Document:

Exhibit

Exhibit 4.1

HMS INCOME FUND, INC.
AMENDED AND RESTATED DISTRIBUTION REINVESTMENT PLAN
 
Effective as of November 1, 2017

HMS Income Fund, Inc., a Maryland corporation (the “Company”), has adopted the following Distribution Reinvestment Plan (the “DRP”). Capitalized terms shall have the same meaning as set forth in the Company’s Articles of Amendment and Restatement (the “Articles”) unless otherwise defined herein.
 
1. Distribution Reinvestment. As an agent for the holders (“Stockholders”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), who elect to participate in the DRP (the “Participants”), the Company will apply all cash distributions, other than Designated Special Distributions (as defined below), including distributions paid with respect to any full or fractional shares of Common Stock acquired under the DRP (collectively, “Distributions”), to the purchase of the shares of Common Stock for such Participants directly, if permitted under state securities laws and, if not, through the dealer manager or soliciting dealers registered in the Participant’s state of residence. As used herein, the term “Designated Special Distributions” shall mean those cash or other distributions designated as Designated Special Distributions by the board of directors (the “Board”) of the Company.
 
2. Authorization. Subject to the Board’s discretion and applicable legal restrictions, the Company intends to authorize and declare Distributions quarterly and pay Distributions monthly, or on such other date or dates as may be fixed from time to time by the Board to Stockholders of record at the close of business on the record date for the Distribution involved. If, at the time of the Distribution, the Company is issuing Common Stock to new investors in connection with a continuous offering pursuant to a registration statement on Form N-2, the number of shares of Common Stock to be issued to a Stockholder shall be determined by dividing the total dollar amount of the Distribution payable to such Stockholder by the price that the shares of Common Stock are sold in the offering on such closing date, minus the sales load. At all other times, the number of shares of Common Stock to be issued to a Stockholder shall be determined by dividing the total dollar amount of the Distribution payable to such Stockholder by a price per share of Common Stock, determined by the Board or a committee thereof, in its sole discretion, that is (i) not less than the net asset value per share of Common Stock determined in good faith by the Board of Directors or a committee thereof, in its sole discretion, within forty-eight hours prior to the payment of the Distribution (the “NAV Per Share”) and (ii) not more than 2.5% greater than the NAV Per Share as of such date.
 
3. Procedure for Participation. Any Stockholder may elect to become a Participant, solely with respect to those shares purchased in connection with an offering of Common Stock of the Company, by completing and executing a subscription agreement, an enrollment form or any other appropriate authorization form as may be available from the Company from time to time. If the Company receives a Stockholder’s properly completed subscription agreement or other appropriate authorization form within 10 days prior to the next Distribution date, the Stockholder’s participation in the DRP will begin with the next Distribution payable after receipt of a Participant’s subscription, enrollment or authorization. Otherwise, the Company reserves the right to commence the Stockholder’s participation in the DRP beginning with the following Distribution payable. Shares of Common Stock will be purchased under the DRP on the date that Distributions are paid by the Company.

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Exhibit 4.1

Participation in the DRP shall continue until such participation is terminated in writing by the Participant pursuant to Section 8 below. If the DRP transaction involves shares of Common Stock that are registered with the Securities and Exchange Commission (the “Commission”) in a future registration or there is a change to the purchase price to be paid for shares of Common Stock issued pursuant to the DRP, the Company shall make available to all Participants the prospectus as contained in the Company’s registration statement filed with the Commission with respect to such future registration or provide public notification to all Participants of such change in the purchase price of the shares of Common Stock issued pursuant to the DRP, as applicable. If, after a price change, a Participant does not desire to continue to participate in the DRP, such Participant should exercise its right to terminate its participation pursuant to the provisions of Section 8 below. 
4. Purchase of Shares of Common Stock. Participants in the DRP may purchase fractional shares of Common Stock so that 100% of the Distributions will be used to acquire shares of Common Stock. However, a Participant will not be able to acquire shares of Common Stock pursuant to the DRP to the extent that any such purchase would cause such Participant to violate any provision in the Articles. 
5. Stock Certificates. The ownership of the shares of Common Stock purchased through the DRP will be in book-entry form only.
 
6. Reports. Within 90 days after the end of the Company’s fiscal year, the Company shall provide each Stockholder or the Stockholder's representative with an individualized report on the Stockholder's investment, including the purchase date(s), purchase price and number of shares of Common Stock owned, as well as the dates of Distributions and amounts of Distributions paid during the prior fiscal year. In addition, the Company shall provide to each Participant or the Participant's representative a confirmation at least once every calendar quarter showing the number of shares of Common Stock owned by such Participant at the beginning of the covered period, the amount of the Distributions paid in the covered period and the number of shares of Common Stock owned at the end of the covered period.
 
7. Commissions. The Company will not pay any selling commissions or dealer manager fees in connection with shares of Common Stock sold pursuant to the DRP.
 
8. Termination by Participant. A Participant may terminate participation in the DRP at any time without penalty upon 10 days’ written notice to the Company of such termination. If the Company receives a Stockholder’s properly executed termination within 10 days prior to the next Distribution date, the Stockholder’s participation in the DRP will be discontinued. Otherwise, the Company reserves the right to discontinue the Stockholder’s participation in the DRP beginning with the following Distribution payable. Participants may send their written notice to HMS Income Fund, Inc. at P.O. Box 219010, Kansas City, MO 64121-9010 (or 430 W. 7th St., Kansas City, MO 64105 for overnight delivery). Prior to listing of the shares of Common Stock on a national securities exchange, any transfer of shares of Common Stock by a Participant to a non-Participant will terminate participation in the DRP with respect to the transferred shares of Common Stock. Upon termination of DRP participation, future Distributions, if any, will be distributed to the Stockholder in cash.

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Exhibit 4.1

9. Taxation of Distributions. The reinvestment of Distributions in the DRP does not relieve Participants of any taxes which may be payable as a result of those Distributions and their reinvestment in shares of Common Stock pursuant to the terms of the DRP.
 
10. Amendment or Termination of DRP by the Company. The Board may by majority vote amend, suspend or terminate the DRP for any reason upon 10 days’ notice to the Participants; provided, however, the Board may not amend the DRP to eliminate the right of a Participant to terminate participation in the DRP at least annually.
 
11. Voting Rights. Shares of Common Stock issued pursuant to the DRP will have the same voting rights as the shares of Common Stock issued pursuant to an offering of the Company. Each Participant will receive any Company-related proxy solicitation materials and each Company report or other communication to Stockholders, and will vote any shares of Common Stock held by it under the DRP in accordance with the instructions set forth on proxies returned by Participants to the Company.

12. Service Fee. Any service fee or expenses incurred by the Company in connection with the administration of the DRP will be paid for by the Company.
 
13. Liability of the Company. The Company shall not be liable for any act done in good faith, or for any good faith omission to act, including, without limitation, any claims or liability: (a) arising out of failure to terminate a Participant’s account upon such Participant’s death prior to receipt of notice in writing of such death; and (b) with respect to the time and the prices at which shares of Common Stock are purchased or sold for Participant’s account.
 
14. Governing Law. These terms and conditions shall be governed by the laws of the State of Texas.

3Exhibit

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT
This First Amendment to Credit Agreement (this “Amendment”) is made and entered into effective as of October 19, 2017, by and among HMS INCOME FUND, INC., a Maryland corporation (“Borrower”), EVERBANK COMMERCIAL FINANCE, INC., as Administrative Agent (“Administrative Agent”), the Lenders party hereto, HMS EQUITY HOLDING, LLC, a Delaware limited liability company (“Holding”) and HMS EQUITY HOLDING II, INC. (“Holding II”; and together with Holding, collectively, “Guarantors” and each, a “Guarantor”).
RECITALS
WHEREAS, Borrower, Capital One, National Association, as original  Administrative Agent (the “Original Agent”) and the Lenders party thereto entered into that certain Senior Secured Revolving Credit Agreement dated as of March 11, 2014 (as supplemented by that certain Joinder and Reaffirmation Agreement dated as of April 15, 2014 (the “Joinder Agreement”), executed by Holding for the benefit of Administrative Agent on behalf of the Lenders, and that certain Assignment, Assumption, Joinder and Amendment Agreement dated as of March 6, 2017 (the “Assignment and Assumption Agreement”), as amended by that certain First Amendment to Loan Documents dated as of May 30, 2014 (the “2014 First Amendment”), that certain Second Amendment to Credit Agreement dated as of September 22, 2014, that certain Third Amendment to Credit Agreement dated as of May 13, 2015, and that certain Fourth Amendment to Credit Agreement dated as of May 29, 2015, and as amended and restated by that certain Amended and Restated Senior Secured Revolving Credit Agreement  dated as of March 6, 2017, and as further amended, modified, restated, supplemented, renewed or extended from time to time, the “Credit Agreement”);
WHEREAS, in connection with the Credit Agreement, (a) Borrower and the other grantors party thereto entered into that certain Amended and Restated General Security Agreement dated as of March 11, 2014 in favor of Administrative Agent for itself and for the benefit of the Lenders (as supplemented by the Joinder Agreement, as amended by the 2014 First Amendment, as amended and supplemented by the Assignment and Assumption Agreement, and as further amended, modified, restated, supplemented, renewed or extended from time to time, the “Security Agreement”); and (b) Borrower and the pledgors party thereto entered into that certain Amended and Restated Equity Pledge Agreement dated as of March 11, 2014 in favor of Administrative Agent for itself and for the benefit of the Lenders (as supplemented by the Joinder Agreement, as amended by the 2014 First Amendment, as amended and supplemented by the Assignment and Assumption Agreement, and as further amended, modified, restated, supplemented, renewed or extended from time to time, the “Pledge Agreement”); and
WHEREAS, Borrower has requested that the Lenders and the Administrative Agent amend certain provisions to the Credit Agreement, and said parties are willing to do so subject to the terms and conditions set forth herein, provided that Borrower and Guarantors ratify and confirm all of their respective obligations under the Credit Agreement and each other Loan Document to which each is a party;

140760.01015/106189750v.5

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this Amendment, Borrower, each Guarantor, the Lenders party hereto and the Administrative Agent agree as follows:
1.Defined Terms.  Unless otherwise defined herein, capitalized terms used herein have the meanings assigned to them in the Credit Agreement.
2.    Amendments to the Credit Agreement. The Credit Agreement is hereby amended as follows:
(a)    Schedule B to the Credit Agreement is hereby amended and restated in its entirety as set forth on Schedule B attached hereto.
3.    Increase in Commitments.
(a)    Commitment Increase and Notice.  By its execution hereof, Borrower hereby requests (i) an increase in the aggregate Revolver Commitments by the amount of $25,000,000 (from $95,000,000 to $120,000,000) (the “Revolver Increase”), to be effectuated by a $10,000,000 increase in the Revolver Commitment of EverBank Commercial Finance, Inc., a $10,000,000 increase in the Revolver Commitment of Customers Bank and a $5,000,000 increase in the Revolver Commitment of Trustmark National Bank  (each, an “Increasing Lender”) and (ii) that the Commitment Increase Date be the date hereof.
(b)    Consent of Administrative Agent. By its execution hereof, Administrative Agent consents to (i) the increase in the aggregate Revolver Commitments by the amount of $25,000,000, (ii) the new allocations of the Revolver Commitment as set forth on Schedule B to this Amendment, which Schedule B replaces the Schedule B to the Credit Agreement as of the date of this Amendment and (iii) the establishment of the date hereof as the Commitment Increase Date.
4.    Acknowledgments of Administrative Agent and Lenders Regarding Commitment Increase.  By their execution hereof, each of the Administrative Agent and each Existing Lender party hereto acknowledges and agrees that:
(a)    Section 3(a) of this Amendment shall be deemed to be a requested Commitment Increase from Borrower with respect to the increase in the aggregate Revolver Commitments by the Increasing Lenders as shown on Schedule B;
(b)    the Commitment Increase Date shall be the date hereof; and
(c)    each Lender waives any rights of such Lender under Section 2.14 of the Credit Agreement to any prior notice of the increase in the aggregate Revolver Commitment, or to participate in the increase in the aggregate Revolver Commitment, in each case, effectuated pursuant this Amendment, except to the extent specifically set forth herein.
5.    Conditions to Effectiveness.  This Amendment shall be effective upon satisfaction of each of the following conditions:

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(a)    the Administrative Agent (or its counsel) shall have received from each of Borrower, the Guarantors, the Lenders constituting at least the Required Lenders (determined prior to, and without giving effect to, the increase in the Revolver Commitments effectuated pursuant to this Amendment), either (a) a counterpart of this Amendment signed on behalf of such party or (b) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment;
(b)    the Administrative Agent shall have received all amounts due and owing, including payment of all other fees and reimbursement or payment of all legal fees and other expenses required to be reimbursed or paid by Borrower to the extent that invoices have been provided to Borrower;
(c)    the Administrative Agent shall have received, for the benefit of each Increasing Lender, (i) an executed Note in the amount of the Lender’s Revolver Commitment following the effectiveness of this Amendment and (ii) an Upsize Fee in the aggregate amount of $95,145.98, calculated, and for the benefit of the related Lenders, as provided in Schedule C to this Amendment;
(d)    the Administrative Agent shall have received resolutions of the board of directors (or other governing body) of Borrower and each Guarantor certified by the Secretary (or other custodian of records) of Borrower and each such Guarantor which authorize the execution, delivery, and performance by Borrower and each such Guarantor of this Amendment;
(e)    the Administrative Agent shall have received a certificate of the Chief Financial Officer or another Responsible Officer, required pursuant to Section 2.14(d)(i)(D) of the Credit Agreement; and
(f)    the Administrative Agent shall have received all documents and other items that it may reasonably request relating to any other matters relevant hereto, all in form and substance satisfactory to the Administrative Agent.
6.    Representations, Warranties and Agreements.  Each of the Borrower and each Guarantor represents, warrants and agrees as follows:
(a)    it is duly authorized and empowered to execute, deliver and perform this Amendment and all other instruments referred to or mentioned herein to which it is a party; all action on its part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken; 
(b)    after giving effect to this Amendment, the representations and warranties contained in the Credit Agreement, as amended hereby, and any other Loan Documents to which it is a party executed in connection herewith or therewith are true in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representation or warranty was made as of a specific date, in which case such representation or warranty was true in all material respects when made;

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(c)    after giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default; and
(d)    when duly executed and delivered, each of this Amendment, the Credit Agreement and any other Loan Documents to which it is a party executed in connection herewith or therewith will be legal and binding obligations of it, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and by equitable principles of general application.
7.    Continuing Effect of the Credit Agreement.  This Amendment shall not constitute a waiver of any provision not expressly referred to herein and shall not be construed as a consent to any action on the part of Borrower or Guarantors that would require a waiver or consent of the Lenders or an amendment or modification to any term of the Loan Documents except  as expressly stated herein. Except as expressly modified hereby, the provisions of the Credit Agreement and the Loan Documents are and shall remain in full force and effect.
8.    Ratification.  Borrower and each Guarantor hereby confirm and ratify the Credit Agreement, the Collateral Documents and each of the other Loan Documents to which it is a party, as amended hereby, and acknowledge and agree that the same shall continue in full force and effect, as amended hereby and by any prior amendments thereto. Nothing in this Amendment extinguishes, novates or releases any right, claim, lien, security interest or entitlement of any of the Lenders or the Administrative Agent created by or contained in any of such documents nor is Borrower or any other Guarantor released from any covenant, warranty or obligation created by or contained herein or therein.
9.    Counterparts.  This Amendment may be executed by all parties hereto in any number of separate counterparts each of which may be delivered in original, electronic or facsimile form and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
10.    References.  The words “hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbelow,” “hereof,” “hereunder” and words of similar import when used in this Amendment shall refer to this Amendment as a whole and not to any particular article, section or provision of this Amendment. References in this Amendment to an article or section number are to such articles or sections of this Amendment unless otherwise specified.
11.    Headings Descriptive.  The headings of the several sections and subsections of this Amendment are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.
12.    Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of New York, without regard to such state’s conflict of laws rules which would have the effect of applying the laws of any other jurisdiction.
13.    Final Agreement of the Parties.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS 

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OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
[Signature Pages Follow]

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Exhibit 10.1

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

	 

	HMS INCOME FUND, INC.,
a Maryland corporation

	By:  /s/ David M. Covington          
Name: David M. Covington
Title: Chief Accounting Officer and Treasurer

[Signature Page to First Amendment to Credit Agreement]

6

Exhibit 10.1

	
	
	GUARANTORS:

	 

	HMS EQUITY HOLDING, LLC, 
a Delaware limited liability company

By:   HMS INCOME FUND, INC.,    a Maryland    corporation, its Managing Member

	By:  /s/David M. Covington
Name: David M. Covington
Title: Chief Accounting Officer and Treasurer

	
	
	 

	HMS EQUITY HOLDING II, INC., 
a Delaware corporation

	By:  /s/David M. Covington
Name: David M. Covington
Title: Chief Accounting Officer and Treasurer

[Signature Page to First Amendment to Credit Agreement]

7

Exhibit 10.1

	
	
	ADMINISTRATIVE AGENT AND LENDER:

	 

	EVERBANK COMMERCIAL FINANCE, INC.

	By:  /s/Martin O'Brien
Name: Martin O'Brien
Title: Associate Director

[Signature Page to First Amendment to Credit Agreement]

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Exhibit 10.1

	
	
	LENDER:

	 

	GREEN BANK

	By:  /s/Ling Huang
Name: Ling Huang
Title: Senior Vice President

[Signature Page to First Amendment to Credit Agreement]

9

Exhibit 10.1

	
	
	LENDER:

	 

	CUSTOMERS BANK

	By: /s/ Lyle P. Cunningham
Name: Lyle P. Cunningham
Title:  Senior Vice President

[Signature Page to First Amendment to Credit Agreement]

10

Exhibit 10.1

	
	
	LENDER:

	 

	TRUSTMARK NATIONAL BANK

	By:  /s/Jeff Deutsch
Name: Jeff Deutsch
Title:  Senior Vice President

[Signature Page to First Amendment to Credit Agreement]

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Exhibit 10.1

	
	
	LENDER:

	 

	WHITNEY BANK

	By: /s/Nate Ellis
Name: Nate Ellis
Title: Vice President

[Signature Page to First Amendment to Credit Agreement]

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Exhibit 10.1

SCHEDULE B
REVOLVER COMMITMENT

	
		
	Lender
	Revolver Commitment

	EverBank Commercial Finance, Inc.
	$50,000,000

	Green Bank
	$20,000,000

	Customers Bank
	$25,000,000

	Trustmark National Bank
	$15,000,000

	Whitney Bank
	$10,000,000

	TOTAL
	$120,000,000

[Schedule B]

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Exhibit 10.1

SCHEDULE C
UPSIZE FEE

	
									
	Lender
	Current Commitment
	Upsize
	Total Commitment
	Upsize Fee %
	Remaining Revolving Period 
At Upsize
	Upsize 
Fee

	EverBank
	$40,000,000
	$10,000,000
	$50,000,000
	0.50%
	79.2883%
	

	$39,644.16
	

	Customers Bank
	$15,000,000
	$10,000,000
	$25,000,000
	0.50%
	79.2883%
	

	$39,644.16
	

	Trustmark
	$10,000,000
	$5,000,000
	$15,000,000
	0.40%
	79.2883%
	

	$15,857.66
	

	Total
	 
	$25,000,000
	 
	 
	 
	

	$95,145.98
	

[Schedule C]

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