Document:

Revolving Credit Agreement

 Exhibit 10.5 
 REVOLVING CREDIT AGREEMENT 
 THIS REVOLVING CREDIT AGREEMENT, (this
“Agreement”) is made as of October 26, 2012, between FS Investment Corporation II, a Maryland corporation (the “Lender”), and Cobbs Creek LLC, a Delaware limited liability company (the
“Borrower”). 
 PRELIMINARY STATEMENTS 
 WHEREAS, from time to time, the Borrower will sell certain securities (the “CLO Notes”) to JPMorgan Chase Bank, N.A., London Branch (the “Purchaser”) pursuant to the
Global Master Repurchase Agreement and the related Confirmation, each dated as of October 26, 2012, and each between the Borrower and the Purchaser (as each may be amended, restated, supplemented or otherwise modified, collectively, the
“Repurchase Agreement”); 
 WHEREAS, from time to time, the Borrower will be required to deliver cash
collateral to the Purchaser to satisfy certain margining requirements and hold a minimum amount of Collateral to secure the Borrower’s obligations, in each case in accordance with the terms of and under the Repurchase Agreement and the Borrower
desires to borrow from the Lender the amount, if any, necessary from time to time to satisfy the Borrower’s obligation to deliver such collateral; and 
 WHEREAS, the Lender may be willing to make subordinated loans to the Borrower to fund such amounts on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto agree as
follows: 
 ARTICLE I. 
 Section 1.1. Defined Terms. Except as otherwise specified herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are defined in the Repurchase
Agreement. In addition, the following terms have the following meanings: 
 “Event of Default” means any event
of default specified in Section 5.1. 
 “LIBOR Rate” means, the rate per annum determined as of the first
Business Day of each calendar month equal to the rate determined by the Lender to be the offered rate that appears on the page of the Reuters Screen that displays an average British Bankers Association Interest Settlement Rate (such page currently
being LIBOR01) for deposits in United States dollars with a one-month period. The LIBOR Rate applicable to Loans hereunder will change monthly on the first Business Day of each calendar month. 

“Loan” means each loan of funds or each advance as all or part of the purchase price for the acquisition of Collateral
in accordance with Section 2.7 made to the Borrower by the Lender pursuant to Section 2.1. 

 “Maturity Date” means the earlier to occur of (i) the date designated
as such in writing by the Borrower and the Lender from time to time and (ii) the date this Agreement is terminated by the Lender pursuant to Section 5.2; provided, that in no event shall the Maturity Date occur prior to the date that is 90
days after the Final Repurchase Date under the Repurchase Agreement. 
 “Scheduled Expiration Date” means the
date that is 364 days after the date hereof, which shall be automatically renewed for one or more additional, successive terms of 364 days each unless either the Borrower or the Lender sends written notice to the other party not less than 30 days
prior to the next applicable Scheduled Expiration Date of such party’s desire not to extend the Scheduled Expiration Date for an additional term. 
 “Spread” means 0.75%. 
 ARTICLE II. 

Section 2.1. Loans to Borrower. Subject to the terms and conditions of this Agreement and in reliance on the representations
and warranties set forth herein, the Lender, in its sole discretion, may make Loans to the Borrower, from time to time from the date of this Agreement to but excluding the Scheduled Expiration Date, in an aggregate principal amount outstanding at
any one time not to exceed ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000). The determination of the Lender to make a Loan will also be subject to the conditions that (and the Borrower shall not request a Loan unless) (i) no event has occurred
and is continuing, or would occur by the borrowing of the Loan, which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both, would constitute an Event of Default and (ii) the representations and
warranties contained in Section 3.1 are true and correct in all material respects on and as of the date of each such Loan and will continue to be true and correct in all material respects after such Loan is made. 

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

 Section 2.3. Requests for Loans. Unless otherwise agreed to by the Lender, the
Borrower will give the Lender notice of a request for a Loan at least one Business Day prior to the day on which the Borrower wishes to receive the Loan. Subject to the terms and conditions of this Agreement, if agreed to by the Lender, the Lender
will make the requested Loan on the Business Day specified in the notice in immediately available funds in accordance with the Borrower’s payment instructions. 
 Section 2.4. Interest. (a) Interest will accrue on the average daily balance of the unpaid principal amount of the Loans, for each day from the date such Loans are made until they become
due or are paid in full, at a rate per annum equal to the sum of the LIBOR Rate then in effect plus the Spread. Should any principal of, or accrued interest on, a Loan not be paid when due, such amount will bear interest from its due date until paid
in full, at a rate per annum equal to the sum of (i) the LIBOR Rate plus the Spread, then in effect, plus (ii) 200 basis points (2.00%). In no event will the rate of interest hereunder exceed the maximum rate allowed by law. A certificate
of the Lender as to determination of the LIBOR Rate, the Spread, the calculation of the interest rate therefrom and the calculation of any interest due and payable will be, absent manifest error, conclusive and binding on the Borrower. 

(b) Interest shall be payable on each Repurchase Date during the term of this Agreement; provided, that if such day is not a Business
Day, the payment date for such period shall be the Business Day immediately following such day (but only to the extent that the Borrower has funds for such purpose in accordance with Section 2.2 hereof) and on the Maturity Date. Interest will
be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day). 
 Section 2.5. Repayment and Prepayment of the Loans. The outstanding principal amount of all Loans and all accrued and unpaid interest thereon will be due and payable in full on the Maturity
Date. The Borrower may prepay any outstanding Loan, in whole or in part, at any time without penalty. Any amounts prepaid may be reborrowed. All payments of principal of and interest on the Loans will be made in lawful money of the United States, in
immediately available funds, to the Lender. If any such payment falls due on a day which is not a Business Day, such payment will be due on the next following Business Day. Payments received by the Lender will be applied: first, to accrued and
unpaid interest on the Loans, and second, to the principal of the Loans. 
 Section 2.6. Transfer Restrictions. The
Lender may not transfer any interest in the Loans to persons other than affiliates of the Lender that are U.S. Persons for U.S. federal income tax purposes. For this purpose, a “non-U.S. person” is a person other than “U.S.
person” as defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended. 
 Section 2.7.
Loans for Acquisition of Collateral. Notwithstanding anything in this Agreement to the contrary, the parties agree that the Lender may make Loans to the Borrower as part of the purchase price for Collateral in lieu of the Borrower paying cash
pursuant to the Asset Transfer Agreement to acquire such Collateral. The principal amount of any Loan made as part 

 
of the purchase price of the acquisition of Collateral shall be equal to the Fair Market Value of such Collateral under the Repurchase Agreement on the day the Loan is made less any cash paid by
the Borrower to the Lender for such Collateral under the Asset Transfer Agreement. 
 ARTICLE III. 

Section 3.1. Representations and Warranties. To induce the Lender to enter into this Agreement and to make Loans in its sole
discretion hereunder, the Borrower represents and warrants as follows: 
 (a) It is a limited liability company duly organized,
validly existing and in good standing solely under the laws of the State of Delaware and is duly qualified to do business, and is in good standing, in every jurisdiction in which the nature of its business requires it to be so qualified; 

(b) It has full power and authority to enter into the transactions provided for in this Agreement and has been duly authorized to do so
by all necessary and appropriate action and when executed and delivered by it, this Agreement will constitute the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms, subject, as to enforcement, to
(i) the effect of bankruptcy, insolvency or similar laws affecting generally the enforcement of creditors’ rights, as such laws would apply in the event of any bankruptcy, receivership, insolvency or similar event applicable to the
Borrower and (ii) general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity); 
 (c) There does not exist any default or violation by it of or under any of the terms, conditions or obligations of: (i) its organizational documents; (ii) any material agreement or other
instrument to which it is a party or by which it is bound (other than defaults under the Repurchase Agreement that the Loan is intended to cure, resolve or alleviate); or (iii) in any material respect, any law, regulation, ruling, order,
injunction, decree, condition or other requirement applicable to or imposed upon it by any law or by any governmental authority, court or agency; and 
 (d) At the time of (and immediately after) each Loan is made hereunder, (i) the Borrower is solvent, (ii) the Borrower’s cash on hand is sufficient to satisfy all of its current obligations
(other than its obligations under this Agreement and the Repurchase Agreement), (iii) its capitalization, including its equity, is commercially reasonable and adequate to conduct its business as presently contemplated and (iv) the
financial capacity of the Borrower to meet its financial commitments under this Agreement is adequate. 
 ARTICLE IV. 

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

 Section 4.2. Keeping of Records and Books of Account. The Borrower shall
maintain and keep proper books and records and account which enable the Borrower to prepare and issue financial statements in accordance with generally accepted accounting principles and as otherwise may be required by any applicable law, rule or
regulation and in which full, true and correct entries shall be made of all of its dealings and business and financial affairs. The Borrower shall permit the Lender to examine and make excerpts from such books and records at such times and as often
as the Lender may reasonably request. The Borrower shall permit, upon the request of the Lender, an audit to be conducted of the Borrower’s financial statements and books and records. Any such audit shall be at the Borrower’s expense and
shall be conducted by independent accountants selected by the Lender. 
 Section 4.3. No Distributions. The Borrower
will not make any cash or in-kind distributions to its equity holders unless both before and after each such distribution the representations and warranties contained in Section 3.1 above would be true and correct. 

ARTICLE V. 

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

(a) the Borrower fails to pay, within five Business Days after it is due and payable, any principal of or interest on any of the Loans;
provided, that for purposes of this Section 5.1(a) only, no principal or interest shall be considered due and payable on a date that is prior to the Maturity Date; or 
 (b) the Borrower fails to perform or observe any other term or condition of any of this Agreement applicable to it and such event or circumstance, if capable of being cured, is not cured within 30 days
after written notice thereof is given by the Lender to the Borrower; or 
 (c) an Event of Bankruptcy occurs with respect to the
Borrower. 
 Section 5.2. Remedies. Upon the occurrence of an Event of Default, the Lender may do any one or more of
the following (without presentment, protest or notice of protest, all of which are expressly waived by the Borrower): (i) terminate this Agreement and declare the principal of and interest on the Loans and all other sums owing by the Borrower
to the Lender under this Agreement forthwith due and payable, whereupon this Agreement will terminate and the principal of, and interest on, the Loans and all such other sums will become forthwith due and payable; and (ii) subject to
Section 5.3, exercise all rights granted pursuant to this Agreement, in such order and in such manner as the Lender may, in its sole and exclusive judgment, determine. 
 Section 5.3. Subordination. Notwithstanding anything contained in this Agreement to the contrary, to the extent that the Lender is deemed to have any interest in any assets of the Borrower,
the Lender agrees that all amounts outstanding hereunder and its interest in those assets are subordinate in all respects to claims or rights of the Purchaser pursuant to the Repurchase Agreement; and provided further, that notwithstanding any
rights or remedies 

 
available to the Lender under this Agreement, applicable law or otherwise, prior to the time that all secured indebtedness or other secured obligations owned by the Borrower, including the
obligations of the Borrower under the Repurchase Agreement, shall have been repaid in full, (i) the Lender shall not, directly or indirectly, seek to accelerate or enforce (judicially or non-judicially) its rights hereunder or assert any claims
or interests therein (including, without limitation, by setoff or notification of account debtors) and (ii) in the event that the Lender shall receive any payment or other distribution of any kind or character from the Borrower constituting
collateral that is pledged to the Purchaser other than funds that are not required by the Borrower at such time to satisfy its payment and/or its margin maintenance obligations under the Repurchase Agreement and constitute permitted Restricted
Payments in accordance with and as defined in the Repurchase Agreement, such payment or other distribution shall be received in trust for the Purchaser and shall be turned over to the Purchaser forthwith by the Lender. The Lender agrees that this
Agreement constitutes a subordination agreement for purposes of Section 510(a) of the United States Bankruptcy Code, as amended from time to time (11 U.S.C. §§ 101 et seq.). 

ARTICLE VI. 

Section 6.1. Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and, in the case of an amendment, is signed by all the parties hereto and, in the case of a waiver, is signed by the party granting the waiver and then such waiver shall be effective only in the specific instance and for the
specific purpose for which given, in each case with the prior written consent of the Purchaser. To the extent the consent of the Lender is required under this Agreement, the determination as to whether to grant or withhold such consent shall be made
by the Lender in its sole discretion without any implied duty toward any other Person, except as otherwise expressly provided herein or therein. 
 Section 6.2. Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including communication by facsimile copy or other
electronic means) and mailed, delivered by nationally recognized overnight courier service, transmitted or delivered by hand, as to each party hereto, at its address set forth on the signature pages hereto or at such other address as shall be
designated by such party in a written notice to the other parties hereto. Each such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the specified facsimile number and an
appropriate confirmation is received, (ii) if given by mail, five days after being deposited in the United States mails, first class postage prepaid, (iii) if given by recognized courier guaranteeing overnight delivery, the Business Day
following such day after such communication is delivered to such courier or (iv) if given by any other means, when delivered at the address specified in this Section 6.2. 

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

 Section 6.4. Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, except that no party may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written
consent of each other party, except as otherwise permitted by this Agreement, and any such purported assignment without such consent shall be void. 
 Section 6.5. Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
 Section 6.6. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of
this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of
this Agreement. 
 Section 6.7. Submission to Jurisdiction. EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY
HERETQ OR ANY OF THEIR PROPERTY IN THE COURTS OF OTHER JURISDICTIONS. 
 Section 6.8. Waiver of Jury Trial. EACH OF
THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY OF THEM ARISING OUT OF, CONNECTED WITH, RELATING TO OR INCIDENTAL TO THE RELATIONSHIP BETWEEN
THEM IN CONNECTION WITH THIS AGREEMENT. 

 Section 6.9. Appointment of Service Agent. The Borrower hereby appoints itself
as the authorized agent upon whom process may be served in any action arising out of or based upon this Agreement or the transactions contemplated hereby that may be instituted in the United States District Court for the Southern District of New
York and of any New York State court sitting in The City of New York by the Lender or any successor or assignee of any of them. 

Section 6.10. Bankruptcy Non-Petition and Limited Recourse. Notwithstanding any other provision of this Agreement, the Lender
covenants and agrees that it shall not, prior to the date which is one year and one day (or, if longer, any applicable preference period plus one day) after the Final Repurchase Date, institute against, or join any other Person in instituting
against, the Borrower, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or any similar proceeding under any federal or state bankruptcy or similar law; provided that nothing in this provision shall preclude or be
deemed to stop any other party hereto from taking any action prior to the expiration of the aforementioned one year and one day period in (i) any case or proceeding voluntarily filed or commenced by the Borrower or (ii) any involuntary
insolvency proceeding filed or commenced against the Borrower by a Person other than any other party hereto. The obligations of the Borrower under this Agreement are unsecured obligations. The Lender acknowledges that the Borrower has no assets
other than the CLO Notes and the Collateral and all amounts owed hereunder are limited recourse obligations payable solely from available funds generated by the CLO Notes and the Collateral which are not required by the Borrower to satisfy its
payment and/or its margin maintenance obligations under the Repurchase Agreement. In addition, no recourse shall be had for any amounts payable or any other obligations arising under this Agreement against any officer, member, director, employee,
partner or security holder of the Borrower or any of its successors or assigns. The provisions of this Section shall survive the termination of this Agreement. 
 Section 6.11. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. Delivery by facsimile or electronic mail of an executed signature page of this Agreement shall be effective as delivery of an
executed counterpart hereof. 
 Section 6.12. Integration. This Agreement, including all exhibits, schedules and
appendices and other documents attached hereto or incorporated by reference herein, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all other negotiations, understandings and representations,
oral or written, with respect to the subject matter hereof 
 Section 6.13. Section Titles. The section titles
contained in this Agreement shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties. 
 Section 6.14. Survival. The provisions of this Article VI shall be continuing and shall survive termination of this Agreement. 

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

			
	COBBS CREEK LLC,
	as Borrower
		
	By:	 	 /s/ Gerald F. Stahlecker

	Gerald F. Stahlecker
	Executive Vice President

  

					
		  	 Address for Notices:
  

Cobbs Creek LLC
 Cira Centre

2929 Arch Street, Suite 675
 Philadelphia,
Pennsylvania 19104
 Telephone: (215) 495-1169
 Telecopy: (215) 222-4649
 Attention: Gerald F. Stahlecker
	  	

 [Signatures continue on next page.] 

[Cobbs Creek Revolving Credit Agreement] 

 [Signatures continued from previous page.] 

 

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

		 	Gerald F. Stahlecker
		 	Executive Vice President

  

					
		  	 Address for Notices:
  

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

Philadelphia, Pennsylvania 19104
 Telephone:
(215) 495-1169
 Telecopy: (215) 222-4649
 Attention: Gerald F. Stahlecker
	  	

 [Cobbs Creek Revolving Credit Agreement]Asset Transfer Agreement

 Exhibit 10.6 
 ASSET TRANSFER AGREEMENT 
 This ASSET TRANSFER AGREEMENT (this
“Agreement”), dated as of October 26, 2012, is entered into by and between FS Investment Corporation II (the “Seller”) and Cobbs Creek LLC (“Cobbs Creek”). 

RECITALS 

WHEREAS, the Seller owns certain loans or interests in loans (each, a “Collateral Obligation”); 

WHEREAS, the Seller desires from time to time to sell to Cobbs Creek, and Cobbs Creek desires from time to time to purchase from
the Seller, each Collateral Obligation (each such Collateral Obligation, a “Sold Asset,” and collectively, the “Sold Assets”) owned by the Seller and described on the related supplement to this Agreement between the
Seller and Cobbs Creek substantially in the form attached hereto as Exhibit A (the “Transfer Supplement”); and 
 WHEREAS, the Seller and Cobbs Creek would like to confirm and evidence their intent that all right, title and interest in each Sold Asset be sold and transferred to Cobbs Creek. 

NOW THEREFORE, in consideration of the recitals and mutual promises herein and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows: 
 1. Sales of Sold Assets. 

(a) The Seller hereby agrees to sell, transfer, assign, set over, quitclaim, and otherwise convey to Cobbs Creek, without recourse,
representation or warranty except as provided herein, and Cobbs Creek agrees to purchase from the Seller on each date set forth on the related Transfer Supplement (each such date, the “Transfer Date”) all of the right, title and
interest of the Seller, in and to the related Sold Assets, including all distributions thereon and collections thereof received or due on or after the applicable Transfer Date. The purchase price for the sale of the applicable Sold Assets on such
Transfer Date, the receipt of which by the Seller is hereby acknowledged by the parties to be good and valuable consideration, in an amount equal to the fair market value thereof, consists of cash or, in the case of a Transfer Date occurring within
sixty (60) days of the date hereof, an increase in the value of the Seller’s limited liability company interests in Cobbs Creek, or (alone or in combination with cash), on any Transfer Date occurring more than sixty (60) days after
the date hereof, a borrowing (each, a “Loan”) under the Revolving Credit Agreement, dated as of October 26, 2012, between Cobbs Creek, as the borrower, and Seller, as lender (the “Credit Agreement”), in an
amount equal to the fair market value of the related Sold Asset less any cash paid as part of the purchase price. In addition, Cobbs Creek may pay the purchase price for any Sold Assets by transferring collateral obligations then owned by Cobbs
Creek to the Seller having a fair market value at the time of such transfer equal to the Initial Fair Market Value of the Sold Asset transferred to Cobbs Creek; provided, that in the case of collateral obligations that previously were sold to Cobbs
Creek by the Seller (each, a “Prior Sold Asset”), the fair market value as of the date of acquisition of such Prior Sold Asset (such value, the “Initial Fair Market Value”) to be transferred to the Seller as

 
part of the purchase price, when aggregated with the Initial Fair Market Value of all other Prior Sold Assets previously transferred to the Seller as part of the purchase price of Sold Assets, is
less than or equal to 10% of the aggregate Initial Fair Market Value as of the respective date of acquisition of all Prior Sold Assets at any time hereunder. 
 (b) In the event that a participation interest in any Sold Asset is sold to Cobbs Creek by Seller pursuant to that certain Participation Agreement, dated as of the date hereof, between Seller and Cobbs
Creek, each of Cobbs Creek and Seller agree that the “Purchase Price” (as defined therein) shall be without duplication of the purchase price with respect to such Sold Asset paid hereunder and that the consideration paid pursuant to
Section 1(a) hereof with respect to such Sold Asset shall be in satisfaction of any amounts owing to Seller under the Participation Agreement with respect to such Sold Asset. 

(c) After the effectiveness of the transfer of a Sold Asset, the Seller agrees that such Sold Asset shall not be part of the
Seller’s property for any purposes under state or federal law. It is the intention of the parties hereto that the arrangements with respect to the Sold Assets shall constitute a purchase and sale of the Sold Assets and not a loan. In the event,
however, that a court were to hold that the transactions evidenced hereby constitute a loan and not a purchase and sale, it is the intention of the parties hereto that this Agreement shall be deemed to have created and does hereby create in favor of
Cobbs Creek a first-priority perfected security interest in all of the Seller’s right, title and interest, whether now owned or hereafter acquired, in, to and under the Sold Assets and all proceeds thereof, to secure the obligations of the
Seller hereunder and a loan in the amount of the purchase price of the Sold Assets plus all interest accrued on and all proceeds of the Sold Assets. 
 (d) The Seller hereby authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as Cobbs Creek
may determine, in its sole discretion, are necessary or advisable to perfect the security interest described in the preceding paragraph. Such financing statements may describe the collateral in the same manner as described in this Agreement or in
any other security agreement, assignment, transfer document or pledge agreement entered into by the parties in connection herewith. 
 2. Representations, Warranties and Covenants of the Seller. The Seller hereby represents, warrants and covenants to Cobbs Creek, its successors and assigns, that: 

(a) Organization. It is duly incorporated, validly existing and in good standing under the laws and regulations of its
jurisdiction of incorporation and is duly qualified, and in good standing in every jurisdiction where such qualification is necessary for the transaction of its business except where the failure to do so would not have a material adverse effect on
the transactions contemplated hereby or the Seller’s ability to perform its obligations hereunder. It has the power to own and hold the assets it purports to own and hold, and to carry on its business as now being conducted and proposed to be
conducted, in each case, except where the failure to do so would not have a material adverse effect on the transactions contemplated hereby or the Seller’s ability to perform its obligations hereunder. 

  
 2 

 (b) Due Execution; Enforceability. It has the full power and authority to execute and
deliver this Agreement and to carry out its terms; it has full power, authority and right under its constituent documents to sell, convey, transfer, set over, and otherwise assign the Sold Assets to Cobbs Creek; and it has duly authorized such by
all necessary entity action. This Agreement has been duly executed and delivered by the Seller, and constitutes the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with its terms, subject to
bankruptcy, insolvency, and other limitations on creditors’ rights generally, to any applicable law imposing limitations upon, or otherwise affecting, the availability or enforcement of rights to indemnification hereunder and to equitable
principles. 
 (c) Non-Contravention. Neither the execution and delivery of this Agreement, nor consummation by the
Seller of the transactions contemplated by this Agreement, nor compliance by Seller with the terms, conditions and provisions of this Agreement will conflict with or result in a breach of any of the terms, conditions or provisions of any of the
following in a manner which would have a material adverse effect on the Seller’s ability to perform its obligations hereunder: (i) the organizational documents of the Seller, (ii) any contractual obligation to which the Seller is now
a party or the rights under which have been assigned to the Seller or the obligations under which have been assumed by the Seller or to which the assets of the Seller are subject or constitute a default thereunder in any material respect, or result
thereunder in the creation or imposition of any lien upon any of the assets of the Seller, other than pursuant to this Agreement, (iii) any judgment or order, writ, injunction, decree or demand of any court applicable to the Seller or
(iv) any applicable requirement of law. The Seller has all necessary licenses, permits and other consents from governmental authorities necessary to acquire, own and sell the Sold Assets and for the performance of its obligations under this
Agreement except where the failure to have any such license, permit or consent would not have a material adverse effect on the Seller’s ability to perform its obligations hereunder. 

(d) Litigation, Requirements of Law. (i) There is no action, suit, proceeding, investigation, or arbitration pending or, to
the best knowledge of the Seller, threatened, against the Seller with respect to the Sold Assets, (ii) Seller is in compliance in all material respects with all requirements of law to which the Seller is subject with respect to the Sold Assets
and (iii) Seller is not in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or governmental authority, in each of the foregoing instances, except where such
action, suit, proceeding, investigation, or arbitration, non compliance or default would not have a material adverse effect on any Sold Asset or Seller’s ability to perform its obligations hereunder. 

(e) Good Title to Sold Assets. The Seller has not assigned, pledged, or otherwise conveyed or encumbered any interest in the Sold
Assets to any other person, which assignment, pledge, conveyance or encumbrance remains effective as of the applicable Transfer Date. Immediately prior to the purchase of any of the Sold Assets by Cobbs Creek from the Seller, such Sold Assets are
free and clear of any lien, encumbrance or impediment to transfer created by Seller (including any “adverse claim” as defined in Section 8-102(a)(1) of the Uniform Commercial Code), and the Seller is the sole record and beneficial
owner of and has good and marketable title to and the right to sell and transfer such Sold Assets to Cobbs Creek and, upon transfer of such Sold Asset to Cobbs Creek, Cobbs Creek shall be the sole owner of such Sold Assets free of any adverse claim
created by the Seller. In the event the transactions 

  
 3 

 
contemplated hereby are recharacterized as a secured financing of the Sold Assets, the provisions of this Agreement are effective to create in favor of Cobbs Creek a valid security interest in
all rights, title and interest of the Seller in, to and under the Sold Assets and Cobbs Creek shall have a valid, perfected first priority security interest in the Sold Assets. 

(f) No Default. No default shall have occurred and be continuing with respect to any Collateral Obligation as of the applicable
Transfer Date. 
 (g) Sale Accounting. The Seller will treat each transfer of the Sold Assets to Cobbs Creek as a sale
for legal purposes, but not for accounting purposes. 
 (h) Solvency. The Seller is generally able to pay, and as of the
applicable Transfer Date is paying, its debts as they come due. The Seller’s assets at a fair valuation exceeds its liabilities. The Seller has not entered into this Agreement or the transactions effectuated hereby in contemplation of
insolvency or with intent to hinder, delay or defraud any creditor. 
 (i) Seller’s Undertakings as to Sold Assets.
The sale of each Sold Asset shall be a separate transaction (each, a “Transaction”) and for each Transaction with respect to a Sold Asset that is of a type normally traded thereby, except as herein expressly provided, this Agreement
shall constitute a “Confirmation” with respect to each Transaction and shall be governed by the Standard Terms and Conditions for Par/Near Par Trade Confirmations (the “LSTA Standard Terms and Conditions”) published by the
Loan Syndication and Trading Association, Inc. (the “LSTA”) as of August, 2010; provided, that (a) no “Delayed Compensation” (as defined in the LSTA Standard Terms and Conditions) shall be payable in respect of
any Transaction; (b) “Credit Documentation” (as defined in the LSTA Standard Terms and Conditions) shall be provided by the Seller to Cobbs Creek; and (c) “Assignment” (as defined in the LSTA Standard Terms and
Conditions) shall apply unless a consent to the related Transaction is not timely obtained to permit consummation of such Assignment on or before the related settlement date, in which case the Transaction shall be settled by a Participation with
Elevation applicable thereto. Cobbs Creek agrees to pay the “purchase price” to the Seller for each such Sold Asset on the related settlement date by payment of the consideration specified for such Sold Asset in the related Transfer
Supplement. 
 3. Repurchase of Collateral Obligations. Each party to this Agreement shall give notice to the other party
promptly, in writing, upon the discovery of any lien, encumbrance and defect with respect to any Sold Asset that would affect Cobbs Creek in any manner, including without limitation any effect on the value thereof or interference with the use made
or to be made thereof by it in existence on the Transfer Date with respect to such Sold Asset. In the event of such discovery, the Seller shall promptly cure or repurchase any affected Collateral Asset from Cobbs Creek at an amount equal to
(i) 100% of the “purchase price” (expressed as a percentage) paid by Cobbs Creek and multiplied by the principal amount of each such Collateral Asset and (ii) all accrued and unpaid interest thereon. 

  
 4 

 4. Representations, Warranties and Covenants of Cobbs Creek. Cobbs Creek hereby
represents, warrants and covenants to the Seller, its successors and assigns, that: 
 (a) Organization. It is duly
formed, validly existing and in good standing under the laws and regulations of its jurisdiction of formation and is duly licensed, qualified, and in good standing in every jurisdiction where such licensing or qualification is necessary for the
transaction of its business except where the failure to do so would not have a material adverse effect on the transaction of Cobbs Creek’s business or its ability to perform its obligations hereunder. It has the power to own and hold the assets
it purports to own and hold, and to carry on its business as now being conducted and proposed to be conducted, in each case, except where the failure to do so would not have a material adverse effect on the transactions contemplated hereby or on
Cobbs Creek’s ability to perform its obligations hereunder. 
 (b) Due Execution, Enforceability. This Agreement has
been duly executed and delivered by Cobbs Creek, and constitutes the legal, valid and binding obligations of Cobbs Creek, enforceable against Cobbs Creek in accordance with its terms, subject to bankruptcy, insolvency, and other limitations on
creditors’ rights generally, to any applicable law imposing limitations upon, or otherwise affecting, the availability or enforcement of rights to indemnification hereunder and to equitable principles. 

(c) Litigation; Requirements of Law. (i) There is no action, suit, proceeding, investigation, or arbitration pending or, to
the best knowledge of Cobbs Creek, threatened, against Cobbs Creek or any of its assets; (ii) Cobbs Creek is in compliance in all material respects with all requirements of law to which Cobbs Creek is subject; and (iii) Cobbs Creek is not
in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or governmental authority, in each of the foregoing instances, except where such action, suit, proceeding,
investigation or arbitration, non-compliance or default would not have a material adverse effect on any Sold Asset or on Cobbs Creek’s ability to perform its obligations hereunder. 

(d) No Broker. Cobbs Creek has not dealt with any broker, investment banker, agent, or other person (other than the Seller or an
affiliate of the Seller) who may be entitled to any commission or compensation in connection with the sale of the Sold Assets pursuant to this Agreement. 
 (e) Consents. No consent, approval or other action of, or filing by Cobbs Creek with, any governmental authority or any other person is required to authorize, or is otherwise required in connection
with, the execution, delivery and performance of this Agreement (other than consents, approvals and filings that have been obtained or made, as applicable). 
 (f) Sale. Accounting. Cobbs Creek will treat the transfer of the Sold Assets to it as a purchase for legal purposes, but not for accounting purposes. 

5. Closing. The closing of a sale of Sold Assets shall be held on the applicable Transfer Date at the time and place mutually
agreed upon by the parties. 
 The closing shall be subject to each of the following conditions: 

(a) all of the representations, warranties and covenants of Cobbs Creek and the Seller specified herein shall be true and correct in all
material respects as of the applicable Transfer Date (or such other date specifically provided in the particular representation or warranty); 

  
 5 

 (b) the applicable Transfer Supplement shall be duly executed by the Seller and Cobbs Creek;

 (c) the Collateral Obligations constituting the Sold Assets and any applicable transfer documents that are requested by the
Buyer shall be delivered to the Buyer (or otherwise at the direction of Cobbs Creek); and 
 (d) all other terms and conditions
of this Agreement required to be complied with on or before the applicable Transfer Date shall have been complied with. 
 Each
of the parties hereto agrees to use all reasonable commercial efforts to perform its respective obligations hereunder in a manner that will enable Cobbs Creek to purchase the Sold Assets on the applicable Transfer Date. 

6. Undertaking and Assumption. To the extent that any Collateral Obligation requires that any transferee of an interest therein
must execute an assignment and assumption agreement whereby such transferee assumes all of the obligations of the holder thereof with respect to such Collateral Obligation or portion thereof being transferred, and such an agreement has not already
been executed and delivered, the parties hereto intend that this Agreement shall constitute such an assignment and assumption agreement (within the meaning of such Collateral Obligation) with respect to the transfer of such Collateral Obligation to
Cobbs Creek and Cobbs Creek may enter into an omnibus assignment and assumption agreement to evidence such assignment and assumption pursuant to this Agreement. 
 Cobbs Creek hereby assumes and undertakes to perform, pay or discharge in accordance with the terms and conditions thereof all obligations of the Seller in its capacity as the holder of each Sold Asset
under the related Collateral Obligation, to the extent such obligations are to be performed, paid or discharged after the effectiveness of the transfer of each such Sold Asset and related Collateral Obligation to Cobbs Creek. Cobbs Creek hereby
agrees to be bound by the terms, provisions, covenants and conditions in each Collateral Obligation applicable to the holder of each such Sold Asset. The Seller hereby retains and undertakes to perform, pay or discharge in accordance with the terms
and conditions under such Collateral Obligation all of the obligations of the holder of the Sold Asset to the extent such obligations arose or accrued prior to the effectiveness of such transfer. Cobbs Creek agrees to execute and deliver all such
further assurances as may be reasonably requested by the Seller in order to effect the assumption by Cobbs Creek of the obligations of the Seller under such Collateral Obligation with respect to the Sold Assets as contemplated herein. Except as may
otherwise have been agreed to between the parties with respect to any particular Sold Asset, (i) the Seller hereby represents, warrants and agrees that any amounts received by it with respect to any Sold Asset and which accrue from and after
the effectiveness of the transfer of such Sold Asset shall be held in trust for the benefit of and shall be promptly remitted to Cobbs Creek upon receipt thereof, and (ii) Cobbs Creek hereby represents, warrants and agrees that any amounts
received by it with respect to a Sold Asset which accrue with respect to the period prior to the effectiveness of such transfer of such Sold Asset shall be held in trust for the benefit of and shall be promptly remitted to the Seller upon receipt
thereof. 

  
 6 

 7. 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. Notice shall be deemed to have been duly given,
made or received when delivered against receipt or upon actual receipt of registered or certificated mail, postage prepaid, return receipt requested, or in the case of facsimile notices, when received in legible form. Until further notice to the
other party, it is agreed that the address of: 
  

	 	(a)	the Seller for this purpose shall be: 

 FS Investment Corporation II 
 Cira Centre 

2929 Arch Street, Suite 675 
 Philadelphia, Pennsylvania 19104 
 Telephone: (215) 495-1169 

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

	 	(b)	Cobbs Creek for this purpose shall be: 

 Cobbs Creek LLC 
 Cira Centre 

2929 Arch Street, Suite 675 
 Philadelphia, Pennsylvania 19104 
 Telephone: (215) 495-1169 

Telecopy: (215) 222-4649 
 Attention: Gerald F. Stahlecker 
 8. GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY AND INTERPRETED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW. 

9. Survival. The Seller and Cobbs Creek agrees that the representations, warranties and agreements made by it herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to have been relied upon by Cobbs Creek and the Seller, respectively, notwithstanding any investigation heretofore or hereafter made by the other party or on the other
party’s behalf, and that the representations, warranties and agreements made by the Seller herein or in any such certificate or other instrument and Sections 17 and 18 of this Agreement, shall survive the delivery of and payment for the Sold
Assets. 
 10. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed
an original, but all of which together shall constitute one instrument. 
 11. Acknowledgement of Assignment. The Seller
hereby acknowledges that Cobbs Creek is assigning all of its right, title and interest in, to and under this Agreement to JPMorgan 

  
 7 

 
Chase Bank, N.A., London Branch, as buyer (the “Buyer”), under that certain Global Master Repurchase Agreement, dated as of the date hereof (the “GMRA”), by and
between the Buyer and Cobbs Creek. The Buyer shall be considered a third-party beneficiary of this Agreement and may enforce this Agreement against the Seller. 
 12. Entire Agreement. This Agreement constitutes the entire understanding and agreement among the parties and supersedes all other prior understandings and agreements, whether written or oral,
among the parties concerning this subject matter. 
 13. Severability. In the event any court of competent jurisdiction
shall hold any provision of this Agreement invalid or unenforceable, such holding shall not invalidate or render unenforceable any other provisions hereof. 
 14. Captions. 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.

 15. Use of Terms. Words used herein, regardless of the number and gender specifically used, shall be deemed and
construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 16. Amendments. This Agreement may be amended or modified only by an instrument in writing signed by the parties hereto. 
 17. Non-Petition. The Seller and Cobbs Creek agree that neither party shall institute against, or join any other person in instituting against Cobbs Creek or the Seller, respectively, any
bankruptcy, reorganization, arrangement, insolvency, moratorium, liquidation or similar proceedings or other proceedings under U.S. federal or state bankruptcy laws or similar laws of any jurisdiction until at least one (1) year and one
(1) day (or, if applicable, such longer preference period as may be in effect) after the payment in full (other than contingent indemnification or reimbursement obligations for which no claim has been made) of all obligations owing under the
GMRA; provided that nothing in this Section 17 shall preclude, or be deemed to estop, the Seller or Cobbs Creek (A) from taking any other action prior to the expiration of such period in (i) any case or proceeding voluntarily
filed or commenced by Cobbs Creek or the Seller, respectively, or (ii) any involuntary insolvency proceeding filed or commenced against Cobbs Creek or the Seller, respectively, by a person other than the Seller or Cobbs Creek, respectively, or
(B) from commencing against Cobbs Creek or the Seller, respectively, or any properties of Cobbs Creek or the Seller, respectively, any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium, liquidation or
similar proceeding. The provisions of this Section 17 shall survive termination of this Agreement for any reason whatsoever. 
 18. Limited-Recourse. Notwithstanding any other provision of this Agreement, the obligations of Cobbs Creek to the Seller under this Agreement, and of the Seller to Cobbs Creek under this
Agreement, shall be limited to the remaining amounts from time to time available and comprising the assets of Cobbs Creek and the Seller, respectively, having satisfied or provided for all other prior ranking liabilities of Cobbs Creek or the
Seller, as the case may be. 

  
 8 

 
Accordingly, the Seller shall have no claim or recourse against Cobbs Creek in respect of any amount which is or remains unsatisfied after the application of the funds comprising the assets of
Cobbs Creek or representing the proceeds of realization thereof and any remaining obligation to pay any further unsatisfied amounts shall be extinguished. Correspondingly, Cobbs Creek shall have no claim or recourse against the Seller in respect of
any amount which is or remains unsatisfied after the application of the funds comprising the assets of the Seller or representing the proceeds of realization thereof and any remaining obligation to pay any further unsatisfied amounts shall be
extinguished. None of the shareholders, subordinated noteholders, partners, members, directors, board members, managers, officers, employees and agents of the Seller and Cobbs Creek shall be personally liable for any amounts payable, or performance
due, under this Agreement. The provisions of this Section 18 shall survive termination of this Agreement for any reason whatsoever. 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Asset
Transfer Agreement on the date first above mentioned. 
  

					
	FS INVESTMENT CORPORATION II
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name:	 	Gerald F. Stahlecker
		 	Title:	 	Executive Vice President
	
	COBBS CREEK LLC
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name:	 	Gerald F. Stahlecker
		 	Title:	 	Executive Vice President

 EXHIBIT A 

FORM OF TRANSFER SUPPLEMENT 
 THIS TRANSFER SUPPLEMENT TO THE ASSET TRANSFER AGREEMENT (this “Transfer Supplement”), dated as of October 26, 2012, by and between FS Investment Corporation II (the
“Seller”) and Cobbs Creek LLC (the “Cobbs Creek”). Except as otherwise expressly provided herein or unless the context otherwise requires, all capitalized terms used herein shall have the meanings attributed to them
in the Asset Transfer Agreement, dated as of October 26, 2012, as amended from time to time (the “Asset Transfer Agreement”), between the Seller and Cobbs Creek. 

Section 1. Sold Assets 
 (a) The Sold Assets to which this Transfer Supplement applies are described on Schedule A hereto. 
 (b) Transfer Date: October 26, 2012. 
 (c) Purchase Price of Sold Assets:
$[                    ]. 

Section 2. Representations, Warranties and Covenants of the Seller. The representations, warranties and covenants of
the Seller set forth in Section 2 of the Asset Transfer Agreement shall be true in all material respects as of the Transfer Date (or such other date specifically provided in the particular representation or warranty). 

Section 3. Effect of Supplement. Except as specifically supplemented herein, the Asset Transfer Agreement shall
continue in full force and effect in accordance with its original terms. Reference to this specific Transfer Supplement need not be made in the Asset Transfer Agreement, or any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect to the Asset Transfer Agreement, any reference in any of such items to the Asset Transfer Agreement being sufficient to refer to the Asset Transfer Agreement as
supplemented hereby. 
 Section 4. Counterparts. This Transfer Supplement may be executed in any number of
counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Transfer Supplement by signing any such
counterpart and each of such counterparts shall for all purposes be deemed to be an original. This Transfer Supplement shall be governed by the internal laws of the State of New York. 

* * * * * 

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

					
	FS INVESTMENT CORPORATION II
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	COBBS CREEK LLC
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [Signature Page to Transfer Supplement]

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