Borrower.

 

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“Eligible Liens”
has the meaning assigned to such term in Section 1.01 of this Agreement.

 

“Eligible Portfolio
Investment” means any Portfolio Investment meeting the criteria outlined in Schedule 1.01(d). All determinations of whether
an investment is to be included as an Eligible Portfolio Investment shall be determined on a settlement-date
basis (meaning that any investment that has been purchased will not be treated as an Eligible Portfolio Investment until such purchase
has settled, and any Eligible Portfolio Investment which has been sold will not be excluded as an Eligible Portfolio Investment
until such sale has settled)Settlement-Date Basis;
provided that no such investment shall be included as an Eligible Portfolio Investment to the extent it has not been paid
for in full.

 

“First Lien
Bank Loan” means a Bank Loan that is entitled to the benefit of a first lien and first priority perfected security interest
on all or substantially all of the assets of the respective borrower and guarantors obligated in respect thereof, and which has
the most senior pre-petition priority in any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings
in such collateral; provided, however, that, in the case of accounts receivable and inventory (and the
proceeds thereof), such lien and security interest may be second in priority to a Permitted Prior Working Capital Lien; and further
provided that any portion (and only such portion)
of such a Loan which has a total debt to EBITDA ratio above 4.00x will be deemed to be a Second Lien Loan. For the avoidance of
doubt, in no event shall a First Lien Bank Loan include a Last Out Loan.

 

“Fixed Rate
Portfolio Investment” means a debt Eligible Portfolio Investment that bears interest at a fixed rate.

 

“Floating Rate
Portfolio Investment” means a debt Eligible Portfolio Investment that bears interest at a floating rate.

 

“High Yield
Securities” means debt Securities, in each case (a) issued by public or private issuers, (b) issued pursuant to an effective
registration statement or pursuant to Rule 144A under the Securities Act (or any successor provision there under) and (c) that
are not Cash Equivalents, Mezzanine Investments (described under clause (i) of the definition thereof) or Bank Loans.

 

“Last Out Loan”
shall mean, with respect to any Bank Loan that is a term loan structured in a first out tranche and a last out tranche (with the
first out tranche entitled to a lower interest rate but priority with respect to payments), that portion of such Bank Loan that
is the last out tranche; provided that:

 

(a) such last out tranche is entitled (along
with the first out tranche) to the benefit of a first lien and first priority perfected security interest on all or substantially
all of the assets of the respective borrower and guarantors obligated in respect thereof, and which has the most senior pre-petition
priority in any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings;

 

(b) the ratio of (x) the amount of the
first out tranche to (y) EBITDA of the underlying obligor does not at any time exceed 2.00x;

 

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(c) such last out tranche (i) gives the
holders of such last out tranche full enforcement rights during the existence of an event of default (subject to customary exceptions,
including standstill periods and if the holders of the first out tranche have previously exercised enforcement rights), (ii) shall
have the same maturity date as the first out tranche, (iii) is entitled to the same representations, covenants and events of default
as the holders of the first out tranche (subject to customary exceptions), and (iv) provides the holders of such last out tranche
with customary protections (including consent rights with respect to (1) any increase of the principal balance of the first out
tranche, (2) any increase of the margins (other than as a result of the imposition of default interest) applicable to the interest
rates with respect to the first out tranche, (3) any reduction of the final maturity of the first out tranche, and (4) amending
or waiving any provision in the underlying loan documents that is specific to the holders of such last out tranche); and

 

(d) such first out tranche is not subject
to multiple drawings (unless, at the time of such drawing and after giving effect thereto, the ratio referenced in clause (b) above
is not exceeded).

 

“Long-Term U.S.
Government Securities” means U.S. Government Securities maturing more than three months from the applicable date of determination.

 

“Mezzanine Investments”
means (i) debt Securities (including convertible debt Securities (other than the “in-the-money” equity component thereof))
(a) issued by public or private Portfolio Companies, (b) issued without registration under the Securities Act, (c) not issued pursuant
to Rule 144A under the Securities Act (or any successor provision thereunder), (d) that are not Cash Equivalents and (e) contractually
subordinated in right of payment to other debt of the same Portfolio Company and (ii) a Bank Loan that is not a First Lien Bank
Loan, a Second Lien Bank Loan, High Yield Security, Last Out Loan or a Covenant-Lite Loan.

 

“Noteless Assigned
Loan” means a Bank Loan with respect to which: (a) the underlying documentation does not require the underlying borrower
to execute and deliver a promissory note to evidence the indebtedness created under such Bank Loan; (b) none of the Borrower, the
Investment Advisor, or any of their respective Affiliates was an agent with respect to such Bank Loan at the time of origination;
and (c) the applicable Obligor has affirmatively requested (or in the case of a Bank Loan acquired by an Obligor prior to the Effective
Date, requested prior to the 15th Business Day following the Effective Date) a promissory note from the underlying agent and borrower
and has used all commercially reasonable efforts to obtain such promissory note but has been unable to obtain a promissory note
from the underlying borrower (but only for so long as the applicable Obligor has not received such a promissory note); provided
that any portion of the Borrowing Base that consists of an Eligible Portfolio Investment that is a Noteless Assigned Loan shall
be identified as such in any Borrowing Base Certificate.

 

“Performing”
means with respect to any Eligible Portfolio Investment, such Eligible Portfolio Investment is not a Defaulted Obligation,
such investment is not on non-accrual, and does not represent debt or Capital Stock of an issuer that has issued a Defaulted
Obligation.

 

“Performing
Covenant-Lite Loans” means funded Covenant-Lite Loans that (a) are not PIK Obligations and (b) are Performing.

 

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“Performing
DIP Loans” means funded DIP Loans that (a) are not PIK Obligations and (b) are not Defaulted Obligations.

 

“Performing
First Lien Bank Loans” means funded First Lien Bank Loans that (a) are not PIK Obligations, DIP Loans or Covenant-Lite
Loans and (b) are Performing.

 

“Performing
High Yield Securities” means funded High Yield Securities that (a) are not PIK Obligations and (b) are Performing.

 

“Performing
Last Out Loans” means funded Last Out Loans that (a) are not PIK Obligations, DIP Loans, Covenant-Lite Loans or Second
Lien Bank Loans and (b) are Performing.

 

“Performing
Mezzanine Investments” means funded Mezzanine Investments that (a) are not PIK Obligations and (b) are Performing.

 

“Performing
Second Lien Bank Loans” means funded Second Lien Bank Loans that (a) are not PIK Obligations, DIP Loans, Covenant-Lite
Loans or Last Out Loans and (b) are Performing.

 

“Permitted Prior
Working Capital Lien” means, with respect to a Portfolio Company that is a borrower under a Bank Loan, a security interest
to secure a working capital facility for such Portfolio Company in the accounts receivable and inventory (and the proceeds thereof)
of such Portfolio Company and any of its subsidiaries that are guarantors of such working capital facility; provided that
(i) such Bank Loan has a second priority lien on such accounts receivable and inventory
(and the proceeds thereof), (ii) such working capital facility is not secured by any other assets (other than a second
priority lien, subject to the first priority lien of the Bank Loan, on any other assets) and does not benefit from any standstill
rights or other agreements (other than customary rights) with respect to any other assets and (iii) the maximum principal amount
of such working capital facility is not at any time greater than 15% of the aggregate enterprise value of the Portfolio Company
(as determined in accordance with the valuation methodology for determining the enterprise value of the applicable Portfolio Company
as established by an Approved Third-Party Appraiser or, with respect
to quoted investments, in a commercially reasonable manner
determined by the Board of Directors of the Borrower).

 

“PIK Obligation”
means an obligation that provides that any portion of the interest accrued for a specified period of time or until the maturity
thereof is, or at the option of the obligor may be, added to the principal balance of such obligation or otherwise deferred and
accrued rather than being paid in cash, provided that any such obligation shall not constitute a PIK Obligation if it (i) is a
fixed rate obligation and requires payment of interest in cash on an at least semi-annual basis at a rate of not less than 8% per
annum or (ii) is not a fixed rate obligation and requires payment of interest in cash on an at least semi-annual basis at a rate
of not less than 4.5% per annum in excess of the applicable index.

 

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“Restructured
Investment” means, as of any date of determination, (a) any Portfolio Investment that has been a Defaulted Obligation
within the past six months, or (b) any Portfolio Investment that has in the past six months been on cash non-accrual, or (c) any
Portfolio Investment that has in the past six months been amended or subject to a deferral or waiver if both (i) the effect of
such amendment, deferral or waiver is either, among other things, to (1) change the amount of previously required scheduled debt
amortization (other than by reason of repayment thereof) or (2) extend the tenor of previously required scheduled debt amortization,
in each case such that the remaining weighted average life of such Portfolio Investment is extended by more than 20% and (ii) the
reason for such amendment, deferral or waiver is related to the deterioration of the credit profile of the underlying borrower
such that, in the absence of such amendment, deferral or waiver, it is reasonably expected by the Borrower that such underlying
borrower either (x) will not be able to make any such previously required scheduled debt amortization payment or (y) is anticipated
to incur a breach of a material financial covenant; provided that no Existing
Affiliate Investment shall be deemed to be a Restructured Investment, unless either (A) such Existing Affiliate Investment becomes
a Defaulted Obligation after the Effective Date, or (B) either of clause (i) or (ii) above are true with respect to such Existing
Affiliate Investment after the Effective Date. A DIP Loan shall not be deemed to be a Restructured Investment,
so long as it does not meet the conditions of the definition of Restructured Investment.

 

“Second Lien
Bank Loan” means a Bank Loan (other than a First Lien Bank Loan and a Last Out Loan) that is entitled to the benefit
of a first and/or second lien and first and/or second priority perfected security interest on all or substantially all of the assets
of the respective borrower and guarantors obligated in respect thereof.

 

“Securities”
means common and preferred stock, units and participations, member interests in limited liability companies, partnership interests
in partnerships, notes, bonds, debentures, trust receipts and other obligations, instruments or evidences of indebtedness, including
debt instruments of public and private issuers and tax-exempt securities (including warrants, rights, put and call options and
other options relating thereto, representing rights, or any combination thereof) and other property or interests commonly regarded
as securities or any form of interest or participation therein, but not including Bank Loans.

 

“Securities
Act” means the United States Securities Act of 1933, as amended.

 

“Short-Term
U.S. Government Securities” means U.S. Government Securities maturing within three (3) months of the applicable date
of determination.

 

“Spread”
means, with respect to a Floating Rate Portfolio Investment, the cash interest spread of such Floating Rate Portfolio Investment
over the applicable LIBO Rate; provided, that, in the case of any Floating Rate Portfolio Investment that does not bear
interest by reference to the LIBO Rate, “Spread” shall mean the cash interest spread of such Floating Rate Portfolio
Investment over the LIBO Rate in effect as of the date of determination for deposits in U.S. dollarsDollars
for a period of three (3) months.

 

“Structured
Finance Obligation or Finance Lease” means any obligation issued by a special purpose vehicle (or any obligor
in the principal business of offering, originating or financing pools of receivables or other financial assets) and secured directly
by, referenced to, or representing ownership of or investment in, a pool of receivables or other financial assets of any Obligor,
including collateralized loan obligations, collateralized debt obligations and mortgaged-backed securities, or any finance lease.
For the avoidance of doubt, if an obligation satisfies the definition of “Structured Finance Obligation or Finance Lease”,
such obligation shall not (a) qualify as any other category of Portfolio Investment or (b) be included in the Borrowing Base.

 

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“U.S. Government
Securities” has the meaning assigned to such term in Section 1.01 of this Agreement.

 

“Value”
means, with respect to any Eligible Portfolio Investment, the value thereof determined for purposes of this Agreement in accordance
with Section 5.12(b)(ii).

 

“Weighted Average
Fixed Coupon” means, as of any date of determination, the number, expressed as a percentage, obtained by summing the
products obtained by multiplying the cash interest coupon of each Fixed Rate Portfolio Investment included in the Borrowing Base
as of such date by the outstanding principal balance of such Fixed Rate Portfolio Investment as of such date, dividing such sum
by the aggregate outstanding principal balance of all such Fixed Rate Portfolio Investments and rounding up to the nearest 0.01%.
For the purpose of calculating the Weighted Average Fixed Coupon, all Fixed Rate Portfolio Investments that are not currently paying
cash interest shall have an interest rate of 0%.

 

“Weighted Average
Floating Spread” means, as of any date of determination, the number, expressed as a percentage, obtained by summing the
products obtained by multiplying, in the case of each Floating Rate Portfolio Investment included in the Borrowing Base, on an
annualized basis, the Spread of such Floating Rate Portfolio Investment, by the outstanding principal balance of such Floating
Rate Portfolio Investment as of such date and dividing such sum by the aggregate outstanding principal balance of all such Floating
Rate Portfolio Investments and rounding the result up to the nearest 0.01%.

 

“Weighted Average
Leverage Ratio” means, as of any date of determination, the number obtained by summing the products obtained by multiplying,
in the case of each Debt Eligible Portfolio Investment included in the Borrowing Base, the leverage ratio (the ratio of indebtedness
for borrowed money to EBITDA, expressed as a number) for the Portfolio Company of such Eligible Portfolio Investment of all Indebtedness
that has a ranking of payment or lien priority senior to or pari passu with and including the tranche that includes the Borrower's
Eligible Portfolio Investment, by the fair value of such Eligible Portfolio Investment as of such date and dividing such sum by
the aggregate of the fair values of all such Eligible Portfolio Investments and rounding the result up to the nearest 0.01.

 

SECTION 5.14. Taxes.
Each of the Borrower and its Subsidiaries will timely file or cause to be timely filed all U.S. federal, state and local Tax returns
that are required to be filed by it and all other Tax returns that are required to be filed by it and will pay all Taxes for which
it is directly or indirectly liable and any assessments made against it or any of its property and all other Taxes, fees or other
charges imposed on it or any of its property by any Governmental Authority, except Taxes that are being contested in good faith
by appropriate proceedings, and with respect to which reserves in conformity with GAAP are provided on the books of the Borrower
or its Subsidiaries, as the case may be. The charges, accruals and reserves on the books of the Borrower and any of its Subsidiaries
in respect of Taxes and other governmental charges will be adequate in accordance with GAAP.

 

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ARTICLE
VI

NEGATIVE COVENANTS

 

Until the Termination
Date, the Borrower covenants and agrees with the Lenders that:

 

SECTION 6.01. Indebtedness.
The Borrower will not nor will it permit any of its Subsidiaries to, create, incur, assume or permit to exist any Indebtedness,
except:

 

(a)          Indebtedness
created hereunder or under any other Loan Document;

 

(b)          (i)
(x) Unsecured Shorter-Term Indebtedness (other
than the 2021 Notes) in an aggregate principal amount not to exceed $5,000,000, so long as no Default exists at the
time of the incurrence, refinancing or replacement thereof
(or immediately after the incurrence, refinancing or replacement
thereof) and (y) the 2021 Notes, and (ii) Secured Longer-Term
Indebtedness, so long as (w) no Default exists at the time of the incurrence,
refinancing or replacement thereof (or immediately after the incurrence,
refinancing or replacement thereof), (x) prior to and immediately after giving effect to the incurrence thereof, the
Obligors’ Net Worth exceeds $125,000,000 and the Borrower is in pro forma compliance with each of the covenants set forth
in Sections 6.07(a), (b), (d) and (e) after giving effect to the incurrence,
refinancing or replacement thereof, and on the date of such incurrence,
refinancing or replacement the Borrower delivers to the Administrative Agent a certificate of a Financial Officer to
such effect, (y) prior to and immediately after giving effect to the incurrence,
refinancing or replacement thereof, the Covered Debt Amount does not or would not exceed the Borrowing Base then in
effect; and (z) on the date of the incurrence, refinancing or replacement
thereof, the Borrower delivers to the Administrative Agent and each Lender a Borrowing Base Certificate as at such date demonstrating
compliance with subclause (y) after giving effect to such incurrence,
refinancing or replacement. For purposes of preparing such Borrowing Base Certificate, (A) the fair market value of
Quoted Investments shall be the most recent quotation available for such Eligible Portfolio Investment and (B) the fair market
value of Unquoted Investments shall be the Value set forth in the Borrowing Base Certificate most recently delivered by the Borrower
to the Administrative Agent pursuant to Section 5.01(d) or if an Unquoted Investment is acquired after the delivery of the Borrowing
Base Certificate most recently delivered, then the Value of such Unquoted Investment shall be the lower of the cost of such Unquoted
Investment and the Internal Value of such Unquoted Investment; provided, that the Borrower shall reduce the Value of any
Eligible Portfolio Investment referred to in this sub-clause (B) to the extent necessary to take into account any events of which
the Borrower has knowledge that adversely affect the value of such Eligible Portfolio Investment;

 

(c)          Unsecured
Longer-Term Indebtedness, so long as (x) no Default exists at the time of the incurrence,
refinancing or replacement thereof (or immediately after the incurrence,
refinancing or replacement thereof) and (y) prior to and immediately after giving effect to the incurrence thereof,
the Borrower is in pro forma compliance with each of the covenants set forth in Sections 6.07(a), (b), (d)
and (e) and on the date of such incurrence, refinancing or replacement
the Borrower delivers to the Administrative Agent a certificate of a Financial Officer to such effect;

 

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(d)          Indebtedness
of Financing Subsidiaries; provided that (i) on the date that such Indebtedness is incurred (for clarity, with respect to
any and all revolving loan facilities, term loan facilities, staged advance loan facilities or any other credit facilities, “incurrence”
shall be deemed to take place at the time such facility is entered into, and not upon each borrowing thereunder), prior to and
immediately after giving effect to the incurrence thereof, the Borrower is in pro forma compliance with each of the covenants set
forth in Sections 6.07(a), (b), (d) and (e) and on the date of such incurrence Borrower delivers to
the Administrative Agent a certificate of a Financial Officer to such effect, and (ii) in the case of revolving loan facilities
or staged advance loan facilities, upon each borrowing thereunder, the Borrower is in pro forma compliance with each of the covenants
set forth in Sections 6.07(a), (b), (d) and (e);

 

(e)          Other
Permitted Indebtedness in an aggregate principal amount not to exceed $5,000,000;

 

(f)          repurchase
obligations arising in the ordinary course of business with respect to U.S. Government Securities;

 

(g)          obligations
payable to clearing agencies, brokers or dealers in connection with the purchase or sale of securities in the ordinary course of
business;

 

(h)          obligations
of the Borrower under a Permitted SBIC Guarantee and obligations (include Guarantees) in respect of Standard Securitization Undertakings;

 

(i)          Indebtedness
of Borrower under any Hedging Agreements entered into in the ordinary course of Borrower’s business and not for speculative
purposes, in an aggregate amount not to exceed $10,000,000 at any time outstanding (for clarity, the amount of any Indebtedness
under any Hedging Agreement shall be the amount such Obligor would be obligated for under such Hedging Agreement if such Hedging
Agreement were terminated at the time of determination);

 

(j)          Indebtedness
of the Borrower on account of the sale by the Borrower of the first out tranche of any First Lien Bank Loan that arises solely
as an accounting matter under ASC 860; provided that such Indebtedness (i) is non-recourse to the Borrower and its Subsidiaries
and (ii) would not represent a claim against the Borrower or any of its Subsidiaries in a bankruptcy, insolvency or liquidation
proceeding of the Borrower or its Subsidiaries, in each case in excess of the amount sold or purportedly sold; and

 

(k)          Indebtedness
in respect of judgments or awards that have been in force for less than the applicable period for taking an appeal, so long as
such judgments or awards do not constitute an Event of Default.

 

SECTION 6.02. Liens.
The Borrower will not, nor will it permit any of its Subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or asset (including Equity Interests in any Financing Subsidiary or any other Subsidiary) now owned or hereafter acquired
by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof except:

 

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(a)          any
Lien on any property or asset of the Borrower existing on the Second
Amendment Effective Date and set forth in Schedule 3.11(b), provided that (i) no such Lien shall extend
to any other property or asset of the Borrower or any of its Subsidiaries, and (ii) any such Lien shall secure only those obligations
which it secures on the Second Amendment Effective Date and
extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

 

(b)          Liens
created pursuant to the Security Documents;

 

(c)          Liens
on assets owned by Financing Subsidiaries;

 

(d)          Liens
on Special Equity Interests included in the Portfolio Investments, but only to the extent securing obligations in the manner provided
in the definition of “Special Equity Investments” in Section 1.01;

 

(e)          Permitted
Liens;

 

(f)          additional
Liens securing Indebtedness not to exceed $3,000,000 in the aggregate provided such Indebtedness is not otherwise prohibited under
Section 6.01(e) of this Agreement; and

 

(g)          Liens
on Equity Interests in any SBIC Subsidiary created in favor of the SBA.

 

SECTION 6.03. Fundamental
Changes. The Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries or Immaterial
Subsidiaries) to, enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution). The Borrower will not, nor will it permit any of its Subsidiaries (other than Financing
Subsidiaries) to, acquire any business or property from, or capital stock of, or be a party to any acquisition of, any Person,
except for purchases or acquisitions of Portfolio Investments and other assets in the normal course of the day-to-day business
activities of the Borrower and its Subsidiaries and not in violation of the terms and conditions of this Agreement or any other
Loan Document. The Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries or Immaterial
Subsidiaries) to, convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of transactions, any part
of its assets (including Cash, Cash Equivalents and Equity Interests), whether now owned or hereafter acquired, but excluding
(x) assets (including Cash and Cash Equivalents but excluding Portfolio Investments) sold or disposed of in the ordinary course
of business of the Borrower and its Subsidiaries (other than the Financing Subsidiaries) (including to make expenditures of cash
in the normal course of the day-to-day business activities of the Borrower and its Subsidiaries (other than the Financing Subsidiaries))
and (y) subject to the provisions of clauses (d) and (e) below, Portfolio Investments.

 

Notwithstanding the foregoing
provisions of this Section:

 

(a)          any
Subsidiary of the Borrower may be merged or consolidated with or into the Borrower or any other Subsidiary Guarantor; provided
that if any such transaction shall be between a Subsidiary and a wholly owned Subsidiary Guarantor, the wholly owned Subsidiary
Guarantor shall be the continuing or surviving corporation;

 

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(b)          any
Subsidiary of the Borrower may sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary liquidation
or otherwise) to the Borrower or any wholly owned Subsidiary Guarantor of the Borrower;

 

(c)          the
capital stock of any Subsidiary of the Borrower may be sold, transferred or otherwise disposed of to the Borrower or any wholly
owned Subsidiary Guarantor of the Borrower;

 

(d)          the
Obligors may sell, transfer or otherwise dispose of Portfolio Investments (other than to a Financing Subsidiary) so long as prior
to and after giving effect to such sale, transfer or other disposition (and any concurrent acquisitions of Portfolio Investments
or payment of outstanding Loans or Other Covered Indebtedness) the Covered Debt Amount does not exceed the Borrowing Base;

 

(e)          the
Obligors may sell, transfer or otherwise dispose of Portfolio Investments (other than ownership interests in Financing Subsidiaries),
Cash and Cash Equivalents to a Financing Subsidiary so long as (i) prior to and after giving effect to such sale, transfer or other
disposition (and any concurrent acquisitions of Portfolio Investments or payment of outstanding Loans or Other Covered Indebtedness)
the Covered Debt Amount does not exceed the Borrowing Base and no Default exists, and the Borrower delivers to the Administrative
Agent a certificate of a Financial Officer to such effect, (ii) either (x) the amount by which the Borrowing Base exceeds the Covered
Debt Amount immediately prior to such release is not diminished as a result of such release or (y) the Borrowing Base immediately
after giving effect to such release is at least 120% of the Covered Debt Amount, (iii) the sum of (x) all sales, transfers or other
dispositions under this clause (e) that occur after the Revolver Termination Date and do not result in Net Asset Sale Proceeds
for fair value that are applied in accordance with Section 2.08(d)(i) and (y) all Investments under Section 6.04(e) that
occur after the Revolver Termination Date, shall not exceed 20% of the Commitments on the Revolver Termination Date, and (iv) prior
to and after giving effect to such sale, transfer or disposition (and any concurrent acquisitions of Portfolio Investments or payment
of Loans or Other Covered Indebtedness), the Obligors’ Net Worth exceeds $125,000,000;

 

(f)          an
Obligor may transfer assets to a Financing Subsidiary for the sole purpose of facilitating the transfer of assets from one Financing
Subsidiary (or a Subsidiary that was a Financing Subsidiary immediately prior to such disposition) to another Financing Subsidiary,
directly or indirectly through such Obligor (such assets, the “Transferred Assets”), provided that (i)
no Default exists or is continuing at such time, and the Covered Debt Amount shall not exceed the Borrowing Base at such time and
the Borrower delivers to the Administrative Agent a certificate of a Financial Officer to such effect, and (ii) the Transferred
Assets were transferred to such Obligor by the transferor Financing Subsidiary on the same Business Day that such assets are transferred
by such Obligor to the transferee Financing Subsidiary;

 

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(g)          the
Borrower may merge or consolidate with any other Person, so long as (i) the Borrower is the continuing or surviving entity in such
transaction and (ii) at the time thereof and after giving effect thereto, no Default shall have occurred or be continuing;

 

(h)          the
Borrower and its Subsidiaries may sell, lease, transfer or otherwise dispose of equipment or other property or assets that do not
consist of Portfolio Investments so long as the aggregate amount of all such sales, leases, transfer and dispositions does not
exceed $5,000,000 in any fiscal year; and

 

(i)          any
Subsidiary of the Borrower may be liquidated or dissolved; provided that (i) in connection with such liquidation or dissolution,
any and all of the assets of such Subsidiary shall be distributed or otherwise transferred to the Borrower or any wholly owned
Subsidiary Guarantor of the Borrower and (ii) the Borrower determines in good faith that such liquidation is in the best interests
of the Borrower and is not materially disadvantageous to the Lenders.

 

SECTION 6.04. Investments.
The Borrower will not, nor will it permit any of its Subsidiaries to, acquire, make or enter into, or hold, any Investments except:

 

(a)          operating
deposit accounts with banks;

 

(b)          Investments
by the Borrower and the Subsidiary Guarantors in the Borrower and Subsidiary Guarantors;

 

(c)          (i)
Hedging Agreements entered into in the ordinary course of the Borrower’s business for financial planning and not for speculative
purposes;

 

(d)          Portfolio
Investments by the Borrower and its Subsidiaries to the extent such Portfolio Investments are permitted under the Investment Company
Act (to the extent such applicable Person is subject to the Investment Company Act) and the Investment Policies;

 

(e)          Equity
Interests in (or capital contribution to) Financing Subsidiaries to the extent not prohibited by Section 6.03(e) or (f);

 

(f)          Investments
by any Financing Subsidiary;

 

(g)          Investments
in Cash and Cash Equivalents;

 

(h)          Investments
described on Schedule 3.12(b) hereto; and

 

(i)           additional
Investments up to but not exceeding $5,000,000 in the aggregate (for purposes of this clause (i), the aggregate amount of an Investment
at any time shall be deemed to be equal to (A) the aggregate amount of cash, together with the aggregate fair market value of property
loaned, advanced, contributed, transferred or otherwise invested that gives rise to such Investment (calculated at the time such
Investment is made), minus (B) the aggregate amount of dividends, distributions or other payments received in cash in respect
of such Investment; provided that in no event shall the aggregate amount of any Investment be less than zero; and provided
further that the amount of any Investment shall not be reduced by reason of any write-off of such Investment, nor increased
by way of any increase in the amount of earnings retained in the Person in which such Investment is made that have not been dividended,
distributed or otherwise paid out).

 

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SECTION 6.05. Restricted
Payments. The Borrower will not, nor will it permit any of its Subsidiaries (other than the Financing Subsidiaries) to, declare
or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except that:

 

(a)          the
Borrower may declare and pay dividends with respect to the capital stock of the Borrower payable solely in additional shares of
the Borrower’s common stock;

 

(b)          the
Borrower may declare and pay dividends and distributions in either case in cash or other property (excluding for this purpose the
Borrower’s common stock) in or with respect to any taxable year of the Borrower (or any calendar year, as relevant) in amounts
not to exceed 110% (or 125% if (1) no Default shall have occurred and be continuing and (2) the Covered Debt Amount does not exceed
85% of the Borrowing Base calculated on a pro forma basis after giving effect to any such dividends and distributions) of the amounts
that are required to be distributed to: (i) allow the Borrower to satisfy the minimum distribution requirements imposed by Section
852(a) of the Code (or any successor thereto) to maintain its eligibility to be taxed as a RIC for any such taxable year, (ii)
reduce to zero for any such taxable year its liability for federal income taxes imposed on (y) its investment company taxable income
pursuant to Section 852(b)(1) of the Code (or any successor thereto), or (z) its net capital gain pursuant to Section 852(b)(3)
of the Code (or any successor thereto), and (iii) reduce to zero its liability for federal excise taxes for any such calendar year
imposed pursuant to Section 4982 of the Code (or any successor thereto);

 

(c)          the
Subsidiaries of the Borrower may make Restricted Payments to the Borrower or to any Subsidiary Guarantor;

 

(d)          Obligors
may make Restricted Payments to repurchase Equity Interests of the Borrower from officers, directors and employees of the Investment
Advisor or the Borrower or any of its Subsidiaries or their authorized representatives upon the death, disability or termination
of employment of such employees or termination of their seat on the Board of Directors of the Investment Advisor or the Borrower
or any of its Subsidiaries; provided that (i) no Default shall have occurred and be continuing or would result therefrom,
(ii) such Equity Interests are not registered on Form S-8 or other registration statement or are not transferable under Rule 144
of the Securities Exchange Act of 1934, and (iii) the aggregate amount of all repurchases in any calendar year shall not exceed
$500,000, with unused amounts in any calendar year being carried over to succeeding calendar years subject to a maximum of $1,000,000
in any calendar year; and

 

(e)          the
Borrower may make Restricted Payments during the Availability Period to repurchase or redeem Equity Interests of the Borrower up
to an aggregate amount equal to $25,000,000 during such period, so long as on the date of such Restricted Payment and after giving
effect thereto:

 

(i)           no
Default or Event of Default shall have occurred and be continuing;

 

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(ii)         prior
to and immediately after giving effect to such Restricted Payment, the Covered Debt Amount does not exceed 85% of the Borrowing
Base calculated on a pro forma basis after giving effect to any such Restricted Payment; and

 

(iii)        prior
to and immediately after giving effect to such Restricted Payment, the Borrower is in pro forma compliance with each of the covenants
set forth in Sections 6.07(a), (b), (d) and (e).

 

For the avoidance of
doubt, the Borrower shall not declare any dividend to the extent such declaration violates the provisions of the Investment Company
Act applicable to it.

 

SECTION 6.06. Certain
Restrictions on Subsidiaries. The Borrower will not permit any of its Subsidiaries (other than Financing Subsidiaries) to enter
into or suffer to exist any indenture, agreement, instrument or other arrangement (other than the Loan Documents) that prohibits
or restrains, in each case in any material respect, or imposes materially adverse conditions upon, the incurrence or payment of
Indebtedness, the granting of Liens, the declaration or payment of dividends, the making of loans, advances, guarantees or Investments
or the sale, assignment, transfer or other disposition of property, except for any prohibitions or restraints contained in (i)
any Indebtedness permitted under Section 6.01(b) or (c), (ii) any Indebtedness permitted under Section 6.01(e)
secured by a Lien permitted under Section 6.02(f) provided that such prohibitions and restraints are applicable by their
terms only to the assets that are subject to such Lien, (iii) any Indebtedness permitted under Section 6.01(f) or (g)
secured by a Permitted Lien provided that such prohibitions and restraints are applicable by their terms only to the assets that
are subject to such Lien and (iv) any agreement, instrument or other arrangement pertaining to any sale or other disposition of
any asset permitted by this Agreement so long as the applicable restrictions (i) only apply to such assets and (ii) do not restrict
prior to the consummation of such sale or disposition the creation or existence of the Liens in favor of the Collateral Agent pursuant
to the Security Documents or otherwise required by this Agreement, or the incurrence or payment of Indebtedness under this Agreement
or the ability of the Borrower and its Subsidiaries to perform any other obligation under any of the Loan Documents.

 

SECTION 6.07. Certain
Financial Covenants.

 

(a)          Minimum
Stockholder’s Equity. After the Effective Date, theThe
Borrower will not permit Stockholders’ Equity as of the last day of any fiscal quarter of the Borrower to be less than the
greater of (i) 45% of the total assets of the Borrower and its Subsidiaries as at the last day of such fiscal quarter (determined
on a consolidated basis, without duplication, in accordance with GAAP, but excluding the portion of the assets of any SBIC Subsidiary
that is financed with indebtedness) and (ii) the sum of (x) $195,000,000, plus (y) 65% of the aggregate net proceeds of all sales
of Equity Interests by the Borrower and its Subsidiaries after the Second
Amendment Effective Date (other than the proceeds of sales of Equity Interests by and among the Borrower and its Subsidiaries).

 

(b)          Asset
Coverage Ratio. After the Effective Date, theThe
Borrower will not permit the Asset Coverage Ratio to be less than 2.15 to 1 at any time.

 

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(c)          Consolidated
Interest Coverage Ratio. After the Effective Date, theThe
Borrower will not permit the Consolidated Interest Coverage Ratio to be less than (i) 1.75 to 1 as of the last day of any fiscal
quarter of the Borrower ending on or prior to December 31, 2015, or (ii) 2.25 to 1 as of the last day of any fiscal quarter of
the Borrower thereafter.

 

(d)          Liquidity
Test. After the Effective Date, theThe
Borrower will not permit the aggregate Value of the Eligible Portfolio Investments that can be converted to Cash in fewer than
10 Business Days without more than a 5% change in price to be less than 10% of the Covered Debt Amount for more than 30 Business
Days during any period when the Adjusted Covered Debt Balance is greater than 90% of the Adjusted Borrowing Base.

 

(e)          Obligors’
Net Capitalization Test. After the Effective Date, theThe
Borrower will not permit the Obligors’ Net Capitalization to be less than $150,000,000.

 

SECTION 6.08. Transactions
with Affiliates. (a) The Borrower will not, and will not permit any of its Subsidiaries to, enter into any transactions with
any of its Affiliates, even if otherwise permitted under this Agreement, except (i) transactions in the ordinary course of business
at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary (or, in the case of a transaction between
an Obligor and a non-Obligor Subsidiary, not less favorable to such Obligor) than could be obtained at the time on an arm’s-length
basis from unrelated third parties, (ii) transactions between or among the Obligors not involving any other Affiliate, (iii) transactions
between or among the Obligors and any SBIC Subsidiary or any “downstream affiliate” (as such term is used under the
rules promulgated under the Investment Company Act) company of an Obligor at prices and on terms and conditions not less favorable
to the Obligors than could be obtained at the time on an arm’s-length basis from unrelated third parties, (iv) Restricted
Payments permitted by Section 6.05, dispositions permitted by Sections 6.03(e) and (f) and Investments permitted
by Section 6.04(e), (v) the transactions provided in the Affiliate Agreements as the same may be amended in accordance with
Section 6.11(b), (vi) the Existing Affiliate Investments as the same may be amended as provided in Section 6.08(b)
below, (vii) existing transactions with Affiliates as set forth in Schedule 6.08 or (viii) the payment of compensation and
reimbursement of expenses of directors in a manner consistent with current practice of the Borrower and general market practice,
and indemnification to directors in the ordinary course of business.

 

(b)          The
Borrower will not, and will not permit any of its Subsidiaries to, enter into any transactions with any issuer of an Affiliate
Investment (including the Existing Affiliate Investments and any Investment that becomes an Affiliate Investment as a result of
such transaction, or any modification, supplement or waiver to an Existing Affiliate Investment or other existing Affiliate Investment),
except transactions in the ordinary course of business that are either (i) on terms and conditions not less favorable to the Borrower
or such Subsidiary than could be obtained at the time on an arm's-length basis from unrelated third parties or (ii) in the nature
of an amendment, supplement or modification to any such Affiliate Investment on terms and conditions that are similar to those
obtained by debt or equity investors in similar types of investments in which such investors do not have the controlling equity
interest, in each case, as reasonably determined in good faith by the Borrower.

 

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SECTION 6.09. Lines
of Business. The Borrower will not, nor will it permit any of its Subsidiaries to, engage to any material extent in any business
other than in accordance with its Investment Policies.

 

SECTION 6.10. No Further
Negative Pledge. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any agreement, instrument,
deed or lease which prohibits or limits the ability of any Obligor to create, incur, assume or suffer to exist any Lien upon any
of its properties, assets or revenues, whether now owned or hereafter acquired, or which requires the grant of any security for
an obligation if security is granted for another obligation, except the following: (a) this Agreement and the other Loan Documents
and documents with respect to Indebtedness under Section 6.01(b)(ii); (b) covenants in documents creating Liens permitted
by Section 6.02 prohibiting further Liens on the assets encumbered thereby; (c) customary restrictions contained in leases
not subject to a waiver; and (d) any other agreement that does not restrict in any manner (directly or indirectly) Liens created
pursuant to the Loan Documents on any Collateral securing the “Secured Obligations” under and as defined in the Guarantee
and Security Agreement and does not require the direct or indirect granting of any Lien securing any Indebtedness or other obligation
by virtue of the granting of Liens on or pledge of property of any Obligor to secure the Loans or any Hedging Agreement.

 

SECTION 6.11. Modifications
of Indebtedness and Affiliate Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, consent to
any modification, supplement or waiver of:

 

(a)          any
of the provisions of any agreement, instrument or other document evidencing or relating to any Secured Longer-Term Indebtedness,
Unsecured Longer-Term Indebtedness or Unsecured Shorter-Term Indebtedness that would result in such Indebtedness not meeting the
requirements of the definition of “Secured Longer-Term Indebtedness”, “Unsecured Longer-Term Indebtedness”
and “Unsecured Shorter-Term Indebtedness”, as applicable, set forth in Section 1.01 of this Agreement, unless,
in the case of Unsecured Longer-Term Indebtedness, such Indebtedness would have been permitted to be incurred as Unsecured Shorter-Term
Indebtedness at the time of such modification, supplement or waiver and the Borrower so designates such Indebtedness as “Unsecured
Shorter-Term Indebtedness” (whereupon such Indebtedness shall be deemed to constitute “Unsecured Shorter-Term Indebtedness”
for all purposes of this Agreement);

 

(b)          any
of the Affiliate Agreements, unless such modification, supplement or waiver is not less favorable to the Borrower than could be
obtained on an arm’s-length basis from unrelated third parties;
or

 

(c)          the
2021 Notes.

 

The Administrative Agent hereby acknowledges
and agrees that the Borrower may, at any time and from time to time, without the consent of the Administrative Agent, freely amend,
restate, terminate, or otherwise modify any documents, instruments and agreements evidencing, securing or relating to Indebtedness
permitted pursuant to Section 6.01(d) and (e), including increases in the principal amount thereof, modifications
to the advance rates and/or modifications to the interest rate, fees or other pricing terms; provided that no such amendment,
restatement or modification shall, unless Borrower complies with the terms of Section 5.08(a)(i) hereof, cause a Financing
Subsidiary to fail to be a “Financing Subsidiary” in accordance with the definition thereof.

 

    	101

     

    

 

SECTION 6.12. Payments
of Longer-Term Indebtedness. The Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries)
to, purchase, redeem, retire or otherwise acquire for value, or set apart any money for a sinking, defeasance or other analogous
fund for the purchase, redemption, retirement or other acquisition of or make any voluntary payment or prepayment of the principal
of or interest on, or any other amount owing in respect of, any Secured Longer-Term Indebtedness
or, Unsecured Longer-Term Indebtedness
or the 2021 Notes (other than (i) the refinancing of Secured Longer-Term Indebtedness or Unsecured Longer-Term Indebtedness
with Indebtedness permitted under Section 6.01(b) and (c) or (ii) the
refinancing of the 2021 Notes solely with the proceeds of any issuance of Equity Interests,
in each case to the extent not required to be used to repay Loansnet
cash proceeds of Unsecured Longer-Term Indebtedness permitted under Section 6.01(c)), except (a) for regularly scheduled
payments of interest in respect thereof required pursuant to the instruments evidencing such Indebtedness and the payment when
due of the types of fees and expenses that are customarily paid in connection with such Indebtedness
(it being understood that:; (b) for (w) the
conversion features into Permitted Equity Interests under convertible notes;,
(x) the triggering of such conversion and/or settlement thereof solely with Permitted Equity Interests;,
and (y) any cash payment on account of interest or expenses on such convertible notes (or
fractional shares issued upon customary conversion provisions of such convertible notes) made by the Borrower in respect
of such triggering and/or settlement thereof, shall be permitted under this clause (a)); (b) that
any time prior to the date that is nine (9) months prior to the Revolver Termination Date, the Borrower shall be permitted to pay
in Cash the principal of any Indebtedness that is convertible into Permitted Equity Interests; provided that (A) the aggregate
amount of all such payments collectively does not exceed $60,000,000, and (B) with respect to each such payment, (1) immediately
prior to and after giving effect to such payment no Default shall have occurred and be continuing, (2) at the time of such payment
the Covered Debt Amount does not exceed 80% of the Borrowing Base calculated on a pro forma basis after giving effect to such payment,
(3) the Borrower delivers to the Administrative Agent and each Lender a Borrowing Base Certificate as of the date such payment
is made demonstrating compliance with the foregoing after giving effect to such payment, (4) after giving effect to such payment,
the Borrower shall be in pro forma compliance with each of the covenants set forth in Sections 6.07(a),
(b), (d) and (e) and, on the date of such payment, the
Borrower delivers to the Administrative Agent a certificate of a Financial Officer to such effect and (5) such payment is being
made solely at the option of the Borrower and is not required to be made by the Borrower pursuant to the terms of such Indebtedness
or otherwise,; or (c) for payments and prepayments
of Secured Longer-Term Indebtedness required to comply with requirements of Section 2.08(b).

 

SECTION 6.13. Modification
of Investment Policies. Other than with respect to Permitted Policy Amendments, the Borrower will not amend, supplement, waive
or otherwise modify in any material respect the Investment Policies as in effect on the Effective Date.

 

SECTION 6.14. SBIC
Guarantee. The Borrower will not, nor will it permit any of its Subsidiaries to, cause or permit the occurrence of any event
or condition that would result in any recourse to any Obligor under any Permitted SBIC Guarantee.

 

    	102

     

    

 

SECTION 6.15. Derivative
Transactions. The Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries) to, enter
into any swap or derivative transactions or other similar transactions or agreements, except for Hedging Agreements to the extent
permitted pursuant to Section 6.01(i) and 6.04(c).

 

SECTION 6.16. Status
as Senior Debt; Designation of Other Indebtedness.

 

(a)          The
Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries) to, create, incur, assume or
permit to exist any Subordinated Debt (including any Subordinated Debt that may from time to time be delivered under the Existing
Indenture) unless the obligations of the Obligors under the Loan Documents are designated at all times as “Senior Indebtedness”
(or a similar designation, if applicable) under the agreements (including indentures) governing such Subordinated Debt.

 

(b)          The
Borrower will not, nor will it permit any of its Subsidiaries (other than Financing Subsidiaries) to, designate any Indebtedness
as “Senior Indebtedness” (or a similar designation, if applicable) under the terms of the Existing Indenture or any
other agreement (including any indenture) governing Subordinated Debt, other than the obligations of the Obligors under the Loan
Documents, Secured Longer-Term Indebtedness or Unsecured Longer-Term Indebtedness.

 

SECTION 6.17. Convertible
Indebtedness. The Borrower will not, nor will it permit any of its Subsidiaries to, create, incur, assume or permit to exist
any Indebtedness that is convertible into Equity Interests other than Permitted Equity Interests.

 

ARTICLE
VII

 

EVENTS OF DEFAULT

 

If any of the following
events (“Events of Default”) shall occur and be continuing:

 

(a)          the
Borrower shall fail to pay any principal of any Loan (including any principal payable under Section 2.08(b) or (c))
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;

 

(b)          the
Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause
(a) of this Article) payable under this Agreement or under any other Loan Document, when and as the same shall become due and payable,
and such failure shall continue unremedied for a period of five or more Business Days;

 

(c)          any
representation or warranty made or deemed made by or on behalf of the Borrower or any of its Subsidiaries in or in connection with
this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment
or modification hereof or thereof, shall prove to have been incorrect when made or deemed made in any material respect (except
that such materiality qualifier shall not be applicable to any representation or warranty already qualified by materiality or Material
Adverse Effect);

 

    	103

     

    

 

(d)          the
Borrower shall fail to observe or perform any covenant, condition or agreement contained in (i) Section 5.01(e), Section
5.02(a), Section 5.03 (with respect to the Borrower’s and its Subsidiaries’ existence only, and not with
respect to the Borrower’s and its Subsidiaries’ rights, licenses, permits, privileges or franchises), Sections 5.08(a)
or (b), Section 5.09, Section 5.10, Section 5.12(c) or in Article VI or any Obligor shall default
in the performance of any of its obligations contained in Section 7 of the Guarantee and Security Agreement or (ii) Section
5.01(f) or Sections 5.02(b), (c) or (d) and, in the case of this clause (ii), such failure shall continue
unremedied for a period of five or more days after the Borrower has knowledge of such failure;

 

(e)          the
Borrower or any Obligor, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in this
Agreement (other than those specified in clause (a), (b) or (d) of this Article) or any other Loan Document and such failure shall
continue unremedied for a period of 30 or more days after notice thereof from the Administrative Agent (given at the request of
any Lender) to the Borrower;

 

(f)          the
Borrower or any of its Subsidiaries shall fail to make any payment (whether of principal or interest and regardless of amount)
in respect of any Material Indebtedness, when and as the same shall become due and payable, taking into account any applicable
grace period;

 

(g)          any
event or condition occurs that (i) results in all or any portion of any Material Indebtedness becoming due prior to its scheduled
maturity or (ii) that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders
of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or
to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity, unless, in the case of
this clause (ii), such event or condition is no longer continuing or has been waived in accordance with the terms of such Material
Indebtedness such that the holder or holders thereof or any trustee or agent on its or their behalf are no longer enabled or permitted
to cause such Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof,
prior to its scheduled maturity; provided that this clause (g) shall not apply to (1) secured Indebtedness that becomes due as
a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; or (2) convertible debt that becomes
due as a result of a contingent mandatory conversion or redemption event provided such conversion or redemption is effectuated
only in capital stock;

 

(h)          an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Borrower or any of its Subsidiaries 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 the Borrower or any of its Subsidiaries (other
than Immaterial Subsidiaries) or for a substantial part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed and unstayed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing
shall be entered;

 

    	104

     

    

 

(i)          the
Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) 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 (h) of this Article, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the Borrower or any of its Subsidiaries (other than Immaterial
Subsidiaries) 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;

 

(j)          the
Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) shall become unable, admit in writing its inability or
fail generally to pay its debts as they become due;

 

(k)          one
or more judgments for the payment of money in an aggregate amount in excess of $2,000,000 shall be rendered against the Borrower
or any of its Subsidiaries or any combination thereof and (i) the same shall remain undischarged for a period of 30 consecutive
days following the entry of such judgment during which 30 day period such judgment shall not have been vacated, stayed, discharged
or bonded pending appeal, or liability for such judgment amount shall not have been admitted by an insurer of reputable standing,
or (ii) any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any of its
Subsidiaries to enforce any such judgment;

 

(l)          (i)
the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower or any Subsidiary in an aggregate amount exceeding $2,500,000, (ii) (x) there is or arises
Unfunded Pension Liability with respect to Plans maintained by Borrower or its Subsidiaries (taking into account only such Plans
with positive Unfunded Pension Liability) of $2,500,000 or more, or (y) there is or arises Unfunded Pension Liability with respect
to Plans maintained by the Borrower, its Subsidiaries or their ERISA Affiliates in an aggregate amount (taking into account only
such Plans with positive Unfunded Pension Liability) that would reasonably be expected to result in a Material Adverse Effect,
or (iii) (x) if each of the Borrower and its Subsidiaries were to withdraw from all Multiemployer Plans in a complete withdrawal,
the aggregate withdrawal liability that would be incurred would be in excess of $2,500,000, or (y) if each of the Borrower, each
of its Subsidiaries and each of their respective ERISA Affiliates were to withdraw from all Multiemployer Plans in a complete withdrawal,
the aggregate withdrawal liability that would be incurred would reasonably be expected to result in a Material Adverse Effect;

 

(m)          a
Change in Control shall occur;

 

(n)          any
SBIC Subsidiary shall become the subject of an enforcement action and be transferred into liquidation status by the SBA;

 

    	105

     

    

 

(o)          the
Liens created by the Security Documents shall, at any time with respect to Portfolio Investments held by Obligors having an aggregate
Value in excess of 5% of the aggregate Value of all Portfolio Investments held by Obligors, not be valid and perfected (to the
extent perfection by filing, registration, recordation, possession or control is required herein or therein) in favor of the Collateral
Agent (or any Obligor or any Affiliate of an Obligor shall so assert in writing), free and clear of all other Liens (other than
Liens permitted under Section 6.02 or under the respective Security Documents), except to the extent that any such loss
of perfection results from the failure of the Collateral Agent to maintain possession of certificates representing securities pledged
under the Guarantee and Security Agreement; provided that if such default is as a result of any action of the Administrative
Agent or Collateral Agent or a failure of the Administrative Agent or Collateral Agent to take any action within its control, then
there shall be no Default or Event of Default hereunder unless such default shall continue unremedied for a period of ten (10)
consecutive Business Days after the earlier of (i) the Borrower becoming aware of such default and (ii) the Borrower’s receipt
of written notice of such default thereof from the Administrative Agent, unless, in each case, the continuance thereof is a result
of a failure of the Collateral Agent or Administrative Agent to take an action within their control (and the Borrower has requested
that the Collateral Agent or Administrative Agent to take such action);

 

(p)          except
for expiration in accordance with its terms, any of the Security Documents shall for whatever reason be terminated or cease to
be in full force and effect in any material respect, or the enforceability thereof shall be contested by any Obligor, or there
shall be any actual invalidity of any guaranty thereunder or any Obligor or any Affiliate of an Obligor shall so assert in writing;
or

 

(q)          the
Borrower or any of its Subsidiaries shall cause or permit the occurrence of any condition or event that would result in any recourse
to any Obligor under any Permitted SBIC Guarantee.

 

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

 

    	106

     

    

 

ARTICLE
VIII

 

THE
ADMINISTRATIVE AGENT

 

SECTION 8.01. Appointment
of the Administrative Agent. Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent hereunder
and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.

 

SECTION 8.02. Capacity
as Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as
a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such Person and its
Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary
or other Affiliate thereof as if it were not the Administrative Agent hereunder.

 

SECTION 8.03. Limitation
of Duties; Exculpation. The Administrative Agent shall not have any duties or obligations except those expressly set forth
herein and in the other Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative
Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights
and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in
writing by the Required Lenders, and (c) except as expressly set forth herein and in the other Loan Documents, the Administrative
Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the
Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent
or at the request of the Required Lenders or in the absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative
Agent by the Borrower or a Lender, and the Administrative Agent shall not 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 or any other Loan Document, (ii)
the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein,
(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein or therein, other
than to confirm receipt of items expressly required to be delivered to the Administrative Agent. Notwithstanding anything to the
contrary contained herein, in no event shall the Administrative Agent be liable or responsible in any way or manner for the failure
to obtain or receive an IVP External Unquoted Value for any asset or for the failure to send any notice required under Section
5.12(b)(ii)(B)(x).

 

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SECTION 8.04. Reliance.
The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and
shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel, independent accountants
and other experts selected by it, 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.

 

SECTION 8.05. Sub-Agents.
The Administrative 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 the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise
its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply
to any such sub-agent and to the Related Parties of the Administrative 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.

 

SECTION 8.06. Resignation;
Successor Administrative Agent. The Administrative Agent may resign at any time by notifying the Lenders and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, with the consent of the Borrower not to be unreasonably withheld
(provided that no such consent shall be required if an Event of Default has occurred and is continuing), to appoint a successor.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent’s resignation shall
nonetheless become effective and (1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder
and (2) the Required Lenders shall perform the duties of the Administrative Agent (and all payments and communications provided
to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly) until such time as the
Required Lenders appoint a successor agent as provided for above in this paragraph. Upon the acceptance of its appointment as Administrative
Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties
of the retiring (or retired) Administrative Agent and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder (if not already discharged therefrom as provided above in this paragraph). The fees payable by the Borrower
to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower
and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article VIII and
Section 9.03 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as Administrative Agent.

 

SECTION 8.07. Reliance
by Lenders. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other
Lender 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 Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent
or any other Lender 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 other Loan Document or any related agreement
or any document furnished hereunder or thereunder.

 

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SECTION 8.08. Modifications
to Loan Documents. Except as otherwise provided in Section 9.02(b) or 9.02(c) with respect to this Agreement,
the Administrative Agent may, with the prior consent of the Required Lenders (but not otherwise), consent to any modification,
supplement or waiver under any of the Loan Documents; provided that, without the prior consent of each Lender, the Administrative
Agent shall not (except as provided herein or in the Security Documents) release all or substantially all of the Collateral or
otherwise terminate all or substantially all of the Liens under any Security Document providing for collateral security, agree
to additional obligations being secured by all or substantially all of such collateral security, or alter the relative priorities
of the obligations entitled to the benefits of the Liens created under the Security Documents with respect to all or substantially
all of the Collateral, except that no such consent shall be required, and the Administrative Agent is hereby authorized, to release
any Lien covering property that is the subject of either a disposition of property permitted hereunder or a disposition to which
the Required Lenders have consented.

 

ARTICLE
IX

 

MISCELLANEOUS

 

SECTION 9.01. Notices;
Electronic Communications.

 

(a)          Notices
Generally. Except in the case of notices and other communications expressly permitted to be given by telephone, all notices
and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by telecopy or to the extent permitted by Section 9.01(b) or otherwise herein, e-mail,
as follows:

 

(i)          if
to the Borrower, to it at:

 

Capitala Finance Corp.

4201 Congress Street, Suite 360

Charlotte, NC 28209

Attention:        Joseph
B. Alala, III

Telephone:      (704)
376-5502

Facsimile:        (704)
376-5877

E-Mail:             JAlala@capitalagroup.com

 

    	109

     

    

 

with a copy to:

 

Mayer Brown LLP

214 North Tryon Street, Suite 3800

Charlotte, North Carolina 28202

Attention:         Keith
F. Oberkfell, Esq.

Telephone:       (704)
444-3549

Facsimile:          (704)
377-2033

E-Mail:              KOberkfell@mayerbrown.com

 

(ii)         if
to the Administrative Agent, to it at:

 

ING Capital LLC

13251133
Avenue of the Americas

New York, New York  1001910036

Attention:          Patrick Frisch

Telephone:        (646) 424-6912

Facsimile:          (646) 424-6919

E-Mail:               Patrick.Frisch@ing.com

 

with a copy to:

 

Dechert LLP

1095 Avenue of the Americas

New York, New York 10036

Attention:         Jay R. Alicandri, Esq.

Telephone:       (212) 698-3500

Facsimile:         (212) 698-3599

E-Mail:              Jay.Alicandri@dechert.com

 

(iii)        if
to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.

 

Any party hereto may
change its address, telecopy number or e-mail address for notices and other communications hereunder by notice to the other parties
hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt. Notices delivered through electronic communications to the extent provided
in paragraph (b) below, shall be effective as provided in said paragraph (b).

 

(b)          Electronic
Communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices to any Lender pursuant to Section 2.04 if such Lender has notified the Administrative
Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or
communications.

 

    	110

     

    

 

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s
receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other communication is not sent during
the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business
on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall
be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and identifying the website address therefor.

 

(c)          Documents
to be Delivered under Sections 5.01 and 5.12(a). For so long as a DebtdomainTM or equivalent website is available to each
of the Lenders hereunder, the Borrower may satisfy its obligation to deliver documents to the Administrative Agent or the Lenders
under Sections 5.01 and 5.12(a) by delivering one hard copy thereof to the Administrative Agent and either an electronic
copy or a notice identifying the website where such information is located for posting by the Administrative Agent on DebtdomainTM
or such equivalent website, provided that the Administrative Agent shall have no responsibility to maintain access to DebtdomainTM
or an equivalent website.

 

SECTION 9.02. Waivers;
Amendments.

 

(a)          No
Deemed Waivers; Remedies Cumulative. No failure or delay by the Administrative Agent or any Lender in exercising any right
or power hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative
and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default,
regardless of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default at the time.

 

(b)          Amendments
to this Agreement. Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative
Agent with the consent of the Required Lenders; provided that, subject to Section 2.16(b), no such agreement shall

 

(i)          increase
the Commitment of any Lender without the written consent of such Lender,

 

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(ii)         reduce
the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender directly affected thereby,

 

(iii)        postpone
the scheduled date of payment of the principal amount of any Loan, or any interest thereon, or any fees payable to a Lender hereunder,
or reduce the amount or waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender directly affected thereby,

 

(iv)        change
Section 2.15(b), (c) or (d) in a manner that would alter the pro rata sharing of payments, or making of disbursements,
required thereby without the written consent of each Lender directly affected thereby,

 

(v)         change
any of the provisions of this Section or the percentage in the definition of the term “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make
any determination or grant any consent hereunder, without the written consent of each Lender, or

 

(vi)        permit
the assignment or transfer by any Obligor of any of its rights or obligations under any Loan Document without the consent of each
Lender;

 

provided further that (x) no such
agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior
written consent of the Administrative Agent, and (y) the consent of Lenders holding not less than two-thirds of the total Revolving
Credit Exposures and unused Commitments will be required for (A) any change adverse to the Lenders affecting the provisions of
this Agreement relating to the Borrowing Base (including the definitions used therein), or the provisions of Section 5.12(b)(ii),
and (B) any release of any material portion of the Collateral other than for fair value or as otherwise permitted hereunder or
under the other Loan Documents.

 

(c)          Amendments
to Security Documents. No Security Document nor any provision thereof may be waived, amended or modified, except to the extent
otherwise expressly contemplated by the Guarantee and Security Agreement, and the Liens granted under the Guarantee and Security
Agreement may not be spread to secure any additional obligations (including any increase in Loans hereunder, but excluding (i)
any such increase pursuant to a Commitment Increase under Section 2.06(f) and (ii) any Secured Longer Term Indebtedness
permitted hereunder) except to the extent otherwise expressly contemplated by the Guarantee and Security Agreement and except pursuant
to an agreement or agreements in writing entered into by the Borrower, and by the Collateral Agent with the consent of the Required
Lenders; provided that, subject to Section 2.16(b), (i) without the written consent of the holders of not less than
two-thirds of the total Revolving Credit Exposures and unused Commitments, no such waiver, amendment or modification to the Guarantee
and Security Agreement shall (A) release any Obligor representing more than 10% of the Stockholder’s Equity of the Borrower
from its obligations under the Security Documents, (B) release any guarantor representing more than 10% of the Stockholder’s
Equity of the Borrower under the Guarantee and Security Agreement from its guarantee obligations thereunder, or (C) amend the definition
of “Collateral” under the Security Documents (except to add additional collateral) and (ii) without the written consent
of each Lender, no such agreement shall (W) release all or substantially all of the Obligors from their respective obligations
under the Security Documents, (X) release all or substantially all of the collateral security or otherwise terminate all or substantially
all of the Liens under the Security Documents, (Y) release all or substantially all of the guarantors under the Guarantee and Security
Agreement from their guarantee obligations thereunder, or (Z) alter the relative priorities of the obligations entitled to the
Liens created under the Security Documents (except in connection with securing additional obligations equally and ratably with
the Loans and other obligations hereunder) with respect to the collateral security provided thereby; except that no such consent
described in clause (i) or (ii) above shall be required, and the Administrative Agent is hereby authorized (and so agrees with
the Borrower) to direct the Collateral Agent under the Guarantee and Security Agreement, to release any Lien covering property
(and to release any such guarantor) that is the subject of either a disposition of property permitted hereunder or a disposition
to which the Required Lenders or the required number or percentage of Lenders have consented, or otherwise in accordance with Section
9.15.

 

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(d)          Replacement
of Non-Consenting Lender. If, in connection with any proposed amendment, waiver or consent requiring (i) the consent of “each
Lender” or “each Lender affected thereby,” or (ii) the consent of “two-thirds of the holders of the total
Revolving Credit Exposures and unused Commitments”, the consent of the Required Lenders is obtained, but the consent of other
necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting
Lender”), then the Borrower shall have the right, at its sole cost and expense, to replace each such Non-Consenting Lender
or Lenders with one or more replacement Lenders pursuant to Section 2.17(b) so long as at the time of such replacement,
each such replacement Lender consents to the proposed change, waiver, discharge or termination.

 

SECTION 9.03. Expenses;
Indemnity; Damage Waiver.

 

(a)          Costs
and Expenses. The Borrower shall pay (i) all reasonable and documented out-of-pocket fees, costs and expenses incurred by the
Administrative Agent, the Collateral Agent and their Affiliates, including the reasonable fees, charges and disbursements of one
outside counsel and of any necessary special and/or local counsel for the Administrative Agent and the Collateral Agent collectively
(other than the allocated costs of internal counsel), in connection with the syndication of the credit facilities provided for
herein, the preparation and administration (other than internal overhead charges) of this Agreement and the other Loan Documents
and any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated) including subject to the last sentence of this clause (a), all costs and expenses of the
Independent Valuation Provider, (ii) all out-of-pocket fees, costs and expenses incurred by the Administrative Agent, the Collateral
Agent or any Lender, including fees, charges and disbursements of any counsel for the Administrative Agent, the Collateral Agent
or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or in connection with the Loans made, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect thereof and (iii) and all reasonable out-of-pocket costs,
expenses, taxes, assessments and other charges incurred in connection with any filing, registration, recording or perfection of
any security interest contemplated by any Security Document or any other document referred to therein. Unless an Event of Default
has occurred and is continuing, the Borrower shall not be responsible for the reimbursement of any fees, costs and expenses of
the Independent Valuation Provider incurred pursuant to Section 5.06(b) and Section 5.12(b)(iii) in excess of the greater
of (x) $200,000 or (y) 0.05% of the total Commitments, in each case in the aggregate incurred for all such fees, costs and expenses
in any 12-month period (the “IVP Supplemental Cap”).

 

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(b)          Indemnification
by the Borrower. The Borrower shall indemnify the Administrative Agent and each Lender, 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 (other than Taxes or Other Taxes which shall only be
indemnified by the Borrower to the extent provided in Section 2.14), including the reasonable and documented fees, charges
and disbursements of any counsel for any Indemnitee (other than the allocated costs of internal counsel), incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or
any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder
or the consummation of the Transactions or any other transactions contemplated hereby (including any arrangement entered into with
an Independent Valuation Provider), (ii) any Loan or the use of the proceeds therefrom or (iii) 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
whether brought by the Borrower, any Indemnitee or a third party and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses (1) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from
the willful misconduct or gross negligence of such Indemnitee, (2) result from a claim brought against such Indemnitee for breach
of such Indemnitee’s obligations under this Agreement or the other Loan Documents, if there has been a final and nonappealable
judgment against such Indemnitee on such claim as determined by a court of competent jurisdiction or (3) result from a claim arising
as a result of a dispute between Indemnitees (other than (x) any dispute involving claims against the Administrative Agent or the
Collateral Agent, in each case in their respective capacities as such, and (y) claims arising out of any act or omission by any
Obligor or its Affiliates).

 

The Borrower shall not
be liable to any Indemnitee for any special, indirect, consequential or punitive damages arising out of, in connection with, or
as a result of the Transactions asserted by an Indemnitee against the Borrower or any other Obligor; provided that the foregoing
limitation shall not be deemed to impair or affect the obligations of the Borrower under the preceding provisions of this subsection.

 

(c)          Reimbursement
by Lenders. To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under
paragraph (a) or (b) of this Section (and without limiting its obligation to do so), or to the extent that the fees, costs and
expenses of the Independent Valuation Provider incurred pursuant to Section 5.12(b)(iii) exceed the IVP Supplemental Cap for any
12-month period (provided that prior to incurring expenses in excess of the IVP Supplemental Cap, the Administrative Agent
shall have afforded the Lenders an opportunity to consult with the Administrative Agent regarding such expenses), each Lender severally
agrees to pay to the Administrative Agent, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against
the Administrative Agent in its capacity as such.

 

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(d)          Waiver
of Consequential Damages, Etc. To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, 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 or instrument
contemplated hereby, the Transactions, any Loan or the use of the proceeds thereof. No Indemnitee shall be liable for any damages
arising from the use of unintended recipients of any information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby, except to the extent caused by the willful misconduct or gross negligence of such Indemnitee, as
determined by a final, non-appealable judgment of a court of competent jurisdiction.

 

(e)          Payments.
All amounts due under this Section shall be payable promptly after written demand therefor.

 

(f)          No
Fiduciary Relationship. The Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes of this
paragraph, the “Lenders”), may have economic interests that conflict with those of the Borrower or any of its Subsidiaries,
their stockholders and/or their affiliates. The Borrower, on behalf of itself and each of its Subsidiaries, agrees that nothing
in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other
implied duty between the Lender, on the one hand, and the Borrower or any of its Subsidiaries, its stockholders or its Affiliates,
on the other. The Borrower and each of its Subsidiaries each acknowledge and agree that (i) the transactions contemplated by the
Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions
between the Lenders, on the one hand, and the Borrower and its Subsidiaries, on the other, and (ii) in connection therewith and
with the process leading thereto, (x) except as otherwise provided in any of the Loan Documents, no Lender has assumed an advisory
or fiduciary responsibility in favor of the Borrower or any of its Subsidiaries, any of their stockholders or affiliates (irrespective
of whether any Lender has advised, is currently advising or will advise the Borrower or any of its Subsidiaries, their stockholders
or their affiliates on other matters) and (y) each Lender is acting hereunder solely as principal and not as the agent or fiduciary
of the Borrower or any of its Subsidiaries, their management or stockholders. The Borrower and each Obligor each acknowledge and
agree that it has consulted legal and financial advisors to the extent it deemed appropriate and that it is responsible for making
its own independent judgment with respect to such transactions and the process leading thereto. The Borrower and each Obligor each
agree that it will not claim that any Lender has rendered advisory services hereunder of any nature or respect, or owes a fiduciary
duty to the Borrower or any of its Subsidiaries, in each case, in connection with such transactions contemplated hereby or the
process leading thereto.

 

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SECTION 9.04. Successors
and Assigns.

 

(a)          Assignments
Generally. 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 (i) the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy
or claim under or by reason of this Agreement.

 

(b)          Assignments
by Lenders.

 

(i)          Assignments
Generally. Subject to the conditions set forth in clause (ii) below, any Lender may assign to one or more assignees all or
a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of:

 

(A)         the
Borrower, provided that (i) no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of
a Lender, or, if an Event of Default has occurred and is continuing, any other assignee, and (ii) the Borrower shall be deemed
to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five
(5) Business Days after having received written notice thereof; and

 

(B)         the
Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment by a Lender
to an Affiliate of a Lender with prior written notice by such Lender to the Administrative Agent.

 

(ii)         Certain
Conditions to Assignments. Assignments shall be subject to the following additional conditions:

 

(A)         except
in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent)
shall not be less than U.S. $1,000,000 unless each of the Borrower and the Administrative Agent otherwise consent; provided
that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

 

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(B)         each
partial assignment of Commitments or Loans shall be made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement in respect of such Commitments and Loans;

 

(C)         the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption in substantially
the form of Exhibit A hereto, together with a processing and recordation fee of U.S. $3,500 (which fee shall not be payable
in connection with an assignment to a Lender or to an Affiliate of a Lender), for which the Borrower and the Guarantors shall not
be obligated (except in the case of an assignment pursuant to Section 2.17(b)); and

 

(D)         the
assignee, if it shall not already be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(iii)        Effectiveness
of Assignments. Subject to acceptance and recording thereof pursuant to paragraph (c) of this Section, 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 but shall continue to be entitled to the benefits
of Sections 2.12, 2.13, 2.14 and 9.03 with respect to facts and circumstances occurring prior to the
effective date of such assignment). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with paragraph (f) of this Section.

 

(c)          Maintenance
of Registers by Administrative Agent. The Administrative Agent, acting solely for this purpose as ana
non-fiduciary agent of the Borrower, shall maintain at one of its offices in New York City 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 Commitments
of, and principal amount and stated interest of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Registers” and each individually, a “Register”). The entries in the Registers shall
be conclusive absent manifest error, and the Borrower, the
Administrative Agent and the Lenders mayshall
treat each Person whose name is recorded in the Registers pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Registers shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)          Acceptance
of Assignments by Administrative Agent. Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

 

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(e)          Special
Purposes Vehicles. Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle (an “SPC”) owned or administered by such Granting Lender, identified
as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide
all or any part of any Loan that such Granting Lender would otherwise be obligated to make; provided that (i) nothing herein
shall constitute a commitment to make any Loan by any SPC, (ii) if an SPC elects not to exercise such option or otherwise fails
to provide all or any part of such Loan, the Granting Lender shall, subject to the terms of this Agreement, make such Loan pursuant
to the terms hereof, (iii) the rights of any such SPC shall be derivative of the rights of the Granting Lender, and such SPC shall
be subject to all of the restrictions upon the Granting Lender herein contained, and (iv) no SPC shall be entitled to the benefits
of Sections 2.12 (or any other increased costs protection provision), 2.13 or 2.14. Each SPC shall be conclusively
presumed to have made arrangements with its Granting Lender for the exercise of voting and other rights hereunder in a manner which
is acceptable to the SPC, the Administrative Agent, the Lenders and the Borrower, and each of the Administrative Agent, the Lenders
and the Obligors shall be entitled to rely upon and deal solely with the Granting Lender with respect to Loans made by or through
its SPC. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by the Granting Lender.

 

Each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after
the payment in full of all outstanding senior indebtedness of any SPC, it will not institute against, or join any other person
in instituting against, such SPC, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or similar
proceedings under the laws of the United States or any State thereof, in respect of claims arising out of this Agreement; provided
that the Granting Lender for each SPC hereby agrees to indemnify, save and hold harmless each other party hereto for any loss,
cost, damage and expense arising out of their inability to institute any such proceeding against its SPC. In addition, notwithstanding
anything to the contrary contained in this Section, any SPC may (i) without the prior written consent of the Borrower and the Administrative
Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to its Granting Lender
or to any financial institutions providing liquidity and/or credit facilities to or for the account of such SPC to fund the Loans
made by such SPC or to support the securities (if any) issued by such SPC to fund such Loans (but nothing contained herein shall
be construed in derogation of the obligation of the Granting Lender to make Loans hereunder); provided that neither the
consent of the SPC or of any such assignee shall be required for amendments or waivers hereunder except for those amendments or
waivers for which the consent of participants is required under paragraph (1f)
below, and (ii) disclose on a confidential basis (in the same manner described in Section 9.13(b)) any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of a surety, guarantee or credit or liquidity enhancement
to such SPC.

 

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(f)          Participations.
Any Lender may sell participations to one or more banks or other entities (a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement and the other Loan Documents (including all or a portion of
its Commitments and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement and the
other Loan Documents shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other
Loan Documents. 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 the other Loan Documents and to approve any amendment, modification or
waiver of any provision of this Agreement or any other Loan Document; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in
the first proviso to Section 9.02(b) that affects such Participant. Subject to paragraph (g) of this Section, the Borrower
agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 (subject to
the requirements and limitations therein, including Sections 2.14(f) and (g) (it being understood that the documentation
required under Sections 2.14(f) and (g) shall be delivered to the participating Lender)) to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant
agrees to be subject to the provisions of Section 2.17 as if it were an assignee under paragraph (b) of this Section
9.04. Each Lender that sells a participation agrees, at Borrower’s request and expense, to use reasonable efforts to
cooperate with the Borrower to effectuate the provisions of Section 2.17 with respect to any Participant. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.15(d) as though it were a Lender hereunder. Each Lender that sells a
participation shall, acting solely for this purpose as ana
non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant
and the principal amounts and stated interest of each Participant’s interest in the Loans or other obligations under the
Loan Documents (each a “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 Participant or any information relating
to a 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. The entries in each
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 the Administrative Agent) shall have no
responsibility for maintaining a Participant Register.

 

(g)          Limitations
on Rights of Participants. A Participant shall not be entitled to receive any greater payment under Section 2.12 or
2.13 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower’s prior written consent.

 

(h)          Certain
Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including any such pledge or assignment to a Federal Reserve Bank or any other central bank,
and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such assignee
for such Lender as a party hereto.

 

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(i)          No
Assignments or Participations to the Borrower or Affiliates or Certain Other Persons. Anything in this Section to the contrary
notwithstanding, no Lender may (i) assign or participate any interest in any Commitment or Loan held by it hereunder to the Borrower
or any of its Affiliates or Subsidiaries without the prior consent of each Lender, or (ii) assign any interest in any Commitment
or Loan held by it hereunder to a natural person or to any Person known by such Lender at the time of such assignment to be a Defaulting
Lender, a Subsidiary of a Defaulting Lender or a Person who, upon consummation of such assignment would be a Defaulting Lender.

 

SECTION 9.05. Survival.
All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Loans, regardless of any investigation made
by any such other party or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue
in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.12, 2.13, 2.14 and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination
of the Commitments or the termination of this Agreement or any provision hereof.

 

SECTION 9.06. Counterparts;
Integration; Effectiveness; Electronic Execution.

 

(a)          Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement
and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract between
and among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof. This Agreement shall become effective when provided in Section 4.01,
and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page to this Agreement by telecopy or electronic mail shall be effective as
delivery of a manually executed counterpart of this Agreement.

 

(b)          Electronic
Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like
import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect validity or enforceability as a manually executed signature or the use of
a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the
Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or
any other similar state laws based on the Uniform Electronic Transactions Act.

 

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SECTION 9.07. Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

SECTION 9.08. Right
of Setoff. If an Event of Default shall have occurred and be continuing, each Lender 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 Lender or Affiliate
to or for the credit or the account of any Obligor against any of and all the obligations of any Obligor now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have. Each Lender agrees promptly to notify the Borrower after
any such set-off and application made by such Lender; provided that
the failure to give such notice shall not affect the validity of such set-off and application.

 

SECTION 9.09. Governing
Law; Jurisdiction; Etc.

 

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

 

(b)          Submission
to Jurisdiction. The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating
to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action
or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction.

 

(c)          Waiver
of Venue. The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of
or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

 

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(d)          Service
of Process. Each party to this Agreement (i) irrevocably consents to service of process in the manner provided for notices
in Section 9.01 and (ii) agrees that service as provided in the manner provided for notices in Section 9.01 is sufficient
to confer personal jurisdiction over such party in any proceeding in any court and otherwise constitutes effective and binding
service in every respect. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any
other manner permitted by law.

 

SECTION 9.10. WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 9.11. Judgment
Currency. This is a loan transaction in which the specification of Dollars and payment in New York City is of the essence,
and Dollars shall be the currency of account in all events relating to Loans. The payment obligations of the Borrower under this
Agreement shall not be discharged or satisfied by an amount paid in another currency or in another place, whether pursuant to a
judgment or otherwise, to the extent that the amount so paid on conversion to Dollars and transfer to New York City under normal
banking procedures does not yield the amount of Dollars in New York City due hereunder. If for the purpose of obtaining judgment
in any court it is necessary to convert a sum due hereunder into another currency (the “Other Currency”), the
rate of exchange that shall be applied shall be the rate at which in accordance with normal banking procedures the Administrative
Agent could purchase Dollars with the Other Currency on the Business Day next preceding the day on which such judgment is rendered.
The obligation of the Borrower in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under
any other Loan Document (in this Section called an “Entitled Person”) shall, notwithstanding the rate of exchange
actually applied in rendering such judgment, be discharged only to the extent that on the Business Day following receipt by such
Entitled Person of any sum adjudged to be due hereunder in the Other Currency such Entitled Person may in accordance with normal
banking procedures purchase and transfer Dollars to New York City with the amount of the Other Currency so adjudged to be due;
and the Borrower hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify such Entitled Person
against, and to pay such Entitled Person on demand, in Dollars, the amount (if any) by which the sum originally due to such Entitled
Person in Dollars hereunder exceeds the amount of Dollars so purchased and transferred.

 

SECTION 9.12. 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.

 

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SECTION 9.13. Treatment
of Certain Information; Confidentiality.

 

(a)          Treatment
of Certain Information. The Borrower acknowledges that from time to time financial advisory, investment banking and other services
may be offered or provided to the Borrower or one or more of its Subsidiaries (in connection with this Agreement or otherwise)
by any Lender or by one or more subsidiaries or affiliates of such Lender and the Borrower hereby authorizes each Lender to share
any information delivered to such Lender by the Borrower and its Subsidiaries pursuant to this Agreement, or in connection with
the decision of such Lender to enter into this Agreement, to any such subsidiary or affiliate, it being understood that any such
subsidiary or affiliate receiving such information shall be bound by the provisions of paragraph (b) of this Section as if it were
a Lender hereunder. Such authorization shall survive the repayment of the Loan or the termination of this Agreement or any provision
hereof. The Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the “Lender”),
may have economic interests that conflict with those of the Borrower or any of its Subsidiaries and/or their Affiliates.

 

(b)          Confidentiality.
Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b)
to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority),
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party
hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement, or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower, (h) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the
Loans and (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with
respect to the Loans, (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this
Section or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential
basis from a source other than the Borrower or (j) in connection with the Lenders’ right to grant a security interest pursuant
to Section 9.04(h) to the Federal Reserve Bank or any other central bank, or subject to an agreement containing provisions
substantially the same as those of this Section, to any other pledgee or assignee pursuant to Section 9.04(h).

 

For purposes of this Section, “Information”
means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries
or any of their respective businesses (including any Portfolio Investments), other than any such information that is available
to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries,
provided that, in the case of information received from the Borrower or any of its Subsidiaries after the Effective Date,
such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential
information.

 

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SECTION 9.14. USA
PATRIOT Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to
identify the Borrower in accordance with said Act.

 

SECTION 9.15. Termination.
Promptly upon the Termination Date, the Administrative Agent shall direct the Collateral Agent to, on behalf of the Administrative
Agent, the Collateral Agent and the Lenders, deliver to Borrower such termination statements and releases and other documents necessary
or appropriate to evidence the termination of this Agreement, the Loan Documents, and each of the documents securing the obligations
hereunder as the Borrower may reasonably request, all at the sole cost and expense of the Borrower.

 

SECTION
9.16. Acknowledgment and Consent to Bail-In of EEA Financial
Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement
or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising
under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of
an EEA 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 an EEA Resolution Authority to any such liabilities arising hereunder which
may be payable to it by any party hereto that is an EEA Financial Institution; and

 

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

 

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

 

(ii)         a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA 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
any other Loan Document; or

 

(iii)        the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.

 

SECTION
9.17. Interest Rate Limitation. Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall
not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If Administrative
Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to
the principal of the Loans or, if it exceeds such unpaid principal, refunded to Borrower. In determining whether the interest
contracted for, charged, or received by Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal
parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

[Remainder of Page Intentionally Left
Blank]

 

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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.

 

	 	CAPITALA FINANCE CORP.

 

	 	By:	 
	 	 	Name:  
	 	 	Title:

 

[Signature Page to the Revolving Credit
Agreement]

 

     

     

    

 

	 	ING CAPITAL LLC, 
	 	as Administrative Agent and a Lender

 

	 	By:	 
	 	 	Name:  
	 	 	Title:
	 	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:

 

[Signature Page to the Revolving Credit
Agreement]

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