Document:

Exhibit

EXECUTION VERSION

AMENDMENT NO. 1 TO LOAN FINANCING AND SERVICING AGREEMENT, dated as of March 13, 2019 (this “Amendment”), among OCSI Senior Funding Ltd., as borrower (the “Borrower”), Oaktree Strategic Income Corporation, as servicer (the “Servicer”) and Deutsche Bank AG, New York Branch (“DBNY”), as facility agent (in such capacity, the “Facility Agent”) and as a committed lender (in such capacity, a “Lender”).
WHEREAS, the Borrower, Oaktree Strategic Income Corporation, as equityholder, the Servicer, Wells Fargo Bank, National Association, as collateral agent and collateral custodian, the Facility Agent and each Lender party thereto are party to the Loan Financing and Servicing Agreement, dated as of September 24, 2018 (as amended, supplemented, amended and restated and otherwise modified from time to time, the “Loan Agreement”); and
WHEREAS, the Borrower, the Servicer and the Facility Agent have agreed to amend the Loan Agreement in accordance with Section 17.2 of the Loan Agreement and subject to the terms and conditions set forth herein.
NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE I 
 
Definitions
SECTION 1.1.    Defined Terms.  Terms used but not defined herein have the respective meanings given to such terms in the Loan Agreement.
ARTICLE II     
 
Amendments to the Loan Agreement  

SECTION 2.1.    Section 1.1 of the Loan Agreement is hereby amended by deleting the reference to “six-month” in the definition of “Revolving Period” therein, and inserting “nine-month” in lieu thereof.
SECTION 2.2.    Section 1.1 of the Loan Agreement is hereby amended by deleting the reference to “six (6)” in the definition of “Facility Termination Date” therein, and inserting “three (3)” in lieu thereof.
ARTICLE III    
Conditions to Effectiveness
SECTION 3.1.    This Amendment shall become effective as of the date hereof upon satisfaction of the following conditions:
(a)    the execution and delivery of this Amendment by each party hereto; and
(b)    the Facility Agent’s receipt of (i) the signed legal opinion of Walkers, counsel to the Borrower, in form and substance acceptable to the Facility Agent in its reasonable discretion, (ii) a good standing certificate for the Borrower issued by the applicable Official Body of its jurisdiction of organization and (iii) satisfactory evidence that the Borrower has obtained all required consents and approvals of all Persons to the execution, delivery and performance of this Amendment and the consummation of the transactions contemplated hereby.
ARTICLE IV    
Representations and Warranties
SECTION 4.1.    The Borrower hereby represents and warrants to the Facility Agent that, as of the date first written above, (i) no Event of Default, Unmatured Event of Default, Servicer Default or Unmatured Servicer Default has occurred and is continuing and (ii) the representations and warranties of the Borrower contained in the Loan Agreement are true and correct in all material respects on and as of such day (other than any representation and warranty that is made as of a specific date).
ARTICLE V     
 
Miscellaneous
SECTION 5.1.    Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 5.2.    Severability Clause.  In case any provision in this Amendment shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 5.3.    Ratification.  Except as expressly amended and waived hereby, the Loan Agreement is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  
SECTION 5.4.    Counterparts.  The parties hereto may sign one or more copies of this Amendment in counterparts, all of which together shall constitute one and the same agreement.  Delivery of an executed signature page of this Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.
SECTION 5.5.    Headings.  The headings of the Articles and Sections in this Amendment are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.
SECTION 5.6.    No Proceedings; Limited Recourse.  The provisions of Sections 17.11 and 17.12 of the Loan Agreement are incorporated herein mutatis mutandis.

[Signature pages follow]

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the day and year first above written.
OCSI SENIOR FUNDING LTD., as Borrower
		
	By:
	  /s/ Dianne Farjallah        
Name: Dianne Farjallah 
Title:   Director

OAKTREE STRATEGIC INCOME CORPORATION, as Servicer
		
	By:
	/s/ Mary Gallegly 
Name: Mary Gallegly 
Title:   Secretary

DEUTSCHE BANK AG, NEW YORK BRANCH, as Facility Agent
		
	By:
	 /s/ Amit Patel 
Name: Amit Patel 
Title:   Managing Director

		
	By:
	 /s/ Steven Flowers 
Name: Steven Flowers 
Title:   Director

1Exhibit

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT
This Third Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of March 29, 2019, by and between EAST WEST BANK (“Bank”) and OAKTREE STRATEGIC INCOME CORPORATION (f/k/a  FIFTH STREET SENIOR FLOATING RATE CORP.), a Delaware corporation (“Borrower”).
RECITALS
Borrower and Bank are parties to that certain Loan and Security Agreement dated as of January 6, 2016 (as amended from time to time, including, without limitation, by that certain First Amendment to Loan and Security Agreement dated as of March 17, 2018, and that certain Second Amendment to Loan and Security Agreement dated as of May 21, 2018, collectively, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
NOW, THEREFORE, the parties agree as follows:
1.Section 2.2(a) of the Agreement hereby is amended and restated in its entirety to read as follows:

“(a)    Interest Rate.  Except as set forth in Section 2.2(b), (i) Prime-Based Advances shall bear interest, on the outstanding daily balance thereof, at a floating rate of interest equal to the greater of (X) three and one half percent (3.50%) and (Y) the Prime-Based Rate and (ii) LIBOR-Based Advances shall bear interest, on the outstanding daily balance thereof, at a rate of interest equal to the greater of (X) three and one half percent (3.50%) and (Y) the LIBOR-Based Rate.”
2.    Section 6.7(a) of the Agreement hereby is amended and restated in its entirety to read as follows:

“(a)    Minimum Net Assets.  Net Assets of not less than Two Hundred Twenty Five Million Dollars ($225,000,000), tested as of the end of each fiscal quarter of Borrower, commencing with the fiscal quarter ended December 31, 2018.”
3.    Exhibit D (Compliance Certificate) to the Agreement hereby is replaced with Exhibit D attached hereto.
4.    No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be in writing signed by an officer of Bank.
5.    Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.
6.    Borrower represents and warrants that the Representations and Warranties contained in the Agreement are true and correct as of the date of, and after giving effect to, this Amendment, and that no Event of Default has occurred and is continuing.  
7.    This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing this Amendment (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original hereof.

    
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8.    As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:
(a)    this Amendment, duly executed by Borrower;
(b)    a certificate of Borrower with respect to incumbency and authorizing the execution and delivery of this Amendment by Borrower;
(c)    an amendment fee of $10,000, and all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of Borrower’s accounts at Bank; and
(d)    such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

[Balance of Page Intentionally Left Blank]

    
200908084 v3 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

	
	
	OAKTREE STRATEGIC INCOME CORPORATION (f/k/a FIFTH STREET SENIOR FLOATING RATE CORP.)

By: /s/ Christopher McKown    
Name: Christopher McKown            
Title: Senior Vice President      

EAST WEST BANK

By: /s/ Derrick Pan             
Name: Derrick Pan             
Title: First Vice President   

[Signature Page to Third Amendment to Loan and Security Agreement]

    
200908084 v3 

EXHIBIT D
COMPLIANCE CERTIFICATE
TO:                  EAST WEST BANK
	
	
	E-mail:   privateequityadvances@eastwestbank.com               Date:______________________

	Copy:   Leslie Smith (leslie.smith@eastwestbank.com) 
                Derrick Pan (derrick.pan@eastwestbank.com) 
                Marlon Yasay (marlon.yasay@eastwestbank.com) 

FROM:             OAKTREE STRATEGIC INCOME CORPORATION 
                        
The undersigned authorized officer of OAKTREE STRATEGIC INCOME CORPORATION hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i)  Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (ii) all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof and (iii) all Financed Loans continue to comply with clauses (q) and (r) of the defined term “Eligible Loans” as set forth in the Agreement.  Attached herewith are the required documents supporting the above certification.  The Officer further certifies that these are prepared in accordance with the internal accounting and valuation policies in effect as of the Closing Date except as explained in an accompanying letter or footnotes.
Please indicate compliance status by circling Yes/No under “Complies” column.

    
200908084 v3 

	
							
	 
	Reporting Covenant
	Required
	Complies

	 
	 
	 
	 
	 

	 
	Borrowing Base Certificate
	With each request for an Advance, and monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Compliance Certificate
	Monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Borrower Servicer Report
	Monthly within 45 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Quarterly internal portfolio review package
 
	Quarterly within 60 days (other than with respect to Q4), within 120 days of Q4
	Yes
	No

	 
	Notice of material changes to credit policy or risk rating system, or any risk rating changes within Borrower’s portfolio as reflected in the borrower service reports
	Immediately upon the occurrence thereof
	Yes
	No

	 
	 
	 
	 
	 

	 
	10-K and 10-Q reports
	FYE within 120 days
	Yes
	No

	 
	 
	 
	 
	 

	 
	Borrower’s Financial Covenants (tested quarterly)

	Required
	Actual
	Complies

	 
	Minimum Cash at Bank
	$750,000
	$_________
	Yes
	No

	 
	Minimum Net Assets
	$225,000,000
	$_________
	Yes
	No

	 
	Minimum Asset Coverage
	150%
	_________
	Yes
	No

	

Comments Regarding Exceptions:  See Attached.
	BANK USE ONLY

	 
	 

	 
	Received by:    

	Sincerely,
	AUTHORIZED SIGNER

	 
	 

	 
	Date:    

	 
	 

	   
	Verified:    

	SIGNATURE
	AUTHORIZED SIGNER

	 
	 

	 
	 

	   
	Date:    

	TITLE
	 

	 
	Compliance Status
	Yes
	No

	   
	 

	DATE

	 

    
200908084 v3 

CORPORATE BORROWING CERTIFICATE

BORROWER: OAKTREE STRATEGIC INCOME CORPORATION 
                      (F/K/A FIFTH STREET SENIOR FLOATING RATE CORP.            DATE:   March 29, 2019

BANK:    EAST WEST BANK

I hereby certify as follows, as of the date set forth above:
1.  I am the Secretary, Assistant Secretary or other officer of the Borrower.   My title is as set forth below.

2.  Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of 
Delaware.  
 
             
3.  Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above.  Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date hereof.  

4.  The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower.

	
				
	Name
	Title
	Signature
	Authorized to Add or Remove Signatories

	            
	            
	            
	□

	            
	            
	            
	□

	            
	            
	            
	□

	            
	            
	            
	□

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

Borrow Money.  Borrow money from East West Bank (“Bank”).
Execute Loan Documents.  Execute any loan documents Bank requires. 
Grant Security.  Grant Bank a security interest in any of Borrower’s assets.
Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.
Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions.

RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

    
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5.  The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

                        

By:                      
Name:                      
Title:                      

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as  
                  [print title]
of the date set forth above.

By:                      
Name:                      
Title:                      

    
200908084 v3 

Attachment
Certificate of Incorporation (including amendments)
[Borrower: please attach]

    
200908084 v3

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