Document:

Purchase and Sale Agreement, dated as of February 14, 2007

 Exhibit 10.2 

 PURCHASE AND SALE AGREEMENT 
 by and
between  
 KOHLBERG CAPITAL FUNDING LLC I,  
 as the Buyer 
 and  
 KOHLBERG CAPITAL CORPORATION,  
 as the Seller 
 Dated as of February 14, 2007 
  

 TABLE OF CONTENTS 
  

					
	 ARTICLE I
	  	GENERAL	  	1
			
	 Section 1.1
	  	 Certain Defined Terms
	  	1
	 Section 1.2
	  	 Other Terms
	  	3
	 Section 1.3
	  	 Computation of Time Periods
	  	3
	 Section 1.4
	  	 Interpretation
	  	3
	 Section 1.5
	  	 References
	  	4
	 Section 1.6
	  	 Calculations
	  	4
			
	 ARTICLE II
	  	SALE AND CONVEYANCE	  	4
			
	 Section 2.1
	  	 Sale
	  	4
	 Section 2.2
	  	 Assignments, Etc.
	  	7
			
	 ARTICLE III
	  	PURCHASE PRICE AND PAYMENT; MONTHLY REPORT	  	8
			
	 Section 3.1
	  	 Purchase Price
	  	8
	 Section 3.2
	  	 Payment of Purchase Price
	  	8
			
	 ARTICLE IV
	  	REPRESENTATIONS AND WARRANTIES	  	8
			
	 Section 4.1
	  	 Seller’s Representations and Warranties
	  	8
	 Section 4.2
	  	 Seller’s Representations and Warranties Regarding the Agreement and the Loans
	  	14
	 Section 4.3
	  	 Representations and Warranties of the Buyer
	  	14
			
	 ARTICLE V
	  	PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS	  	16
			
	 Section 5.1
	  	 Custody of Loans
	  	16
	 Section 5.2
	  	 Filing
	  	16
	 Section 5.3
	  	 Name Change or Relocation
	  	16
	 Section 5.4
	  	 Chief Executive Office
	  	16
	 Section 5.5
	  	 Costs and Expenses
	  	16
	 Section 5.6
	  	 Sale Treatment
	  	17
	 Section 5.7
	  	 Separateness from Buyer
	  	17
			
	 ARTICLE VI
	  	COVENANTS	  	17
			
	 Section 6.1
	  	 Seller Covenants
	  	17
	 Section 6.2
	  	 Delivery of Loan Files
	  	19
	 Section 6.3
	  	 Release of Released Amounts
	  	19
			
	 ARTICLE VII
	  	REPURCHASE OBLIGATION	  	20
			
	 Section 7.1
	  	 Repurchase of Ineligible Loans
	  	20
	 Section 7.2
	  	 Substitution of Loans
	  	21

  

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	 Section 7.3
	  	 In addition, the Seller shall in connection with such substitution deliver to the Trustee the related Loan Documents
	  	22
	 Section 7.4
	  	 Discretionary Sales of Loans
	  	
	 Section 7.5
	  	 Certain Trading Restrictions
	  	
			
	 ARTICLE VIII
	  	CONDITIONS PRECEDENT	  	22
			
	 Section 8.1
	  	 Conditions to the Buyer’s Obligations Regarding Loans
	  	22
			
	 ARTICLE IX
	  	TERM AND TERMINATION	  	23
			
	 Section 9.1
	  	 Termination
	  	23
			
	 ARTICLE X
	  	MISCELLANEOUS PROVISIONS	  	23
			
	 Section 10.1
	  	 Amendment
	  	23
	 Section 10.2
	  	 Governing Law
	  	23
	 Section 10.3
	  	 Notices
	  	24
	 Section 10.4
	  	 Severability of Provisions
	  	25
	 Section 10.5
	  	 Assignment
	  	25
	 Section 10.6
	  	 Further Assurances
	  	26
	 Section 10.7
	  	 No Waiver; Cumulative Remedies
	  	26
	 Section 10.8
	  	 Counterparts
	  	26
	 Section 10.9
	  	 Binding Effect; Third-Party Beneficiaries
	  	26
	 Section 10.10
	  	 Liabilities to Obligors
	  	26
	 Section 10.11
	  	 Merger and Integration
	  	26
	 Section 10.12
	  	 Headings
	  	26
	 Section 10.13
	  	 No Bankruptcy Petition; Disclaimer
	  	26
	 Section 10.14
	  	 Schedules and Exhibits
	  	27
	 Section 10.15
	  	 Merger or Consolidation of, or Assumption of the Obligations of, the Seller
	  	27
	 Section 10.16
	  	 [Reserved.]
	  	27
	 Section 10.17
	  	 Costs, Expenses and Taxes
	  	27
	 Section 10.18
	  	 Indemnities by the Seller
	  	28
	 Section 10.19
	  	 Recourse Against Certain Parties
	  	28
	 Section 10.20
	  	 Sharing of Payments on Loans Subject to Retained Interest Provisions
	  	30

 EXHIBITS AND SCHEDULES 
  

			
		
	Schedule I	  	Loan List
	Exhibit A	  	Form of Sale Assignment
	Exhibit B	  	Form of Notice of Sale
	Exhibit C	  	Form of Master Participation Agreement
	Exhibit D	  	Form of Officer’s Certificate of Seller

  

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 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE AGREEMENT (such agreement as amended, modified, waived, supplemented or restated from time to time, the
“Agreement”), is dated as of February 14, 2007, by and between KOHLBERG CAPITAL CORPORATION, a Delaware corporation, as the seller (together with its successors and assigns in such capacity, the
“Seller”), and KOHLBERG CAPITAL FUNDING LLC I, a Delaware limited liability company, as the buyer (together with its successors and assigns in such capacity the “Buyer”). 
 W I T N E S S E T H : 
 WHEREAS, the Buyer desires to purchase from the Seller and the Seller desires to sell to the Buyer certain loans and other securities originated or purchased by the Seller in its normal course of business (“Loans”),
together with, among other things, the related rights of payment thereunder and the interest of the Seller in the related property and other interests securing the payments to be made under such loans and securities; 
 WHEREAS, the Seller and the Buyer acknowledge that a lien and security interest in the Loans and related security sold or otherwise conveyed by
the Seller to the Buyer hereunder will be granted and assigned by the Buyer pursuant to the Loan Funding Agreement (as defined herein) and the related Transaction Documents, to the Trustee, on behalf of the Secured Parties under the Loan Funding
Agreement; and 
 WHEREAS, the Seller may also underwrite certain Loans to be purchased directly from third parties by the Buyer in
accordance with the eligibility criteria described in Section 4.2, which Loans will conform in all respects to the representations and warranties with respect to the collateral purchased hereunder and will have the benefit of all
covenants and agreements of the Seller hereunder with respect to such collateral as if such Loans were purchased directly by the Buyer from the Seller hereunder. 
 NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises and agreements contained herein, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows: 
 ARTICLE I 
 GENERAL 
 Section 1.1 Certain
Defined Terms. 
 (a) Certain capitalized terms used throughout this Agreement are defined above or in this Section 1.1.
In addition, capitalized terms used but not defined herein have the meanings given to such terms in the Loan Funding Agreement (as defined below). 
 (b) As used in this Agreement and its exhibits and schedules, unless the context requires a different meaning, the following terms shall have the following meanings: 
 “Agreement”: Defined in the Preamble. 
  

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 “Buyer”: Defined in the Preamble. 
 “Discretionary Sale”: Defined in Section 7.4(a). 
 “Discretionary Sale Date”: Defined in Section 7.4(a). 
 “Discretionary Sale Notice”: Defined in Section 7.4(a). 
 “Indemnified Amounts”: Defined in Section 10.18(a). 
 “Indemnified Party”: Defined in Section 10.18(a). 
 “Ineligible Loan”: Defined in Section 7.1. 
 “Loan Funding Agreement”: The Loan Funding and Servicing Agreement, dated as of February 14, 2007, by and among KOHLBERG CAPITAL FUNDING LLC I, as the borrower, Kohlberg Capital Corporation, as
the servicer, the Conduit Lenders and the Institutional Lenders from time to time party thereto, each of the Lender Agents from time to time party thereto, BMO Capital Markets Corp., as the agent, Lyon Financial Services, Inc. d/b/a U.S. Bank
Portfolio Services, as the backup servicer, and U.S. Bank National Association, as the trustee, as such agreement may be amended, modified, supplemented, waived or restated from time to time. 
 “Master Participation Agreement”: Defined in Section 2.2(b). 
 “Notice of Sale”: A written notice, in the form of Exhibit B, to be used for each transfer hereunder. 
 “Obligor Account”: Defined in Section 6.1(c). 
 “Purchase”: Any transfer made hereunder pursuant to Section 2.1. 
 “Purchase Date”: Any Business Day on which any Purchased Asset is acquired by the Buyer pursuant to the terms of this Agreement, including any Substitution Date, as set forth in the related Sales Assignment. 
 “Purchase Price”: Defined in Section 3.1. 
 “Purchased Assets”: Defined in Section 2.1(a). 
 “Purchased
Loans”: The Loans listed on Schedule I hereto. 
 “Replaced Loan”: Defined in Section 7.2(a).

 “Repurchase Price”: With respect to any Transferred Loan, an amount equal to the Purchase Price originally paid minus all
principal collections thereon from the related Purchase Date to the date such Transferred Loan is repurchased pursuant to Section 7.1; provided that such amount shall not be less than the Retransfer Price applicable to such
Transferred Loan. 
 “Sale Assignment”: Defined in Section 2.2(a). 
  

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 “Sale Papers”: Defined in Section 4.1(a). 
 “Schedule I”: The schedule of all Purchased Assets that are sold, transferred, assigned and/or contributed by the Seller to the Buyer on
a Purchase Date, which schedule as to Purchased Assets identified as of the initial Purchase Date is attached hereto and as to any Purchased Assets identified on any subsequent Purchase Date is supplemented by “Schedule I” attached
to the applicable Sale Assignment, and incorporated herein by reference, as such schedule may be amended, modified or supplemented from time to time in accordance with the terms hereof. 
 “Seller”: Defined in the Preamble. 
 “Substitute Loan”: Defined in Section 7.2. 
 “Substitution
Date”: Any date on which the Seller transfers a Substitute Loan to the Buyer. 
 Section 1.2 Other Terms. All
accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles. The symbol “$” shall mean the lawful currency of the United States. All terms used in Article 9 of the UCC in
the State of New York, and not specifically defined herein, are used herein as defined in such Article 9. 
 Section 1.3
Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the
words “to” and “until” each mean “to but excluding.” 
 Section 1.4 Interpretation. In
this Agreement and the other Sale Papers, unless a contrary intention appears: 
 (a) the singular number includes the plural number and vice
versa; 
 (b) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and
assigns are permitted by the Sale Papers; 
 (c) reference to any gender includes each other gender; 
 (d) reference to day or days without further qualification means calendar days; 
 (e) unless otherwise stated, reference to any time means New York City time; 
 (f) references to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible form;

 (g) reference to any agreement (including any of the Sale Papers), document or instrument means such agreement, document or instrument as
amended, modified, waived, supplemented or restated and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Sale Papers and reference to any promissory note 

  

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includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor; and 
 (h) reference 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. 
 Section 1.5
References. All section references (including references to the Preamble), unless otherwise indicated, shall be to Sections (and the Preamble) in this Agreement. 
 Section 1.6 Calculations. Except as otherwise provided herein, all interest rate and basis point calculations hereunder will be made
on the basis of a 360–day year and the actual days elapsed in the relevant period and will be carried out to at least three decimal places. 
 ARTICLE II 
 SALE AND CONVEYANCE 
 Section 2.1 Sale. 
 (a) Subject to and upon the terms and conditions set forth herein, on each
Purchase Date, (x) with respect to items of Collateral conveyed by the Seller hereunder, the Seller hereby sells, assigns, sets over and otherwise conveys, and the Buyer hereby purchases and takes from the Seller, without recourse except as
provided herein, all right, title, and interest, whether now owned or hereafter acquired or arising, and wherever located, of the Seller and (y) in all other cases, with respect to items of Collateral purchased by the Buyer hereunder, the Buyer
hereby purchases and takes from the Seller all right, title and interest, whether now owned or hereafter acquired or arising and wherever located, in each case in and to the property described in clauses (i) through
(vii) below 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, other goods, investment property, letter-of-credit rights, documents, software, supporting
obligations, accessions, and all products and proceeds of any of the foregoing, and other property consisting of, arising out of, or related to any of the following property (collectively, but in each case excluding the Retained Interest and
Excluded Amounts, the “Purchased Assets”): 
 (i) the Loans that are identified by the Seller as of the
initial Cut-Off Date, which are listed on Schedule I hereto, and the Loans that are listed on Schedule I to any Sale Assignment, and all monies due or to become due in payment of such Loans on and after the related Cut-Off Date,
including but not limited to all Collections and all obligations owed to the Seller in connection with such Loans; 
  

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 (ii) any Related Property securing or purporting to secure the Loans referred to in
clause (i) above, including the related security interest granted by the Obligor under such Loans, all proceeds from any sale or other disposition of such Related Property; 
 (iii) all security interests, Liens, guaranties, warranties, letters of credit, accounts, securities accounts, deposit accounts or other
bank accounts, mortgages or other encumbrances and property subject thereto from time to time purporting to secure or support payment of the Loans referred to in clause (i) above, together with all UCC financing statements or similar
filings relating thereto; 
 (iv) all claims (including “claims” as defined in Bankruptcy Code § 101(5)),
suits, causes of action, and any other right of the Seller, whether known or unknown, against the related Obligors, if any, or any of their respective Affiliates, agents, representatives, contractors, advisors, or any other Person that in any way is
based upon, arises out of or is related to any of the foregoing, including, to the extent permitted to be assigned under applicable law, all claims (including contract claims, tort claims, malpractice claims, and claims under any law governing the
purchase and sale of, or indentures for, securities), suits, causes of action, and any other right of the Seller against any attorney, accountant, financial advisor, or other Person arising under or in connection with the related Loan Documents;

 (v) all cash, securities, or other property, and all setoffs and recoupments, received or effected by or for the account of
the Seller under the Loans referred to in clause (i) above (whether for principal, interest, fees, reimbursement obligations, or otherwise) after the related Cut-Off Date, including all distributions obtained by or through redemption,
consummation of a plan of reorganization, restructuring, liquidation, or otherwise of any related Obligor or the related Loan Documents, and all cash, securities, interest, dividends, and other property that may be exchanged for, or distributed or
collected with respect to, any of the foregoing; 
 (vi) all Insurance Policies, to the extent of Seller’s rights
thereto; and 
 (vii) the Loan Documents with respect to such Loans. 
 For the avoidance of doubt, and without limiting the foregoing, the term “Purchased Assets” shall, for all purposes of this Agreement, be
deemed to include any Third Party Acquired Loan. For the avoidance of doubt, the term “Purchased Assets” shall not include any equity purchase warrants or similar rights convertible into or exchangeable or exerciseable for any equity
interests received by the Seller as an “equity kicker” from any Obligor in connection with such Purchased Assets. 
 (b) The Seller
and the Buyer acknowledge that the representations and warranties of the Seller in Section 4.1 and 4.2 will run to and be for the benefit of the Agent and the Trustee on behalf of the Secured Parties, and the Agent and the Trustee
on behalf of the Secured Parties may enforce, directly without joinder of the Buyer, the repurchase obligations of the Seller with respect to breaches of such representations and warranties as set forth herein. 
  

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 (c) The sale, transfer, assignment, set–over and conveyance of the Purchased Assets by the Seller to
the Buyer pursuant to this Agreement does not constitute and is not intended to result in a creation or an assumption by the Buyer, the Trustee, the Agent or the Secured Parties of any obligation of the Seller in connection with the Purchased
Assets, or any agreement or instrument relating thereto, including, without limitation, (i) any obligation to any Obligor, if any, not financed by, or with an unfunded commitment from, the Seller, (ii) any taxes, fees, or other charges
imposed by any Governmental Authority and (iii) any insurance premiums that remain owing with respect to any Loan at the time such Loan is sold hereunder. Without limiting the foregoing, the Buyer does not assume any obligation to purchase any
additional notes or loans under agreements governing the Purchased Assets. 
 (d) The Seller and the Buyer intend and agree that (i) the
transfer of the Purchased Assets from the Seller to the Buyer is intended to be a sale, conveyance and transfer of ownership of the Purchased Assets rather than the mere granting of a security interest to secure a borrowing and (ii) such
Purchased Assets shall not be part of the Seller’s estate upon the occurrence of an Insolvency Event or in the event of any other action by or against such Person under any Insolvency Law. In the event, however, that notwithstanding such intent
and agreement, such transfers are deemed to be a grant of a mere security interest to secure indebtedness, the Seller shall be deemed to have granted (and hereby does grant) to the Buyer a perfected first priority security interest (subject to
Permitted Liens) in such Purchased Assets, and this Agreement shall constitute a security agreement under Applicable Law, securing the repayment of the Purchase Price paid hereunder, and subject to the other terms and conditions of, this Agreement
together with such other obligations or interests as may arise hereunder and thereunder in favor of the parties hereto and thereto. 
 (e) If
such transfer of the Purchased Assets is deemed to be the mere granting of a security interest to secure a borrowing, the Buyer may, to secure the Buyer’s obligations under the Loan Funding Agreement, repledge and reassign (i) all or a
portion of the Purchased Assets pledged to the Buyer by the Seller and with respect to which the Buyer has not released its security interest at the time of such pledge and assignment, and (ii) all proceeds thereof. Such repledge and
reassignment may be made by the Buyer with or without a repledge and reassignment by the Buyer of its rights under any agreement with the Seller, and without further notice to or acknowledgment from the Seller. The Seller waives, to the extent
permitted by Applicable Law, all claims, causes of action and remedies, whether legal or equitable (including any right of setoff), against the Buyer or any assignee of the Buyer relating to such action by the Buyer in connection with the
transactions contemplated by this Agreement and the Transaction Documents. 
 (f) In connection with the sale of any Purchased Assets, the
Seller agrees (i) to record and file, at its own expense, any financing statements, assignments of financing statements (and continuation statements with respect to such financing statements when applicable) and Assignments of Mortgage, as the
case may be, with respect to the Purchased Assets, meeting the requirements of Applicable Law in such manner and in such jurisdictions as are necessary to evidence the sale of the Purchased Assets and to perfect, and maintain the perfection of, the
transfer of the Purchased Assets from the Seller to the Buyer on and after the applicable Purchase Date, (ii) that such financing statements, assignments of financing statements and Assignments of Mortgage, as the case may be, shall name the
Seller, as seller/debtor/assignor, and the Buyer, 

  

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as purchaser/secured party/assignee, of the Purchased Assets and (iii) to deliver a file-stamped copy of such financing statements or other evidence of
such filings (excluding continuation statements, which shall be delivered as filed). 
 Section 2.2 Assignments, Etc.

 (a) Sale Assignment. The Seller shall on or prior to each Purchase Date, with respect to the Purchased Assets to be sold,
assigned and conveyed on such date, execute and deliver to the Buyer a written assignment (the “Sale Assignment”) from Seller to the Buyer substantially in the form of Exhibit A hereto. The failure of the Seller to execute
and deliver a Sale Assignment shall not limit or otherwise affect the validity and enforceability of the sale, assignment and conveyance of the Purchased Assets or the status of such sale, assignment and conveyance as an absolute sale of the Loans
and other Purchased Assets. From and after such Purchase Date, such Purchased Assets shall be deemed to be part of the Purchased Assets hereunder. 
 (b) Participations. The Seller shall on the Closing Date, with respect to the Initial Participations to be sold, assigned and conveyed on such date, execute and deliver to Buyer a participation agreement (the “Master
Participation Agreement”) from Seller to Buyer substantially in the form of Exhibit C hereto. 
 (c) Covenants of the
Seller In Connection With Additions. On or before any Purchase Date with respect to any Loans and other Purchased Assets acquired by the Buyer, the Seller shall: 
 (i) clearly indicate in its files that such Loans and other Purchased Assets have been sold to the Buyer and deliver to the Buyer a list
that the Seller shall represent to contain a true and complete list of such Loans and the Purchased Assets, identified by account number, which computer file or microfiche list shall be as of such date incorporated into and made a part of the Loan
List attached as Schedule I of this Agreement; and 
 (ii) provide the Buyer with an Officer’s Certificate, in the
form attached hereto as Exhibit D certifying as follows: (A) each such Loan was, as of the related Purchase Date, an Eligible Loan, (B) no selection procedures believed by the Seller to be adverse to the interest of the Buyer were
utilized in selecting such Loans from the available Eligible Loans in the Seller’s portfolio, (C) such Loans and other Purchased Assets and all proceeds thereof will be conveyed to the Buyer free and clear of any Lien of any Person
claiming through or under the Seller or any of its Affiliates (subject to any Permitted Lien), and (D) as of the related Purchase Date, (x) no Insolvency Event with respect to the Seller has occurred, and (y) the sale of such Loans
and other Purchased Assets to the Buyer has not been made in contemplation of the occurrence of any Insolvency Event with respect to the Seller. 
  

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 ARTICLE III 
 PURCHASE PRICE AND PAYMENT; MONTHLY REPORT 
 Section 3.1 Purchase Price. The
purchase price for each Purchased Asset sold to the Buyer by the Seller under this Agreement (the “Purchase Price”) shall be a dollar amount equal to the Fair Market Value of such Purchased Asset. 
 Section 3.2 Payment of Purchase Price. 
 (a) The Purchase Price for any Purchased Assets sold by the Seller to the Buyer on any Purchase Date shall be paid by the Buyer on each related Purchase Date either (i) in immediately available funds (which may
include proceeds of an Advance) or (ii) if the Buyer does not have sufficient funds to pay the full amount of the Purchase Price, as a capital contribution by the Seller to the Buyer; provided that in no event shall the portion of the
Purchase Price paid in immediately available funds be less than the amount of the Advance (or portion thereof) relating to such Purchased Assets under the Loan Funding Agreement. 
 (b) The Purchase Price for any Purchased Assets purchased by the Buyer directly from a third party on any Purchase Date shall be paid by the Buyer either
(i) in immediately available funds (which may include proceeds of an Advance) or (ii) if the Buyer does not have sufficient funds to pay the full amount of the Purchase Price, as a capital contribution by the Seller to the Buyer;
provided that in no event shall the portion of the Purchase Price paid in immediately available funds be less than the amount of the Advance (or portion thereof) relating to such Purchased Asset under the Loan Funding Agreement. 

(c) Unless otherwise specified herein, all payments of the Purchase Price of any Purchased Asset sold hereunder shall be made not later than 2:00 p.m.
(New York City time) on the date specified therefor in lawful money of the United States in same day funds by depositing such amounts in the bank account designated in writing by the Seller to the Purchaser. 
 (d) The Seller, in connection with each delivery of a Sale Assignment hereunder relating to any Purchased Assets sold by the Seller on such day, shall be
deemed to have certified, with respect to such Purchased Assets, that its representations and warranties contained in Article IV are true and correct on and as of such day, with the same effect as though made on and as of such day and that no
Termination Event or Unmatured Termination Event has occurred. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.1 Seller’s
Representations and Warranties. The Seller hereby represents and warrants to the Buyer, as of the Closing Date and each Purchase Date, that: 
 (a) Organization and Good Standing; Power and Authority. The Seller is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of its formation and has full power,
authority and legal right to own its properties and conduct its business as such properties are presently owned and as such business is presently conducted and to execute, deliver and perform its obligations under this Agreement and each 

  

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other document or instrument to be delivered by the Seller hereunder (collectively, the “Sale Papers”). 
 (b) Due Qualification. The Seller is duly qualified to do business and is in good standing in the jurisdiction of its formation, and has obtained
or will obtain all necessary licenses and approvals, in each jurisdiction in which failure to so qualify or to obtain such licenses and approvals would have a material adverse effect on its ability to perform its obligations hereunder or under the
Sale Papers. 
 (c) Valid Sale. This Agreement and each Sale Assignment effects a valid sale, transfer and assignment of the Purchased
Assets specified in such Sale Assignment from the Seller to the Buyer, enforceable against the Seller in accordance with their terms. 
 (d)
Due Authorization. The execution and delivery of this Agreement and each of the Sale Papers, and the consummation of the transactions provided for herein and therein have been duly authorized by the Seller by all necessary corporate action on
the part of the Seller. 
 (e) No Conflict. The execution and delivery of this Agreement and each of the Sale Papers, the performance
of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof, will not conflict with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of
time or both) a default under the Seller’s organizational documents or any material Contractual Obligation of the Seller. 
 (f) No
Violation. The execution and delivery of this Agreement and each of the Sale Papers, the performance of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof (including, without limitation, the sale
of Purchased Assets by the Seller or remittance of Collections in accordance with the provisions of this Agreement), will not conflict with or violate, in any material respect, any Applicable Law. 
 (g) No Proceedings. Except as previously disclosed to the Agent in writing, there are no proceedings or investigations pending or, to the best
knowledge of the Seller, threatened against the Seller before any Governmental Authority (i) asserting the invalidity of this Agreement, any Transaction Document to which the Seller is a party or any of the Sale Papers, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this Agreement, any Transaction Document to which the Seller is a party or any of the Sale Papers, or (iii) seeking any determination or ruling that could reasonably be
expected to be adversely determined, and if adversely determined, would materially and adversely affect the performance by the Seller of its obligations under this Agreement, any Transaction Document to which the Seller is a party or any of the Sale
Papers. 
 (h) All Consents Required. All approvals, authorizations, consents, orders or other actions of any Person or of any
Governmental Authority required in connection with the execution and delivery of this Agreement, any Transaction Document to which the Seller is a party and the Sale Papers, the performance of the transactions contemplated by this Agreement, any
Transaction Document to which the Seller is a party and the Sale Papers and the fulfillment of or terms hereof and thereof, have been obtained. 
  

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 (i) Bulk Sales. The execution, delivery and performance of this Agreement do not require
compliance with any “bulk sales” law by the Seller. 
 (j) Solvency. The transactions contemplated under this Agreement and
the Sale Papers do not and will not render the Seller not Solvent. 
 (k) Selection Procedures. No selection procedures believed by
the Seller to be adverse to the interests of the Buyer were utilized by the Seller in selecting the Loans to be sold, assigned, transferred, set-over and otherwise conveyed hereunder. 
 (l) Taxes. Except as disclosed in writing the Seller has filed (on a consolidated basis or otherwise) or caused to be filed all tax returns that
are required to be filed by it and has paid all material taxes shown to be due and payable on such returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority (other than any amount of tax due the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with generally accepted accounting
principles have been provided on the books of the Seller); and no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with respect to any such tax, fee or other charge that could reasonably be expected to have a
Material Adverse Effect. 
 (m) Agreements Enforceable. This Agreement, each Transaction Document to which the Seller is a party and
each of the Sale Papers to which the Seller is a party constitute the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with their respective terms, except as such enforceability may be limited by
Insolvency Laws and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). 
 (n) Reports Accurate. All reports, information, exhibits, financial statements, documents, books, records or reports, whether written, verbal or electronic, furnished by the Seller to the Buyer in connection
with this Agreement are and were accurate, true and correct in all material respects as of the date they are or were dated or as of the date so furnished. 
 (o) Location of Offices. The Seller’s name is “Kohlberg Capital Corporation” and its location (within the meaning of Article 9 of the UCC) is the State of Delaware. The Seller has not changed its
name, identity, structure, existence or state of formation, whether by amendment of its certificate of incorporation, by reorganization or otherwise, and has not changed its location (within the meaning of Article 9 of the UCC) within the four
months preceding the Closing Date. 
 (p) Tradenames. Seller has no trade names, fictitious names, assumed names or “doing
business as” names or other names under which it has done or is doing business. 
 (q) Purchase Agreement. This Agreement
(together with the related Sale Assignments) is the only agreement pursuant to which the Seller sells Purchased Assets (other than the Hedge Collateral). 
  

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 (r) Value Given. The Purchase Price received by the Seller for each Purchased Asset under this
Agreement constitutes reasonably equivalent value therefor and the transfer by the Seller thereof to the Buyer was not made for or on account of an antecedent debt owed by the Seller to the Buyer, and such transfer was not and is not voidable or
subject to avoidance under any Insolvency Law. 
 (s) [Reserved]. 
 (t) Separate Entity. The Seller is operated as an entity with assets and liabilities distinct from those of the Buyer, and the Seller hereby
acknowledges that the Agent and the Lenders under the Loan Funding Agreement are entering into the transactions contemplated by the Loan Funding Agreement in reliance upon the Seller’s identity as a separate legal entity from the Buyer.

 (u) Marking of Files. The Seller will have, at its own expense, prior to the close of business on the Closing Date,
(i) indicated in its Computer Records that ownership of the Loans transferred by it to the Buyer and identified on the Loan List have been sold to the Buyer and (ii) other than in the case of a Noteless Loan, cause to be affixed to the
original of each Underlying Note and a copy of each loan agreement the following legend: 
 This loan agreement/note is subject to a security
interest granted to BMO Capital Markets Corp., as Agent on behalf of the Secured Parties. UCC–1 Financing Statements covering this loan agreement/note have been filed with the Secretary of State of the State of Delaware. Such Lien will be
released only in connection with appropriate filings in such offices. Consequently, potential purchasers of this loan agreement/note must refer to such filings to determine whether such Lien has been released. 
 (v) Security Interest. 
 (i) In the event that this Agreement and each Sale Assignment is determined not to constitute a valid sale, transfer and assignment of the Purchased Assets from the Seller to the Buyer as contemplated by Section 4.1(c), this
Agreement creates, and the Seller has granted hereunder, a valid, continuing and enforceable security interest (as defined in the applicable UCC) in the Purchased Assets in favor of the Buyer, 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,” “investment property,” or “chattel paper,” within the meaning of the applicable UCC;

 (iii) the Seller is the lawful owner of and has good and marketable title to the Purchased Assets sold by it to the Buyer
hereunder on such Purchase Date free and clear of any Lien of any Person (other than Permitted Liens); 
  

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 (iv) the Seller has received all consents and approvals required by the terms of the
Purchased Assets to the grant of a security interest in the Purchased Assets hereunder to the Buyer; 
 (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 such Purchased Assets granted to the Buyer; 
 (vi) other than the security interest granted to the Buyer pursuant to this Agreement, the Seller has not pledged, assigned, sold, granted
a security interest in or otherwise conveyed any of such Purchased Assets; 
 (vii) 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 such Purchased Assets other than any financing statement (A) relating to the security interest granted to the Buyer under this
Agreement, or (B) that has been terminated and/or fully and validly assigned to the Trustee on behalf of the Secured Parties on or prior to the date hereof; 
 (viii) the Seller is not aware of the filing of any judgment or tax Lien filings against the Seller; 
 (ix) other than in the case of Pre-Positioned Loans and Noteless Loans (and subject to Sections 4.1(v)(x) and 6.2(a) in the
case of Pre-Positioned Loans), all original executed copies of each Underlying Note that constitute or evidence any Loans included in the Purchased Assets have been delivered to the Trustee; 
 (x) other than in connection with the purchase of a Noteless Loan, the Seller has received a written acknowledgment from the Trustee that
the Trustee or its bailee is holding the Underlying Notes that constitute or evidence the Loans included in the Purchased Assets solely on behalf of and for the benefit of the Buyer or its assignees; provided that notwithstanding the
foregoing, with respect to any Pre-Positioned Loan to be funded with the proceeds of the Purchase Price, the Borrower shall have received a written acknowledgment from the Trustee (A) that the Trustee has received a faxed copy of the Underlying
Note and (B) within two Business Days after such Purchase Date, that the Trustee or its bailee is holding the Underlying Note that constitute or evidence the Loans included in the Purchased Assets solely on behalf of the Buyer or its assignees;

 (xi) none of the Underlying Notes that constitute or evidence the Loans has any marks or notations indicating that it has
been pledged, assigned or otherwise conveyed to any Person other than the Seller and the Buyer; and 
 (xii) with respect to
any Noteless Loans that comprise a part of any Purchased Assets, the Seller has registered the Trustee as the registered owner thereof. 
 (w) ERISA. The Seller is in compliance with ERISA and has not incurred and does not expect to incur any liabilities (except for premium payments arising in the ordinary course of business) payable to the Pension Benefit Guaranty
Corporation under ERISA. 
  

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 (x) No Broker. No broker or finder acting on behalf of the Seller was employed or utilized in
connection with this Agreement, the other Transaction Documents to which the Seller is a party or the other Sale Papers or the transactions contemplated hereby or thereby and the Seller has no obligation to any Person in respect of any finder’s
or brokerage fees in connection therewith. 
 (y) RIC/BDC Requirements. The Seller is in compliance with the RIC/BDC Requirements.

 (z) Accuracy of Representations and Warranties. Each representation or warranty by the Seller contained herein or in any certificate
or other document furnished by the Seller pursuant hereto or in connection herewith is true and correct. 
 (aa) Government
Regulations. The Seller is not engaged in the business of extending credit for the purpose of “purchasing” or “carrying” any Margin Stock. The Seller owns no Margin Stock, and no portion of the proceeds of any Purchase
hereunder will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other
purpose that might cause any portion of such proceeds to be considered a “purpose credit” within the meaning of Regulation T, U or X of the Federal Reserve Board. The Seller will not take or permit to be taken any action that might cause
any Related Document to violate any regulation of the Federal Reserve Board. 
 (bb) [Reserved]. 
 (cc) Environmental. At the time of origination of any Loan and on the Purchase Date on which any real property that is material to the operations
of the related business constitutes Related Property securing such Loan that is the primary collateral with respect to which such Loan is principally underwritten, the related mortgaged property was free of contamination from toxic substances or
hazardous wastes requiring action under Applicable Law or is subject to ongoing environmental rehabilitation approved by the Servicer, and, as of the related Cut-Off Date of such Loan, the Seller has no knowledge of any such contamination from toxic
substances or hazardous waste material on any such real property unless such items are below action levels. 
 (dd) Material Adverse
Change. Since the Closing Date, there has been no Material Adverse Change with respect to the Seller. 
 (ee) USA 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 (“FATF”), 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 

  

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United States Secretary of the Treasury under Section 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns.

 The representations and warranties in Section 4.1 shall survive the termination of this Agreement and such representations and
warranties may not be waived by any party hereto. 
 The representations and warranties set forth in this Section 4.1 shall
survive (x) the sale, transfer and assignment of the Purchased Assets to the Buyer and (y) any subsequent transfer of the Purchased Assets by the Buyer (including its grant of a first priority perfected security interest in, to and under
the Purchased Assets pursuant to the Loan Funding Agreement). Upon discovery by the Seller or the Buyer 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 immediately upon obtaining knowledge of such breach. 
 Section 4.2 Seller’s Representations and Warranties
Regarding the Agreement and the Loans. The Seller hereby represents and warrants to the Buyer, as of each Purchase Date, that: 
 (a)
Eligibility of Loans. (i) The Loan List delivered in connection therewith is an accurate and complete listing in all material respects of all the Loans transferred hereunder as of such date and the information contained therein with
respect to the identity of such Loans and the amounts owing thereunder is true and correct in all material respects as of such date, (ii) each such Loan is an Eligible Loan, (iii) each such Loan and the Seller’s interest in the
Related Property and other related Purchased Assets is free and clear of any Lien (other than Permitted Liens) and in compliance with all Applicable Laws and (iv) with respect to each such Loan, all consents, licenses, approvals or
authorizations of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by the Seller in connection with the transfer of such Loan and the Related Property and other related Purchased Assets to
the Buyer have been duly obtained, effected or given and are in full force and effect. 
 (b) No Fraud. Each Loan was originated
without any fraud or material misrepresentation by the Seller or to the best of the Seller’s knowledge, on the part of the related Obligor. 
 (c) Representations; Covenants and Notice of Breach. The representations and warranties set forth in Sections 4.1 and 4.2 shall be true and correct and the covenants set forth in Article VI to be performed shall
have been performed, in each case as of each Purchase Date and, further, shall survive the transfer and assignment of the respective Loans, Related Property and other related Purchased Assets, or interests therein, to the Buyer. Upon discovery by an
officer of either the Seller or the Buyer of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give written notice thereof to the other party and to the Agent and each Lender immediately upon
obtaining knowledge of such breach. 
 Section 4.3 Representations and Warranties of the Buyer. The Buyer hereby
represents and warrants to the Seller, as of the Closing Date and each Purchase Date, that: 
 (a) Organization and Good Standing. The
Buyer is a limited liability company duly organized and validly existing in good standing under the laws of the State of Delaware, and has 

  

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full limited liability company authority and legal right to own its properties and conduct its business as such properties are presently owned and such
business is presently conducted, and to execute, deliver and perform its obligations under this Agreement, each other Transaction Document to which the Buyer is a party and each of the Sale Papers. 
 (b) Due Qualification. The Buyer is duly qualified to do business and is in good standing in the jurisdiction of its formation, and has obtained
or will obtain all necessary licenses and approvals, in each jurisdiction in which failure to so qualify or to obtain such licenses and approvals would have a material adverse effect on its ability to perform its obligations hereunder, under each
other Transaction Document to which the Buyer is a party or under the Sale Papers. 
 (c) Due Authorization. The execution and
delivery of this Agreement, each other Transaction Document to which the Buyer is a party and each of the Sale Papers and the consummation of the transactions provided for herein or therein have been duly authorized by the Buyer by all necessary
company or other action on the part of the Buyer. 
 (d) Agreement Enforceable. This Agreement and each other Transaction Document to
which the Buyer is a party constitutes the legal, valid and binding obligation of the Buyer enforceable against the Buyer in accordance with its terms, except as such enforceability may be limited by Insolvency Laws and except as such enforceability
may be limited by general principles of equity (whether considered in a suit at law or in equity). 
 (e) No Conflicts. The execution
and delivery of this Agreement, each other Transaction Document to which the Buyer is a party and each of the Sale Papers, the performance of the transactions contemplated hereby or thereby and the fulfillment of the terms hereof and thereof will
not conflict with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a material default under, any material Contractual Obligation or the Borrower’s
organizational documents. 
 (f) No Violation. The execution and delivery of this Agreement, each other Transaction Document to which
the Buyer is a party and each of the Sale Papers, the performance of the transactions contemplated hereby and thereby, and the fulfillment of the terms hereof and thereof (including, without limitation, the purchase of Purchased Assets by the Buyer
in accordance with the provisions of this Agreement) will not conflict with or violate, in any material respect, any Applicable Law. 
 (g)
No Proceedings. There are no proceedings or investigations pending or, to the best knowledge of the Buyer, threatened against the Buyer, before any court, regulatory body, administrative agency, or other tribunal or governmental
instrumentality (i) asserting the invalidity of this Agreement or any of the Sale Papers, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any of the Sale Papers, or (iii) seeking
any determination or ruling that could reasonably be expected to be adversely determined, and if adversely determined, would materially and adversely affect the performance by the Buyer of its obligations under this Agreement, each other Transaction
Document to which the Buyer is a party or any of the Sale Papers. 
  

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 (h) Separate Entity. The Buyer is operated as an entity with assets and liabilities distinct from
those of the Seller and any Affiliates thereof, and the Buyer hereby acknowledges that the Agent and the Lenders under the Loan Funding Agreement are entering into the transactions contemplated by the Loan Funding Agreement in reliance upon the
Buyer’s identity as a separate legal entity from the Seller and from each Affiliate of the Seller. 
 ARTICLE V 
 PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS 
 Section 5.1 Custody of Loans. The contents of each Loan File shall be held in the custody of the Trustee under the terms of the Loan Funding Agreement for the benefit of the Secured Parties.

 Section 5.2 Filing. On or prior to the Closing Date, the Seller shall cause the UCC financing statement(s) referred
to in Section 2.1(f) hereof to be filed. 
 Section 5.3 Name Change or Relocation. 
 (a) During the term of this Agreement, the Seller shall not change its name, identity, structure, existence or location (as defined in Article 9 of the
UCC) without first giving at least 30 days’ prior written notice to the Buyer, the Agent and the Trustee. 
 (b) If any change in the
Seller’s name, identity, structure, existence, location (as defined in Article 9 of the UCC) or other action would make any financing or continuation statement or notice of ownership interest or Lien relating to any Purchased Asset seriously
misleading within the meaning of applicable provisions of the UCC or any title statute, the Seller, no later than five Business Days after the effective date of such change, shall file such amendments as may be required to preserve and protect the
Buyer’s, the Agent’s and the Trustee’s interests in the Purchased Assets and the proceeds thereof. 
 Section 5.4
Chief Executive Office. During the term of this Agreement, and subject to the other terms and provisions herein relating to changes in location, the Seller will maintain its chief executive office in one of the States of the United
States. 
 Section 5.5 Costs and Expenses. The Seller hereby confirms that the initial Servicer will pay all reasonable
costs and disbursements in connection with the perfection and the maintenance of perfection, as against all third parties, of the Buyer’s and the Secured Parties’ right, title and interest in and to the Purchased Assets in accordance with
the Loan Funding Agreement (including, without limitation, the security interest in the Related Property related thereto and the security interests provided for in the Loan Funding Agreement). 
  

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 Section 5.6 Sale Treatment. The Seller shall treat the transfer of Purchased Assets
made hereunder for all purposes (other than for federal income tax and financial accounting purposes and to the extent required to comply with applicable provisions relating to Seller’s status as a BDC under the 1940 Act) as a sale and purchase
on all of its relevant books, records, financial statements and other applicable documents. 
 Section 5.7 Separateness from
Buyer. The Seller agrees to take or refrain from taking or engaging in with respect to the Buyer each of the actions or activities specified in the “substantive non-consolidation” opinion of Ropes & Gray LLP (including any
certificates of the Seller attached thereto), delivered on the Closing Date, upon which the conclusions therein are based. 
 ARTICLE VI

 COVENANTS 
 Section 6.1 Seller Covenants. The Seller hereby covenants that: 
 (a) Preservation of Corporate
Existence. The Seller will preserve and maintain its corporate existence, rights, franchises, qualifications and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing in each jurisdiction where the
failure to maintain such existence, rights, franchises, privileges and qualification has had, or could reasonably be expected to have, a Material Adverse Effect. 
 (b) Security Interests. With respect to the Purchased Assets sold to the Buyer, the Seller (i) will sell such Purchased Assets pursuant to and in accordance with the terms of this Agreement, (ii) with
respect to the Purchased Assets acquired by the Buyer directly from a third party, the Seller will (at its own expense) take all action necessary to perfect, protect and more fully evidence the Buyer’s or its assignee’s ownership or
security interest in such Purchased Assets free and clear of any Lien other than the Lien created hereunder and Permitted Liens, including, without limitation, (a) with respect to the Purchased Assets sold by it to the Buyer, and with respect
to the Purchased Assets acquired by the Buyer directly from a third party, the Seller will, with respect to the Loans and that portion of the Purchased Assets in which a security interest may be perfected by filing, file and maintain (at the
Seller’s expense), effective financing statements against the Seller in all necessary or appropriate filing offices (including any amendments thereto or assignments thereof), and filing continuation statements, amendments or assignments with
respect thereto in such filing offices (including any amendments thereto or assignments thereof), and (b) executing or causing to be executed such other instruments or notices as may be necessary or appropriate, (iii) will permit the
Agent, the Lenders or their respective agents or representatives to visit the offices of the Seller during normal office hours and upon reasonable notice examine and make copies of all documents, books, records and other information concerning the
Purchased Assets and discuss matters related thereto with any of the officers or employees of the Seller having knowledge of such matters, such examination shall be reasonable in scope and shall be completed in a reasonable period of time and
(iv) take all additional action that the Buyer and the Agent may reasonably request to perfect, protect and more fully evidence the respective interests of the parties to this Agreement in the Purchased Assets. The Seller will immediately
notify the Buyer of the existence of any lien on any Loan transferred hereunder or on any Related Property or other Purchased Asset; and the Seller shall 

  

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defend the right, title and interest of the Buyer in, to and under the Loans transferred hereunder and the Related Property or other Purchased Asset, against
all claims of third parties. The Seller will, at its expense, timely and fully perform and comply with all provisions, covenants and other promises required to be observed by it under the Purchased Assets conveyed by it hereunder and all other
agreements related to such Purchased Assets. 
 (c) Delivery of Collections. Consistent with the Buyer’s ownership of the
Purchased Assets, in the event the Seller shall receive any Collections in respect of any Purchased Assets after the Purchase Date therefore, the Seller agrees to promptly pay to the Buyer, or an account designated by the Buyer, (but in no event
later than two Business Days after receipt) such Collections. Further, on or before the related Purchase Date for any Purchased Asset, the Seller shall instruct all banks or financial institutions to which Collections received from the related
Obligor are directed to (i) change the name on all accounts at such banks or financial institutions in which such Collections are deposited (each an “Obligor Account”) to the name of the Buyer, to the extent any such account is
in the name of the Seller or any Affiliate of the Seller (other than the Buyer) such that such Obligor Account shall be in the name of the Buyer and shall be a segregated account and the funds deposited therein shall not be commingled with other
funds of the Buyer, Seller or any Affiliate thereof and (ii) Buyer shall notify each such bank or financial institution and the Concentration Account Bank to transfer all funds on deposit in each Obligor Account to the Concentration Account, by
wire transfer in immediately available funds two times on each day on which such bank or financial institution is open for business. 
 (d)
Compliance with Law. The Seller hereby agrees to comply in all material respects with all requirements of Applicable Law, including laws applicable to the Seller, the Loans and the Related Property and the related Purchased Assets.

 (e) Activities of the Seller. The Seller shall not engage in any business or activity of any kind with the Buyer, or enter into any
transaction or indenture, mortgage, instrument, agreement, loan, lease or other undertaking with the Buyer, which is not directly related to the transactions contemplated and authorized by this Agreement, the other Transaction Documents, the Sale
Papers, and the operating agreement of the Buyer. 
 (f) Guarantees. The Seller shall not become or remain liable, directly or
contingently, in connection with any Indebtedness or other liability of the Buyer, whether by guarantee, endorsement (other than endorsements of negotiable instruments for deposit or collection in the ordinary course of business), agreement to
purchase or repurchase, agreement to supply or advance funds, or otherwise, except as contemplated by this Agreement and the other Transaction Documents. 
 (g) Merger; Sales. The Seller shall not enter into any transaction of merger or consolidation, or liquidate or dissolve itself (or suffer any liquidation or dissolution), or acquire or, subject to
Section 10.15 be acquired by any Person, or convey, sell, lease or otherwise dispose of all or substantially all of its property or business, except as provided for in this Agreement. 
 (h) ERISA Matters. The Seller will not (a) engage in any prohibited transaction for which an exemption is not available or has not previously
been obtained from the United States 

  

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Department of Labor; (b) permit to exist any accumulated funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the
Code, or funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan; (c) fail to make any payments to an Multiemployer Plan that the Seller may be required to make under the agreement relating to such Multiemployer Plan
or any law pertaining thereto; (d) terminate any Benefit Plan so as to result in any liability; or (e) permit to exist any occurrence of any reportable event described in Title IV of ERISA that represents a material risk of a liability of
the Seller under ERISA or the Code. 
 Section 6.2 Delivery of Loan Files. 
 (a) The Seller shall deliver, on behalf of the Buyer, possession of all “instruments” (within the meaning of Article 9 of the UCC) not
constituting part of “chattel paper” (within the meaning of Article 9 of the UCC) that evidence any Purchased Asset set forth on a Loan List, including all Underlying Notes, and all portions of the Loan Files to the Trustee on behalf of
the Secured Parties prior to the applicable Purchase Dates in each case endorsed in blank without recourse; provided that notwithstanding the foregoing, in connection with any Pre-Positioned Loan to be purchased by the Seller, the Seller
shall (i) (other than in the case of a Noteless Loan) have a copy of the executed Underlying Note faxed to the Trustee on the applicable Purchase Date with the original to be received by the Trustee within two Business Days after such Purchase
Date and (ii) within ten Business Days of the Purchase Date deliver all other portions of the Loan File to the Trustee, in each case endorsed in blank without recourse, where applicable. Pursuant to Section 5.3 of the Loan Funding
Agreement, the Seller is required to deliver such instruments and Loan Files to the Trustee for the benefit of the Secured Parties. Accordingly, the Seller shall deliver possession of all such instruments and Loan Files to the Trustee on behalf of
the Buyer and for the benefit of the Secured Parties, and agrees that such delivery shall satisfy the condition set forth in the first sentence of this Section 6.2(a). The Seller shall also identify on the Loan List (including any
amendment thereof), whether by attached schedule or marking or other effective identifying designation, all Purchased Assets that are not evidenced by such instruments. Notwithstanding anything to the contrary in this Section 6.2, any such
documents or instruments required to be delivered hereunder shall not include any equity purchase warrants or similar rights convertible into or exchangeable or exerciseable for any equity interests received by the Seller as an “equity
kicker” from any Obligor in connection with such Purchased Assets. 
 (b) Prior to the occurrence of a Termination Event or Servicer
Termination Event, the Trustee shall not record the Assignments of Mortgage delivered pursuant to Section 6.2(a) and the definition of Loan Documents. Upon the occurrence of a Termination Event or a Servicer Termination Event, the
Trustee shall cause to be recorded in the appropriate offices each Assignment of Mortgage delivered to it with respect to all Purchased Assets except those Purchased Assets covered by the proviso to the definition of Assignment of Mortgage. Each
such recording shall be at the expense of the initial Servicer; provided that to the extent the initial Servicer does not pay such expenses, the Trustee shall be reimbursed pursuant to the provisions of Section 2.8 of the Loan
Funding Agreement. 
 Section 6.3 Release of Released Amounts. Immediately upon the release to the Buyer by the Trustee
on behalf of the Secured Parties and the other Secured Parties of the Released Amounts, the Buyer hereby irrevocably agrees to release to the Seller such Released 
  

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Amounts, which release shall be automatic and shall require no further act by the Buyer; provided that the Buyer shall execute and deliver such
instruments of release and assignment, or otherwise confirming the foregoing release of any Released Amounts, as may be reasonably requested by the Seller. 
 ARTICLE VII 
 REPURCHASE OBLIGATION 
 Section 7.1 Repurchase of Ineligible Loans. 
 (a) In the event of a breach of any representation or warranty set forth in Section 4.2 with respect to a Loan or other Purchased Asset transferred hereunder (each such Loan, Related Property and other
Related Purchased Asset, an “Ineligible Loan”), no later than 30 days after the earlier of (i) knowledge of such breach on the part of the Seller and (ii) receipt by the Seller of written notice thereof given by the Buyer,
the Seller shall, unless the Ineligible Loan has been purchased by a third party, either (a) repurchase each such Ineligible Loan to which such breach relates on the terms and conditions set forth below, or (b) substitute for such
Ineligible Loan a Substitute Loan; provided that no such repurchase shall be required to be made with respect to such Ineligible Loan (and such Loan shall cease to be an Ineligible Loan) if, on or before the expiration of such 30 day period,
the representations and warranties in Section 4.2 with respect to such Ineligible Loan shall be made true and correct in all material respects with respect to such Ineligible Loan as if such Ineligible Loan had been transferred to the
Buyer on such day. Notwithstanding anything contained in this Section 7.1 to the contrary, in the event a of breach of any representation and warranty set forth in Section 4.2 with respect to each Loan, Related Property and
other related Purchased Assets having been (A) conveyed to the Buyer free and clear of any Lien (other than Permitted Liens) of any Person claiming through or under the Seller and its Affiliates and (B) in compliance, in all material
respects, with all requirements of laws applicable to the Seller, promptly, and in any event within one Business Day, upon the earlier to occur of the discovery of such breach by the Seller or receipt by the Seller of written notice of such breach
given by the Buyer, the Seller shall repurchase and the Buyer shall convey, free and clear of any Lien created pursuant to this Agreement or the Loan Funding Agreement, all of the Buyer’s right, title and interest in such Ineligible Loan, and
the Buyer shall, in connection with such conveyance and without further action, be deemed to represent and warrant that it has the corporate authority and has taken all necessary corporate action to accomplish such conveyance, but without any other
representation or warranty, express or implied. In the foregoing instances, the Seller shall repurchase each such Ineligible Loan and on and after the date of such repurchase, each Ineligible Loan so repurchased shall be excluded from the pool of
Purchased Assets. In consideration of any such repurchase the Seller shall, on the date of repurchase of such Ineligible Loan, remit to the Buyer in immediately available funds an amount equal to the Repurchase Price therefor. Upon each repurchase
of such Ineligible Loan, the Buyer shall automatically and without further action be deemed to transfer, assign and set-over to the Seller all the right, title and interest of the Buyer in, to and under such Ineligible Loan and all monies due or to
become due with respect thereto, all proceeds thereof and all rights to security for any such Ineligible Loan, and all proceeds and products of the foregoing. The Buyer shall, 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 shall reasonably be requested by the Seller to effect the transfer of such Ineligible Loan pursuant to this Section 7.1. 
  

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 (b) The Seller hereby agrees that (i) if Seller has knowledge that any real property collateral
securing any Purchased Asset, that is a material security for such Purchased Asset, becomes the subject of any claims, proceedings, Liens or encumbrances with respect to any material violation or claimed material violation of any federal or state
environmental laws or regulations or (ii) in the event of a breach of a representation and warranty in Section 4.1(cc), such Purchased Assets shall for all purposes hereunder be, at and following the time of discovery by the Seller,
the Buyer, the Agent or any Secured Party of such fact, deemed an Ineligible Loan, and the Seller shall, unless such Loan is sold by Borrower to a third party, either (1) repurchase such Ineligible Loan or (2) substitute for such
Ineligible Loan a Substitute Loan. Such Ineligible Loan shall otherwise be treated in accordance with Section 7.1(a) above and shall be subject to the same remedial and recourse provisions hereunder as other Purchased Assets determined
to be Ineligible Loans hereunder. 
 (c) In addition, the Seller shall in connection with any substitution undertaken pursuant to this
Section 7.1, deliver to the Trustee the related Loan Documents. In connection with any such repurchase or substitution, as applicable, the Buyer shall, automatically and without further action, be deemed to transfer to the Seller, free
and clear of any Lien created in favor of the Buyer, all of the right, title and interest of the Buyer, in, to and under the Loan being conveyed to the Seller in connection with such repurchase or substitution, but without any representation and
warranty of any kind, express or implied. 
 Section 7.2 Substitution of Loans. On any day prior to the occurrence of a
Termination Event (and after the Termination Date at the discretion of the Buyer), the Seller may, subject to the conditions set forth in this Section 7.2 and subject to the other restrictions contained herein, replace any Loan included
in the Purchased Assets with one or more Eligible Loans (each, a “Substitute Loan”); provided that no such replacement shall occur unless each of the following conditions is satisfied as of the date of such replacement and
substitution: 
 (a) the Seller has recommended to the Buyer (with a copy to the Agent and the Trustee) in writing that the Loan included in
the Purchased Assets to be replaced should be replaced (each a “Replaced Loan”); 
 (b) each Substitute Loan is an Eligible
Loan on the date of substitution; 
 (c) the aggregate Outstanding Loan Balance of such Substitute Loans shall be equal to or greater than
the aggregate Outstanding Loan Balance of the Replaced Loans; 
 (d) all representations and warranties of the Seller contained in
Section 4.1 and, with respect to the Substitute Loan, Section 4.2 shall be true and correct as of the date of substitution of any such Substitute Loan; 
 (e) the substitution of any Substitute Loan does not cause a Termination Event or Unmatured Termination Event to occur; 
 (f) as of any date of determination, the sum of the Outstanding Loan Balances of all Substitute Loans does not exceed 20% of the highest Aggregate
Outstanding Loan Balance of any month during the twelve month period immediately preceding such date of determination; 
  

 21 

 (g) as of any date of determination, the sum of the Outstanding Loan Balances of all Substitute Loans
substituted for Defaulted Loans and Loans subject to a Warranty Event shall not exceed 10% of the highest Aggregate Outstanding Loan Balance of any month during the twelve month period immediately preceding such date of determination; 
 (h) [Reserved]. 
 (i)
[Reserved]. 
 (j) no adverse selection procedures shall have been employed in the selection of such Substitute Loan from the
Seller’s portfolio; 
 (k) all actions or additional actions (if any) necessary to perfect the security interest and assignment of such
Substitute Loan and related Collateral to the Buyer shall have been taken as of or prior to the Substitution Date; 
 (l) the Collateral
Quality Test is satisfied; provided that if immediately prior to such date, the Collateral Quality Test was not satisfied, such test is maintained or improved after giving effect to the inclusion of the Substitute Loan in the Purchased
Assets; and 
 (m) the Seller shall deliver to the Buyer 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. 
 Section 7.3 In addition, the Seller shall in connection with such
substitution deliver to the Trustee the related Loan Documents. In connection with any such substitution, the Buyer, shall, automatically and without further action, be deemed to transfer to the Seller, free and clear of any Lien created in favor of
the Buyer, all of the right, title and interest of the Buyer, in, to and under such Replaced Loan, but without any representation and warranty of any kind, express or implied. 
 ARTICLE VIII 
 CONDITIONS PRECEDENT 
 Section 8.1 Conditions to the Buyer’s Obligations Regarding Loans. The obligations of the Buyer to purchase Purchased Assets
from the Seller on any Purchase Date shall be subject to the satisfaction of the following conditions: 
 (a) all representations and
warranties of the Seller contained in Sections 4.1 and 4.2 shall be true and correct in all material respects on and as of such day as though made on and as of such date; 
 (b) on and as of such date, the Seller shall have performed in all material respects all obligations required to be performed by it on or prior to such
day pursuant to the provisions of this Agreement; 
 (c) no event has occurred and is continuing, or would result from such purchase that
constitutes a Termination Event or Unmatured Termination Event; 
  

 22 

 (d) no law or regulation shall prohibit, and no order, judgment or decree of any Governmental Authority
shall prohibit or enjoin, the making of any such purchase by the Buyer in accordance with the provisions hereof; and 
 (e) all corporate and
legal proceedings and all instruments in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to the Buyer, and the Buyer 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 Buyer may reasonably have requested. 
 ARTICLE IX 
 TERM AND TERMINATION 
 Section 9.1 Termination. 
 (a)
This Agreement shall commence as of the date of execution and delivery hereof and shall continue in full force and effect until the Collection Date; 
 (b) Notwithstanding any provisions contained herein to the contrary, the Seller’s representations, covenants and obligations set forth in Article IV, V, VI, and VII 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 Section 7.1, 7.2 and 7.3, the indemnification and payment provisions of Sections 10.17
and 10.18 and the provisions of Sections 10.5, 10.6, 10.7, 10.9, 10.10, 10.13, 10.15 and 10.16 shall be continuing and shall survive any termination of this Agreement. 
 ARTICLE X 
 MISCELLANEOUS PROVISIONS

 Section 10.1 Amendment. This Agreement and the rights and obligations of the parties hereunder may not be
amended, waived or changed orally, but only by an instrument in writing signed by the Buyer and the Seller and consented to in writing by the Agent. The Buyer shall provide not less than ten Business Days’ prior written notice of any such
amendment to the Agent unless the Agent otherwise consents in writing. 
 Section 10.2 Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY
WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
COURT. 
  

 23 

 Section 10.3 Notices. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including telex communication and communication by facsimile copy) and mailed, telexed, transmitted or delivered, as to each party hereto, at its address set forth below or at such other address
as shall be designated by such party in a written notice to the other party hereto. All such notices and communications shall be effective upon receipt, or in the case of (a) notice by mail, three days after being deposited in the United States
mail, first class postage prepaid, (b) notice by telex, when telexed against receipt of answer back, or (c) notice by facsimile copy, when verbal communication of receipt is obtained. 
  

	 	(a)	In the case of notice to the Buyer, to: 

 KOHLBERG CAPITAL
FUNDING LLC I 
 c/o Kohlberg Capital Corporation 
 295 Madison Avenue, 6th Floor 
 New York, NY 10017 
 Attention:         Michael Wirth 
 Facsimile No.:(212) 983-7654 
  

	 	(b)	In the case of notice to the Seller, to: 

 Kohlberg Capital
Corporation 
 295 Madison Avenue, 6th Floor 
 New York, NY 10017 
 Attention:        Michael Wirth 
 Facsimile No.:(212) 983-7654 
  

	 	(c)	In the case of notice to the Agent, to: 

 BMO Capital
Markets Corp. 
 115 South LaSalle Street 
 13th Floor West 
 Chicago, Illinois 60603 
 Attention:        John Vidinovski 
 Facsimile No.:(312) 293-4908

 Telephone No.: (312) 461-6721 
  

	 	(d)	In the case of notice to the Trustee, to: 

 U.S. Bank
National Association 
 Corporate Trust Services – CDO Unit 
 One Federal Street, Third Floor 
 Boston, Massachusetts 02110 
 Attention:        Scott Holmes 
 Reference: Kohlberg Capital Funding LLC I 
 Facsimile No.: 866-350-8438 
 Confirmation No.: 617-603-6741 
  

 24 

 Severability of Provisions. If any one or more of the covenants, agreements, provisions or
terms of this Agreement or any of the Sale Papers shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this
Agreement and the Sale Papers and shall in no way affect the validity or enforceability of the other provisions of this Agreement or any of the Sale Papers. 
 Section 10.4 Assignment. 
 (a) Notwithstanding anything to the contrary contained herein, this
Agreement may not be assigned by the Buyer or the Seller except as permitted by this Section 10.5. Simultaneously with the execution and delivery of this Agreement, the Buyer shall hereby assign all of its right, title and interest
herein to the Trustee for the benefit of the Secured Parties under the Loan Funding Agreement, as provided in the Loan Funding Agreement, to which assignment the Seller hereby expressly consents. The Seller agrees that the Agent and the Trustee on
behalf of the Secured Parties under the Loan Funding Agreement, and the Secured Parties shall be third party beneficiaries hereof. The Agent and the Trustee, on behalf of the Secured Parties under the Loan Funding Agreement, may enforce the
provisions of this Agreement, exercise the rights of the Buyer and enforce the obligations of the Seller hereunder as provided in the Loan Funding Agreement. This Agreement may not be assigned by the Seller except in connection with a merger or
consolidation of the Seller with or into, or disposition of the Seller’s properties and assets to, another Person; provided that any such merger, consolidation or disposition shall satisfy the requirements of Section 10.15,
and shall be upon not less than ten Business Days’ prior written notice to the Buyer, the Agent and the Trustee unless the Buyer, the Agent and the Trustee otherwise consent in writing. 
 (b) The Seller acknowledges that, pursuant to the Loan Funding Agreement, the Buyer shall assign its rights of indemnity granted hereunder to the Agent,
the Lenders, the other Secured Parties, the Backup Servicer and the Trustee. Upon such assignment, (i) the Agent, the Lenders, the other Secured Parties, the Backup Servicer and the Trustee as applicable, shall have all rights of the Buyer
hereunder and may in turn assign such rights, and (ii) the obligations of the Seller under Section 10.18 shall inure to the Agent, the Lenders, the other Secured Parties, the Backup Servicer and the Trustee. The Seller agrees that,
upon such assignment, the Agent, the Lenders, the other Secured Parties, the Backup Servicer and the Trustee or the assignee of any such Person, as applicable, may enforce directly, without joinder of the Buyer, the indemnities set forth in
Section 10.18. 
 (c) In connection with any permitted assignment of this Agreement by the Seller, the Seller shall deliver to
the Buyer, the Agent and the Trustee an Officer’s Certificate that such assignment complies with this Section 10.5, and shall cause such assignee to execute an agreement supplemental hereto, in form and substance satisfactory to the
Seller, pursuant to which such assignee shall expressly assume and agree to the performance of every covenant and obligation of the Seller hereunder, to provide for the delivery of an Opinion of Counsel that such supplemental agreement is legal,
valid and binding with respect to such assignee, and to take such other actions and execute such other instruments as may reasonably be required to effectuate such assignment. 
  

 25 

 Section 10.5 Further Assurances. The Buyer and the Seller agree to do and perform,
from time to time, any and all acts and to execute any and all further instruments required or reasonably requested by the other party more fully to effect the purposes of this Agreement and the Sale Papers, including, without limitation, the
execution of any financing statements, continuation statements, termination statements, releases or equivalent documents relating to the Purchased Assets for filing under the provisions of the UCC or other applicable laws of any applicable
jurisdiction. 
 Section 10.6 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the
part of the Buyer or the Seller, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privilege provided by law. 
 Section 10.7 Counterparts. This Agreement may be executed in two or more counterparts including telefax transmission thereof (and by
different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 
 Section 10.8 Binding Effect; Third-Party Beneficiaries. Except as otherwise specifically provided herein, the parties hereto hereby manifest their intent that no third party, other than the Agent
and each Secured Party, shall be deemed a third party beneficiary of this Agreement, and specifically that the Obligors are not third party beneficiaries of this Agreement. 
 Section 10.9 Liabilities to Obligors. No obligation or liability to any Obligor under any of the Loans is intended to be assumed by
the Buyer, the Agent and the Secured Parties, under or as a result of this Agreement and the transactions contemplated hereby. 
 Section
10.10 Merger and Integration. Except as specifically stated otherwise herein, this Agreement, together with the Loan Funding Agreement and the other Transaction Documents, to the extent that a party is a signatory thereto, sets
forth the entire understanding of the parties relating to the subject matter hereof, there are no other agreements between the parties for transactions relating to or similar to the transactions contemplated by this Agreement, and all prior
understandings, written or oral, are superseded by this Agreement. This Agreement may not be modified, amended, waived or supplemented except as provided herein. 
 Section 10.11 Headings. The headings of the various Articles and Sections herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision
hereof. 
 Section 10.12 No Bankruptcy Petition; Disclaimer. 
 (a) Each of the Seller and the Buyer covenants and agrees that, prior to the date that is two years and one day after the Collection Date, it will not
institute against the Buyer, or join any other Person in instituting against the Buyer, any Insolvency Proceeding under the laws of 

  

 26 

 
the United States or any state of the United States. This Section 10.13 will survive the termination of this Agreement. 
 The provisions of this Section 10.13 shall be for the third party benefit of those entitled to rely thereon, including the Agent and the
Secured Parties, and shall survive the termination of this Agreement. 
 Section 10.13 Schedules and Exhibits. 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. 
 Section 10.14 Merger or Consolidation of, or Assumption of the Obligations of, the Seller. 
 (a) Subject to Section 10.15(b), the Seller will keep in full force and effect its existence, rights and franchises as a Delaware corporation, and the Seller will obtain and preserve its qualification to do business as a foreign
corporation in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement and of any of the Loans and to perform its duties under this Agreement. 
 (b) The Seller shall not consolidate or merge with or into, or sell, lease or transfer all or substantially all of its assets to, any other Person,
unless in the case of any such action (i) no Termination Event, Unmatured Termination Event or Material Adverse Effect would occur or be reasonably likely to occur as a result of such transaction, (ii) the Buyer and the Agent provide their
prior written consent to such transaction and (iii) such Person executes and delivers to the Agent an agreement by which such Person assumes the obligations of the Seller hereunder and under the other Transaction Documents to which it is a
party, or confirms that such obligations remain enforceable against it, together with such certificates and opinions of counsel as the Agent may reasonably request. 
 Section 10.15 [Reserved.] 
 Section 10.16 Costs, Expenses and Taxes. 
 (a) The Seller agrees to pay on demand all costs and expenses of the Buyer incurred in connection with the preparation, execution, delivery,
administration (including periodic auditing), amendment or modification of, or any waiver or consent issued in connection with, this Agreement and the other documents to be delivered hereunder or in connection herewith to which the Seller is a
party, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Buyer with respect thereto and with respect to advising the Buyer as to its rights and remedies under this Agreement and the other documents to
be delivered hereunder or in connection herewith to which the Seller is a party, and all costs and out-of-pocket expenses, if any (including reasonable counsel fees and expenses), incurred by the Buyer in connection with the enforcement of this
Agreement and the other documents to be delivered hereunder or in connection herewith to which the Seller is a party. 
 (b) The Seller shall
pay on demand any and all stamp, sales, excise and other taxes (excluding income and franchise taxes of the Buyer) and fees payable or determined to be 

  

 27 

 
payable in connection with the execution, delivery, filing and recording of this Agreement or any agreement or other document delivered in connection with
this Agreement. 
 (c) The Seller shall pay on demand all other costs, expenses and taxes (excluding income taxes) (“Other
Costs”), including, without limitation, all reasonable costs and expenses incurred by the Agent in connection with periodic audits of the Borrower’s or the Servicer’s books and records, the amount of any taxes and insurance due
and unpaid by an Obligor with respect to any Transferred Loan or Related Property, and any fees and expenses agreed to be borne by the Buyer under Section 7.16(b) of the Loan Funding Agreement. 
 Section 10.17 Indemnities by the Seller. 
 (a) Without limiting any other rights that any such Person may have hereunder or under Applicable Law, the Seller hereby agrees to indemnify the Buyer, the Agent, the Backup Servicer, the Trustee, any Secured Party or
its assignee and each of their respective Affiliates and the officers, directors, employees and agents thereof (collectively, the “Indemnified Parties”), forthwith on demand, from and against any and all damages, losses, claims,
liabilities and related costs and expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by, any such
Indemnified Party or other non-monetary damages of any such Indemnified Party any of them arising out of or as a result of this Agreement, excluding, however, Indemnified Amounts to the extent resulting from gross negligence or willful
misconduct on the part of any Indemnified Party. 
 (b) Any amounts subject to the indemnification provisions of this
Section 10.18 shall be paid by the Seller to the Indemnified Party within ten Business Days following such Person’s demand therefor. 
 (c) If for any reason the indemnification provided above in this Section 10.18 is unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then the Seller shall
contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the one hand
and the Seller on the other hand, but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations. 
 (d) The obligations of the Seller under this Section 10.18 shall survive the removal of the Agent, the Backup Servicer or the Trustee and the termination of this Agreement. 
 (e) The parties hereto agree that the provisions of Section 10.18 shall not be interpreted to provide recourse to the Seller against loss by
reason of (i) the bankruptcy, insolvency or lack of creditworthiness of or nonpayment by an Obligor on any Loan, or (ii) the bankruptcy or insolvency of the Buyer or the Buyer’s inability to perform under the Transaction Documents due
to the insolvency or lack of creditworthiness of or nonpayment by one or more Obligors on one or more Loans. 
 Section 10.18 Recourse
Against Certain Parties. 
  

 28 

 (a) No recourse under or with respect to any obligation, covenant or agreement (including, without
limitation, the payment of any fees or any other obligations) of the Seller as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any
administrator of the Seller or any incorporator, officer, employee, shareholder or director of the Seller or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute
or otherwise; it being expressly agreed and understood that the agreements of the Seller contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each
case, solely the corporate obligations of the Seller, and that no personal liability whatsoever shall attach to or be incurred by any administrator of the Seller or any incorporator, officer, employee, shareholder or director of the Seller or of any
such administrator, as such, or any other them, under or by reason of any of the obligations, covenants or agreements of the Seller contained in this Agreement or in any other such instruments, documents or agreements, or that are implied therefrom,
and that any and all personal liability of every such administrator of the Seller and each incorporator, officer, employee or director of the Seller or of any such administrator, or any of them, for breaches by the Seller of any such obligations,
covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the execution of this Agreement. The provisions of
this Section 10.19(a) shall survive the termination of this Agreement. 
 (b) No recourse under or with respect to any
obligation, covenant or agreement (including, without limitation, the payment of any fees or any other obligations) of the Buyer as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in
connection herewith shall be had against any administrator of the Buyer or any incorporator, officer, employee, shareholder or director of the Buyer or of any such administrator, as such, by the enforcement of any assessment or by any legal or
equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that the agreements of the Buyer contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant
hereto or in connection herewith are, in each case, solely the corporate obligations of the Buyer, and that no personal liability whatsoever shall attach to or be incurred by any administrator of the Buyer or any incorporator, officer, employee,
shareholder or director of the Buyer or of any such administrator, as such, or any other them, under or by reason of any of the obligations, covenants or agreements of the Buyer contained in this Agreement or in any other such instruments, documents
or agreements, or that are implied therefrom, and that any and all personal liability of every such administrator of the Buyer and each incorporator, officer, employee or director of the Buyer or of any such administrator, or any of them, for
breaches by the Buyer of any such obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the
execution of this Agreement. The provisions of this Section 10.19(b) shall survive the termination of this Agreement. 
 (c) From
and after the Closing Date, the Buyer shall have the right, in its discretion and subject to the provisions of the Transaction Documents, to direct all Obligors to henceforth direct their payments to the respective Obligor Account. 
  

 29 

 Section 10.19 Sharing of Payments on Loans Subject to Retained Interest Provisions.

 (a) With respect to any Loan (including, without limitation, any Revolving Loan) included in the Purchased Assets subject to the
Retained Interest provisions of this Agreement, the Buyer will own only the principal portion of such Loans outstanding as of the applicable Cut-Off Date. Principal Collections received by the Servicer on any such Loan will be allocated first to the
portion of such Loan owned by the Buyer, until the principal amount of such portion is reduced to zero, and then to the portion not owned by the Buyer; provided that if a payment with respect to such Loan is delinquent beyond any applicable
grace period, then Principal Collections received on the applicable Loan will be allocated between the portion not owned by the Buyer and the portion owned by the Buyer, pro rata based upon the outstanding principal amount of each such portion.

 (b) With respect to any Loan (including, without limitation, any Revolving Loan) included in the Purchased Assets subject to the Retained
Interest provisions of this Agreement, Interest Collections received by the Servicer on those Loans will be allocated between the portion owned by the Buyer and the portion not owned by the Buyer on a pro rata basis according to the
outstanding principal amount of each such portion. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 30 

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

			
	 KOHLBERG CAPITAL FUNDING LLC I, as
 the Buyer

		
	By:	 	/s/ Michael I. Wirth
	Name:	 	Michael I. Wirth
	Title:	 	Authorized Person
	
	 KOHLBERG CAPITAL CORPORATION, as
 the
Seller

		
	By:	 	/s/ Michael I. Wirth
	Name:	 	Michael I. Wirth
	Title:	 	Chief Financial Officer

 Acknowledged and Agreed to: 
  

			
	 BMO CAPITAL MARKETS CORP.,
 as the
Agent

		
	By:	 	/s/ David J. Kucera
	Name:	 	David J. Kucera
	Title:	 	Managing Director
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
the Trustee

		
	By:	 	/s/ Scott Holmes
	Name:	 	Scott Holmes
	Title:	 	Assistant Vice President

  

 31 

 SCHEDULE I 
 LOAN LIST 
 [to be delivered for initial Purchase] 
  

 32 

 EXHIBIT A 
 FORM OF SALE ASSIGNMENT 
 SALE ASSIGNMENT, dated as of
                    , from KOHLBERG CAPITAL CORPORATION, a Delaware corporation (the “Seller”), to KOHLBERG CAPITAL FUNDING
LLC I, a Delaware limited liability company (the “Buyer”). 
 1. We refer to the Purchase and Sale Agreement, dated as of
February 14, 2007 (as amended, modified, supplemented or restated from time to time, the “Agreement”), by and between the Seller and the Buyer. All capitalized terms used herein shall have the meanings set forth in the
Agreement. 
 2. On the terms and subject to the conditions set forth in this Agreement, on each Purchase Date, the Seller hereby sells,
assigns, sets over and otherwise conveys, and the Buyer hereby purchases and takes from the Seller all right, title, and interest, whether now owned or hereafter acquired or arising, and wherever located, of the Seller in and to the property
described in clauses (i) through (vii) below 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, other goods, investment property, letter-of-credit
rights, documents, software, supporting obligations, accessions, and all products and proceeds of any of the foregoing, and other property consisting of, arising out of, or related to any of the following property (collectively, but in each case
excluding any Retained Interest and Excluded Amounts, the “Purchased Assets”): 
 (i) the Loans that are
identified by the Seller as of the initial Cut-Off Date, which are listed on Schedule I hereto, and the Loans that are listed on Schedule I to any Assignment, and all monies due or to become due in payment of such Loans on and after the related
Cut-Off Date, including but not limited to all Collections and all obligations owed to the Seller in connection with such Loans; 
 (ii) any Related Property securing or purporting to secure the Loans referred to in clause (i) above, including the related security interest granted by the Obligor under such Loans, all proceeds from any sale or other
disposition of such Related Property; 
 (iii) all security interests, Liens, guaranties, warranties, letters of credit,
accounts, securities accounts, deposit accounts or other bank accounts, mortgages or other encumbrances and property subject thereto from time to time purporting to secure or support payment of such Loans referred to in clause (i) above,
together with all UCC financing statements or similar filings relating thereto; 
 (iv) all claims (including
“claims” as defined in Bankruptcy Code § 101(5)), suits, causes of action, and any other right of the Seller, whether known or unknown, against the related Obligors, if any, or any of their respective Affiliates, agents,
representatives, contractors, advisors, or any other Person that in any way is based upon, arises out of or is related to any of the foregoing, including, to the extent permitted to be 

  

 A-1 

 
assigned under applicable law, all claims (including contract claims, tort claims, malpractice claims, and claims under any law governing the purchase and
sale of, or indentures for, securities), suits, causes of action, and any other right of the Seller against any attorney, accountant, financial advisor, or other Person arising under or in connection with the related Loan Documents; 
 (v) all cash, securities, or other property, and all setoffs and recoupments, received or effected by or for the account of the Seller
under the Loans referred to in clause (i) above (whether for principal, interest, fees, reimbursement obligations, or otherwise) after the related Cut-Off Date, including all distributions obtained by or through redemption, consummation
of a plan of reorganization, restructuring, liquidation, or otherwise of any related Obligor or the related Loan Documents, and all cash, securities, interest, dividends, and other property that may be exchanged for, or distributed or collected with
respect to, any of the foregoing; 
 (vi) all Insurance Policies, to the extent of Seller’s rights thereto; and

 (vii) the Loan Documents with respect to such Loans. 
 3. Simultaneously with the execution and delivery hereof the Seller has delivered to or at the direction of the Buyer such endorsements and assignments,
made without recourse, of the Loan Files as are necessary to properly complete the absolute assignment of the Purchased Assets to the Buyer. 
 4. THIS CERTIFICATE OF ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CHOICE OF LAW PROVISIONS. 
 IN WITNESS WHEREOF, the Seller has caused this Assignment to be executed by its authorized officer as of the date first above written. 
  

			
	 KOHLBERG CAPITAL CORPORATION,
 as the
Seller

		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

 A-2 

 EXHIBIT B 
 [FORM OF] 
 NOTICE OF SALE 
 KOHLBERG CAPITAL CORPORATION 
 I,
                                         ,
                     of Kohlberg Capital Corporation, a Delaware corporation, as the seller (together with its successors and assigns in such
capacity, the “Seller”) hereby certify that, with respect to that certain Purchase and Sale Agreement (as amended, modified, supplemented or restated from time to time, the “Agreement”), dated as of
February 14, 2007, by and between the Seller and KOHLBERG CAPITAL FUNDING LLC I, a Delaware limited liability company, as the buyer (together with its successors and assigns in such capacity, the “Buyer”). 
 Seller hereby certifies as follows: 
 1. The
Purchase to be made will be in accordance with the following terms: 
  

	 	(a)	The aggregate Purchase Price of such Purchase shall be $
                    . 

  

	 	(b)	The date of such Purchase shall be                     .

 2. The representations and warranties contained in Sections 4.1 and 4.2 of the Agreement are true and
correct as though made on the date thereof. 
 3. On and as of such day, Seller has each performed in all material respects all of the
agreements contained in the Agreement and all other Transaction Documents to which it is a party, to be performed by Seller at or prior to such day. 
 4. No law, rule or regulation prohibits, and no order, judgment or decree of any federal, state or local court or governmental body, agency or instrumentality prohibits or enjoins, the making of such Purchase.

 IN WITNESS WHEREOF, the undersigned has caused this Purchase Notice to be duly executed this
                     day of
                    ,             . 
  

			
	 KOHLBERG CAPITAL CORPORATION,
 as the
Seller

		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

 B-1 

 EXHIBIT C 
 FORM OF MASTER PARTICIPATION AGREEMENT 
  

 C-1 

 EXHIBIT D 
 FORM OF OFFICER’S CERTIFICATE OF 
 KOHLBERG CAPITAL CORPORATION 
 The undersigned, a duly elected
[                    ] of Kohlberg Capital Corporation (the “Corporation”), pursuant to Section 2.2(c) of that
certain Purchase and Sale Agreement, dated as of February 14, 2007 (the “Purchase Agreement”), by and between the Corporation, as seller and Kohlberg Capital Funding LLC I, as buyer (the “Buyer”), hereby
certifies with respect to any Loans and other Purchased Assets acquired by the Buyer as of the date hereof that: 
 1. Each such Loan, as of
the date hereof, is an Eligible Loan. 
 2. No selection procedures believed by the Corporation to be adverse to the interest of the Buyer
were utilized in selecting such Loans from the available Eligible Loans in the Corporation’s portfolio. 
 3. The Loans and other
Purchased Assets and all proceeds thereof will be conveyed to the Buyer free and clear of any Lien of any Person claiming through or under the Corporation of any of its Affiliates (subject to any Permitted Lien). 
 4. As of the date hereof, (x) no Insolvency Event with respect to the Corporation has occurred, and (y) the sale of such Loans and other
Purchased Assets to the Buyer has not been made in contemplation of the occurrence of any Insolvency Event with respect to the Corporation. 
 Capitalized terms herein and not otherwise defined shall have the respective meanings ascribed to them in the Purchase Agreement and the Loan Funding and Servicing Agreement, dated as of February 14, 2007 (the
“Agreement”), by and among the Buyer, as the borrower, the Corporation, as the servicer, 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, BMO Capital Markets Corp., as the agent, Lyon Financial Services, Inc. d/b/a U.S. Bank Portfolio Services, as the backup servicer, and U.S. Bank National Association, as trustee. 
 IN WITNESS WHEREOF, I have signed and delivered this Officer’s Certificate this [__] day of
[            ], 20[__]. 
  

			
	 KOHLBERG CAPITAL CORPORATION,
 as the
Seller

		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

 D-1Certificate of Designations, Series F

 Exhibit 4.1 
 CERTIFICATE OF DESIGNATIONS 
 OF 
 FLOATING RATE NON-CUMULATIVE PREFERRED STOCK, SERIES F 
 OF 
 BANK OF AMERICA CORPORATION 
 Pursuant
to Section 151 of the 
 General Corporation Law of the State of Delaware 
 Bank of America Corporation, a corporation organized and existing under the General Corporation Law of the State of Delaware (the
“Corporation”), does hereby certify that: 
 1. At a meeting duly convened and held on April 26, 2006, the Board of
Directors of the Corporation (the “Board”) duly adopted resolutions (a) authorizing the issuance and sale by the Corporation of one or more series of the Corporation’s preferred stock, and (b) appointing a Committee
(the “Committee”) of the Board to act on behalf of the Board in establishing the number of authorized shares, the dividend rate and other powers, designations, preferences and rights of the preferred stock. 
 2. Thereafter, on February 12, 2007, the Committee duly adopted the following resolution by written consent: 
 “RESOLVED, that the powers, designations, preferences and relative, participating, optional or other special rights, and the qualifications,
limitations or restrictions thereof, of the Corporation’s Floating Rate Non-Cumulative Preferred Stock, Series F, including those established by the Board and the number of authorized shares and dividend rate established hereby, are authorized
and approved as set forth in Exhibit A hereto, which is incorporated herein by reference.” 
 IN WITNESS WHEREOF, this Certificate of
Designations is executed on behalf of the Corporation by its duly authorized officer this 15th day of February, 2007. 
  

			
	BANK OF AMERICA CORPORATION
	
	 /s/ TERESA M. BRENNER

	Name:	 	Teresa M. Brenner
	Title:	 	Associate General Counsel

 EXHIBIT A 
 TO 
 CERTIFICATE OF DESIGNATIONS 
 OF 
 FLOATING RATE NON-CUMULATIVE PREFERRED STOCK, SERIES F 
 OF 
 BANK OF AMERICA CORPORATION

 Section 1. Designation. The designation of the series of preferred stock shall be “Floating Rate Non-Cumulative
Preferred Stock, Series F” (the “Series F Preferred Stock”). Each share of Series F Preferred Stock shall be identical in all respects to every other share of Series F Preferred Stock. Series F Preferred Stock will rank equally
with Parity Stock, if any, will rank senior to Junior Stock and will rank junior to Senior Stock, if any, with respect to the payment of dividends and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution
or winding up of the affairs of the Corporation. 
 Section 2. Number of Shares. The number of authorized shares of Series F
Preferred Stock shall be 7,001. That number from time to time may be increased (but not in excess of the total number of authorized shares of preferred stock) or decreased (but not below the number of shares of Series F Preferred Stock then
outstanding) by further resolution duly adopted by the Board of Directors of the Corporation, the Committee or any other duly authorized committee of the Board of Directors of the Corporation and by the filing of a certificate pursuant to the
provisions of the General Corporation Law of the State of Delaware stating that such increase or reduction, as the case may be, has been so authorized. The Corporation shall have the authority to issue fractional shares of Series F Preferred Stock.

 Section 3. Definitions. As used herein with respect to Series F Preferred Stock: 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday on which banking institutions are not authorized or obligated by
law, regulation or executive order to close in New York, New York or in Charlotte, North Carolina. 
 “Calculation Agent”
shall mean The Bank of New York Trust Company, N.A., or such other bank or entity as may be appointed by the Corporation to act as calculation agent for the Series F Preferred Stock. 
 “Depositary Company” shall have the meaning set forth in Section 6(d) hereof. 
 “Dividend Determination Date” shall have the meaning set forth below in the definition of “Three-Month LIBOR.” 

 “Dividend Payment Date” shall have the meaning set forth in Section 4(a) hereof.

 “Dividend Period” shall have the meaning set forth in Section 4(a) hereof. 
 “DTC” means The Depository Trust Company, together with its successors and assigns. 
 “Junior Stock” means the Corporation’s common stock and any other class or series of stock of the Corporation now existing or
hereafter authorized over which Series F Preferred Stock has preference or priority in the payment of dividends or in the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the Corporation. 

“London Banking Day” means any day on which commercial banks are open for general business (including dealings in deposits in U.S.
dollars) in London, England. 
 “Parity Stock” means (a) the Corporation’s 7% Cumulative Redeemable Preferred
Stock, Series B, (b) the Corporation’s 6.204% Non-Cumulative Preferred Stock, Series D, (c) the Corporation’s Floating Rate Non-Cumulative Preferred Stock, Series E, (d) the Corporation’s Adjustable Rate
Non-Cumulative Preferred Stock, Series G and (e) any other class or series of stock of the Corporation hereafter authorized that ranks on a par with the Series F Preferred Stock in the payment of dividends or in the distribution of assets on
any liquidation, dissolution or winding up of the Corporation. 
 “Senior Stock” means any class or series of stock of the
Corporation now existing or hereafter authorized which has preference or priority over the Series F Preferred Stock as to the payment of dividends or in the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding
up of the Corporation. 
 “Series F Preferred Stock” shall have the meaning set forth in Section 1 hereof. 

“Telerate Page 3750” means the display page so designated on the Moneyline/Telerate Service (or any other page as may replace that
page on that service, or any other service as may be nominated as the information vendor, for the purpose of displaying rates or prices comparable to the London Interbank Offered Rate for U.S. dollar deposits). 
 “Three-Month LIBOR” means, with respect to any Dividend Period, the offered rate (expressed as a percentage per annum) for deposits in
U.S. dollars for a three-month period commencing on the first day of that Dividend Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the second London Banking Day immediately preceding the first day of that Dividend Period
(the “Dividend Determination Date”). If such rate does not appear on Telerate Page 3750, Three-Month LIBOR will be determined on the basis of the rates at which deposits in U.S. dollars for a three-month period commencing on the
first day of that Dividend Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the London interbank market by four major banks in the London interbank market selected by the Corporation, at approximately 11:00
a.m., London time on the second London Banking Day immediately preceding the first day of that Dividend Period. The Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two
such quotations are provided, Three-Month LIBOR with respect to that Dividend Period will be the arithmetic mean (rounded upward if necessary to the nearest .00001 of 1%) of such 

  

 2 

 
quotations. If fewer than two quotations are provided, Three-Month LIBOR with respect to that Dividend Period will be the arithmetic mean (rounded upward if
necessary to the nearest .00001 of 1%) of the rates quoted by three major banks in New York City selected by the Corporation, at approximately 11:00 a.m., New York City time, on the first day of that Dividend Period for loans in U.S. dollars to
leading European banks for a three-month period commencing on the first day of that Dividend Period and in a principal amount of not less than $1,000,000. However, if fewer than three banks selected by the Corporation to provide quotations are not
quoting as described above, Three-Month LIBOR for that Dividend Period will be the same as Three-Month LIBOR as determined for the previous Dividend Period, or in the case of the first Dividend Period, the most recent rate that could have been
determined in accordance with the first sentence of this paragraph had Series F Preferred Stock been outstanding. The Calculation Agent’s establishment of Three-Month LIBOR and calculation of the amount of dividends for each Dividend Period
will be on file at the principal offices of the Corporation, will be made available to any holder of Series F Preferred Stock upon request and will be final and binding in the absence of manifest error. 
 Section 4. Dividends. 
 (a)
Rate. Holders of Series F Preferred Stock shall be entitled to receive, if, as and when declared by the Board of Directors of the Corporation or any duly authorized committee of the Board of Directors of the Corporation, but only out of assets
legally available therefor, non-cumulative cash dividends on the liquidation preference of $100,000 per share of Series F Preferred Stock, and no more, payable quarterly in arrears on each March 15, June 15, September 15 and
December 15; provided, however, if any such day is not a Business Day, then payment of any dividend otherwise payable on that date will be made on the next succeeding day that is a Business Day, unless that day falls in the next calendar year,
in which case payment of such dividend will occur on the immediately preceding Business Day (in either case, without any interest or other payment in respect of such delay) (each such day on which dividends are payable a “Dividend Payment
Date”). The period from and including the date of issuance of the Series F Preferred Stock or any Dividend Payment Date to but excluding the next Dividend Payment Date is a “Dividend Period.” Dividends on each share of
Series F Preferred Stock will accrue on the liquidation preference of $100,000 per share for each Dividend Period (1) from the date of issuance to, but excluding, the Dividend Payment Date in March 2012 (if issued prior to that date) at a rate
per annum equal to Three-Month LIBOR plus a spread of 0.40% and (2) thereafter at a rate per annum equal to the greater of (i) Three-Month LIBOR plus a spread of 0.40% and (ii) 4.00%. The record date for payment of dividends on the
Series F Preferred Stock shall be the last Business Day of the calendar month immediately preceding the month during which the Dividend Payment Date falls. The amount of dividends payable shall be computed on the basis of a 360-day year and the
actual number of days elapsed in a Dividend Period. 
 (b) Non-Cumulative Dividends. Dividends on shares of Series F Preferred Stock
shall be non-cumulative. To the extent that any dividends payable on the shares of Series F Preferred Stock on any Dividend Payment Date are not declared and paid, in full or otherwise, on such Dividend Payment Date, then such unpaid dividends shall
not cumulate and shall cease to accrue and be payable and the Corporation shall have no obligation to pay, and the holders of Series F Preferred Stock shall have no right to receive, dividends accrued for such Dividend Period after the Dividend
Payment Date for such Dividend Period or interest with respect to such 

  

 3 

 
dividends, whether or not dividends are declared for any subsequent Dividend Period with respect to Series F Preferred Stock, Parity Stock, Junior Stock or
any other class or series of authorized preferred stock of the Corporation. 
 (c) Priority of Dividends. So long as any share of
Series F Preferred Stock remains outstanding, (i) no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any Junior Stock, other than a dividend payable solely in
shares of Junior Stock, (ii) no shares of Junior Stock shall be repurchased, redeemed or otherwise acquired for consideration by the Corporation, directly or indirectly (other than as a result of a reclassification of Junior Stock for or into
other Junior Stock, or the exchange or conversion of one share of Junior Stock for or into another share of Junior Stock, and other than through the use of the proceeds of a substantially contemporaneous sale of other shares of Junior Stock), nor
shall any monies be paid to or made available for a sinking fund for the redemption of any such Junior Stock by the Corporation and (iii) no shares of Parity Stock shall be repurchased, redeemed or otherwise acquired for consideration by the
Corporation otherwise than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series F Preferred Stock and such Parity Stock except by conversion into or exchange for Junior Stock, in each case unless full
dividends on all outstanding shares of Series F Preferred Stock for the then-current Dividend Period have been paid in full or declared and a sum sufficient for the payment thereof set aside. The foregoing limitations do not apply to purchases or
acquisitions of the Corporation’s Junior Stock pursuant to any employee or director incentive or benefit plan or arrangement (including any employment, severance or consulting agreement) of the Corporation or any subsidiary of the Corporation
heretofore or hereafter adopted. Subject to the succeeding sentence, for so long as any shares of Series F Preferred Stock remain outstanding, no dividends shall be declared or paid or set aside for payment on any Parity Stock for any period unless
full dividends on all outstanding shares of Series F Preferred Stock for the then-current Dividend Period have been paid in full or declared and a sum sufficient for the payment thereof set aside. To the extent the Corporation declares dividends on
the Series F Preferred Stock and on any Parity Stock but cannot make full payment of such declared dividends, the Corporation will allocate the dividend payments on a pro rata basis among the holders of the shares of Series F Preferred Stock
and the holders of any Parity Stock. For purposes of calculating the pro rata allocation of partial dividend payments, the Corporation will allocate dividend payments based on the ratio between the then-current dividend payments due on the
shares of Series F Preferred Stock and the aggregate of the current and accrued dividends due on the Parity Stock. No interest will be payable in respect of any dividend payment on shares of Series F Preferred Stock that may be in arrears. Subject
to the foregoing, and not otherwise, such dividends (payable in cash, stock or otherwise) as may be determined by the Board of Directors of the Corporation or any duly authorized committee of the Board of Directors of the Corporation may be declared
and paid on any Junior Stock from time to time out of any assets legally available therefor, and the shares of Series F Preferred Stock shall not be entitled to participate in any such dividend. 
 Section 5. Liquidation Rights. 
 (a) Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, holders of Series F Preferred Stock shall be entitled, out of assets legally available therefor,
before any distribution or payment out of the assets of the Corporation may be made to or set aside for the holders of any Junior Stock and 

  

 4 

 
subject to the rights of the holders of any class or series of securities ranking senior to or on parity with Series F Preferred Stock upon liquidation and
the rights of the Corporation’s depositors and other creditors, to receive in full a liquidating distribution in the amount of the liquidation preference of $100,000 per share, plus any dividends which have been declared but not yet paid,
without accumulation of any undeclared dividends, to the date of liquidation. The holders of Series F Preferred Stock shall not be entitled to any further payments in the event of any such voluntary or involuntary liquidation, dissolution or winding
up of the affairs of the Corporation other than what is expressly provided for in this Section 5. 
 (b) Partial Payment. If the
assets of the Corporation are not sufficient to pay in full the liquidation preference plus any dividends which have been declared but not yet paid to all holders of Series F Preferred Stock and all holders of any Parity Stock, the amounts paid to
the holders of Series F Preferred Stock and to the holders of all Parity Stock shall be pro rata in accordance with the respective aggregate liquidation preferences plus any dividends which have been declared but not yet paid of Series F
Preferred Stock and all such Parity Stock. 
 (c) Residual Distributions. If the liquidation preference plus any dividends which have
been declared but not yet paid has been paid in full to all holders of Series F Preferred Stock and all holders of any Parity Stock, then the holders of Junior Stock shall be entitled to receive all remaining assets of the Corporation according to
their respective rights and preferences. 
 (d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this
Section 5, the sale, conveyance, exchange or transfer (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Corporation shall not be deemed a voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Corporation, nor shall the merger, consolidation or any other business combination transaction of the Corporation into or with any other corporation or person or the merger, consolidation
or any other business combination transaction of any other corporation or person into or with the Corporation be deemed to be a voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Corporation. 
 Section 6. Redemption. 
 (a)
Optional Redemption. The Corporation, at the option of its Board of Directors or any duly authorized committee of the Board of Directors of the Corporation, may redeem out of funds legally available therefor, in whole or in part, the shares of
Series F Preferred Stock at the time outstanding, at any time on or after the later of March 15, 2012 and the date of original issuance of the Series F Preferred Stock, upon notice given as provided in Section 6(b) below. The redemption
price for shares of Series F Preferred Stock shall be $100,000 per share plus dividends that have been declared but not paid plus accrued and unpaid dividends for the then-current Dividend Period to the redemption date. 
 (b) Notice of Redemption. Notice of every redemption of shares of Series F Preferred Stock shall be mailed by first class mail, postage prepaid,
addressed to the holders of record of such shares to be redeemed at their respective last addresses appearing on the stock register of the Corporation. Such mailing shall be at least 15 days and not more than 60 days 

  

 5 

 
before the date fixed for redemption. Any notice mailed as provided in this Section 6(b) shall be conclusively presumed to have been duly given, whether
or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Series F Preferred Stock designated for redemption shall not affect the validity
of the proceedings for the redemption of any other shares of Series F Preferred Stock. Each notice shall state (i) the redemption date; (ii) the number of shares of Series F Preferred Stock to be redeemed and, if fewer than all the shares
held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; (iii) the redemption price; (iv) the place or places where the certificates for such shares are to be surrendered for payment of the
redemption price; and (v) that dividends on the shares to be redeemed will cease to accrue on the redemption date. Notwithstanding the foregoing, if the Series F Preferred Stock is held in book-entry form through DTC, the Corporation may give
such notice in any manner permitted by DTC. 
 (c) Partial Redemption. In case of any redemption of only part of the shares of Series
F Preferred Stock at the time outstanding, the shares of Series F Preferred Stock to be redeemed shall be selected either pro rata from the holders of record of Series F Preferred Stock in proportion to the number of Series F Preferred Stock
held by such holders or by lot or in such other manner as the Board of Directors of the Corporation or any duly authorized committee of the Board of Directors of the Corporation may determine to be fair and equitable. Subject to the provisions of
this Section 6, the Board of Directors of the Corporation, the Committee or any duly authorized committee of the Board of Directors shall have full power and authority to prescribe the terms and conditions upon which shares of Series F
Preferred Stock shall be redeemed from time to time. 
 (d) Effectiveness of Redemption. If notice of redemption has been duly given
and if on or before the redemption date specified in the notice all funds necessary for the redemption have been set aside by the Corporation, separate and apart from its other assets, in trust for the pro rata benefit of the holders of the
shares called for redemption, so as to be and continue to be available therefor, or deposited by the Corporation with a bank or trust company selected by the Board of Directors of the Corporation or any duly authorized committee of the Board of
Directors (the “Depositary Company”) in trust for the pro rata benefit of the holders of the shares called for redemption, then, notwithstanding that any certificate for any share so called for redemption has not been
surrendered for cancellation, on and after the redemption date all shares so called for redemption shall cease to be outstanding, all dividends with respect to such shares shall cease to accrue after such redemption date, and all rights with respect
to such shares shall forthwith on such redemption date cease and terminate, except only the right of the holders thereof to receive the amount payable on such redemption from such bank or trust company at any time after the redemption date from the
funds so deposited, without interest. The Corporation shall be entitled to receive, from time to time, from the Depositary Company any interest accrued on such funds, and the holders of any shares called for redemption shall have no claim to any
such interest. Any funds so deposited and unclaimed at the end of three years from the redemption date shall, to the extent permitted by law, be released or repaid to the Corporation, and in the event of such repayment to the Corporation, the
holders of record of the shares so called for redemption shall be deemed to be unsecured creditors of the Corporation for an amount equivalent to the amount deposited as stated above for the redemption of such shares and so repaid to the
Corporation, but shall in no event be entitled to any interest. 
  

 6 

 Section 7. Voting Rights. The holders of the Series F Preferred Stock will have no voting
rights and will not be entitled to elect any directors, except as expressly provided by law. 
 Section 8. Preemption and
Conversion. The holders of Series F Preferred Stock shall not have any rights of preemption or rights to convert such Series F Preferred Stock into shares of any other class of capital stock of the Corporation. 
 Section 9. Rank. Notwithstanding anything set forth in the Certificate of Incorporation or this Certificate of Designations to the contrary,
the Board of Directors of the Corporation, the Committee or any authorized committee of the Board of Directors of the Corporation, without the vote of the holders of the Series F Preferred Stock, may authorize and issue additional shares of Junior
Stock, Parity Stock or any class or series of Senior Stock or any other securities ranking senior to the Series F Preferred Stock as to dividends and the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up
of the affairs of the Corporation. 
 Section 10. Repurchase. Subject to the limitations imposed herein, the Corporation may
purchase and sell Series F Preferred Stock from time to time to such extent, in such manner, and upon such terms as the Board of Directors of the Corporation or any duly authorized committee of the Board of Directors of the Corporation may
determine; provided, however, that the Corporation shall not use any of its funds for any such purchase when there are reasonable grounds to believe that the Corporation is, or by such purchase would be, rendered insolvent. 
 Section 11. Unissued or Reacquired Shares. Shares of Series F Preferred Stock not issued or which have been issued and converted, redeemed or
otherwise purchased or acquired by the Corporation shall be restored to the status of authorized but unissued shares of preferred stock without designation as to series. 
 Section 12. No Sinking Fund. Shares of Series F Preferred Stock are not subject to the operation of a sinking fund. 
  

 7

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