Document:

EX-10.38

 Exhibit 10.38 

EXECUTION VERSION 
 PURCHASE
AND SALE AGREEMENT 
 by and between 

CHESTNUT HILL FUNDING LLC, 
 as
the Purchaser 
 and 
 FS
INVESTMENT CORPORATION III, 
 as the Seller 

Dated as of August 13, 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE I.
	 	 DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	 General.
	  	 	1	  
	 Section 1.2
	 	 Specific Terms.
	  	 	2	  
	 Section 1.3
	 	 Other Terms.
	  	 	5	  
	 Section 1.4
	 	 Computation of Time Periods.
	  	 	5	  
	 Section 1.5
	 	 Certain References.
	  	 	5	  
			
	 ARTICLE II.
	 	 SALE AND PURCHASE OF THE ELIGIBLE LOANS AND OTHER PORTFOLIO ASSETS
	  	 	5	  
			
	 Section 2.1
	 	 Sale and Purchase of the Eligible Loans and the Other Portfolio Assets.
	  	 	5	  
	 Section 2.2
	 	 Purchase Price.
	  	 	7	  
	 Section 2.3
	 	 Payment of Purchase Price.
	  	 	8	  
	 Section 2.4
	 	 Nature of the Sales.
	  	 	8	  
			
	 ARTICLE III.
	 	 CONDITIONS OF SALE AND PURCHASE
	  	 	10	  
			
	 Section 3.1
	 	 Conditions Precedent to Effectiveness.
	  	 	10	  
	 Section 3.2
	 	 Conditions Precedent to All Purchases.
	  	 	11	  
			
	 ARTICLE IV.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	12	  
			
	 Section 4.1
	 	 Representations and Warranties of the Seller.
	  	 	12	  
	 Section 4.2
	 	 Representations and Warranties of the Seller Relating to the Agreement and the Sale Portfolio.
	  	 	18	  
	 Section 4.3
	 	 Representations and Warranties of the Purchaser.
	  	 	19	  
			
	 ARTICLE V.
	 	 COVENANTS OF THE SELLER
	  	 	20	  
			
	 Section 5.1
	 	 Protection of Title of the Purchaser.
	  	 	20	  
	 Section 5.2
	 	 Affirmative Covenants of the Seller.
	  	 	23	  
	 Section 5.3
	 	 Negative Covenants of the Seller.
	  	 	27	  
			
	 ARTICLE VI.
	 	 REPURCHASES AND SUBSTITUTION BY THE SELLER
	  	 	29	  
			
	 Section 6.1
	 	 Repurchase of Loans.
	  	 	29	  
	 Section 6.2
	 	 Substitution of Loans.
	  	 	30	  

  
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	 ARTICLE VII.
	 	 ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF THE SALE PORTFOLIO
	  	 	31	  
			
	 Section 7.1
	 	 Rights of the Purchaser.
	  	 	31	  
	 Section 7.2
	 	 Rights With Respect to Loan Files.
	  	 	32	  
	 Section 7.3
	 	 Notice to Collateral Agent, Administrative Agent and each Lender Agent.
	  	 	32	  
			
	 ARTICLE VIII.
	 	 SELLER TERMINATION EVENTS
	  	 	32	  
			
	 Section 8.1
	 	 Seller Termination Events.
	  	 	32	  
	 Section 8.2
	 	 Survival of Certain Provisions.
	  	 	34	  
			
	 ARTICLE IX.
	 	 INDEMNIFICATION
	  	 	34	  
			
	 Section 9.1
	 	 Indemnification by the Seller.
	  	 	34	  
	 Section 9.2
	 	 Assignment of Indemnities.
	  	 	35	  
			
	 ARTICLE X.
	 	 MISCELLANEOUS
	  	 	36	  
			
	 Section 10.1
	 	 Liability of the Seller.
	  	 	36	  
	 Section 10.2
	 	 Limitation on Liability.
	  	 	36	  
	 Section 10.3
	 	 Amendments; Limited Agency.
	  	 	36	  
	 Section 10.4
	 	 Waivers; Cumulative Remedies.
	  	 	36	  
	 Section 10.5
	 	 Notices.
	  	 	36	  
	 Section 10.6
	 	 Merger and Integration.
	  	 	37	  
	 Section 10.7
	 	 Severability of Provisions.
	  	 	37	  
	 Section 10.8
	 	 GOVERNING LAW; JURY WAIVER.
	  	 	37	  
	 Section 10.9
	 	 Consent to Jurisdiction; Service of Process.
	  	 	37	  
	 Section 10.10
	 	 Costs, Expenses and Taxes.
	  	 	38	  
	 Section 10.11
	 	 Counterparts.
	  	 	38	  
	 Section 10.12
	 	 Bankruptcy Non-Petition and Limited Recourse; Claims.
	  	 	38	  
	 Section 10.13
	 	 Binding Effect; Assignability.
	  	 	39	  
	 Section 10.14
	 	 Waiver of Setoff.
	  	 	39	  
	 Section 10.15
	 	 Headings and Exhibits.
	  	 	39	  
	 Section 10.16
	 	 Rights of Inspection.
	  	 	40	  
	 Section 10.17
	 	 Subordination.
	  	 	40	  
	 Section 10.18
	 	 Confidentiality.
	  	 	40	  

 SCHEDULES AND EXHIBITS 
  

					
	Schedule I	  	-	  	Sale Portfolio List
			
	Exhibit A	  	-	  	Form of Loan Assignment
	Exhibit B	  	-	  	Form of Officer’s Purchase Date Certificate
	Exhibit C	  	-	  	Form of Power of Attorney for Seller

  
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 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT, dated as of August 13, 2015, by and between FS INVESTMENT CORPORATION III, a Maryland corporation, as
the seller (the “Seller”) and CHESTNUT HILL FUNDING LLC, a Delaware limited liability company, as the purchaser (the “Purchaser”). 

W I T N E S S E T H: 

WHEREAS, the Purchaser has agreed to Purchase (as hereinafter defined) from the Seller from time to time, and the Seller has agreed to Sell
(as hereinafter defined) to the Purchaser from time to time, certain Loans related thereto on the terms set forth herein; 
 WHEREAS, it is
contemplated that the Loans Purchased hereunder may be Pledged by the Purchaser pursuant to the Loan and Security Agreement (as defined herein) and the related Transaction Documents, to the Collateral Agent, for the benefit of the Secured Parties;
and 
 WHEREAS, the Seller agrees that all representations, warranties, covenants and agreements made by the Seller herein with respect to
the Sale Portfolio (as defined herein) have been assigned by the Purchaser to the Collateral Agent for the benefit of the Secured Parties and, as such, shall also be for the benefit of any Secured Party. 

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter contained, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Purchaser and the Seller, intending to be legally bound, hereby agree as follows: 

ARTICLE I. 
 DEFINITIONS 

Section 1.1 General. The specific terms defined in this Article include the plural as well as the singular. Words herein importing
a gender include the other gender. References herein to “writing” include printing, typing, lithography and other means of reproducing words in visible form. References to agreements and other contractual instruments include all subsequent
amendments thereto or changes therein entered into in accordance with their respective terms and not prohibited by this Agreement or the Loan and Security Agreement (as hereinafter defined). References herein to Persons include their successors and
assigns permitted hereunder or under the Loan and Security Agreement. The terms “include” or “including” mean “include without limitation” or “including without limitation”. The words “herein”,
“hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision, and Article, Section, Schedule and Exhibit references, unless
otherwise specified, refer to Articles and Sections of and 

 
Schedules and Exhibits to this Agreement. References to any Applicable Law means such Applicable Law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from
time to time, including rules and regulations promulgated thereunder, and reference to any Section or other provision of any Applicable Law means that provision of such Applicable Law from time to time in effect and constituting the substantive
amendment, modification, codification, replacement or reenactment of such Section or other provision. Capitalized terms used herein but not defined herein shall have the respective meanings assigned to such terms in the Loan and Security Agreement,
provided that, if, within such definition in the Loan and Security Agreement a further term is used which is defined herein, then such further term shall have the meaning given to such further term herein. 

Section 1.2 Specific Terms. Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings: 
 “Agreement” means this Purchase and Sale Agreement, as the same may be
amended, restated, waived, supplemented and/or otherwise modified from time to time hereafter. 
 “Available Collections”
means all cash collections and other cash proceeds with respect to any Loan, including, without limitation, all Principal Collections, all Interest Collections, all proceeds of any sale or disposition (in part or in whole) with respect to such Loan,
cash proceeds or other funds received by the Seller or the Collateral Manager with respect to any Underlying Collateral (including from any guarantors). 

“Early Termination” has the meaning specified in Section 8.1. 

“Facility Financing Statements” has the meaning specified in Section 3.1(iv). 

“Indemnified Amounts” has the meaning specified in Section 9.1(a). 

“Indemnified Party” has the meaning specified in Section 9.1(a). 

“Loan and Security Agreement” means that certain Loan and Security Agreement, dated as of the Closing Date, by and among the
Purchaser, as the Borrower, Capital One, National Association, as the Administrative Agent, each of the Conduit Lenders and Institutional Lenders from time to time party thereto, each of the Lender Agents from time to time party thereto and Wells
Fargo Bank, National Association, as the Collateral Agent, as the Account Bank and as the Collateral Custodian, as such may be amended, restated, supplemented or otherwise modified from time to time pursuant to the terms thereof. 

“Loan” means any loan listed on Schedule I hereto, as the same may be amended, supplemented, restated or replaced
from time to time, and all accounts, payment intangibles, instruments and other property related to the foregoing. 
 “Loan
Assignment” means a Loan Assignment executed by the Seller and accepted by the Purchaser, substantially in the form of Exhibit A attached hereto. 

  
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 “Portfolio Assets” means all Loans owned by the Seller, together with all
proceeds thereof and other assets or property related thereto, including all right, title and interest of the Seller in and to: 

(a) any amounts on deposit in any cash reserve, collection, custody or lockbox accounts securing the Loans; 

(b) all rights with respect to the Loans to which the Seller is entitled as lender under the applicable Underlying Instruments;

 (c) any Underlying Collateral securing a Loan and all Recoveries related thereto, all payments paid in respect thereof and
all monies due, to become due and paid in respect thereof accruing after the applicable Cut-Off Date and all liquidation proceeds; 

(d) all Required Loan Documents, the Loan Files related to any Loan, any Records, and the documents, agreements, and
instruments included in the Loan Files or Records; 
 (e) all Insurance Policies with respect to any Loan; 

(f) all Liens, guaranties, indemnities, warranties, letters of credit, accounts, bank accounts and property subject thereto
from time to time purporting to secure or support payment of any Loan, together with all UCC financing statements, mortgages or similar filings signed or authorized by an Obligor relating thereto; 

(g) all records (including computer records) with respect to the foregoing; and 

(h) all collections, income, payments, proceeds and other benefits of each of the foregoing. 

“Purchase” means a purchase by the Purchaser of an Eligible Loan and the related Portfolio Assets from the Seller pursuant to
Article II. 
 “Purchase Date” has the meaning specified in Section 2.1(b). 

“Purchase Price” has the meaning specified in Section 2.2. 

“Purchaser” has the meaning specified in the Preamble. 

“Purchaser Restricted Payment” means (i) any dividend or other distribution, direct or indirect, on account of any class
of membership interests of the Purchaser now or hereafter outstanding, except a dividend paid solely in interests of that class of membership interests or in any junior class of membership interests of the Purchaser; (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any class of membership interests of the Purchaser now or hereafter outstanding, (iii) any payment made to redeem, purchase, repurchase
or retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire membership interests of the Purchaser now or hereafter outstanding, and (iv) any payment of management fees by the

  
 3 

 
Purchaser. For the avoidance of doubt, (x) payments and reimbursements due to the Collateral Manager in accordance with the Transaction Documents do not constitute Purchaser Restricted
Payments, and (y) distributions by the Purchaser to holders of its membership interests of Loans or of cash or other proceeds relating thereto which have been substituted or transferred in connection with a Lien Release Dividend by the
Purchaser in accordance with the Loan and Security Agreement shall not constitute Purchaser Restricted Payments. 
 “Replaced
Loan” has the meaning specified in Section 6.2(b)(i). 
 “Repurchase Price” means, with respect to a
Loan to be repurchased pursuant to Article VI hereof, an amount equal to the Purchase Price less all Principal Collections received in respect of such Loan from the Purchase Date to the date of repurchase hereunder. 

“Sale” and “Sell” have the meanings specified in Section 2.1(a), and the term
“Sold” shall have the corresponding meaning. 
 “Sale Portfolio” means all right, title, and interest
(whether now owned or hereafter acquired or arising, and wherever located) of the Seller in the property identified below in clauses (i) through (iii) and all accounts, cash and currency, chattel paper, tangible chattel
paper, electronic chattel paper, copyrights, copyright licenses, equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, securities
entitlements, commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit rights, software, supporting obligations, accessions, or other
property consisting of, arising out of, or related to any of the following (in each case excluding the Retained Interest and the Excluded Amounts): 

(i) the Loans, and all monies due or to become due in payment under such Loans on and after the related Cut-Off Date, including, but not limited to, all Available Collections; 
 (ii) the
Portfolio Assets with respect to the Loans referred to in clause (i); and 
 (iii) all income and Proceeds of the
foregoing. 
 “Schedule I” means the schedule of all Sale Portfolio that is Sold by the Seller to the Purchaser on a
Purchase Date, as supplemented on any subsequent Purchase Date by the “Schedule I” attached to the applicable Loan Assignment, and incorporated herein by reference, as such schedule may be supplemented and amended from time to time
pursuant to the terms hereof, which schedule shall, together with all supplements and amendments thereto, be included in and made part of the Loan Schedule attached to the Loan and Security Agreement. 

“Seller Purchase Event” means with respect to any Loan, the occurrence of a breach of the Seller’s representations and
warranties under Section 4.2 on the Cut-Off Date for such Loan. 
 “Seller
Termination Event” has the meaning specified in Section 8.1(a). 

  
 4 

 “Substitute Eligible Loan” has the meaning specified in
Section 6.2(a). 
 “Substitution” has the meaning specified in Section 6.2(a). 

“Transfer Taxes” means any tax, fee or governmental charge payable by the Purchaser, the Seller or any other Person to any
federal, state or local government arising from or otherwise related to the Sale of any Loan, the related Underlying Collateral (if any) and/or any other related Portfolio Assets from the Seller to the Purchaser under this Agreement (excluding taxes
measured by net income). 
 Section 1.3 Other Terms. All accounting terms used but not specifically defined herein shall be
construed in accordance with GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not specifically defined herein, are used herein as defined in such Article 9. 

Section 1.4 Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a
specified date to later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”. Reference to days or days without further qualification
means calendar days. Reference to any time means Charlotte, North Carolina time. 
 Section 1.5 Certain References. All
references to the Outstanding Balance of a Loan as of a Purchase Date shall refer to such amount as of the close of business on such day. 

ARTICLE II. 
 SALE AND PURCHASE OF
THE ELIGIBLE LOANS 
 AND OTHER PORTFOLIO ASSETS 

Section 2.1 Sale and Purchase of the Eligible Loans and the Other Portfolio Assets. 

(a) Subject to the terms and conditions of this Agreement (including the conditions to Purchase set forth in Article III), on and
after the Closing Date, the Seller hereby agrees to (i) sell, transfer and otherwise convey (collectively, “Sell” and any such sale, transfer and/or other conveyance, a “Sale”), from time to time, to the
Purchaser, without recourse (except to the extent specifically provided herein), and the Purchaser hereby agrees to purchase, all right, title and interest of the Seller (whether now owned or hereafter acquired or arising, and wherever located) in
and to certain Sale Portfolio designated by the Seller and accepted by the Purchaser and (ii) in furtherance of the Sale, transfer, or cause the deposit into, the Collection Account of all Available Collections received by the Seller on account
of any Sale Portfolio hereunder on and after the Purchase Date with respect to such Sale Portfolio, in each case, within two (2) Business Days of the receipt thereof. The Seller hereby acknowledges that each Sale to the Purchaser hereunder is
absolute and irrevocable, without reservation or retention of any interest whatsoever by the Seller. 

  
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 (b) To the extent the Seller desires to effectuate any Sale, the Seller shall on or prior to any
Business Day prior to a Seller Termination Event execute and deliver to the Purchaser a proposed Loan Assignment identifying the Sale Portfolio to be Sold by the Seller to the Purchaser on such date and to the extent such Sale is accepted for
Purchase by the Purchaser, the Purchaser shall accept such Loan Assignment (each such date of acceptance, a “Purchase Date”). From and after such Purchase Date, the Sale Portfolio listed on Schedule I to the related Loan
Assignment shall be deemed to be listed on Schedule I hereto and constitute part of the Sale Portfolio hereunder. 
 (c) On or
before any Purchase Date with respect to the Sale Portfolio to be acquired by the Purchaser on such date, the Seller shall provide the Purchaser with an Officer’s Certificate, in the form of Exhibit B hereto, signed by an Authorized
Person certifying, as of such Purchase Date, to each of the items in Section 4.2. 
 (d) On and after each Purchase Date
hereunder and upon payment of the Purchase Price therefor, the Purchaser shall own the Sale Portfolio Sold by the Seller to the Purchaser on such Purchase Date, and the Seller shall not take any action inconsistent with such ownership and shall not
claim any ownership interest in such Sale Portfolio. 
 (e) Except as specifically provided in this Agreement, the Sale and Purchase of the
Sale Portfolio under this Agreement shall be without recourse to the Seller; it being understood that the Seller shall be liable to the Purchaser for all representations, warranties, covenants and indemnities made by the Seller pursuant to the terms
of this Agreement, all of which obligations are limited so as not to constitute recourse to the Seller for the credit risk of the Obligors. 

(f) Neither the Purchaser nor any assignee of the Purchaser (including the Secured Parties) shall have any obligation or liability to any
Obligor or client of the Seller (including any obligation to perform any obligation of the Seller, including with respect to any other related agreements) in respect of the Sale Portfolio. No such obligation or liability is intended to be assumed by
the Purchaser or any assignee of the Purchaser (including the Secured Parties) and any such assumption is expressly disclaimed. Without limiting the generality of the foregoing, the Sale of the Sale Portfolio by the Seller to the Purchaser pursuant
to this Agreement does not constitute and is not intended to result in a creation or assumption by the Purchaser or any assignee of the Purchaser (including the Secured Parties), of any obligation of the Seller, as lead agent, collateral agent or
paying agent under any Agented Loan. 
 (g) In connection with each Purchase of Sale Portfolio hereunder, the Seller shall cause to be
delivered to the Collateral Custodian (with a copy to the Administrative Agent), no later than 2:00 p.m. one Business Day prior to the related Purchase Date, a faxed or e-mailed copy of the duly executed
original promissory notes of the Loans (and, in the case of any Noteless Loan, a fully executed assignment agreement) and if any Loans are closed in escrow, a certificate (in the form of Exhibit I to the Loan and Security Agreement) from
the closing attorneys of such Loans certifying the possession of the Required Loan Documents; provided that, notwithstanding the foregoing, the Seller shall cause the Loan Checklist and the Required Loan Documents to be in the possession of
the Collateral Custodian within two (2) Business Days after the related Purchase Date. 

  
 6 

 (h) In accordance with the Loan and Security Agreement, certain documents relating to Sale
Portfolio shall be delivered to and held in trust by the Collateral Custodian for the benefit of the Purchaser and its assignees, and the Purchaser hereby instructs the Seller to cause such documents to be delivered to the Collateral Custodian. Such
delivery to the Collateral Custodian of such documents and the possession thereof by the Collateral Custodian is at the will of the Purchaser and its assignees and in a custodial capacity for their benefit only. 

(i) The Seller shall provide all information, and any other reasonable assistance, to the Collateral Manager, the Collateral Custodian and the
Collateral Agent necessary for the Collateral Manager, the Collateral Custodian and the Collateral Agent, as applicable, to conduct the management, administration and collection of the Sale Portfolio Purchased hereunder in accordance with the terms
of the Loan and Security Agreement. 
 (j) In connection with the Purchase by the Purchaser of Sale Portfolio as contemplated by this
Agreement, the Seller further agrees that it shall, at its own expense, mark its books and records in a manner that accurately ensures all assets which constitute Sale Portfolio are clearly marked as being held in the Purchaser’s name. 

(k) The Seller further agrees to deliver to the Purchaser on or before each Purchase Date a computer file containing a true, complete and
correct list of all Loans to be Sold hereunder on such Purchase Date, identified by Obligor’s name and Outstanding Balance as of the related Cut-Off Date. Such file or list shall be marked as Schedule I to the applicable Loan
Assignment and shall be delivered to the Purchaser as confidential and proprietary, and is hereby incorporated into and made a part of Schedule I to this Agreement, as such Schedule I may be supplemented and amended from time
to time. 
 (l) The Seller shall, at all times, continue to fulfill its obligations (if any remain after the Sale) under the terms of all
Underlying Instruments related to any Sale Portfolio purchased hereunder, including without limitation any obligations pertaining to any Retained Interest. 

(m) The Seller and the Purchaser each acknowledge with respect to itself that the representations and warranties of the Seller in
Sections 4.1 and 4.2 hereof and of the Purchaser in Section 4.3 hereof, and the covenants and agreements of the Seller herein, including without limitation, in Article V and Article VI
hereof, will run to and be for the benefit of the Purchaser, which has assigned the same as collateral security to the Collateral Agent (on behalf of the Secured Parties) pursuant to the Loan and Security Agreement and the Collateral Agent (on
behalf of the Secured Parties) may enforce directly (without joinder of the Purchaser when enforcing against the Seller), the obligations of the Seller or the Purchaser, as applicable, with respect to breaches of such representations, warranties,
covenants and all other obligations as set forth in this Agreement. 
 Section 2.2 Purchase Price. 

The purchase price for each item of Sale Portfolio Sold to the Purchaser hereunder on the applicable Purchase Date (the “Purchase
Price”) shall be in a dollar amount equal to the fair market value (which may be a combination of cash and equity contribution) of 

  
 7 

 
such Loan as determined from time to time by the Seller and the Purchaser; provided, however, that the Seller shall not be bound by the Purchase Price for accounting purposes. Each
of the Purchaser and the Seller hereby agree that the fair market value of each Loan Sold hereunder as of the related Purchase Date shall not be less than the Adjusted Borrowing Value of such Loan on the related Purchase Date. 

Section 2.3 Payment of Purchase Price. 

(a) The Purchase Price for any Sale Portfolio Sold by the Seller to the Purchaser on any Purchase Date shall be paid in a combination, to be
agreed by the Purchaser and the Seller, of: (i) immediately available funds; and (ii) capital contribution by the Seller to the Purchaser. 

(b) The portion of such Purchase Price to be paid in immediately available funds shall be paid by wire transfer on the applicable Purchase
Date to an account designated by the Seller on or before such Purchase Date or by means of proper accounting entries being entered upon the accounts and records of the Seller and the Purchaser on the applicable Purchase Date. 

(c) In connection with each delivery of a Loan Assignment, the Seller hereunder shall be deemed to have certified, with respect to the Sale
Portfolio to be Sold by it on such day, that its representations and warranties contained in Sections 4.1 and 4.2 are true and correct in all respects on and as of such day, with the same effect as though made on and as of
such day (other than any representation or warranty that is made as of a specific date), that no Seller Termination Event has occurred or would result therefrom and no event that upon the passage of time would constitute a Seller Termination Event
exists or would result therefrom. 
 (d) Upon the payment of the Purchase Price for any Purchase, title to the Sale Portfolio included in
such Purchase shall vest in the Purchaser, whether or not the conditions precedent to such Purchase and the other covenants and agreements contained herein were in fact satisfied; provided that the Purchaser shall not be deemed to have waived
any claim it may have under this Agreement for the failure by the Seller in fact to satisfy any such condition precedent, covenant or agreement. 

Section 2.4 Nature of the Sales. 

(a) It is the express intent of the parties hereto that the Sale of the Sale Portfolio by the Seller to the Purchaser hereunder be, and be
treated for all purposes (other than tax and accounting purposes) as an absolute sale by the Seller (free and clear of any Lien, security interest, charge or encumbrance other than Permitted Liens) of such Sale Portfolio. It is, further, not the
intention of the parties that such Sale be deemed a pledge of the Sale Portfolio by the Seller to the Purchaser to secure a debt or other obligation of the Seller. However, in the event that, notwithstanding the intent of the parties, the Sale
Portfolio is held to continue to be property of the Seller, then the parties hereto agree that: (i) this Agreement shall also be deemed to be, and hereby is, a “security agreement” within the meaning of Article 9 of the UCC;
(ii) the transfer of the Sale Portfolio provided for in this Agreement shall be deemed to be a grant by the Seller to the Purchaser of, and the Seller hereby grants, a first priority security interest (subject

  
 8 

 
only to Permitted Liens) in all of the Seller’s right, title and interest in and to the Sale Portfolio and all amounts payable to the holders of the Sale Portfolio in accordance with the
terms thereof and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including, without limitation, all amounts from time to time held or invested in the Controlled
Accounts, whether in the form of cash, instruments, securities or other property, to secure the prompt and complete payment of a loan deemed to have been made in an amount equal to the aggregate Purchase Price of the Sale Portfolio together with all
of the other obligations of the Seller hereunder; (iii) the possession by the Purchaser (or the Collateral Custodian on behalf of the Collateral Agent, for the benefit of the Secured Parties) of Sale Portfolio and such other items of property
as constitute instruments, money, negotiable documents or chattel paper shall be, subject to clause (iv), for purposes of perfecting the security interest pursuant to the UCC; and (iv) acknowledgements from Persons holding such
property shall be deemed acknowledgements from custodians, bailees or agents (as applicable) of the Purchaser for the purpose of perfecting such security interest under Applicable Law. The parties further agree in such event that any assignment of
the interest of the Purchaser pursuant to any provision hereof shall also be deemed to be an assignment of any security interest created pursuant to the terms of this Agreement. The Seller shall, to the extent consistent with this Agreement and the
other Transaction Documents, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Sale Portfolio, such security interest would be deemed to be a perfected security interest of first
priority (subject only to Permitted Liens) under Applicable Law and will be maintained as such throughout the term of this Agreement. The Purchaser shall have, in addition to the rights and remedies which it may have under this Agreement, all other
rights and remedies provided to a secured creditor under the UCC and other Applicable Law, which rights and remedies shall be cumulative. 

(b) It is the intention of each of the parties hereto that the Sale Portfolio Sold by the Seller to the Purchaser pursuant to this Agreement
shall constitute assets owned by the Purchaser and shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy or similar law. 

(c) The Purchaser agrees to treat, and shall cause the Seller to treat, for all purposes (other than tax and accounting purposes), the
transactions effected by this Agreement as sales of assets to the Purchaser. The Seller agrees to reflect in the Seller’s financial records and to include a note in its the publicly filed annual and quarterly financial statements of indicating
that: (i) assets related to transactions (including transactions pursuant to the Transaction Documents) that do not meet SFAS 140 requirements for accounting sale treatment are reflected in its consolidated balance sheet as finance
receivables pledged and non-recourse, secured borrowings and (ii) those assets are owned by a special purpose entity that is consolidated in its financial statements, and the creditors of that special
purpose entity have received ownership and/or security interests in such assets and such assets are not intended to be available to the creditors of sellers (or any affiliate of the sellers) of such assets to that special purpose entity. 

  
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 ARTICLE III. 

CONDITIONS OF SALE AND PURCHASE 

Section 3.1 Conditions Precedent to Effectiveness. This Agreement shall be effective upon the satisfaction of the conditions
precedent that the Purchaser shall have received on or before the Closing Date, in form and substance satisfactory to the Purchaser, all of the following: 

(i) a copy of this Agreement duly executed by each of the parties hereto; 

(ii) a certificate of any director, the Secretary or Assistant Secretary of the Seller, dated the Closing Date, certifying
(A) the names and true signatures of the incumbent directors and/or officers of the Seller authorized to sign on behalf of the Seller this Agreement, the Loan Assignments and all other documents to be executed by the Seller hereunder or in
connection herewith (on which certificate the Purchaser and its assignees may conclusively rely until such time as the Purchaser and such assignees shall receive from the Seller, a revised certificate meeting the requirements of this
Section 3.1(ii)), (B) that the copy of the certificate of incorporation of the Seller is a complete and correct copy and that such certificate of incorporation has not been amended, modified or supplemented and is in full force and
effect, (C) that the copy of the incorporation documents of the Seller are a complete and correct copy, and that such incorporation documents have not been amended, modified or supplemented and are in full force and effect, and (D) the
resolutions of the board of directors of the Seller approving and authorizing the execution, delivery and performance by the Seller of this Agreement, the Loan Assignments and all other documents to be executed by the Seller hereunder or in
connection herewith; 
 (iii) a good standing certificate, dated as of a recent date for the Seller, issued by the applicable
Governmental Authority of the Seller’s jurisdiction of incorporation; 
 (iv) filed, original copies of proper financing
statements (the “Facility Financing Statements”) describing the Sale Portfolio, and naming the Seller as the “Debtor/Seller”, the Purchaser as “Secured Party/Buyer” and the Collateral Agent, for the benefit of
the Secured Parties, as “Total Assignee”, or other similar instruments or documents, in form and substance sufficient for filing under the UCC or any comparable law of any and all jurisdictions as may be necessary to perfect the
Purchaser’s security interest in all Sale Portfolio; 
 (v) copies of properly authorized termination statements or
statements of release (on Form UCC-3) or other similar instruments or documents, if any, in form and substance sufficient for filing under the UCC or any comparable law of any and all jurisdictions as may
be necessary to release all security interests and similar rights of any Person in the Sale Portfolio previously granted by the Seller; 

  
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 (vi) copies of tax and judgment lien searches in all jurisdictions reasonably
requested by the Purchaser or its assignees and requests for information (or a similar UCC search report certified by a party acceptable to the Purchaser and its assigns), dated a date reasonably near to the Closing Date, and with respect to such
requests for information or UCC searches, listing all effective financing statements which name the Seller (under its present name and any previous name) as debtor and which are filed in the State of Maryland, together with copies of such financing
statements (none of which shall cover any Sale Portfolio); 
 (vii) all instruments in connection with the transactions
contemplated by this Agreement shall be satisfactory in form and substance to the Purchaser, each Lender Agent and the Administrative Agent, and the Purchaser, each Lender Agent and the Administrative Agent shall have received from the Seller copies
of all documents (including, without limitation, records of corporate proceedings, approvals and opinions) relevant to the transactions herein contemplated as the Purchaser, each Lender Agent and the Administrative Agent may have requested; 

(viii) any necessary third party consents to the closing of the transactions contemplated hereby, in form and substance
satisfactory to the Purchaser; 
 (ix) the Seller shall have paid all fees then required to be paid by it on the Closing
Date; and 
 (x) one or more favorable Opinions of Counsel from counsel to the Seller with respect to the perfection and
enforceability of the security interest hereunder and such other matters as the Purchaser or any assignee thereof may reasonably request. 

Section 3.2 Conditions Precedent to All Purchases. The Purchase to take place on the initial Purchase Date and each Purchase to
take place on a subsequent Purchase Date hereunder shall be subject to the further conditions precedent that: 
 (a) The following
statements shall be true: 
 (i) The representations and warranties of the Seller contained in Sections 4.1
and 4.2 shall be true and correct on and as of such Purchase Date in all respects, before and after giving effect to the Purchase to take place on such Purchase Date and to the application of proceeds therefrom, as though made on and as
of such date (other than any representation and warranty that is made as of a specific date); 
 (ii) The Seller is in
compliance in all respects with each of its covenants and other agreements set forth herein; 
 (iii) No Seller Termination
Event (or event which, with the passage of time or the giving of notice, or both, would constitute a Seller Termination Event) shall have occurred or would result from such Purchase; 

(iv) The earlier of (x) the end of the Reinvestment Period and (y) the Facility Maturity Date has not yet occurred;
and 
 (v) No Applicable Law shall prohibit or enjoin, and no order, judgment or decree of any federal, state or local court
or governmental body, agency or instrumentality shall prohibit or enjoin, the making of any such Purchase by the Purchaser in accordance with the provisions hereof. 

  
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 (b) The Purchaser shall have received a duly executed and completed Loan Assignment along with a
Schedule I that is true, accurate and complete in all respects as of the related Cut-Off Date. 

(c) The Seller shall have delivered to the Collateral Custodian on behalf of the Purchaser and any assignee thereof each item required to be
contained in the Required Loan Documents and the Loan Checklist of any of the Eligible Loans or Portfolio Assets related thereto being acquired by the Purchaser within two (2) Business Days of the related Purchase Date. 

(d) The Seller shall have taken all steps necessary under all Applicable Law in order to Sell to the Purchaser the Sale Portfolio being
Purchased on such Purchase Date and, upon the Sale of such Sale Portfolio from the Seller to the Purchaser pursuant to the terms hereof, the Purchaser will have acquired good and marketable title to and a valid and perfected ownership interest in
such Sale Portfolio, free and clear of any Lien, security interest, charge or encumbrance (other than Permitted Liens); provided that if such item of Sale Portfolio contains a restriction of transferability, the applicable Underlying
Instruments provide that any consents necessary for future assignments shall not be unreasonably withheld by the applicable Obligor and/or agent, and the rights to enforce rights and remedies in respect of the same under the applicable Underlying
Instruments inure to the benefit of the holder of such Loan (subject to the rights of any applicable agent or other lenders). 
 (e) The
Seller shall have received a copy of an Approval Notice executed by the Administrative Agent evidencing the approval of the Administrative Agent, in its sole discretion, of the Sale to the Purchaser of the Eligible Loans identified on
Schedule I to the applicable Loan Assignment on the applicable Purchase Date. 
 ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES 

Section 4.1 Representations and Warranties of the Seller. The Seller makes the following representations and warranties, on which
the Purchaser relies in acquiring the Sale Portfolio Purchased hereunder and each of the Secured Parties relies upon in entering into the Loan and Security Agreement. As of each Purchase Date (unless a specific date is specified below), the Seller
represents and warrants to the Purchaser for the benefit of the Purchaser and each of its successors and assigns that: 
 (a)
Organization. The Seller is duly organized and validly existing under the laws of Maryland and has the full power and authority to transact the business in which it is presently engaged and is duly qualified under the laws of each
jurisdiction where the conduct of its business requires, or the performance of its obligations under this Agreement would require, 

  
 12 

 
such qualification, except for failures to be so qualified, authorized or licensed which would not in the aggregate have a material adverse effect on the business, operations, assets or financial
condition of the Seller, or on the ability of the Seller to perform its obligations under, or on the validity or enforceability of, this Agreement and the applicable provisions of the Transaction Documents. 

(b) Power and Authority. The Seller has full power and authority to execute and deliver this Agreement and to perform all of its
obligations hereunder. 
 (c) Due Authorization. This Agreement has been duly authorized, executed and delivered by the Seller and
constitutes a valid and binding agreement of the Seller, enforceable against it in accordance with its terms, except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law). 

(d) Proceedings. Neither the Seller nor any of its Affiliates is in violation of any Applicable Law or any material listing
requirements of any exchange on which it is listed and there is no charge, investigation, action, suit or proceeding before or by any court, exchange or regulatory agency pending or, to the best knowledge of the Seller, threatened (i) asserting
the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that could reasonably be expected to adversely affect this
Agreement or the transactions contemplated hereby or thereby, or (iv) that would have a material adverse effect upon the performance by the Seller of its duties under this Agreement. 

(e) Breach of Agreements. Neither the execution and delivery of this Agreement, nor the performance of the terms hereof, conflicts with
or results in a material breach or violation of any of the terms or provisions of, or constitutes a default under, (i) its articles of organization, limited liability company agreement or other constituent document, (ii) the terms of any
material indenture, contract, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other material agreement, obligation, condition, covenant or instrument to which the Seller is a party or is bound, or (iii) any
Applicable Law. 
 (f) No Consents. No consent, approval, authorization or order of or declaration or filing with any government,
governmental instrumentality or court or other person is required for the performance by it of its duties hereunder, except such as have been duly made or obtained and there is no injunction, writ, restraining order or other order of any nature that
adversely affects the Seller’s performance of its obligations under this Agreement. 
 (g) Information. All information,
financial statements of the Seller, documents, books, records or reports furnished by the Seller to any Secured Party in connection with this Agreement are true, complete and correct in all material respects; provided that the Seller makes no
representation with respect to any information furnished by an Obligor unless it has also certified as to such information. 

  
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 (h) Collections. The Seller acknowledges that all Available Collections received by it or
its Affiliates are held and shall be held in trust for the benefit of the Secured Parties until deposited into the Collection Account within one (1) Business Day from receipt as required under the Loan and Security Agreement. 

(i) Bankruptcy. The Seller is not the subject of any Bankruptcy Proceeding or Bankruptcy Event. The transactions under this Agreement
do not and will not render it not Solvent. 
 (j) Regulations. None of the transactions contemplated herein (including, without
limitation, the use of the Proceeds from the Pledge of the Sale Portfolio) will violate or result in a violation of Section 7 of the Exchange Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X
of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. 
 (k) ERISA. Except as would not reasonably be
expected to constitute a Material Adverse Effect, (i) the present value of all benefits vested under all Pension Plans of the Seller does not exceed the value of the assets of the Pension Plan allocable to such vested benefits (based on the
value of such assets as of the most recent annual financial statements reflecting such amounts), (ii) no Reportable Events have occurred with respect to any Pension Plans that, in the aggregate, could subject the Seller to any material tax,
penalty or other liability and (iii) no notice of intent to terminate a Pension Plan has been filed, nor has any Pension Plan been terminated under Section 4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted
proceedings to terminate, or appoint a trustee to administer a Pension Plan and no event has occurred or condition exists that might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan. 
 (l) Patriot Act. Neither the Seller nor any Affiliate of the Seller is (i) a country,
territory, organization, person or entity named on an OFAC list; (ii) a Person that resides or has a place of business in a country or territory named on such lists or which is designated as a “Non Cooperative Jurisdiction” by the
Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank that does
not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv) a person or entity that resides in or is organized under the laws of
a jurisdiction designated by the United States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns. 

(m) Broker-Dealer. The Seller is not a broker-dealer under the provisions of the Exchange Act. 

(n) 1940 Act. The Seller is regulated as a business development company under the 1940 Act. 

  
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 (o) Selection Procedures. In selecting the Loans to be Sold pursuant to this Agreement, no
selection procedures were employed which are intended to be adverse to the interests of the Lenders. 
 (p) Bulk Sales. The grant of
the security interest in the Sale Portfolio by the Seller to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement, is in the ordinary course of business for the Seller and is not subject to the bulk transfer or
any similar statutory provisions in effect in any applicable jurisdiction. 
 (q) Pledge of Sale Portfolio. No item of Sale Portfolio
has been sold, transferred, assigned or pledged by the Seller to any Person other than the Borrower. 
 (r) Location. The
Seller’s jurisdiction of formation (within the meaning of Article 9 of the UCC) is Maryland. The chief executive office of the Seller (and the location of the Seller’s records regarding the Sale Portfolio (other than those delivered
to the Collateral Custodian)) is located at the address set forth on Annex A to the Loan and Security Agreement (or at such other address as shall be designated by such party in a written notice to the other parties hereto). 

(s) Tradenames. Except as permitted hereunder, the Seller’s legal name is as set forth in this Agreement. Except as permitted
hereunder, the Seller has not changed its name since its formation; does not have tradenames, fictitious names, assumed names or “doing business as” names other than as shall have been previously disclosed to the Administrative Agent; the
Seller’s only jurisdiction of formation is Maryland, and, except as permitted hereunder, the Seller has not changed its jurisdiction of formation. 

(t) Value Received. The Seller has received fair consideration and reasonably equivalent value from the Purchaser in exchange for the
Sale of such Sale Portfolio Sold hereunder. No such Sale has been made for or on account of an antecedent debt and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code. 

(u) No Adverse Agreements. There are no agreements in effect adversely affecting the rights of the Seller to make, or cause to be made,
the grant of the security interest in the Sale Portfolio contemplated by Section 2.4. 
 (v) Credit and Collection
Policy. Each of the Loans was underwritten or acquired and is being serviced in conformance with the standard underwriting, credit, collection, operating and reporting procedures and systems of the Seller. 

(w) Instructions to Obligors. The Collection Account is the only account to which Obligors have been instructed by the Seller to send
Principal Collections and Interest Collections on the Sale Portfolio. 
 (x) Compliance with Law. The Seller has complied in all
respects with all Applicable Law to which it may be subject, and no item of the Sale Portfolio contravenes any Applicable Law (including, without limitation, all applicable predatory and abusive lending laws, laws, rules and regulations related to
licensing, truth in lending, fair credit billing, fair credit reporting equal credit opportunity, fair debt collection practices and privacy). 

  
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 (y) Set-Off, etc. No Loan has been compromised,
adjusted, extended, satisfied, subordinated, rescinded, set-off or modified by the Seller or the Obligor thereof, and no Sale Portfolio is subject to compromise, adjustment, extension, satisfaction,
subordination, rescission, set-off, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification, whether arising out of transactions concerning the Sale Portfolio
or otherwise, by the Seller or the Obligor with respect thereto. 
 (z) Full Payment. As of the applicable Cut-Off Date in respect of
a Loan, the Seller has no knowledge of any fact which should lead it to expect that such Loan will not be paid in full. 
 (aa)
Environmental. With respect to each item of Underlying Collateral as of the applicable Cut-Off Date for the Loan related to such Underlying Collateral, to the actual knowledge of an Authorized Person of the Seller: (a) the related
Obligor’s operations comply in all respects with all applicable Environmental Laws; (b) none of the related Obligor’s operations is the subject of a federal or state investigation evaluating whether any remedial action, involving
expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (c) the related Obligor does not have any material contingent liability in connection with any release of any Hazardous Materials into the
environment. As of the applicable Cut-Off Date for the Loan related to such Underlying Collateral, the Seller has not received any written notice of, or written inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Underlying Collateral, nor does any such Person have knowledge or
reason to believe that any such notice will be received or is being threatened. 
 (bb) Security Interest. 

(i) To the extent this Agreement is not construed to evidence an absolute transfer of all right, title and interest in the Sale
Portfolio from the Seller to the Purchaser, this Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Sale Portfolio in favor of the Purchaser, which security interest is prior to all other Liens
(except for Permitted Liens), and is enforceable as such against creditors of and purchasers from the Seller; 
 (ii) the
Loans, along with the related Loan Files, constitute either a “general intangible,” an “instrument,” an “account,” “securities entitlement,” “tangible chattel paper”, “certificated
security,” “uncertificated security,” “supporting obligation,” or “insurance” (each as defined in the applicable UCC), real property and/or such other category of collateral under the applicable UCC as to which the
Seller has complied with its obligations under Section 4.1(bb). 
 (iii) the Seller owns and has good and
marketable title to (or with respect to assets securing any Loans, a valid security interest in) the Sale Portfolio Sold by it to the Purchaser hereunder on such Purchase Date, free and clear of any Lien (other than Permitted Liens) of any Person;

  
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 (iv) the Seller has received all consents and approvals required by the terms of
any Loan, to the Sale thereof and the granting of a security interest in the Loans hereunder to the Purchaser; 
 (v) the
Seller has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in that portion of the Sale Portfolio in which a
security interest may be perfected by filing granted hereunder to the Purchaser; provided that filings in respect of real property shall not be required; 

(vi) other than as expressly permitted by the terms of this Agreement and the Loan and Security Agreement and the security
interest granted to the Purchaser, the Seller has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of the Sale Portfolio. The Seller has not authorized the filing of and is not aware of any financing statements
against the Seller that include a description of collateral covering the Sale Portfolio other than any financing statement (A) relating to the security interest granted to the Purchaser under this Agreement, or (B) that has been terminated
and/or fully and validly assigned to the Collateral Agent on or prior to the date hereof. The Seller is not aware of the filing of any judgment or Tax lien filings against the Seller; 

(vii) all original executed copies of each underlying promissory note or copies of each loan register with respect to a
Noteless Loan, as applicable, that constitute or evidence each Loan have been, or subject to the delivery requirements contained herein, will be delivered to the Collateral Custodian; 

(viii) other than in the case of Noteless Loans, the Seller has received, or subject to the delivery requirements herein will
receive, a written acknowledgment from the Collateral Custodian that the Collateral Custodian, as the bailee of the Collateral Agent, is holding the underlying promissory notes that constitute or evidence the Loans solely on behalf of and for the
Collateral Agent, for the benefit of the Secured Parties; provided that the acknowledgement of the Collateral Custodian set forth in Section 11.11 of the Loan and Security Agreement may serve as such acknowledgement; 

(ix) none of the underlying promissory notes or loan registers with respect to Noteless Loans, as applicable, that constitute
or evidence the Loans has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Collateral Agent, on behalf of the Secured Parties; 

(x) with respect to any Sale Portfolio that constitutes a “certificated security”, such certificated security has
been delivered to the Collateral Custodian, on behalf of the Secured Parties and, if in registered form, has been specifically Indorsed to the Collateral Agent, for the benefit of the Secured Parties, or in blank by an effective Indorsement or has
been registered in the name of the Collateral Agent, for the benefit of the Secured Parties, upon original issue or registration or transfer by the Purchaser of such certificated security; and 

(xi) with respect to any Sale Portfolio that constitutes an “uncertificated security”, that the Seller has caused the
issuance of such uncertificated security to register the Collateral Agent, on behalf of the Secured Parties, as the registered owner of such uncertificated security. 

  
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 It is understood and agreed that the representations and warranties provided in this
Section 4.1 shall survive (x) the Sale of the Sale Portfolio to the Purchaser and (y) and the grant of a first priority perfected security interest in, to and under the Sale Portfolio pursuant to the Loan and Security Agreement
by the Purchaser. Upon discovery by the Seller or the Purchaser of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other and to the Administrative
Agent and each Lender Agent upon obtaining knowledge of such breach. 
 Section 4.2 Representations and Warranties of the Seller
Relating to the Agreement and the Sale Portfolio. The Seller makes the following representations and warranties, on which the Purchaser relies in acquiring the Sale Portfolio Purchased hereunder and each of the Secured Parties relies upon in
entering into the Loan and Security Agreement. As of each Purchase Date, the Seller represents and warrants to the Purchaser for the benefit of the Purchaser and each of its successors and assigns that: 

(a) Valid Transfer and Security Interest. To the extent this Agreement is not construed to evidence an absolute transfer of all right,
title and interest in the Sale Portfolio from the Seller to the Purchaser, this Agreement constitutes a grant of a security interest in all of the Sale Portfolio to the Purchaser, which upon the filing of the financing statement referred to in
Section 2.4, shall be a valid and first priority perfected security interest in the Loans forming a part of the Sale Portfolio and in that portion of the Loans in which a security interest may be perfected by filing subject only to
Permitted Liens. 
 (b) Eligibility of Sale Portfolio. (i) Schedule I is an accurate and complete listing of all the
Sale Portfolio as of the related Cut-Off Date and the information contained therein with respect to the identity of such Sale Portfolio and the amounts owing thereunder is true and correct as of the related Cut-Off Date, (ii) each item of the
Sale Portfolio Purchased by the Purchaser hereunder is an Eligible Loan as of the related Cut-Off Date (except as otherwise permitted by the definition of Eligible Loan), and (iii) with respect to each item of the Sale Portfolio all consents,
licenses, approvals or authorizations of or registrations or declarations of any Governmental Authority or any Person required to be obtained, effected or given by the Seller in connection with the transfer of an ownership interest or security
interest in each item of Sale Portfolio to the Purchaser have been duly obtained, effected or given and are in full force and effect. 
 (c)
No Fraud. Each Eligible Loan was originated without any fraud or misrepresentation by the Seller or, to the best of the Seller’s knowledge, on the part of the Obligor. 

It is understood and agreed that the representations and warranties provided in this Section 4.2 shall survive (x) the Sale
of the Sale Portfolio to the Purchaser, (y) the grant of a first priority perfected security interest in, to and under the Sale Portfolio pursuant to the Loan and 

  
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Security Agreement by the Purchaser and (z) the termination of this Agreement and the Loan and Security Agreement. Upon discovery by the Seller or the Purchaser of a breach of any of the
foregoing representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other and to the Administrative Agent and each Lender Agent immediately upon obtaining knowledge of such breach. 

Section 4.3 Representations and Warranties of the Purchaser. The Purchaser makes the following representations and warranties, on
which the Seller relies in selling the Sale Portfolio Sold hereunder and each of the Secured Parties relies upon in entering into the Loan and Security Agreement. As of each Purchase Date, the Purchaser represents and warrants to the Seller for the
benefit of the Seller and each of its successors and assigns that: 
 (a) Organization and Good Standing. The Purchaser has been duly
organized and is validly existing and in good standing as an exempted company incorporated with limited liability under the laws of the State of Delaware, with the power and authority to own or lease its properties and to conduct its business as
such properties are currently owned and such business is currently conducted, and had at all relevant times, and has, all necessary power, authority and legal right to acquire and own the Sale Portfolio. 

(b) Due Qualification. The Purchaser is duly qualified to do business and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification, licenses and/or approvals. 

(c) Power and Authority; Due Authorization; Execution and Delivery. The Purchaser (i) has all necessary corporate power, authority
and legal right to (a) execute and deliver this Agreement and (b) carry out the terms of this Agreement and (ii) has duly authorized by all necessary corporate action the execution, delivery and performance of this Agreement and the
Purchase of the Sale Portfolio on the terms and conditions herein provided. This Agreement and each other Transaction Document to which the Purchaser is a party have been duly executed and delivered by the Purchaser. 

(d) All Consents Required. All approvals, authorizations, consents, orders, licenses or other actions of any Person or of any
Governmental Authority (if any) required for the due execution, delivery and performance by the Purchaser of this Agreement and each Loan Assignment have been obtained. 

(e) Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the
Purchaser in accordance with its respective terms, subject, as to enforceability, to applicable Bankruptcy Laws and general principles of equity (whether such enforceability is considered in a proceeding in equity or at law). 

(f) No Violation. The consummation of the transactions contemplated by this Agreement and each Loan Assignment and the fulfillment of
the terms hereof and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Purchaser’s incorporation documents
or any contractual obligation of the Purchaser, (ii) result in the creation or imposition 

  
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of any Lien (other than Permitted Liens) upon any of the Purchaser’s properties pursuant to the terms of any such contractual obligation, other than this Agreement, or (iii) violate any
Applicable Law. 
 (g) Value Given. The Purchaser has given reasonably equivalent value to the Seller in exchange for the Sale of
such Sale Portfolio, which amount the Purchaser hereby agrees is the fair market value of such Sale Portfolio. No such Sale has been made for or on account of an antecedent debt owed by the Seller and no such transfer is or may be voidable or
subject to avoidance under any section of the Bankruptcy Code. 
 (h) No Proceedings. There is no litigation, proceeding or
investigation pending or, to the knowledge of the Purchaser, threatened against the Purchaser, before any Governmental Authority (i) asserting the invalidity of this Agreement or any Loan Assignment, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or any Loan Assignment, or (iii) seeking any determination or ruling that could reasonably be expected to have a Material Adverse Effect. 

ARTICLE V. 
 COVENANTS OF THE
SELLER 
 Section 5.1 Protection of Title of the Purchaser. 

(a) On or prior to the Closing Date, the Seller shall have filed or caused to be filed UCC-1 financing
statements, naming the Seller as “Debtor/Seller”, naming the Purchaser as “Secured Party/Buyer”, and naming the Collateral Agent, for the benefit of the Secured Parties, as “Total Assignee”, and describing the Sale
Portfolio to be acquired by the Purchaser, with the office of the applicable Governmental Authority of the jurisdiction of organization of the Seller. From time to time thereafter, the Seller shall file such financing statements and cause to be
filed such continuation statements, all in such manner and in such places as may be required by law (or deemed desirable by the Purchaser or any assignee thereof) to fully perfect, preserve, maintain and protect the ownership interest of the
Purchaser under this Agreement and the security interest of the Collateral Agent for the benefit of the Secured Parties under the Loan and Security Agreement, in the Sale Portfolio acquired by the Purchaser hereunder, as the case may be, and in the
proceeds thereof. The Seller shall deliver (or cause to be delivered) to the Purchaser, the Collateral Agent, the Collateral Custodian, the Collateral Manager, the Lenders, the Lender Agents and the Administrative Agent file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. The Seller agrees that it will from time to time, at its expense, take all actions,
that the Purchaser, the Collateral Agent or the Administrative Agent may reasonably request in order to perfect, protect or more fully evidence the Purchases hereunder and the security and/or interest granted in the Sale Portfolio, or to enable the
Purchaser, the Collateral Agent, the Administrative Agent or the Secured Parties to exercise and enforce their rights and remedies hereunder or under the Loan and Security Agreement. 

(b) On or prior to each Purchase Date hereunder, the Seller shall take all steps necessary under all Applicable Law in order to Sell to the
Purchaser the Sale Portfolio being 

  
 20 

 
acquired by the Purchaser on such Purchase Date to the Purchaser so that, upon the Sale of such Sale Portfolio from the Seller to the Purchaser pursuant to the terms hereof on such Purchase Date,
the Purchaser will have acquired good and marketable title to and a valid and perfected ownership interest in such Sale Portfolio, free and clear of any Lien, security interest, charge or encumbrance or restrictions on transferability (subject only
to Permitted Liens). On or prior to each Purchase Date hereunder, the Seller shall take all steps required under Applicable Law in order for the Purchaser to grant to the Collateral Agent, for the benefit of the Secured Parties, a first priority
perfected security interest (subject only to Permitted Liens) in the Sale Portfolio being Purchased by the Purchaser on such Purchase Date and, from time to time thereafter, the Seller shall take all such actions as may be required by Applicable Law
to fully preserve, maintain and protect the Purchaser’s ownership interest in, and the Collateral Agent’s first priority perfected security interest in (subject only to Permitted Liens), the Sale Portfolio which have been acquired by the
Purchaser hereunder. 
 (c) The Seller shall direct any agent or administrative agent for any Sale Portfolio originated or acquired by the
Seller to remit all payments and collections with respect to such Sale Portfolio and direct the Obligor with respect to such Sale Portfolio to remit all such payments and collections directly to the Collection Account. The Seller will not make any
change, or permit the Collateral Manager to make any change, in its instructions to Obligors regarding payments to be made to the Seller or the Collateral Manager or payments to be made to the Collection Account, unless the Purchaser and the
Administrative Agent have consented to such change. The Seller shall ensure that only funds constituting payments and collections relating to Sale Portfolio shall be deposited into the Collection Account. In the event any payments relating to any
Sale Portfolio are remitted directly to the Seller or any Affiliate of the Seller, the Seller will remit (or will cause all such payments to be remitted) directly to the Collection Account within two (2) Business Days following receipt thereof,
and, at all times prior to such remittance, the Seller will itself hold or, if applicable, will cause such payments to be held in trust for the exclusive benefit of the Purchaser and its assignees. Until so deposited, all such Interest Collections
and Principal Collections shall be held in trust for the Purchaser or its assignees by the Seller. 
 (d) At any time after the occurrence
an Event of Default, the Collateral Agent or the Administrative Agent may direct the Seller or the Collateral Manager to notify the Obligors, at Seller’s expense, of the Secured Parties’ interest in the Sale Portfolio under this Agreement
and may direct that payments of all amounts due or that become due under any or all of the Sale Portfolio be made directly to the Collateral Agent or the Administrative Agent. 

(e) The Seller shall, not earlier than six months and not later than three months prior to the fifth anniversary of the date of filing of the
financing statement referred to in Section 3.1 or any other financing statement filed pursuant to this Agreement or in connection with any Purchase hereunder, unless the Collection Date shall have occurred: 

(i) file or cause to be filed an appropriate continuation statement with respect to such financing statement; and 

(ii) deliver or cause to be delivered to the Purchaser, the Collateral Agent, the Administrative Agent and each Lender Agent an
opinion of the counsel for 

  
 21 

 
Seller, in form and substance reasonably satisfactory to the Purchaser and the Administrative Agent, confirming and updating the opinion delivered pursuant to Section 3.1 with respect
to perfection and otherwise to the effect that the security interest hereunder continues to be an enforceable and perfected security interest, subject to no other Liens of record except as provided herein or otherwise permitted hereunder, which
opinion may contain usual and customary assumptions, limitations and exceptions. 
 (f) The Seller shall not (x) change its name, move
the location of its principal place of business and chief executive office, change the offices where it keeps records concerning the Sale Portfolio from the address set forth on Annex A to the Loan and Security Agreement, or change the
jurisdiction of its incorporation, or (y) move, or consent to the Collateral Custodian moving, the Required Loan Documents and Loan Files from the location required under the Transaction Documents, unless, the Administrative Agent shall consent
of such move in writing and the Seller shall provide the Administrative Agent with such Opinions of Counsel and other documents and instruments as the Administrative Agent may request in connection therewith and has taken all actions required under
the UCC of each relevant jurisdiction in order to continue the first priority perfected security interest of the Purchaser in the Sale Portfolio. 

(g) The Seller shall mark its books and records so that, from and after the time of Sale under this Agreement of Sale Portfolio to the
Purchaser and the grant of a security interest in such Sale Portfolio by the Purchaser to the Collateral Agent for the benefit of the Secured Parties under the Loan and Security Agreement, the Seller’s books and records that refer to such Sale
Portfolio shall be marked in a manner that accurately ensures all assets which constitute Sale Portfolio are clearly marked as being Purchased by the Purchaser hereunder and Pledged by the Purchaser to the Collateral Agent, on behalf of the Secured
Parties, under the Loan and Security Agreement. Indication of the Collateral Agent’s security interest for the benefit of the Secured Parties in the Sale Portfolio shall be deleted from or modified on the Seller’s books and records when,
and only when, such Sale Portfolio shall be (i) paid off by the related Obligor, (ii) purchased or substituted by the Seller in accordance with Section 6.1 or 6.2 hereof or (iii) released by the Collateral
Agent pursuant to Section 2.15 of the Loan and Security Agreement. 
 (h) If the Seller fails to perform any of its obligations
hereunder, the Purchaser, the Collateral Agent or the Administrative Agent may (but shall not be required to) perform, or cause performance of, such obligation; and the Purchaser’s, the Collateral Agent’s or the Administrative Agent’s
costs and expenses incurred in connection therewith shall be payable by the Seller as provided in Section 9.1. The Seller irrevocably authorizes the Purchaser, the Collateral Agent or the Administrative Agent at any time and from time to
time at the Purchaser’s, the Collateral Agent’s or the Administrative Agent’s sole discretion and appoints the Purchaser, the Collateral Agent and the Administrative Agent as its attorney–in–fact pursuant to a Power of
Attorney substantially in the form of Exhibit C to act on behalf of the Seller (i) to file financing statements on behalf of the Seller, as debtor, necessary or desirable in the Purchaser’s, the Collateral Agent’s or the
Administrative Agent’s sole discretion to perfect and to maintain the perfection and priority of the interest of the Purchaser or the Collateral Agent in the Sale Portfolio and (ii) to file a carbon, photographic or other reproduction of
this Agreement or any financing statement with respect to the Sale Portfolio as a financing statement in such 

  
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offices as the Purchaser, the Collateral Agent or the Administrative Agent in their sole discretion deem necessary or desirable to perfect and to maintain the perfection and priority of the
interests of the Purchaser or the Collateral Agent in the Sale Portfolio. This appointment is coupled with an interest and is irrevocable. 

Section 5.2 Affirmative Covenants of the Seller. 

From the date hereof until the Collection Date: 

(a) Compliance with Law. The Seller will comply in all respects with all Applicable Law, and shall do or cause to be done all things
necessary to preserve and maintain in full force and effect its legal existence and all licenses material to its business. 
 (b)
Preservation of Company Existence. The Seller will preserve and maintain its corporate existence, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified in good standing as a corporation
in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification could reasonably be expected to have a Material Adverse Effect. 

(c) Performance and Compliance with Sale Portfolio. The Seller will, at its expense, timely and fully perform and comply in all
respects with all material provisions, covenants and other promises required to be observed by it under the Sale Portfolio and all other agreements related to such Sale Portfolio. 

(d) Keeping of Records and Books of Account. The Seller will maintain and implement administrative and operating procedures (including,
without limitation, an ability to recreate records evidencing the Sale Portfolio in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable
for the collection of all or any portion of the Sale Portfolio. 
 (e) Separate Identity. The Seller acknowledges that the
Administrative Agent, the Collateral Agent, the Collateral Custodian, the Lenders, the Lender Agents and the other Secured Parties are entering into the transactions contemplated by this Agreement, the Loan and Security Agreement and the other
Transaction Documents in reliance upon the Purchaser’s identity as a legal entity that is separate from the Seller and each other Affiliate of the Seller. Therefore, from and after the date of execution and delivery of this Agreement, the
Seller will take all reasonable steps including, without limitation, all steps that the Administrative Agent or the Collateral Agent may from time to time reasonably request to maintain the Purchaser’s identity as a legal entity that is
separate from the Seller and each other Affiliate of the Seller and to make it manifest to third parties that the Purchaser is an entity with assets and liabilities distinct from those of the Seller and each other Affiliate thereof (other than for
tax purposes) and not just a division of the Seller or any such other Affiliate. Without limiting the generality of the foregoing and in addition to the other covenants set forth herein, the Seller agrees that: 

(i) the Seller shall use commercially reasonable efforts to ensure that the Purchaser is in compliance with, and shall take no
action which would cause the Purchaser to fail to be in compliance with, the criteria and the restrictions set forth in the incorporation documents of the Purchaser and Sections 5.01(a), 5.01(b), 5.02(a) and 5.02(b) of the Loan and
Security Agreement; 

  
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 (ii) the Seller shall maintain corporate records and books of account separate
from those of the Purchaser; 
 (iii) the annual financial statements of the Seller shall disclose the effects of the
Seller’s transactions in accordance with GAAP and the Seller shall maintain separate financial statements from the Purchaser; provided, however, that the Purchaser’s assets may be included in a consolidated financial
statement of the Seller if (A) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of the Purchaser from the Seller and to indicate that the Purchaser’s assets and credit are not
available to satisfy the debts and other obligations of the Seller or any other Person and (B) such assets shall also be listed on the Purchaser’s own separate books and records; 

(iv) the resolutions, agreements and other instruments underlying the transactions described in this Agreement shall be
continuously maintained by the Seller as official records; 
 (v) the Seller shall maintain an arm’s–length
relationship with the Purchaser and will not hold itself out as being liable for the debts of the Purchaser; 
 (vi) the
Seller shall keep its assets and its liabilities wholly separate from those of the Purchaser; 
 (vii) the Seller will avoid
the appearance, and promptly correct any known misperception of any of the Seller’s creditors, that the assets of the Purchaser are available to pay the obligations and debts of the Seller; and 

(viii) to the extent that the Seller services the Loans and performs other services on the Purchaser’s behalf, the Seller
will clearly identify itself as an agent of the Purchaser (and not in any other capacity) in the performance of such duties. 
 (f)
Taxes. The Seller will file or cause to be filed its tax returns and pay any and all Taxes imposed on it or its property as required by the Transaction Documents (except as contemplated in Section 4.1(m)). 

(g) Cooperation with Requests for Information or Documents. The Seller will cooperate fully with all reasonable requests of the
Purchaser and its assigns regarding the provision of any information or documents, necessary or desirable, including the provision of such information or documents in electronic or machine–readable format, to allow each of the Purchaser and its
assignees to carry out their responsibilities under the Transaction Documents. 
 (h) Payment, Performance and Discharge of
Obligations. The Seller shall observe, perform and satisfy all the material terms, provisions, covenants and conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be
paid by it, under the Loan and Security Agreement. 

  
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 (i) Notices. 

(i) Income Tax Liability. The Seller will furnish telephonic or facsimile notice to the Purchaser, the Administrative
Agent and each Lender Agent within 10 Business Days (confirmed in writing within five (5) Business Days thereafter) of the receipt of revenue agent reports or other written proposals, determinations or assessments of the Internal Revenue
Service or any other taxing authority which propose, determine or otherwise set forth positive adjustments (i) to the Tax liability of the Seller or any “affiliated group” (within the meaning of Section 1504(a)(l) of the Code) of
which the Seller is a member in an amount equal to or greater than $1,000,000 in the aggregate, or (ii) to the Tax liability of the Purchaser in an amount equal to or greater than $500,000 in the aggregate. Any such notice shall specify the
nature of the items giving rise to such adjustments and the amounts thereof. 
 (ii) Auditors’ Management
Letters. Promptly after the receipt thereof, the Seller shall notify the Purchaser, the Administrative Agent and, upon request, each Lender Agent of any auditors’ management letters that are received by it. 

(iii) Representations and Covenants. Promptly after receiving knowledge or notice of the same, the Seller shall notify
the Purchaser, the Administrative Agent and each Lender Agent (i) if any representation or warranty set forth in Section 4.1 or Section 4.2 was incorrect at the time it was given or deemed to have been given or
(ii) of the breach of any covenant under Section 5.1, Section 5.2 or Section 5.3 and at the same time deliver to the Purchaser, the Collateral Agent, the Administrative Agent and each Lender Agent a written
notice setting forth in reasonable detail the nature of such facts and circumstances. In particular, but without limiting the foregoing, the Seller shall notify the Purchaser, the Administrative Agent and each Lender Agent in the manner set forth in
the preceding sentence before any Purchase Date of any facts or circumstances within the knowledge of the Seller which would render any of the said representations and warranties untrue at the date when such representations and warranties were made
or deemed to have been made. 
 (iv) ERISA. The Seller shall promptly notify the Purchaser, the Administrative Agent
and each Lender Agent after receiving notice of any “reportable event” (as defined in Title IV of ERISA, other than an event for which the reporting requirements have been waived by regulations) with respect to the Seller (or any
ERISA Affiliate thereof), and provide them with a copy of such notice. 
 (v) Proceedings. The Seller shall notify the
Purchaser, the Administrative Agent and each Lender Agent, as soon as possible and in any event within three (3) Business Days, after the Seller receives notice or obtains knowledge thereof, the Seller will provide with notice of any settlement
of, material judgment (including a material judgment with respect to the liability phase of a bifurcated trial) in or commencement of any material labor controversy, material litigation, material action, material suit or material proceeding before
any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Sale Portfolio, the Transaction Documents, the Collateral Agent’s, for the benefit of the

  
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Secured Parties, interest in the Sale Portfolio, or the Purchaser, any Borrower Advisor, the Seller or any of their Affiliates. For purposes of this Section 5.2(i), (i) any
settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Sale Portfolio, the Transaction Documents, the Collateral Agent’s, for the benefit of the Secured Parties, interest in the Sale Portfolio, or the
Purchaser in excess of $500,000 shall be deemed to be material, (ii) any settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Seller or any of its Affiliates (other than the Purchaser) in excess of
$1,000,000 shall be deemed to be material and (iii) any settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Collateral Sub-Advisor that would be reasonably likely to result in a Material Adverse Effect
shall be deemed to be material. 
 (vi) Material Events. The Seller shall promptly notify the Purchaser, the
Administrative Agent and each Lender Agent of any event or other circumstance that is reasonably likely to have a Material Adverse Effect. 

(vii) Seller Termination Events. The Seller will provide the Purchaser, the Administrative Agent and each Lender Agent
(with a copy to the Collateral Agent) with prompt written notice of the occurrence of each Seller Termination Event and each event which upon the passage of time would constitute a Seller Termination Event of which the Seller has knowledge or has
received notice. In addition, no later than two (2) Business Days following the Seller’s knowledge or notice of the occurrence of any Seller Termination Event or event which upon the passage of time would constitute a Seller Termination
Event, the Seller will provide to the Purchaser, the Administrative Agent and each Lender Agent a written statement of an Authorized Person of the Seller setting forth the details of such event and the action that the Seller proposes to take with
respect thereto. 
 (viii) Seller Purchase Events. The Seller will provide the Purchaser, the Administrative Agent and
each Lender Agent (with a copy to the Collateral Agent) with prompt written notice of the occurrence of each Seller Purchase Event of which the Seller has knowledge or has received notice. 

(j) Costs and Expenses. The Seller shall pay all expenses and costs (including salaries, rent and other overhead) incurred by it in
connection with its obligations under this Agreement. 
 (k) Annual Certificates. On each anniversary of the Closing Date, the Seller
shall deliver an Officer’s Certificate, in form and substance acceptable to the Administrative Agent and the Collateral Agent, providing (i) a certification, based upon a review and summary of UCC search results reasonably satisfactory to
the Purchaser and the Administrative Agent, that there is no other interest in the Sale Portfolio perfected by filing of a UCC financing statement other than in favor of the Purchaser and the Collateral Agent pursuant to the terms of the Transaction
Documents and (ii) a certification, based upon a review and summary of tax and judgment lien searches satisfactory to the Purchaser and the Administrative Agent, that there is no other interest in the Sale Portfolio based on any tax or judgment
lien. 

  
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 (l) Opinion. The Seller shall take all other actions reasonably necessary to maintain the
accuracy of the factual assumptions set forth in the legal opinions of Dechert LLP, as special counsel to the Seller, issued in connection with the Transaction Documents and relating to the issues of substantive consolidation of the Purchaser and
true sale of the Loans 
 (m) Withholding. If the provisions of Sections 1471 through 1474 of the Code or any regulations
promulgated thereunder become applicable to any payments to the Purchaser or the Seller made in respect of the Sale Portfolio, the Seller shall and shall cause the Purchaser to exercise its best efforts to avoid the imposition of any withholding tax
in respect of such payments under those provisions. 
 (n) Disregarded Entity. The Seller shall not, nor shall it permit the
Purchaser to, take any action that would cause the Purchaser to not be disregarded as an entity separate from its owner pursuant to Treasury Regulation Section 301.7701 3(b) and shall not permit either the Purchaser or any other Person on its
behalf to make an election to be treated as other than an entity disregarded as an entity separate from its owner under Treasury Regulation Section 301.7701 3(c). 

(o) Other. The Seller will furnish to the Purchaser, the Administrative Agent and each Lender Agent promptly, from time to time such
other information, documents, records or reports respecting the Sale Portfolio or the condition or operations, financial or otherwise, of the Seller as the Purchaser, the Administrative Agent and each Lender Agent may from time to time reasonably
request in order to protect the interests of the Purchaser, the Administrative Agent, the Collateral Agent, the Lenders, the Lender Agents or the Secured Parties under or as contemplated by this Agreement and the other Transaction Documents. 

Section 5.3 Negative Covenants of the Seller. 

From the date hereof until the Collection Date: 

(a) Security Interests. Except as otherwise permitted herein and in the Loan and Security Agreement, the Seller shall not transfer,
assign, convey, grant, bargain, sell, set over, deliver or otherwise dispose of, or pledge or hypothecate, directly or indirectly, any interest in the Sale Portfolio Sold by the Seller to the Purchaser hereunder, whether now existing or hereafter
transferred hereunder, or any interest, therein, and the Seller will not sell, pledge, assign or suffer to exist any Lien (except for Permitted Liens) on its interest in the Sale Portfolio Sold by the Seller to the Purchaser hereunder, other than
the Lien in favor of the Purchaser hereunder. The Seller will promptly notify the Purchaser, the Collateral Agent, each Lender Agent and the Administrative Agent of the existence of any Lien on any Sale Portfolio and the Seller shall defend the
right, title and interest of the Purchaser and the Collateral Agent, on behalf of the Secured Parties, in, to and under the Sale Portfolio against all claims of third parties; provided, that nothing in this Section 5.3(a) shall
prevent or be deemed to prohibit the Seller from suffering to exist Permitted Liens upon any of the Sale Portfolio. 
 (b) Mergers,
Acquisitions, Sales, Etc. The Seller will not consolidate with or merge into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person, or sell or assign with or without recourse any Sale
Portfolio or any interest therein (other than as permitted pursuant to this Agreement or the Collateral Management Agreement). 

  
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 (c) Restricted Payments. The Seller shall not cause or permit the Purchaser to make any
Purchaser Restricted Payment unless (i) no Event of Default, Facility Amortization Event, Unmatured Facility Amortization Event or Unmatured Event of Default (including, without limitation a Borrowing Base Deficiency) has occurred or would
result therefrom and (ii) such Restricted Payments are made with either (A) the proceeds of an Advance or (B) funds received by the Borrower pursuant to Section 2.04(a)(x) or Section 2.04(b)(vi) of the Loan and Security
Agreement. 
 (d) Accounting of Purchases. Other than for tax and consolidated accounting purposes, the Seller will not account for
or treat (whether in financial statements or otherwise) the transactions contemplated hereby in any manner other than as a sale of the Loans to the Purchaser. 

(e) ERISA Matters. The Seller will not (a) engage, and will exercise its best efforts not to permit any ERISA Affiliate to engage,
in any prohibited transaction (within the meaning of ERISA Section 406(a) or (b) or Code Section 4975) for which an exemption is not available or has not previously been obtained from the United States Department of Labor,
(b) fail to meet the minimum funding standard set forth in Section 302(a) of ERISA and Section 412(a) of the Code with respect to any Pension Plan other than a Multiemployer Plan, (c) fail to make any payments to a Multiemployer
Plan that the Seller or any ERISA Affiliate may be required to make under the agreement relating to such Multiemployer Plan or any law pertaining thereto, (d) terminate any Pension Plan so as to result, directly or indirectly, in any liability
to the Seller, or (e) permit to exist any occurrence of any Reportable Event. 
 (f) Extension or Amendment of Sale Portfolio.
The Seller will not, except as otherwise permitted in Section 5.02(k) of the Loan and Security Agreement, extend, amend or otherwise modify the terms of any Loan (including the related Underlying Collateral). 

(g) Limitation on Financing Activities. The Seller shall not, directly or indirectly, advance or loan to the Purchaser any funds
pursuant to any financial accommodation. For the avoidance of doubt, this clause (g) shall not prohibit the Seller from contributing Loans to the Purchaser as contemplated herein or providing cash equity contributions to the Purchaser. 

(h) Loans Not to be Evidenced by Instruments. The Seller shall take no action (and shall not cause Investment Manager to take any
action) to cause any Loan that is not, as of the related Purchase Date, evidenced by an Instrument, to be so evidenced except in connection with the enforcement or collection of such Loan or unless such Instrument is promptly delivered to the
Collateral Custodian, together with an Indorsement in blank, as collateral security for such Loan. 
 (i) Change of Name or Location of
Loan Files. The Seller shall not change its name, move the location of its principal place of business and chief executive office, change the offices where it keeps the records from the location referred to in Section 10.5, or change
the jurisdiction of its incorporation, unless the Seller has given at least 30 days’ prior written notice 

  
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to the Purchaser, the Collateral Custodian and the Administrative Agent and has taken all actions required under the UCC of each relevant jurisdiction in order to continue the first priority
perfected security interest of the Purchaser and the Administrative Agent, for the benefit of the Secured Parties, in the Transferred Assets. 

(j) Organizational Documents. The Seller will not cause or permit the Purchaser to amend, modify, waive or terminate any provision the
Purchaser’s limited liability agreement in a manner prohibited by the Loan and Security Agreement. 
 (k) Changes in Payment
Instructions to Obligors. The Seller shall not (and shall cause the Investment Manager to not) make any change in its instructions to the administrative agent under each Transferred Asset or the applicable Obligors thereof if no administrative
agent exists, regarding payments to be made with respect to the Transferred Assets to any Collection Account, unless the Administrative Agent has consented to such addition, termination or change (which consent shall not be unreasonably withheld).

 ARTICLE VI. 
 REPURCHASES AND
SUBSTITUTION BY THE SELLER 
 Section 6.1 Repurchase of Loans. In the event of the occurrence of a Seller Purchase Event, the
Seller will within twelve (12) Business Days following the earlier of knowledge by the Seller of such Seller Purchase Event or receipt by the Seller of written notice thereof (from any Person), (i) purchase each Loan hereunder which is
affected by or related to such Seller Purchase Event from the Purchaser, and the Seller shall pay to the Purchaser (by means of a deposit to the Collection Account) the Repurchase Price of such Loan as of the date of the purchase thereof from the
Purchaser or (ii) with the prior written consent of the Administrative Agent, in its sole discretion, and subject to the satisfaction of the conditions in Section 6.2, substitute for such Loan, a Substitute Eligible Loan. It is
understood and agreed that the obligation of the Seller to purchase the Loans or substitute a Substitute Eligible Loan for the Loans which are affected by or related to such Seller Purchase Event is not intended to, and shall not, constitute a
guaranty of the collectability or payment of any Loan which is not collected, not paid or uncollectible on account of the insolvency, bankruptcy or financial inability to pay of the related Obligor. Upon deposit in the Collection Account of the
Repurchase Price for any Loan purchased by the Seller, the Purchaser shall, automatically and without further action be deemed to transfer, assign and set over to the Seller, without recourse, representation or warranty of any kind, except as to the
absence of Liens, charges or encumbrances created by or arising solely as a result of actions of the Purchaser or the Collateral Agent, all the right, title and interest of the Purchaser, in, to and under such Loan and all future monies due or to
become due with respect thereto, the Underlying Collateral, all Proceeds of such Loan and Recoveries and Insurance Proceeds relating thereto, all rights to security for such Loan and all Proceeds and products of the foregoing. The Purchaser shall
(and shall request the Collateral Agent to), at the sole expense of the Seller, execute such documents and instruments of transfer as may be prepared by the Seller and take such other actions as may be reasonably requested by the Seller in order to
effect the transfer of such Loan pursuant to this Section 6.1. Such Sale shall be a sale outright, and not for security. 

  
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 Section 6.2 Substitution of Loans. 

(a) The Seller shall have the right, but not the obligation, subject to the prior written consent of the Administrative Agent and the
Purchaser, in their sole discretion, to substitute one or more Eligible Loans (“Substitute Eligible Loan”) for a Loan (each such act, a “Substitution”). 

(b) The Substitution shall not occur unless the following conditions are satisfied as of the date of such Substitution: 

(i) the Seller has recommended to the Purchaser and the Administrative Agent (with a copy to the Collateral Agent and the
Collateral Custodian) in writing that the Loan to be replaced should be replaced (each, a “Replaced Loan”); 

(ii) no event has occurred, or would result from such Substitution, which constitutes a Seller Termination Event and no event
has occurred and is continuing, or would result from such Substitution, which upon the passage of time would constitute a Seller Termination Event or a Borrowing Base Deficiency; 

(iii) each Substitute Eligible Loan is an Eligible Loan on the date of Substitution; 

(iv) solely in the case of Substitutions pursuant to this Section 6.2 undertaken because a Seller Purchase Event
has occurred, the sum of the Adjusted Borrowing Value of such Substitute Eligible Loans shall be equal to or greater than the sum of the Adjusted Borrowing Value of the Replaced Loans; 

(v) all representations and warranties contained in Sections 4.1 and 4.2 shall be true and correct in
all respects as of the date of Substitution (other than any representation and warranty that is made as of a specific date); 

(vi) no selection procedures which are intended to be adverse to the interests of the Purchaser, the Administrative Agent, the
Lenders, the Lender Agents, the Collateral Agent or the other Secured Parties were utilized by the Seller in the selection of the Loan to be replaced by the Substitute Eligible Loan; 

(vii) the aggregate Outstanding Balance of all Loans subject to a Value Adjustment Event described in clauses (a), (b) or
(h) of the definition thereof which are included in a Lien Release Dividend or sold by the Purchaser to the Seller in connection with a Substitution or a Discretionary Sale, in each case during the 12-month period immediately preceding the
proposed Lien Release Dividend, Substitution or Discretionary Sale, shall not exceed 10% of the highest aggregate Outstanding Balance of the Collateral Portfolio during any month of such 12-month period; 

(viii) each Loan that is replaced pursuant to the terms of this Section 6.2 shall be substituted only with another
Eligible Loan that meets the foregoing conditions; 

  
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 (ix) the Seller shall have given one (1) Business Day notice of such
Substitution; 
 (x) all terms, provisions, representations, warranties and covenants hereunder with respect to Loans that
have been Sold by the Seller to the Purchaser hereunder shall apply equally to Substitute Eligible Loans; and 
 (xi) the
Seller shall deliver to the Purchaser on the date of such Substitution a certificate of a Responsible Officer certifying that each of the foregoing is true and correct as of such date. 

(c) In addition, in connection with such Substitution, the Seller shall deliver or cause to be delivered to the Collateral Custodian the
related Required Loan Documents. On the date any such Substitution is completed, the Purchaser shall, automatically and without further action, release and shall transfer to the Seller, free and clear of any Lien created pursuant to this Agreement,
all of the right, title and interest of the Purchaser in, to and under such Replaced Loan, and the Purchaser shall be deemed to represent and warrant that it has the company authority and has taken all necessary company action to accomplish such
transfer, but without any other representation and warranty, express or implied. 
 ARTICLE VII. 

ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF THE SALE PORTFOLIO 

Section 7.1 Rights of the Purchaser. 

(a) After the occurrence or declaration of the Facility Maturity Date, if the Collection Date has not yet occurred, the Seller hereby
authorizes the Purchaser, the Collateral Manager, the Collateral Agent and the Administrative Agent and/or their respective designees or assignees to take any and all steps in Seller’s name and on behalf of the Seller that the Purchaser, the
Collateral Manager, the Collateral Agent or the Administrative Agent and/or their respective designees or assignees determine are necessary or appropriate to collect all amounts due under any and all Sale Portfolio and to enforce or protect the
Purchaser’s, the Collateral Agent’s and the Administrative Agent’s rights under this Agreement, including endorsing the name of the Seller on checks and other instruments representing Interest Collections and Principal Collections and
enforcing such Sale Portfolio. 
 (b) Except as set forth in Sections 6.1 and 6.2 with respect to the repurchase or
Substitution of certain Loans, the Purchaser shall have no obligation to account for, replace, substitute or return any Sale Portfolio to the Seller. The Purchaser shall have no obligation to account for or to return Interest Collections or
Principal Collections, or any interest or other finance charge collected pursuant thereto, to the Seller, irrespective of whether such Interest Collections and Principal Collections and charges are in excess of the Purchase Price for such Sale
Portfolio. 

  
 31 

 (c) The Purchaser shall have the right to further assign, transfer, deliver, hypothecate,
subdivide or otherwise deal with the Sale Portfolio and all of the Purchaser’s right, title and interest in, to and under this Agreement, pursuant to the Loan and Security Agreement. 

(d) The Purchaser shall have the sole right to retain any gains or profits created by buying, selling or holding the Sale Portfolio and shall
have the sole risk of and responsibility for losses or damages created by such buying, selling or holding. 
 Section 7.2 Rights
With Respect to Loan Files. 
 At any time after the occurrence of a Facility Amortization Event, the Seller shall, at the
Purchaser’s, the Collateral Agent’s, the Collateral Custodian’s or the Administrative Agent’s request, assemble all of the Loan Files which evidence the Sale Portfolio originated by the Seller, or which are otherwise necessary or
desirable to collect such Sale Portfolio, and make the same available to the Purchaser, the Collateral Agent, the Collateral Custodian or the Administrative Agent at a place selected by the Purchaser, the Collateral Agent, the Collateral Custodian,
the Administrative Agent or their designee. 
 Section 7.3 Notice to Collateral Agent, Administrative Agent and each Lender
Agent. 
 The Seller agrees that, concurrently with its delivery to the Purchaser, copies of all notices, reports, documents and other
information required to be delivered by the Seller to the Purchaser hereunder shall be delivered by the Seller to the Collateral Agent, the Administrative Agent and each Lender Agent. 

ARTICLE VIII. 
 SELLER TERMINATION
EVENTS 
 Section 8.1 Seller Termination Events. 

(a) If any of the following events (each a “Seller Termination Event”) shall have occurred: 

(i) the Seller shall fail to pay (A) any amount due pursuant to Section 6.1 in accordance with the provisions
thereof or (B) any other amount required to be paid by the Seller hereunder within two (2) Business Days of the date when due; or 

(ii) the Seller shall fail to observe or perform the covenants set forth in Sections 5.1(c), 5.2(a),
5.2(b) or 5.3 and such failure shall continue unremedied for a period of 10 Business Days (if such failure can be remedied) after the earlier to occur of (i) the date on which written notice of such failure requiring the same to
be remedied shall have been given to the Seller by the Administrative Agent, the Collateral Agent (at the direction of the Administrative Agent) or the Purchaser and (ii) the date on which the Seller acquires knowledge thereof; or 

  
 32 

 (iii) the Seller shall fail to observe or perform any covenant or agreement in
any material respect applicable to it contained herein (other than as specified in paragraph (i) and (ii) of this Section 8.1); and such failure shall continue unremedied for a period of 30 days (if such
failure can be remedied) after the earlier to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Seller by the Administrative Agent, the Collateral Agent (at the
direction of the Administrative Agent) or the Purchaser and (ii) the date on which the Seller acquires knowledge thereof; or 

(iv) any representation, warranty or certification made by the Seller in this Agreement or in any statement, record,
certificate, financial statement or other document delivered pursuant to this Agreement shall prove to have been incorrect when made or deemed made in any material respect and shall not have been corrected within 30 days after the earlier to
occur of (i) the date on which written notice of such incorrectness requiring the same to be remedied shall have been given to the Seller by the Administrative Agent, the Collateral Agent (at the direction of the Administrative Agent) or the
Purchaser and (ii) the date on which an Authorized Person of the Seller acquires knowledge thereof; provided that a Seller Termination Event shall not be deemed to have occurred under this paragraph (iii) based upon a Seller
Purchase Event if the Seller shall have complied with the provisions of Section 6.1 in respect thereof; or 
 (v)
(A) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Seller in an involuntary case under the Bankruptcy Code or any other Bankruptcy Laws, which decree or order is not stayed or any other
similar relief shall be granted under any applicable federal or state law now or hereafter in effect and shall not be stayed; (B) (1) any involuntary case is commenced against the Seller under any Bankruptcy Law now or hereafter in effect,
a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Seller, or over all or a substantial part of the
property of the Seller, shall have been entered, an interim receiver, trustee or other custodian of the Seller for all or a substantial part of the property of the Seller is involuntarily appointed, a warrant of attachment, execution or similar
process is issued against any substantial part of the property of the Seller, and (2) any event referred to in clause (B)(1) above continues for 60 days unless dismissed, bonded or disclosed; (C) the Seller shall at its
request have a decree or an order for relief entered with respect to it or commence a voluntary case under any Bankruptcy Law now or hereafter in effect, or shall consent to the entry of a decree or an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such Bankruptcy Law, consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; (D) the making
by the Seller of any general assignment for the benefit of creditors; (E) the inability or failure of the Seller generally to pay its debts as such debts become due; or (F) the board of directors of the Seller authorizes action to approve
any of the foregoing; or 

  
 33 

 (vi) the occurrence of (A) an Event of Default set forth in
Section 7.01 of the Loan and Security Agreement (past any applicable notice or cure period provided in the definition thereof) or (B) the Facility Maturity Date; or 

(vii) the Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the Code with regard to any
assets of the Seller and such lien shall not have been released within five (5) Business Days, or the Pension Benefit Guaranty Corporation shall file notice of a lien pursuant to Section 4068 of ERISA with regard to any of the assets of
the Seller and such lien shall not have been released within five (5) Business Days; 
 then, (A) in the case of any Seller Termination Event
described in paragraph (iv), (v)(A) or (vi) above, the ability of the Seller to Sell Sale Portfolio shall thereupon automatically terminate without further notice of any kind, which is hereby waived by the Seller,
(B) in the case of any Seller Termination Event described in paragraph (v)(B) above, the ability of the Seller to Sell Sale Portfolio shall thereupon terminate without notice of any kind, which is hereby waived by the Seller unless
both the Purchaser and the Seller agree in writing that such event shall not trigger an Early Termination (as hereinafter defined) hereunder, and (C) in the case of any other Seller Termination Event, so long as such Seller Termination Event
shall be continuing, the Purchaser or the Administrative Agent may terminate the Purchaser’s ability to Purchase Sale Portfolio from the Seller by written notice to the Seller (any termination pursuant to clause (A),
(B) or (C) of this Article VIII is herein called an “Early Termination”); provided, that, in the event of any involuntary petition or proceeding as described in
paragraphs (iv)(A) and (iv)(B) above, the Purchaser shall not Purchase Sale Portfolio from the Seller unless such involuntary petition or proceeding is dismissed, bonded or discharged within 60 days of the filing of such
petition or the commencement of such proceeding. 
 Section 8.2 Survival of Certain Provisions. 

Notwithstanding any provision contained herein to the contrary, the Seller’s and the Purchaser’s representations, covenants and
obligations set forth in Articles IV, V, VI, and VII, as applicable, create and constitute the continuing obligation of the parties hereto in accordance with its terms, and shall remain in full force and effect
until the Collection Date; provided, that the rights and remedies with respect to any breach of any representation and warranty made or deemed made by the Seller pursuant to Articles III and IV and the provisions of
Sections 6.1 and 6.2, the rights and obligations under Article VII, the indemnification provisions of Article IX and the provisions of Sections 5.1, 10.2, 10.8, 10.9,
10.10, 10.12, 10.13, 10.14 and 10.17 shall be continuing and shall survive any termination of this Agreement. 

ARTICLE IX. 
 INDEMNIFICATION 

Section 9.1 Indemnification by the Seller. 

(a) Without limiting any other rights which the Purchaser, any assignee of the Purchaser or any such Persons’ members, managers,
officers, agents and employees (each, an 

  
 34 

 
“Indemnified Party”) may have hereunder or under Applicable Law, the Seller hereby agrees to indemnify any Indemnified Party from any and all expenses, losses, damages,
liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are awarded against or actually incurred by such Indemnified Party arising out of or as a result of this Agreement or in
respect of any of the Sale Portfolio (all of the foregoing, being collectively referred to as “Indemnified Amounts”), excluding, however, Indemnified Amounts to the extent resulting solely from (x) gross negligence or willful
misconduct on the part of an Indemnified Party or (y) Loans which are uncollectable due to the Obligor’s financial inability to pay. 

(b) Any amounts subject to the indemnification provisions of this Section 9.1 payable by the Seller to the Purchaser shall be paid
as Principal Collections within four (4) Business Days of the Purchaser’s written demand therefor (and the Purchaser shall immediately deposit, or cause to be deposited, such amounts into the Collections Account). 

(c) If the Seller has made any payments pursuant to this Section 9.1 and the applicable Indemnified Party thereafter collects any
of such amounts from others, such indemnified party will promptly repay such amounts collected to the Seller in an amount equal to the amount it has collected from others in respect of such indemnified amounts, without interest. 

(d) Notwithstanding anything to the contrary in this Section 9.1, to the maximum extent permitted by applicable law, to the extent
that the Purchaser is entitled to make any claim pursuant to Section 9.1(a), the Purchaser hereby agrees to forebear from making any such claim until such time that (i) the Purchaser no longer owns (x) any assets of the type
included in clauses (a), (b) and (e) of the definition of “Collateral Portfolio” or (y) any Permitted Investments and (ii) the Purchaser owes any accrued and unpaid Obligations pursuant to Section 8.01 of the Loan
and Security Agreement. The operation of this Section 9.1(d) shall not be construed as a waiver by the Purchaser of any claim pursuant to Section 9.1(a) and any rights that shall accrue to the Purchaser thereunder shall toll
until the satisfaction of the conditions set forth in the preceding sentence. 
 (e) The obligations of the Seller under this
Section 9.1 shall survive the termination of this Agreement. 
 (f) Notwithstanding anything to the contrary herein, the Seller
shall have no liability for any indirect, consequential or punitive damages. 
 Section 9.2 Assignment of Indemnities. 

The Seller acknowledges that, pursuant to the Loan and Security Agreement, the Purchaser assigns its rights of indemnity hereunder as
collateral security to the Collateral Agent, on behalf of the Secured Parties. Upon the permitted exercise of remedies pursuant to the relevant security documentation governing the collateral assignment, (a) the Collateral Agent, on behalf of
the Secured Parties, shall have all rights of the Purchaser hereunder and may in turn assign such rights, (b) the obligations of the Seller under this Article IX shall inure to the Collateral Agent, on behalf of the Secured Parties,
and (c) the Collateral Agent, on behalf of the Secured Parties, may enforce directly, without joinder of the Purchaser, the indemnities set forth in this Article IX. 

  
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 ARTICLE X. 

MISCELLANEOUS 
 Section 10.1
Liability of the Seller. The Seller shall be liable in accordance herewith only to the extent of the obligations in this Agreement specifically undertaken by the Seller and with respect to its representations and warranties expressly set
forth hereunder. Notwithstanding anything herein to the contrary, each party hereto acknowledges that the Seller does not, pursuant to this Agreement, guarantee the payment obligations of the Purchaser. 

Section 10.2 Limitation on Liability. Except with respect to any claim arising solely out of the willful misconduct or gross
negligence of the Lenders, the Lender Agents, the Collateral Agent, the Collateral Custodian, the Administrative Agent or any other Secured Party, no claim may be made by the Seller against the Lenders, the Lender Agents, the Collateral Agent, the
Collateral Custodian, the Administrative Agent or any other Secured Party or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for
breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and the Seller hereby waives, releases and agrees not
to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 

Section 10.3 Amendments; Limited Agency. Except as provided in this Section 10.3, no amendment, waiver or other
modification of any provision of this Agreement shall be effective unless signed by the Purchaser and the Seller and consented to in writing by the Administrative Agent, the Collateral Agent and the Required Lenders. The Purchaser shall provide not
less than five (5) Business Days’ prior written notice of any such amendment to the Administrative Agent, the Collateral Agent, each Lender and each Lender Agent. 

Section 10.4 Waivers; Cumulative Remedies. No failure or delay on the part of the Purchaser (or any assignee thereof) or the
Seller, in exercising any power, right, privilege or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right, privilege or remedy preclude any other or future exercise thereof
or the exercise of any other power, right, privilege or remedy. The powers, rights, privileges and remedies herein provided are cumulative and not exhaustive of any powers, rights, privileges and remedies provided by law. Any waiver of this
Agreement shall be effective only in the specific instance and for the specific purpose for which it is given. 
 Section 10.5
Notices. All demands, notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which shall include facsimile communication and communication by e-mail in portable
document format (.pdf)) and faxed, e-mailed or delivered, to each party hereto, at its address set forth on Annex A to the Loan and Security Agreement or at such other address as shall be designated by
such party in a written notice to the other parties hereto. All such notices and communications shall be effective upon 

  
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receipt, or in the case of (a) notice by mail, five days after being deposited in the United States mail, first class postage prepaid, (b) notice by
e-mail, when verbal or electronic communication of receipt is obtained, or (c) notice by facsimile copy, when verbal communication of receipt is obtained. 

Section 10.6 Merger and Integration. Except as specifically stated otherwise herein, this Agreement, the Loan and Security
Agreement and the other Transaction Documents set forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement, the Loan and Security Agreement
and the Transaction Documents. This Agreement may not be modified, amended, waived or supplemented except as provided herein. 

Section 10.7 Severability of Provisions. If any one or more of the covenants, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, provisions or terms shall be deemed severable from the remaining covenants, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement. 
 Section 10.8 GOVERNING LAW; JURY WAIVER. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREUNDER. 

Section 10.9 Consent to Jurisdiction; Service of Process. 

(a) Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any
New York State or Federal court sitting in New York City in any action or proceeding arising out of or relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum
to the maintenance of such action or proceeding. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law. 
 (b) Each of the Seller and the Purchaser agrees that service of process may be effected by mailing a copy thereof by registered
or certified mail, postage prepaid, to the Seller or the Purchaser, as applicable, at its address specified in Section 10.5. Nothing in this Section 10.9 shall affect the right of the Seller or the Purchaser to serve legal
process in any other manner permitted by law. 

  
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 Section 10.10 Costs, Expenses and Taxes. 

(a) In addition to the rights of indemnification granted to the Purchaser and its Affiliates and officers, directors, employees and agents
thereof under Article IX hereof, the Seller agrees to pay on demand all out-of-pocket costs and expenses of the Purchaser or its assignees incurred in
connection with the preparation, execution, delivery, enforcement, administration (including periodic auditing), renewal, amendment or modification of, any waiver or consent issued in connection with, this Agreement and the other documents to be
delivered hereunder or in connection herewith, including, without limitation, the fees and out–of–pocket expenses of counsel with respect thereto and with respect to advising the Purchaser or its assignees as to its rights and remedies
under this Agreement and the other documents to be delivered hereunder or in connection herewith, and all out-of-pocket costs and expenses, if any (including counsel
fees and expenses), incurred by the Purchaser or its assignees in connection with the enforcement of this Agreement and the other documents to be delivered hereunder or in connection herewith. 

(b) The Seller shall pay on demand any and all stamp, sales, excise and other Taxes and fees payable or determined to be payable to any
Governmental Authority in connection with the execution, delivery, filing and recording of this Agreement and the other documents to be delivered hereunder. 

(c) The Seller shall pay on demand all other out-of-pocket
costs, expenses and Taxes (excluding Taxes imposed on or measured by net income) incurred by the Purchaser or its assignees in connection with the execution, delivery, filing and recording of this Agreement and the other documents to be delivered
hereunder, including, without limitation, all costs and expenses incurred by the Purchaser or its assignees in connection with periodic audits of the Seller’s books and records. 

Section 10.11 Counterparts. For the purpose of facilitating the execution of this Agreement and for other purposes, this Agreement
may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and all of which counterparts shall constitute but one and the same instrument. Delivery of an executed counterpart of a
signature page to this Agreement by facsimile or e-mail in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. 

Section 10.12 Bankruptcy Non-Petition and Limited Recourse; Claims. The Seller hereby
agrees that it will not institute against, or join any other Person in instituting against, the Purchaser any Bankruptcy Proceeding so long as there shall not have elapsed one year and one day (or such longer preference period as shall then be in
effect) since the Collection Date. The Seller hereby acknowledges that (i) the Purchaser has no assets other than the Sale Portfolio, (ii) the Purchaser shall, immediately upon Purchase hereunder, grant a security interest in the Sale
Portfolio to the Collateral Agent, on behalf of the Secured Parties, pursuant to the Loan and Security Agreement, and (iii) Available Collections generated by the Sale Portfolio will be applied to payment of the Purchaser’s obligations
under the Loan and Security Agreement. In addition, the Seller shall have no recourse for any amounts payable or any other obligations arising under this Agreement against any officer, member, director, employee, partner, Affiliate or security
holder of the Purchaser or any of its successors or assigns. 

  
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 Section 10.13 Binding Effect; Assignability. 

(a) This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 (b) Notwithstanding anything to the contrary contained herein, this Agreement may not be assigned by the Purchaser or the Seller except
as permitted by this Section 10.13 or the Loan and Security Agreement. Simultaneously with the execution and delivery of this Agreement, the Purchaser will assign all of its right, title and interest in this Agreement to the Collateral
Agent, for the benefit of the Secured Parties, to which assignment the Seller hereby expressly consents. Upon assignment, the Seller agrees to perform its obligations hereunder for the benefit of the Collateral Agent, for the benefit of the Secured
Parties, under the Loan and Security Agreement and the Collateral Agent, in such capacity, shall be a third party beneficiary hereof. Upon such assignment, the Collateral Agent, for the benefit of the Secured Parties, under the Loan and Security
Agreement may enforce the provisions of this Agreement, exercise the rights of the Purchaser and enforce the obligations of the Seller hereunder without joinder of the Purchaser. 

(c) The Seller hereby acknowledges that the Administrative Agent is the beneficiary of a collateral assignment of this Agreement pursuant to
Section 2.11 of the Loan and Security Agreement and the Administrative Agent and each other Indemnified Party shall be express third party beneficiaries of the Purchaser’s rights hereunder, including but not limited to the Purchaser’s
right to indemnification set forth in Section 9.1, subject, in each case, to each of the limitations, restrictions and conditions set forth in Section 2.11 of the Loan and Security Agreement with respect to the collateral assignment
of this Agreement; provided that, such collateral assignment and such third party beneficiary rights shall automatically terminate upon the irrevocable payment in full of the Obligations (other than contingent indemnity obligations as to which no
claim has been made) and the termination of the Commitments in full. 
 Section 10.14 Waiver of Setoff. 

(a) The Seller’s obligations under this Agreement shall not be affected by any right of setoff, counterclaim, recoupment, defense or
other right the Seller might have against the Purchaser, the Administrative Agent, the Lenders, the Lender Agents, the Collateral Agent, the Collateral Custodian, the other Secured Parties or any assignee of such Persons, all of which rights are
hereby waived by the Seller. 
 (b) The Purchaser shall have the right to set–off against the Seller any amounts to which the Seller
may be entitled hereunder and to apply such amounts to any claims the Purchaser may have against the Seller from time to time under this Agreement. Upon any such set–off, the Purchaser shall give notice of the amount thereof and the reasons
therefor to the Seller. 
 Section 10.15 Headings and Exhibits. The headings herein are for purposes of references only and
shall not otherwise affect the meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and referred to herein shall constitute a part of this Agreement and are incorporated into this Agreement for all purposes.

  
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 Section 10.16 Rights of Inspection. The Purchaser, the Administrative Agent, each
Lender Agent and their respective representatives and assigns may conduct at any reasonable time, with reasonable notice, and from time to time, and the Seller will fully cooperate with, a reasonable number of field examinations and audits of the
inventory, the Loans and business affairs of the Seller each calendar year; provided that, prior to the occurrence of a Seller Termination Event or event that upon the passage of time would constitute a Seller Termination Event, the Seller
shall be obligated to pay for only two (2) such audits per annum. The Purchaser and its representatives and successors and assigns acknowledge that in exercising the rights and privileges conferred in this Section 10.16, it
or its representatives or assigns may, from time to time, obtain knowledge of information, practices, books, correspondence and records of a confidential nature and in which the Seller has a proprietary interest. The Purchaser and its
representatives and successors and assigns each agree that (i) it shall retain in strict confidence and shall use its reasonable efforts to ensure that its representatives retain in strict confidence and will not disclose without the prior
written consent of the Seller any or all of such information, practices, books, correspondence and records furnished to them and (ii) that it will not, and will use its reasonable efforts to ensure that its representatives and assigns will not,
make any use whatsoever (other than for the purposes contemplated by this Agreement) of any of such information, practices, books, correspondence and records without the prior written consent of the Seller, unless such information is generally
available to the public or is required by law to be disclosed. 
 Section 10.17 Subordination. After giving effect to any
payment relating to any indebtedness, obligation or claim the Seller may from time to time hold or otherwise have against the Purchaser or any assets or properties of the Purchaser, whether arising hereunder or otherwise existing, the Borrowing Base
at such time must exceed the Obligations owed by the Purchaser to the Secured Parties under the Loan and Security Agreement. The Seller hereby agrees that at any time during which the condition set forth in the preceding sentence shall not be
satisfied, the Seller shall be subordinate in right of payment to the prior payment of any indebtedness or obligation of the Purchaser owing to each Lender, each Lender Agent, the Collateral Agent, the Collateral Custodian, the Administrative Agent
or any other Secured Party under the Loan and Security Agreement. 
 Section 10.18 Confidentiality. Each of the parties hereto
hereby agrees with the confidentiality provisions set forth in Sections 12.13 and 12.14 of the Loan and Security Agreement. 

[Signature Pages Follow] 

  
 40 

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

					
	CHESTNUT HILL FUNDING LLC, as the Purchaser
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name:	 	Gerald F. Stahlecker
		 	Title:	 	Executive Vice President

 
					
	FS INVESTMENT CORPORATION III, as the Seller
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name:	 	Gerald F. Stahlecker
		 	Title:	 	Executive Vice President

 SCHEDULE I 

SALE PORTFOLIO LIST 

None.EX-10.39

 Exhibit 10.39 

EXECUTION COPY 
  

 
 CHESTNUT HILL FUNDING LLC 

as Company 
 and 

FS INVESTMENT CORPORATION III 
 as
Collateral Manager 
 COLLATERAL MANAGEMENT AGREEMENT 

Dated as of August 13, 2015 
  

 

 COLLATERAL MANAGEMENT AGREEMENT, dated as of August 13, 2015 (this
“Agreement”), between CHESTNUT HILL FUNDING LLC, a Delaware limited liability company (the “Company”), and FS INVESTMENT CORPORATION III, a Maryland corporation, as collateral manager (in such capacity, the
“Collateral Manager”). 
 WHEREAS, the Company desires to engage the Collateral Manager to provide the services described
herein, and the Collateral Manager desires to provide such services; and 
 WHEREAS, capitalized terms used herein that are not otherwise
defined herein shall have the respective meanings ascribed thereto in the Loan and Security Agreement dated as of the date hereof (together with any agreements referred to therein, the “LSA”), between the Company, the lenders from
time to time party thereto and CAPITAL ONE, NATIONAL ASSOCIATION, as administrative agent (including any successor agent under the LSA, the “Administrative Agent”), hedge counterparty, lead arranger and sole bookrunner, and WELLS
FARGO BANK, NATIONAL ASSOCIATION, as collateral agent, account bank and collateral custodian. 
 NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein, the parties hereto hereby agree as follows: 
  

	 	1.	Management Services. 

 (a) The Company hereby appoints FS Investment
Corporation III as Collateral Manager pursuant to the terms and conditions of this Agreement and with the authority to service, administer and exercise rights and remedies, on behalf of the Company, in respect of the Collateral Portfolio. FS
Investment Corporation III hereby accepts such appointment and agrees to perform the duties and responsibilities of the Collateral Manager pursuant to the terms hereof. The Collateral Manager and the Company hereby acknowledge that the
Administrative Agent and the Secured Parties are third party beneficiaries of the obligations undertaken by the Collateral Manager hereunder. 

(b) The Collateral Manager will provide the Company with the following services (in accordance with and subject to the
applicable requirements of, and the restrictions and limitations set forth in, the Transaction Documents and the LLC Agreement and subject to and consistent with the Collateral Management Standard): 

(i) determining the specific Loans or other assets to be purchased or sold by the Company, taking into consideration the
payment obligations of the Company on each Payment Date under the LSA in so doing, such that expected distributions on the Loans and other assets of the Company permit a timely performance of the payment obligations by the Company under the LSA;

 (ii) effecting the purchase and sale of Loans and all other assets of the Company in accordance with the LSA; 

(iii) subject to the limitations set forth in the LSA, negotiating with Obligors as to proposed amendments and modifications
(including, but not limited to, extensions or releases of collateral) of the documentation evidencing and governing the Loans; 

 (iv) making determinations with respect to the Company’s exercise
(including, but not limited to, any waiver, modification or variation of any provision of an item of Collateral Portfolio unless such waiver, modification or variation would materially impair the collectability of the Collateral Portfolio) of any
rights (including, but not limited to, voting rights and rights arising in connection with the bankruptcy or insolvency of an Obligor or the consensual or non-judicial restructuring of the debt or equity of an Obligor) or remedies in connection with
the Loans and participating in the committees (official or otherwise) or other groups formed by creditors of an Obligor; 

(v) monitoring the Loans and the rest of the Collateral Portfolio on an ongoing basis and providing to the Administrative
Agent and the Company or to any other Person designated by the Company all information and data which is generated by, or reasonably accessible to, the Collateral Manager and which is required under the LSA or requested by the Company in connection
with the preparation of all reports, certificates, schedules and other data which the Company is required to prepare and deliver under the LSA, in the form and containing all information required by the LSA, in sufficient time for the Company, or
the Person designated by the Company (including, but not limited to, the Collateral Custodian), to review such data and prepare and deliver to the parties entitled thereto all such reports, certificates, schedules and other data required by the LSA;
and 
 (vi) maintaining or causing to be maintained all necessary servicing records with respect to the Collateral Portfolio
and maintaining and implementing administrative and operating procedures (including, without limitation, an ability to recreate servicing records evidencing the Collateral Portfolio in the event of the destruction of the originals thereof) and
keeping and maintaining all documents, books, records and other information reasonably necessary or advisable for the collection of the Collateral Portfolio. 

(c) The Company agrees for the benefit of the Collateral Manager and the Administrative Agent to follow the lawful instructions
and directions of the Collateral Manager in connection with the Collateral Manager’s services hereunder. 
 (d) If
(i) the Collateral Manager makes a deposit into the Collection Account in respect of an Interest Collection or Principal Collection of a Loan and such Interest Collection or Principal Collection was received by it in the form of a check that is
not honored for any reason or (ii) the Collateral Manager makes a mistake with respect to the amount of any Interest Collection or Principal Collection and deposits an amount that is less than or more than the actual amount of such Interest
Collection or Principal Collection, it shall appropriately adjust the amount subsequently deposited into the Collection Account to reflect such dishonored check or mistake. Any Scheduled Payment in respect of which a dishonored check is received
shall be deemed not to have been paid. 

  
 2 

 (e) The Collateral Manager may, in its discretion and consistent with the
Collateral Management Standard and the applicable Underlying Instrument, foreclose upon or repossess, as applicable, or otherwise comparably convert the ownership of any Underlying Collateral relating to a defaulted Loan as to which no satisfactory
arrangements can be made for collection of delinquent payments; provided that the Company will promptly reimburse the Collateral Manager for any reasonable costs and expenses incurred in connection with the foregoing. The Collateral
Manager will comply with the Collateral Management Standard and Applicable Law in realizing upon such Underlying Collateral, and employ practices and procedures including reasonable efforts consistent with the Collateral Management Standard to
enforce all obligations of Obligors foreclosing upon, repossessing and causing the sale of such Underlying Collateral at public or private sale in circumstances other than those described in the preceding sentence. Without limiting the generality of
the foregoing, unless the Administrative Agent has specifically given instruction to the contrary, the Collateral Manager may cause the sale of any such Underlying Collateral to itself or its Affiliates for a purchase price equal to the then fair
value thereof, any such sale to be evidenced by a certificate of an Authorized Person of the Collateral Manager delivered to the Administrative Agent setting forth the Loan, the Underlying Collateral, the sale price of the Underlying Collateral and
certifying that such sale price is the fair value of such Underlying Collateral. In any case in which any such Underlying Collateral has suffered damage, the Collateral Manager will not expend funds in connection with any repair or toward the
foreclosure or repossession of such Underlying Collateral unless it reasonably determines that such repair and/or foreclosure or repossession will increase the Recoveries by an amount greater than the amount of such expenses. The Collateral Manager
will remit to the Collection Account the Recoveries received in connection with the sale or disposition of Underlying Collateral relating to a defaulted Loan. 

(f) The Collateral Manager shall (i) engage the Collateral Advisor and the Collateral Sub-Advisor to perform duties and
responsibilities as set forth in the Advisory Agreements, (ii) ensure that the Collateral Advisor and the Collateral Sub-Advisor have the authority to service, administer and exercise rights and remedies, on behalf of the Company, in respect of
the Collateral Portfolio and (iii) use its best efforts to cause each other Borrower Advisor to render services under the Advisory Agreements in accordance with the Collateral Management Standard. 

(g) The Collateral Manager shall comply with all of the terms and conditions of and perform all the duties and functions that
have been specifically delegated to it under this Agreement. The Company agrees that it will promptly provide a copy of each amendment to the LSA to the Collateral Manager and will not permit any amendment to the LSA that adversely affects in any
material respects the duties or liabilities of the Collateral Manager to become effective unless the Collateral Manager has been given prior written notice of such amendment and consented thereto in writing. The Collateral Manager shall cause any
purchase or sale of any Loans or other assets of the Company to be conducted on an arm’s length basis or on terms that would be obtained in an arm’s length transaction in compliance with Section 2 and Section 8. 

  
 3 

 (h) To the extent necessary or appropriate to perform all of the duties to be
performed by it hereunder, the Collateral Manager shall have the power to negotiate, execute and deliver all necessary documents and instruments on behalf of the Company with respect to any Loan or other asset of the Company. 

(i) Notwithstanding anything to the contrary herein, the Collateral Manager shall only be permitted to take actions hereunder
with respect to any asset of the Company permitted by this Agreement or to the extent that the Company is expressly permitted to take such actions under the LSA. 

(j) In addition to, and without limiting, the duties set forth in this Section 1, the Collateral Manager acknowledges that
the Company is required to cause it to deliver the items specified in the following sections of the LSA: Section 6.07, Section 6.08 and Section 6.09, and the Collateral Manager acknowledges that it has read and understood the
requirements of the foregoing sections and hereby agrees to deliver those specified items subject to and in accordance with the terms of such sections and this Agreement; provided that, if any such item allows the Collateral Manager to
exercise discretion with respect to the content thereof, such discretion shall be subject to the Collateral Management Standard. For the avoidance of doubt, no calculation required under the above referenced sections (including, without limitation,
a calculation of the Borrowing Base) is a discretionary act of the Collateral Manager. 
 (k) In addition to, and without
limiting, the duties set forth in this Section 1, the Collateral Manager acknowledges that the Company is authorized or required to cause it to perform functions specified in the following sections of the LSA: the definitions of “Assigned
Value”, “Borrowing Base Certificate”, “Broadly Syndicated Loan”, “Credit Risk Loan”, “Fixed Rate Loan”, “Insurance Proceeds”, “Large Middle Market Loan”, “Last Out Loan”,
“Recoveries”, “Senior Net Leverage Ratio”, “Second Lien Loan”, “Unsecured Loan”, “Total Leverage Ratio” and “Traditional Middle Market Loan”, each in Section 1.01,
Section 2.06(c), Section 2.15(a), Section 2.18 and Section 2.19, and the Collateral Manager acknowledges that it has read and understood the requirements of the foregoing sections and hereby agrees to perform those specified
functions subject to and in accordance with the terms of this Agreement and subject to and consistent with the Collateral Management Standard. 
  

	 	2.	Brokerage. 

 The Collateral Manager shall use reasonable efforts to obtain the best
prices and execution for all orders placed with respect to the Loans and other assets of the Company considering all circumstances. Subject to the objective of obtaining best prices and execution, the Collateral Manager may take into consideration
research and other brokerage services furnished to the Collateral Manager or its Affiliates by brokers and dealers which are not Affiliates of the Collateral Manager. Such services may be used by the Collateral Manager or its Affiliates in
connection with its other advisory activities or investment operations. The Collateral Manager 

  
 4 

 
may aggregate sales and purchase orders of securities placed with respect to the Loans, and other assets of the Company with similar orders being made simultaneously for other accounts managed by
the Collateral Manager or with accounts of the Affiliates of the Collateral Manager, if in the Collateral Manager’s sole judgment such aggregation shall result in an overall economic benefit to the Company taking into consideration the selling
or purchase price, brokerage commission and other expenses. In accounting for such aggregated order price, commission and other expenses shall be averaged on a per position basis. 

The Company acknowledges that the determination of any such economic benefit by the Collateral Manager is subjective and represents the
Collateral Manager’s evaluation at the time that the Company will be benefited by better purchase or sales prices, lower commission expenses and beneficial timing of transactions or a combination of these and other factors. When any aggregate
sales or purchase orders occur, the objective of the Collateral Manager (and any of its Affiliates involved in such transactions) shall be to allocate the executions among the accounts in an equitable manner. 

Subject to the Collateral Manager’s execution obligations described herein, the Collateral Manager is hereby authorized to effect client
cross-transactions where the Collateral Manager causes a transaction to be effected between the Company and another account advised by it or any of its Affiliates; provided that, if and to the extent required by the Investment Advisers
Act of 1940, as amended (the “Advisers Act”), such authorization is terminable at the Company’s option without penalty, effective upon receipt by the Collateral Manager of written notice from the Company. In addition, the
Company hereby consents to, and authorizes the Collateral Manager to enter into, agency cross-transactions where it or any of its Affiliates acts as broker for the Company and for the other party to the transaction, to the extent permitted under
applicable law, in which case the Collateral Manager or any such Affiliate will receive commissions from, and have a potentially conflicting division of loyalties and responsibilities regarding, both parties to the transaction; provided
that the Company shall have the right to revoke such consent at any time by written notice to the Collateral Manager. Also with the prior authorization of the Company and in accordance with Section 11(a) of the Securities Exchange Act of
1934, as amended, and regulation 11a2-2T thereunder (or any similar rule that may be adopted in the future), the Collateral Manager is authorized to effect transactions for the Company on a national securities exchange of which any of its Affiliates
is a member and retain commissions in connection therewith, and the Collateral Manager will use commercially reasonable efforts to provide the Company with information annually disclosing commissions, if any, retained by the Collateral
Manager’s Affiliates in connection with such transactions for the Company’s account. 
 All purchases and sales of Loans and other
assets of the Company by the Collateral Manager on behalf of the Company shall be in accordance with reasonable and customary business practices and in compliance with applicable laws. 

 

	 	3.	The Representations and Warranties of the Company. 

 The Company represents and warrants
to the Collateral Manager as of the Closing Date, as of each applicable Cut-Off Date, as of each applicable Advance Date, as of each Determination Date and as of the date of each Borrowing Base Certificate
delivered pursuant to the LSA that: 
 (a) the Company has been duly organized and is validly existing under the laws of the
State of Delaware, has the full power and authority to own its assets and the obligations proposed to be owned by it and to transact the business in which it is presently engaged and is duly qualified under the laws of each jurisdiction where its
ownership or lease of property or the conduct of its business requires, or the performance of its obligations under this Agreement and the Transaction Documents would require, such qualification, except for failures to be so qualified, authorized or
licensed that would not in the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Company; 

  
 5 

 (b) the Company has full corporate power and authority to execute and deliver
this Agreement and the other Transaction Documents and to perform all obligations required hereunder and under the other Transaction Documents; 

(c) this Agreement has been duly authorized, executed and delivered by it and constitutes its valid and binding obligation,
enforceable in accordance with its terms except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws now or hereafter in effect relating to
creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law); 

(d) no consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality
or court or other person is required for the performance by the Company of its duties hereunder, except such as have been duly made or obtained; 

(e) neither the execution and delivery of this Agreement nor the fulfillment of the terms hereof conflicts with or results in a
material breach or violation of any of the material terms or provisions of or constitutes a material default under (i) the Company’s certificate of formation, limited liability company agreement or other constituent documents,
(ii) the terms of any material indenture, contract, lease, mortgage, deed of trust, note, agreement or other evidence of indebtedness or other material agreement, obligation, condition, covenant or instrument to which the Company is a party or
is bound, (iii) any statute applicable to the Company, or (iv) any law, decree, order, rule or regulation applicable to the Company of any court or regulatory, administrative or governmental agency, body or authority or arbitrator having
or asserting jurisdiction over the Company or its properties, and which would have a material adverse effect upon the performance by the Company of its duties under this Agreement; 

(f) neither the Company nor any of its Affiliates are in violation of any U.S. federal or state securities law or regulation
promulgated thereunder and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of the Company, threatened that would have a material adverse effect upon the
performance by the Company of its duties under this Agreement; 

  
 6 

 (g) the Company has not engaged in any transaction that would result in the
violation of, or require registration as an investment company under, the 1940 Act; 
 (h) the Company is not required to
register as an “investment company” under the 1940 Act; and 
 (i) there is no charge, investigation, action, suit
or proceeding before or by any court pending or, to the best knowledge of the Company, threatened that, if determined adversely to the Company, would have a material adverse effect upon the performance by the Company of its duties under, or on the
validity or enforceability of, this Agreement or the provisions of the LSA applicable to the Company thereunder. 
  

	 	4.	Representations and Warranties of the Collateral Manager. 

 The Collateral Manager
represents and warrants to the Company, as of the Closing Date, as of each applicable Cut-Off Date, as of each applicable Advance Date, as of each Determination Date and as of the date of each Borrowing Base
Certificate delivered pursuant to the LSA that: 
 (a) the Collateral Manager is duly organized and validly existing under
the laws of the State of Maryland and has the full power and authority to transact the business in which it is presently engaged and is duly qualified under the laws of each jurisdiction where the conduct of its business requires, or the performance
of its obligations under this Agreement and the provisions of the Transaction Documents applicable to the Collateral Manager would require, such qualification, except for failures to be so qualified, authorized or licensed which would not in the
aggregate have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager, or on the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of,
this Agreement and the applicable provisions of the Transaction Documents; 
 (b) the Collateral Manager has full power and
authority to execute and deliver this Agreement and to perform all of its obligations hereunder and under the Transaction Documents applicable to the Collateral Manager; 

(c) this Agreement has been duly authorized, executed and delivered by the Collateral Manager and constitutes a valid and
binding agreement of the Collateral Manager, enforceable against it in accordance with its terms, except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law); 

(d) neither the Collateral Manager nor any of its Affiliates is in violation of any Applicable Law or any material listing
requirements of any exchange on which it is listed and there is no charge, investigation, action, suit or proceeding before or by any court, exchange or regulatory agency pending or, to the best knowledge of the

  
 7 

 
Collateral Manager, threatened (i) asserting the invalidity of this Agreement or any other Transaction Document to which the Collateral Manager is a party, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or any other Transaction Document to which the Collateral Manager is a party, (iii) seeking any determination or ruling that could reasonably be expected to adversely affect
the Transaction Documents or the transactions contemplated hereby or thereby, or (iv) that would have a material adverse effect upon the performance by the Collateral Manager of its duties under this Agreement; 

(e) neither the execution and delivery of this Agreement, nor the performance of the terms hereof or the provisions of the
Transaction Documents applicable to the Collateral Manager, conflicts with or results in a material breach or violation of any of the terms or provisions of, or constitutes a default under, (i) its articles of incorporation, bylaws or other
constituent document, (ii) the terms of any material indenture, contract, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other material agreement, obligation, condition, covenant or instrument to which the
Collateral Manager is a party or is bound, or (iii) any Applicable Law; 
 (f) no consent, approval, authorization or
order of or declaration or filing with any government, governmental instrumentality or court or other person is required for the performance by it of its duties hereunder, except such as have been duly made or obtained and there is no injunction,
writ, restraining order or other order of any nature that adversely affects the Collateral Manager’s performance of its obligations under any Transaction Document to which it is a party; 

(g) all information, financial statements of the Collateral Manager, documents, books, records or reports furnished by the
Collateral Manager to any Secured Party in connection with this Agreement are true, complete and correct in all material respects when made; provided that the Collateral Manager makes no representation with respect to any information
furnished by an Obligor unless it has also certified as to such information; 
 (h) the Collateral Manager acknowledges that
all Available Collections received by it or its Affiliates with respect to the Collateral Portfolio transferred or Pledged hereunder are held and shall be held in trust for the benefit of the Secured Parties until deposited into the Collection
Account within one (1) Business Day from receipt as required under the LSA; 
 (i) the Collateral Manager is not the
subject of any Bankruptcy Proceeding or Bankruptcy Event. The transactions under this Agreement and any other Transaction Document to which the Collateral Manager is a party do not and will not render it not Solvent; 

(j) with respect to each item of Underlying Collateral as of the applicable Cut-Off
Date for the Loan related to such Underlying Collateral, to the actual knowledge of an Authorized Person of the Collateral Manager: (a) none of the related Obligor’s operations is the subject of a material Federal or state investigation
evaluating 

  
 8 

 
whether any remedial action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (b) the related Obligor does not have any material
contingent liability in connection with any release of any Hazardous Materials into the environment. As of the applicable Cut-Off Date for the Loan related to such Underlying Collateral, the Collateral Manager
has not received any written or verbal notice of, or inquiry from any Governmental Authority regarding, any violation, alleged violation, non compliance, liability or potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Underlying Collateral, nor does the Collateral Manager have knowledge or reason to believe that any such notice will be received or is being threatened, in each case except as otherwise notified to the
Administrative Agent in writing. 
 (k) the Collection Account is the only account to which Obligors have been instructed by
the Collateral Manager to send Principal Collections and Interest Collections on the Collateral Portfolio; 
 (l) no event
has occurred which constitutes a Facility Amortization Event; 
 (m) the execution, delivery and performance of this
Agreement do not require compliance with any “bulk sales” act or similar law by the Collateral Manager; 
 (n) none
of the transactions contemplated herein or the other Transaction Documents (including, without limitation, the use of the Proceeds from the Pledge of the Collateral Portfolio) will violate or result in a violation of Section 7 of the Exchange
Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II; 

(o) except as would not reasonably be expected to constitute a Material Adverse Effect, (i) the present value of all
benefits vested under all Pension Plans of the Collateral Manager does not exceed the value of the assets of the Pension Plan allocable to such vested benefits (based on the value of such assets as of the most recent annual financial statements
reflecting such amounts), (ii) no Reportable Events have occurred with respect to any Pension Plans that, in the aggregate, could subject the Collateral Manager to any material tax, penalty or other liability and (iii) no notice of intent
to terminate a Pension Plan has been filed, nor has any Pension Plan been terminated under Section 4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to terminate, or appoint a trustee to administer a
Pension Plan and no event has occurred or condition exists that might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; 

(p) neither the Collateral Manager nor any Affiliate of the Collateral Manager is (i) a country, territory, organization,
person or entity named on an OFAC list; (ii) a Person that resides or has a place of business in a country or territory named on such lists or which is designated as a “Non Cooperative Jurisdiction” by the Financial Action Task Force
on Money Laundering, or whose subscription funds are transferred from or 

  
 9 

 
through such a jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank that does not have a physical presence in any country and
that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States
Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns; 

(q) the Collateral Manager is not a broker-dealer under the provisions of the Exchange Act; 

(r) the Collateral Manager is regulated as a business development company under the 1940 Act; and 

(s) except as otherwise permitted in the LSA, each Loan selected by the Collateral Manager for purchase by the Company shall be
an Eligible Loan at the time of such purchase. 
 5. Covenants of Collateral Manager. From the Closing Date until the
Collection Date: 
 (a) the Collateral Manager shall comply in all material respects with all Applicable Law and shall do or
cause to be done all things necessary to preserve and maintain in full force and effect its legal existence and all licenses material to its business. 

(b) the Collateral Manager will preserve and maintain its corporate existence, rights, franchises and privileges in the
jurisdiction of its incorporation, and qualify and remain qualified in good standing as a corporation in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification could reasonably
be expected to have a Material Adverse Effect; 
 (c) the Collateral Manager will exercise its rights hereunder in order to
cause the Company to duly fulfill and comply with all obligations on the part of the Company to be fulfilled or complied with under or in connection with each item in the Collateral Portfolio and will take all necessary action to preserve the first
priority security interest of the Collateral Agent for the benefit of the Secured Parties, or of the Secured Parties in, to and under the Collateral Portfolio; 

(d) the Collateral Manager will promptly furnish to the Collateral Agent, the Administrative Agent and each Lender Agent such
other information, documents, records or reports respecting the Collateral Portfolio or the condition or operations, financial or otherwise, of the Company or it as the Collateral Agent, any Lender Agent or the Administrative Agent may from time to
time reasonably request in order to protect the interests of the Administrative Agent, the Lender Agents, the Collateral Agent or Secured Parties under or as contemplated by this Agreement; 

  
 10 

 (e) the Collateral Manager shall promptly (but in no event later than one
(1) Business Day after receipt) deposit or cause to be deposited into the Collection Account any and all Available Collections received by the Company, the Collateral Manager or any of their respective Affiliates; 

(f) the Collateral Manager shall use its best efforts to ensure that the Company is in compliance with, and shall take no
action which would cause the Company to fail to be in compliance with, the special purpose entity requirements set forth in Sections 5.01(a) and (b) and 5.02(a) and (b) of the LSA; 

(g) the Collateral Manager shall direct (or cause to be directed) any agent or administrative agent for any Loan to remit all
payments and collections with respect to such Loan, and, if applicable, to direct the Obligor with respect to such Loan to remit all such payments and collections with respect to such Loan directly to the Collection Account. The Company and the
Collateral Manager shall take commercially reasonable steps to ensure, and shall cause the Seller to take commercially reasonable steps to ensure, that only funds constituting payments and collections relating to the Collateral Portfolio shall be
deposited into the applicable Controlled Account; 
 (h) other than in connection with a Permitted Equityholder Transaction,
the Collateral Manager will not consolidate with or merge into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person, unless it is the surviving entity and unless: 

(i) it has delivered to the Administrative Agent and each Lender Agent an Officer’s Certificate and an Opinion of Counsel
each stating that any such consolidation, merger, conveyance or transfer and any supplemental agreement executed in connection therewith comply with this Section 5(h) and that all conditions precedent herein provided for relating to such
transaction have been complied with and, in the case of the Opinion of Counsel, that such supplemental agreement is legal, valid and binding with respect to it and such other matters as the Administrative Agent may reasonably request; 

(ii) it shall have delivered notice of such consolidation, merger, conveyance or transfer to the Administrative Agent and each
Lender Agent; 
 (iii) after giving effect thereto, no Event of Default or event that with notice or lapse of time would
constitute either an Event of Default shall have occurred; and 
 (iv) the Administrative Agent shall have consented in
writing to such consolidation, merger, conveyance or transfer; 

  
 11 

 (i) the Collateral Manager shall promptly (but in no event later than two
(2) Business Days after it has notice of the same): 
 (i) notify the Company if it has actual knowledge of: 

(1) any Event of Default, Facility Amortization Event, or other event which, if it continues uncured, will, with notice or lapse of time,
constitute a Facility Amortization Event, Event of Default or Borrowing Base Deficiency; 
 (2) any material action, suit, proceeding,
dispute, offset, deduction, defense or counterclaim (x) that is or is threatened to be asserted by an Obligor with respect to any Loan (or portion thereof) of which it has knowledge or has received notice; or (y) that would reasonably be
expected to have a Material Adverse Effect; 
 (3) any material adverse change which has occurred in the ability of the Seller, any Borrower
Advisor or the Company to perform its obligations under any Transaction Document; 
 (4) any Loan identified on the most recently delivered
Borrowing Base as an Eligible Loan ceased to qualify as an Eligible Loan; 
 (5) any operation of any Obligor is the subject of a material
Federal or state investigation evaluating whether any remedial action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and 

(6) any Obligor has any material contingent liability in connection with any release of any Hazardous Materials into the environment; and 

(ii) No later than two (2) Business Days following the Collateral Manager’s knowledge or notice of the occurrence of
any event specified in clause (i) above, provide to the Collateral Agent, the Administrative Agent and each Lender Agent a written statement of its chief financial officer, chief accounting officer or other officer setting forth the details of
such event and the action that it proposes to take with respect thereto; 
 (j) at any time a Noteless Loan is included as
part of the Collateral Portfolio, the Collateral Manager shall, or shall cause the Company to, deliver to the Administrative Agent, the Collateral Agent and the Collateral Custodian a copy of the related loan register, if any; 

  
 12 

 (k) the Collateral Manager shall take all other actions reasonably necessary to
maintain the accuracy of the factual assumptions set forth in the legal opinions of Dechert LLP, as special counsel to the Collateral Manager, issued in connection with the Transaction Documents and relating to the issues of substantive
consolidation of the Company and true sale of the Loans; 
 (l) the Collateral Manager shall ensure that, at all times when
it is dealing with or in connection with the Loans in its capacity as the Collateral Manager, it holds itself out as the Collateral Manager, and not in any other capacity; 

(m) the Collateral Manager has caused, and will cause, to be performed any and all acts reasonably required to be performed to
preserve the rights and remedies of the Collateral Agent and the Secured Parties in any Insurance Policies applicable to Loans (to the extent the Collateral Manager or an Affiliate of the Collateral Manager is the agent, collateral manager or
servicer under the applicable Underlying Instrument) including, without limitation, in each case, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of co insured, joint loss payee and mortgagee
rights in favor of the Collateral Agent and the Secured Parties; 
 (n) the Collateral Manager shall not, nor shall it permit
the Company to, take any action that would cause the Company to not be disregarded as an entity separate from its owner pursuant to Treasury Regulation Section 301.7701 3(b) and shall not permit either the Company or any other Person on its
behalf to make an election to be treated as other than an entity disregarded as an entity separate from its owner under Treasury Regulation Section 301.7701 3(c); 

(o) if the provisions of Sections 1471 through 1474 of the Code or any regulations promulgated thereunder become applicable to
any payments to the Company or the Collateral Manager made in respect of the Collateral Portfolio, the Collateral Manager shall and shall cause the Company to exercise its best efforts to avoid the imposition of any withholding tax in respect of
such payments under those provisions; 
 (p) promptly after the receipt thereof, the Collateral Manager shall notify the
Administrative Agent and, upon request, each Lender Agent of any auditors’ management letters received by it; 
 (q) the
Collateral Manager shall not move, or consent to the Collateral Custodian moving, the Required Loan Documents and Loan Files from the location thereof on the initial Advance Date, unless the Administrative Agent shall consent of such move in writing
and the Collateral Manager shall provide the Administrative Agent with such Opinions of Counsel and other documents and instruments as the Administrative Agent may request in connection therewith and has taken all actions required under the UCC of
each relevant jurisdiction in order to continue the first priority perfected security interest of the Collateral Agent, for the benefit of the Secured Parties, in the Collateral Portfolio; 

(r) the Collateral Manager shall not permit any agreement or understanding between the Collateral Manager and the Company
(other than as expressly 

  
 13 

 
set forth herein or as consented to by the Administrative Agent) providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or
other governmental charges; 
 (s) the Collateral Manager will not cause or permit any provision of the Company’s
organizational documents to be amended, modified, waived or terminated without the prior written consent of the Administrative Agent; 

(t) the Collateral Manager will not make any change in its instructions to Obligors regarding payments to be made with respect
to the Collateral Portfolio to the Collection Account, unless the Administrative Agent has consented to such change; 
 (u)
in addition to, and without limiting, the duties set forth in Section 1, the Collateral Manager acknowledges that the Company is authorized or required to cause it to perform functions specified in the following sections of the LSA:
Section 1.04, Section 2.02(b), Section 2.04, Sections 2.06(b), Section 3.02, Section 5.01(g), Section 5.02(k), clauses (i) and (ii) in the final paragraph of Section 6.11, Section 7.02(c),
Section 11.08 and Section 12.04(a), and the Collateral Manager acknowledges that it has read and understood the requirements of the foregoing sections and hereby agrees to perform those specified functions subject to and in accordance with
the terms of this Agreement; and 
 (v) the Collateral Manager shall use its commercially reasonable efforts and judgment to
collect or cause to be collected, all payments called for under the terms and provisions of the Loans included in the Collateral Portfolio as and when the same become due. 
  

	 	6.	Expenses. 

 The Collateral Manager shall pay all expenses and costs (including salaries,
rent and other overhead) incurred by it in connection with its services under this Agreement; provided that the Collateral Manager shall not be liable for and the Company shall be responsible for the payment of (i) actual and
reasonable expenses and costs of legal advisors (including actual and reasonable expenses and costs associated with the use of internal legal counsel of the Collateral Manager), consultants and other professionals retained by the Company or by the
Collateral Manager, on behalf of the Company, in connection with the services provided by the Collateral Manager pursuant to this Agreement and the LSA and (ii) the reasonable cost of asset pricing and asset rating services, and accounting,
programming and data entry services that are retained in connection with services of the Collateral Manager under this Agreement. To the extent that such expenses are incurred in connection with obligations that are also held by the Collateral
Manager, the Collateral Manager shall allocate the expenses among the accounts in a fair and equitable manner. Any amounts payable pursuant to this Section 6 shall be reimbursed by the Company to the extent funds are available therefor in
accordance with and subject to the limitations contained in the LSA. 

  
 14 

	 	7.	Fees. 

 (a) The Company shall pay to the Collateral Manager, for services
rendered and performance of its obligations under this Agreement fees which are payable in arrears on each Payment Date in an amount equal to 0.35% per annum of the aggregate principal balance of all Portfolio Assets measured as of the
Determination Date immediately preceding such Payment Date (the “Management Fees”). The Management Fees will be calculated on the basis of a calendar year consisting of 360 days and the actual number of days elapsed. 

(b) The Collateral Manager may, in its sole discretion, defer all or any portion of the Management Fees. Such deferred amounts
will become payable on the next Payment Date in the same manner and priority as their original characterization would have required unless deferred again. 

(c) If this Agreement is terminated pursuant to Section 12 hereof or otherwise, the Management Fees calculated as provided
in Section 7(a) hereof shall be prorated for any partial periods between Payment Dates during which this Agreement was in effect and shall be due and payable, along with any deferred Management Fees, on the first Payment Date following the
effective date of such termination. 
 (d) The Management Fees will be payable pursuant to Sections 2.04(a)(ix), (b)(v) and
(c)(ix) of the LSA, as applicable. If on any Payment Date there are insufficient funds to pay the Management Fees then due in full, the amount not so paid shall not constitute any default hereunder and shall be deferred without interest and shall be
payable on the next Payment Date if any on which any funds are available therefor, as provided in Sections 2.04(a)(ix), (b)(v) and (c)(ix) of the LSA. 

(e) The Collateral Manager hereby agrees not to cause the filing of a petition in bankruptcy against the Company for any reason
whatsoever, including, without limitation, the non-payment of the Management Fees, except in accordance with the provisions of Section 21 hereof and the provisions of the LSA. 

 

	 	8.	Non-Exclusivity. 

 The services of the Collateral Manager to the Company are not to be
deemed exclusive, and the Collateral Manager shall be free to render asset management or management services to other Persons (including Affiliates, other investment companies, and clients having objectives similar to those of the Company). It is
understood and agreed that the officers and directors of the Collateral Manager may engage in any other business activity or render services to any other Person or serve as partners, officers or directors of any other firm or corporation.
Notwithstanding the foregoing, it is understood and agreed that the Collateral Manager will at no time render any services to, or in any way participate in the organization or operation of, any investment company or other entity if such actions
would require the Company to register as an “investment company” under the 1940 Act. Subject to Sections 2 and 10 hereof, it is understood and agreed that information or advice received by the Collateral Manager and officers or directors
of the Collateral Manager hereunder shall be used by such organization or such persons to the extent permitted by applicable law. 

  
 15 

	 	9.	Conflicts of Interest. 

 The Collateral Manager may, subject to applicable legal
requirements and any restrictions or limitations contained in the Transaction Documents, direct the Company (i) to acquire any Loans for the Company from the Collateral Manager or any of its Affiliates as principal or (ii) to sell any
Loans for the Company to the Collateral Manager or any of its Affiliates as principal; provided that each such acquisition or sale is conducted on terms no less favorable to the Company than would be obtained in an arms’ length
transaction with a non-affiliate. 
 Notwithstanding the provisions of the preceding paragraph, various potential and actual conflicts of
interest may arise from the overall investment activity of the Collateral Manager and its Affiliates. The Collateral Manager, its Affiliates and their respective clients may invest in obligations that would be appropriate for inclusion in the
Company’s assets. Such investments may be different from those made on behalf of the Company. The Collateral Manager and its Affiliates may have ongoing relationships with companies whose obligations are pledged under the LSA and may own equity
or debt obligations issued by issuers of and other obligors of Loans. The Collateral Manager and its Affiliates and the clients of the Collateral Manager or its Affiliates may invest in obligations that are senior to, or have interests different
from or adverse to, the assets of the Company. The Collateral Manager may serve as Collateral Manager for, invest in, or be affiliated with, other entities organized to issue collateralized debt obligations secured by loans, high-yield debt
securities, or other debt obligations. The Collateral Manager may at certain times be simultaneously seeking to purchase or sell investments for the Company and any similar entity for which it serves as Collateral Manager in the future, or for its
clients and Affiliates. Furthermore, the Collateral Manager and/or its Affiliates may make an investment on their behalf or on behalf of any account that they manage or advise without offering the investment opportunity or making an investment on
behalf of the Company. 
 The Company hereby acknowledges that various potential and actual conflicts of interest may exist with respect to
the Collateral Manager, including but not limited to those specified above; provided that nothing in this Section 9 shall be construed as altering the duties of the Collateral Manager as set forth in this Agreement, the LSA or the
requirements of any law, rule, or regulation applicable to the Collateral Manager. 
  

	 	10.	Records; Confidentiality. 

 The Collateral Manager shall maintain appropriate books of
account and records relating to services performed hereunder, and such books of account and records shall be accessible for inspection by a representative of the Company, the Administrative Agent, and independent accountants appointed by the Company
at a mutually agreed time during normal business hours and upon not less than three (3) Business Days’ prior notice. 
 Subject to
the exceptions set forth in the following paragraph, at no time will the Collateral Manager make a public announcement concerning the Transaction Documents, the Collateral Manager’s role hereunder or any other aspect of the transactions
contemplated by this Agreement and the Transaction Documents absent the written consent of the Company and the Administrative Agent. 

  
 16 

 The Collateral Manager shall, and shall cause its Affiliates to, keep confidential any and all
information obtained in connection with the services rendered hereunder and shall not disclose any such information to non affiliated third parties except (i) with the prior written consent of the Company, (ii) as required by law,
regulation, court order or the rules or regulations of any self regulating organization, body or official having jurisdiction over the Collateral Manager, (iii) to its professional advisors, (iv) such information as shall have been
publicly disclosed other than in violation of this Agreement, (v) the identification of the Company as a client of the Collateral Manager, (vi) information related to the performance of the Collateral Manager, (vii) information
furnished in connection with any successor investment manager or assignee, or any agent that has been assigned duties in accordance with this Agreement, or (viii) such information that was or is obtained by the Collateral Manager on a non
confidential basis; provided that the Collateral Manager does not know or have reason to know, after due inquiry, of any breach by such source of any confidentiality obligations with respect thereto. For purposes of this
Section 10, the Administrative Agent shall in no event be considered a “non affiliated third party,” and the Collateral Manager may disclose any of the aforementioned information to the Administrative Agent insofar as such information
relates to Loans under the LSA. 
  

	 	11.	Term. 

 This Agreement shall become effective on the date hereof and shall continue
unless terminated as hereinafter provided. 
  

	 	12.	Termination. 

 (a) Subject to Section 12(c), the Collateral Manager
shall have the right to terminate this Agreement only upon 90 days prior written notice to the Company and the Administrative Agent. 

(b) This Agreement shall be automatically terminated in the event that the Company determines in good faith that the Company or
the Company’s asset portfolio has become required to be registered under the provisions of the 1940 Act. 
 (c) Within
30 days of the resignation of the Collateral Manager pursuant to this Section 12, the Company may appoint a successor collateral manager. Notwithstanding any other provision of this Agreement, no such resignation will be effective until the
date as of which a successor investment manager acceptable to the Administrative Agent in its sole discretion has assumed in writing the Collateral Manager’s duties and obligations as specified herein. 

(d) Notwithstanding anything to the contrary herein or in the LSA, the assignment of this Agreement provided for in
Section 2.11 of the LSA does not include the right to terminate this Agreement or the Collateral Manager’s rights and responsibilities hereunder. 

  
 17 

	 	13.	Action Upon Termination. 

 (a) Upon the effective termination of this
Agreement, the Collateral Manager shall as soon as practicable: 
 (i) deliver to the Company all property and documents of
the Company or otherwise relating to the Company’s assets then in the custody of the Collateral Manager; and 
 (ii)
deliver to the Administrative Agent or the successor investment manager appointed pursuant to Section 12(c) an account with respect to the books and records delivered to the Company pursuant to Section 13(a)(i). 

Notwithstanding such termination, the Collateral Manager shall remain liable to the extent set forth herein (but subject to
Section 14 hereof) for its acts or omissions hereunder arising prior to termination and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorney’s fees) in respect of or arising out of a
breach of the representations and warranties made by the Collateral Manager in Section 4 hereof or from any failure of the Collateral Manager to comply with the provisions of this Section 13. 

(b) The Collateral Manager agrees that, notwithstanding any termination, it shall reasonably cooperate in any suit, action or
proceeding relating to this Agreement (each, a “Proceeding”) arising in connection with this Agreement, the LSA or any of the Company’s assets (excluding any such Proceeding in which claims are asserted against the Collateral
Manager or any Affiliate of the Collateral Manager) so long as the Collateral Manager shall have been offered reasonable security, indemnity or other provisions against the cost, expenses and liabilities that might be incurred in connection
therewith and a reasonable per diem fee. 
  

	 	14.	Liability of Collateral Manager; Delegation. 

 (a) The Collateral Manager
assumes no responsibility under this Agreement other than to render the services expressly set forth hereunder. 
 The
Collateral Manager shall have the right to delegate to (i) any other Borrower Advisor or (ii) with the prior written consent of the Administrative Agent in its sole discretion, another agent selected with reasonable care, any or all duties
(other than its asset selection or trade execution duties) of the Collateral Manager hereunder; provided that no such delegation by the Collateral Manager of any of its duties hereunder shall relieve the Collateral Manager of any of
its duties hereunder nor relieve the Collateral Manager of any liability with respect to the performance of such duties. For the avoidance of doubt, asset selection and trade execution duties shall include the services described in Section 1(b)
hereof. 

  
 18 

 Notwithstanding the above and Section 18, the Collateral Manager shall be
permitted to assign any or all of its rights and delegate any or all of its obligations to an Affiliate acceptable to the Administrative Agent in its sole discretion that (i) will professionally and competently perform duties similar to those
imposed upon the Collateral Manager under this Agreement and (ii) is legally qualified and has the capacity to act as the Collateral Manager under this Agreement. The Collateral Manager shall not be liable for any consequential damages
hereunder. 
 (b) (i) The Company shall reimburse, indemnify and hold harmless the Collateral Manager, the directors,
officers, agents and employees of the Collateral Manager and those of any Affiliate of the Collateral Manager (each, a “Collateral Manager Indemnified Party”) from any and all actual and reasonable out-of-pocket expenses, losses,
damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred in investigating, preparing, pursuing or defending any claim, action, proceeding or investigation
with respect to any pending or threatened litigation caused by, or arising out of or in connection with, any acts or omissions of the Collateral Manager, its directors, officers, stockholders, agents and employees made in good faith and in the
performance of the Collateral Manager’s duties under this Agreement or the Transaction Documents except to the extent resulting from such person’s bad faith, willful misfeasance, gross negligence or reckless disregard of its duties
hereunder or thereunder. Notwithstanding anything contained herein to the contrary, the obligations of the Company under this Section 14(b) shall be payable from the Company’s assets as part of (but, for the avoidance of doubt, without
duplication of) the Management Fees and are subject to the availability of funds and to the conditions set forth in the LSA. 

(ii) Notwithstanding any other provision herein, each Collateral Manager Indemnified Party agrees that it shall have no claim
to any amount pursuant to the above clause (b)(i) pari passu with or prior to the claim of the Secured Parties to the Obligations pursuant to the LSA. 

(iii) Notwithstanding any other provision herein, no Collateral Manager Indemnified Party may, prior to the date which is one
year (or if longer the applicable preference period then in effect) plus one day after the Collection Date, institute against, or join any other Person in instituting against, the Company or any Portfolio Subsidiary, any bankruptcy, reorganization,
arrangement, insolvency, moratorium or liquidation proceedings, or other proceedings under U.S. federal or state bankruptcy or similar laws of any jurisdiction. 

(c) The Collateral Manager shall reimburse, indemnify and hold harmless the Company, its members, manager, officers, agents and
employees (each, a “Company Indemnified Party”) from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred
by such Company Indemnified Party in connection with (i) any material breach by the Collateral Manager of any representation, warranty or covenant contained in this Agreement or (ii) any acts or omissions of any Borrower Advisor
constituting bad faith, willful misconduct, gross negligence or reckless disregard. 

  
 19 

 (d) Any amounts subject to the indemnification provisions of this Section 14
payable by the Collateral Manager to the Company shall be paid as Principal Collections within four (4) Business Days of the Company’s written demand therefor (and the Company shall immediately deposit, or cause to be deposited, such
amounts into the Collections Account). 
 (e) If the Collateral Manager has made any payments pursuant to this
Section 14 and the applicable Company Indemnified Party thereafter collects any of such amounts from others, such indemnified party will promptly repay such amounts collected to the Collateral Manager in an amount equal to the amount it has
collected from others in respect of such indemnified amounts, without interest. 
 (f) Notwithstanding anything to the
contrary in this Section 14, to the maximum extent permitted by applicable law, to the extent that the Company is entitled to make any claim pursuant to Section 14(c), the Company hereby agrees to forebear from making any such claim until
such time that (i) the Company no longer owns (x) any assets of the type included in clauses (a), (b) and (e) of the definition of “Collateral Portfolio” or (y) any Permitted Investments and (ii) the Company
owes any accrued and unpaid Obligations pursuant to Section 8.01 of the LSA. The operation of this Section 14(f) shall not be construed as a waiver by the Company of any claim pursuant to Section 14(c) and any rights that shall accrue
to the Company thereunder shall toll until the satisfaction of the conditions set forth in the preceding sentence. 
 (g) The
obligations of the Collateral Manager under this Section 14 shall survive the termination of this Agreement. 
 (h)
Notwithstanding anything to the contrary herein, the Collateral Manager shall have no liability for any indirect, consequential or punitive damages. 
  

	 	15.	Obligations of Collateral Manager. 

 Unless otherwise required by any provision of the
Transaction Documents or this Agreement or by applicable law, the Collateral Manager shall not intentionally take any action, which it knows or should know would (a) materially adversely affect the Company for purposes of U.S. federal or state
law or any other law known to the Collateral Manager to be applicable to the Company, (b) require registration of the Company or the Company’s assets as an “investment company” under the 1940 Act, (c) not be permitted under
the Company’s limited liability company agreement or certificate of formation (including, but not limited to, Section 9 thereof), (d) cause the Company to violate the terms of the Transaction Documents, (e) subject the Company to
federal, state or other income taxation, or (f) adversely affect the interests of the Administrative Agent in any material respect (other than as permitted or required hereunder or under the Transaction Documents, including, without limitation,
as may result from the performance of any Loan), it being understood that in connection with the foregoing the Collateral Manager will not be required to make any independent investigation of any facts or laws not otherwise known to it in connection
with its obligations under this Agreement and the Transaction Documents or the conduct of its business generally. The Collateral Manager covenants that it shall comply in all material respects with all laws and regulations applicable to it in
connection with the performance 

  
 20 

 
of its duties under this Agreement and the Transaction Documents. Notwithstanding anything in this Agreement, the Collateral Manager shall not take any discretionary action that would reasonably
be expected to cause an Event of Default under the LSA. The Collateral Manager covenants that it shall (i) not hold out the Portfolio Assets as its assets, (ii) take all action to ensure that the Portfolio Assets are held in the name of
the Company or, if held by an agent of the Company, clearly designate such agent as being the Company’s agent, and (iii) not fail to correct any known misunderstandings regarding the separate identity of the Company and shall not identify
itself as a division or department of the Company. 
  

	 	16.	No Partnership or Joint Venture. 

 The Company and the Collateral Manager are not
partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. The Collateral Manager’s relation to the Company shall be deemed
to be that of an independent contractor. 
  

	 	17.	Notices. 

 Any notice under this Agreement shall be in writing and sent by facsimile,
confirmed by telephonic communication, or addressed and delivered or mailed postage paid to the other party at such address as such other party may designate for the receipt of such notice. Until further notice to the other party it is agreed that
the address of the Company and the Administrative Agent for this purpose shall be as set forth on Annex A to the LSA, and the address of the Collateral Manager for this purpose shall be: 

FS INVESTMENT CORPORATION III 

201 Rouse Boulevard 

Philadelphia, PA 19112 

Attention: Gerald F. Stahlecker 

Telephone: (215) 495-1169 

Facsimile: (215) 222-4649 

Electronic Mail: jerry.stahlecker@franklinsquare.com 

All notices are to be effective in accordance with Section 12.02 of the LSA. 
  

	 	18.	Succession/Assignment. 

 This Agreement shall inure to the benefit of and be binding
upon the successors to the parties hereto. No assignment of this Agreement by the Collateral Manager (including, without limitation, a change in control or management of the Collateral Manager which would be deemed an “assignment” under
the Advisers Act) shall be made without the consent of the Company and the Administrative Agent. 
  

	 	19.	Conflicts with the LSA. 

 Subject to the provisions of Section 1 hereof pertaining
to the binding effect of certain amendments to the LSA on the Collateral Manager, in the event that this Agreement 

  
 21 

 
requires any action to be taken with respect to any matter and the LSA requires that a different action be taken with respect of such matter, and such actions are mutually exclusive, the
provisions of the LSA in respect thereof shall control. 
  

	 	20.	Miscellaneous. 

 (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. With respect to any Proceeding, each party irrevocably (i) submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the
Borough of Manhattan in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient
forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction, nor
will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 

(b) THE PARTIES HERETO IRREVOCABLY CONSENT TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION OR PROCEEDING BY THE MAILING
OR DELIVERY OF COPIES OF SUCH PROCESS TO EACH SUCH PARTY AT THE ADDRESS SPECIFIED IN SECTION 17 HEREOF. THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
 (c) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

(d) No failure on the part of either party hereto to exercise and no delay in exercising, and no course of dealing with respect
to, any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise of any right, remedy, power or privilege under this Agreement preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

(e) The captions in this Agreement are included for convenience only and in no way define or limit any of the provisions hereof
or otherwise affect their construction or effect. 

  
 22 

 (f) In the event any provision of this Agreement shall be held invalid or
unenforceable, by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof. 

(g) This Agreement may not be amended or modified or any provision thereof waived except by an instrument in writing signed by
the parties hereto. 
 (h) This Agreement and the Transaction Documents contain the entire understanding and agreement
between the parties and supersedes all other prior understandings and agreements, whether written or oral, between the parties concerning this subject matter. The express terms of this Agreement control and supersede any course of performance and/or
usage of the trade inconsistent with any of the terms hereof. 
 (i) The Collateral Manager (i) acknowledges that the
Company (subject, for the avoidance of doubt, to Section 12(d) hereof) is assigning all of its right, title and interest in, to and under this Agreement to the Administrative Agent under the Security Agreement, and (ii) agrees that all of
the representations, covenants and agreements made by the Collateral Manager in this Agreement are also for the benefit of the Administrative Agent. 

(j) This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original, but
all such counterparts shall together constitute but one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected
hereon as the signatories. 
 (k) Each representation and warranty made or deemed to be made herein or pursuant hereto, and
each indemnity provided for hereby, shall survive the execution and delivery and any termination or assignment of this Agreement or resignation of the Collateral Manager. 

(l) The Company hereby acknowledges and accepts all actions that were taken by the Collateral Manager and/or recommended to the
Company by the Collateral Manager prior to the Closing Date, including all actions and recommendations that were related to the anticipated purchase of assets by the Company or that were otherwise consistent with the services to be provided by the
Collateral Manager to the Company pursuant to Section 1 of this Agreement prior to the Closing Date, in each case, as if this Agreement had been in effect at the time that such actions were taken or such recommendations were made. 

 

	 	21.	Non-Petition. 

 The Collateral Manager shall continue to serve as Collateral Manager
under this Agreement notwithstanding that the Collateral Manager shall not have received amounts due to it under this Agreement because sufficient funds were not then available hereunder to pay such amounts in accordance with Section 5.02(m) of
the LSA, and agrees not to cause the filing of an involuntary petition in bankruptcy against the Company for any reason whatsoever, including, 

  
 23 

 
without limitation, the non-payment to the Collateral Manager, until the payment in full of all amounts payable to the Administrative Agent or otherwise under the LSA and the expiration of a
period equal to one year and one day (or, if longer, the applicable preference period then in effect) following all such payments; provided that nothing in this clause shall preclude, or be deemed to estop, the Collateral Manager
(A) from taking any action prior to the expiration of the aforementioned one year and one day (or, if longer, the applicable preference period then in effect) period in (x) any case or proceeding voluntarily filed or commenced by the
Company or (y) any involuntary insolvency proceeding filed or commenced against the Company, by a Person other than the Collateral Manager or its Affiliates, or (B) from commencing against the Company or any properties of the Company any
legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceeding. The provisions of this Section 21 shall survive the termination of this Agreement for any reason whatsoever. 

 

	 	22.	No Recourse. 

 The Collateral Manager hereby acknowledges and agrees that the
Company’s obligations hereunder will be solely the corporate obligations of the Company, and the Collateral Manager will not have any recourse to any of the directors, officers, employees or holders of the membership interest of the Company
with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions contemplated hereby. Recourse in respect of any obligations of the Company hereunder will be limited to the Company’s
assets and on the exhaustion thereof all claims against the Company arising from this Agreement or any transactions contemplated hereby shall be extinguished. The provisions of this Section 22 shall survive the termination of this Agreement for
any reason whatsoever. 
  

	 	23.	Acknowledgments. 

 (a) The Collateral Manager hereby acknowledges that
the Administrative Agent is the beneficiary of a collateral assignment of this Agreement pursuant to Section 2.11 of the LSA and the Administrative Agent and each other Indemnified Party shall be express third party beneficiaries of the
Company’s rights hereunder, including but not limited to the Company’s right to indemnification set forth in Section 14, subject, in each case, to each of the limitations, restrictions and conditions set forth in Section 2.11 of
the LSA with respect to the collateral assignment of this Agreement; provided that, such collateral assignment and such third party beneficiary rights shall automatically terminate upon the irrevocable payment in full of the Obligations
(other than contingent indemnity obligations as to which no claim has been made) and the termination of the Commitments in full. 

(b) Subject to Section 12(d) and the proviso to Section 23(a), the Collateral Manager hereby: (i) acknowledges
and consents to the collateral assignment of this Agreement made by the Company in the LSA; (ii) acknowledges that the Company is collaterally assigning all of its right, title and interest in, to and under this Agreement to the Administrative
Agent for the benefit of the Secured Parties to secure the Obligations; and (iii) agrees that all the representations, covenants and warranties made by it herein are also for the benefit of the Secured Parties to secure the Obligations;
provided that, each of the foregoing shall be subject, in each case, to each of the limitations, restrictions and conditions set forth in Section 2.11 of the LSA with respect to the collateral assignment of this Agreement. 

  
 24 

 (c) Notwithstanding anything herein to the contrary, each party hereto
acknowledges that the Collateral Manager does not, pursuant to this Agreement, guarantee the payment of any obligations of the Company; provided that, nothing in this Section 23(c) shall affect, alter or otherwise modify the
Collateral Manager’s indemnification requirements pursuant to Section 14. 
 (d) The Collateral Manager agrees
(and, to the full extent that it may lawfully so agree) that neither it nor anyone claiming through or under it will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in force
in any locality where any Collateral Portfolio may be situated in order to prevent, hinder or delay the enforcement or foreclosure of the LSA, or the absolute sale of any of the Collateral Portfolio or any part thereof, or the final and absolute
putting into possession thereof, immediately after such sale, of the purchasers thereof, and the Collateral Manager, for itself and all who may at any time claim through or under it, hereby waives, to the full extent that it may be lawful so to do,
the benefit of all such laws, and any and all right to have any of the properties or assets constituting the Collateral Portfolio marshaled upon any such sale, and agrees that the Collateral Agent, or the Administrative Agent on its behalf, or any
court having jurisdiction to foreclose the security interests granted in this Agreement may sell the Collateral Portfolio as an entirety or in such parcels as the Collateral Agent (acting at the direction of the Administrative Agent) or such court
may determine. 
 (e) The Collateral Manager hereby irrevocably appoints each of the Collateral Agent and the Administrative
Agent its true and lawful attorney (with full power of substitution) in its name, place and stead and at its expense, in connection with the enforcement of the rights and remedies provided for in the LSA, including without limitation the following
powers: (a) to give any necessary receipts or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of the Collateral Portfolio in connection with any such sale or other disposition made pursuant
hereto, (c) to execute and deliver for value all necessary or appropriate bills of sale, assignments and other instruments in connection with any such sale or other disposition, the Collateral Manager hereby ratifying and confirming all that
such attorney (or any substitute) shall lawfully do hereunder and pursuant hereto, and (d) to sign any agreements, orders or other documents in connection with or pursuant to any Transaction Document. 

[signature page follows] 

  
 25 

 IN WITNESS WHEREOF, the parties hereto have caused this COLLATERAL MANAGEMENT AGREEMENT to be
executed by their respective authorized representatives on the date first above written. 
  

			
	CHESTNUT HILL FUNDING LLC
		
	By:	 	 /s/ Gerald F. Stahlecker

	Name:	 	Gerald F. Stahlecker
	Title:	 	Executive Vice President
	
	FS INVESTMENT CORPORATION III
		
	By:	 	 /s/ Gerald F. Stahlecker

	Name:	 	Gerald F. Stahlecker
	Title:	 	Executive Vice President

 [Signature Page to Collateral Management Agreement]

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