Document:

Exhibit 10.3

 

EXECUTION VERSION

 

COLLATERAL MANAGEMENT AGREEMENT

  

dated as of January 25, 2022

 

by and between

 

GOLUB CAPITAL BDC 3 ABS 2022-1 LLC,

as Issuer

 

and

 

GC ADVISORS
LLC,

as Collateral Manager

 

     

     

    

 

		Table of Contents	
	 	 	Page

 

	Section 1.	 	Definitions	1
	 	 	 	 
	Section 2.	 	General Duties and Authority of the Collateral Manager	5
	 	 	 	 
	Section 3.	 	Purchase and Sale Transactions; Brokerage	10
	 	 	 	 
	Section 4.	 	Additional Activities of the Collateral Manager	12
	 	 	 	 
	Section 5.	 	Conflicts of Interest	15
	 	 	 	 
	Section 6.	 	Records; Confidentiality	16
	 	 	 	 
	Section 7.	 	Obligations of Collateral Manager	17
	 	 	 	 
	Section 8.	 	Compensation	18
	 	 	 	 
	Section 9.	 	Benefit of the Agreement	20
	 	 	 	 
	Section 10.	 	Limits of Collateral Manager Responsibility	20
	 	 	 	 
	Section 11.	 	No Joint Venture	21
	 	 	 	 
	Section 12.	 	Term; Termination	21
	 	 	 	 
	Section 13.	 	Assignments	23
	 	 	 	 
	Section 14.	 	Removal for Cause	24
	 	 	 	 
	Section 15.	 	Obligations of Resigning or Removed Collateral Manager	27
	 	 	 	 
	Section 16.	 	Representations and Warranties	28
	 	 	 	 
	Section 17.	 	Limited Recourse; No Petition	30
	 	 	 	 
	Section 18.	 	Notices	31
	 	 	 	 
	Section 19.	 	Binding Nature of Agreement; Successors and Assigns	32
	 	 	 	 
	Section 20.	 	Entire Agreement; Amendment	32
	 	 	 	 
	Section 21.	 	Governing Law	33
	 	 	 	 
	Section 22.	 	Submission to Jurisdiction	33
	 	 	 	 
	Section 23.	 	Waiver of Jury Trial	33
	 	 	 	 
	Section 24.	 	Conflict with the Indenture	33
	 	 	 	 
	Section 25.	 	Subordination; Assignment of Agreement	34
	 	 	 	 
	Section 26.	 	Indulgences Not Waivers	34
	 	 	 	 
	Section 27.	 	Costs and Expenses	34
	 	 	 	 
	Section 28.	 	Third Party Beneficiary	35
	 	 	 	 
	Section 29.	 	Titles Not to Affect Interpretation	35
	 	 	 	 
	Section 30.	 	Execution in Counterparts; Electronic Signatures	36
	 	 	 	 
	Section 31.	 	Provisions Separable	36
	 	 	 	 
	Section 32.	 	Gender	36
	 	 	 	 
	Section 33.	 	Communications with the Rating Agency	36

 

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COLLATERAL
MANAGEMENT AGREEMENT

 

This
Collateral Management Agreement (as amended, supplemented or otherwise modified from time to time, this “Agreement”),
dated as of January 25, 2022 is entered into by and between GOLUB CAPITAL BDC 3 ABS 2022-1
LLC, a limited liability company organized under the laws of the State of Delaware (the “Issuer”) and GC
advisors LLC, a limited liability company organized under the laws of the State of Delaware, as collateral manager (together with
its successors and permitted assigns, “GC Advisors” and the “Collateral Manager”).

 

W I T N E S S E T H:

 

WHEREAS, the Notes (as defined
in the Indenture) will be issued pursuant to an indenture dated as of the date hereof (the “Indenture”), among the
Issuer and Deutsche Bank Trust Company Americas, as trustee (together with its successors and permitted assigns, the “Trustee”);

 

WHEREAS, the Issuer intends
to pledge all Collateral Obligations and the other Assets, all as set forth in the Indenture, to the Trustee as security for the Issuer’s
obligations under the Indenture;

 

WHEREAS, the Issuer desires
to appoint GC Advisors as the Collateral Manager to provide the services described herein and GC Advisors desires to accept such appointment;

 

WHEREAS, the Indenture authorizes
the Issuer to enter into this Agreement, pursuant to which the Collateral Manager agrees to perform, on behalf of the Issuer, certain
investment management duties with respect to the acquisition, administration and disposition of Assets in the manner and on the terms
set forth herein and to perform such additional duties as are consistent with the terms of this Agreement and the Indenture as the Issuer
may from time to time reasonably request; and

 

WHEREAS, the Collateral Manager
has the capacity to provide the services required hereby and is prepared to perform such services upon the terms and subject to the conditions
set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual agreements herein set forth and of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

Section 1.           Definitions.

 

(a)            As
used in this Agreement:

 

“Advisers Act”
shall mean the U.S. Investment Advisers Act of 1940, as amended.

 

“Affiliate Transaction”
shall have the meaning set forth in Section 5.

 

“Aggregate Collateral
Management Fee” shall have the meaning set forth in Section 8(a).

 

     

     

    

 

“Agreement”
shall have the meaning set forth in the preamble.

 

“Cause”
shall have the meaning set forth in Section 14(a).

 

“Client”
shall mean, with respect to any specified Person, any Person or account for which the specified Person provides investment management
services or investment advice.

 

“CM Information”
shall mean the CM Offering Circular Information and any amendment or supplement approved by the Collateral Manager to the Final Offering
Circular that supplements or amends any of the CM Offering Circular Information (including any offering circular approved in writing
by the Collateral Manager for additional Notes issued pursuant to Section 2.13 of the Indenture, or for replacement securities issued
in connection with a Refinancing).

 

“CM Offering Circular
Information” shall mean the information in the Final Offering Circular set forth under the headings “Risk Factors—Relating
to Certain Conflicts of Interest—Certain Conflicts of Interest Relating to the Collateral Manager and its Affiliates,” “Risk
Factors—Relating to Certain Conflicts of Interest—Conflicts related to obligations of the Collateral Manager’s investment
committee, the Collateral Manager, or its affiliates to other clients,” “Risk Factors—Relating to Certain Conflicts
of Interest—No Ethical Screens or Information Barriers” and “The Collateral Manager and the Retention Holder”.

 

“Collateral Management
Fee” shall have the meaning set forth in Section 8(a).

 

“Collateral Management
Fee Shortfall Amount” shall have the meaning set forth in Section 8(a).

 

“Collateral Manager”
shall have the meaning set forth in the preamble.

 

“Collateral Manager
Breaches” shall have the meaning set forth in Section 10(a).

 

“Collateral Manager
Notes” shall mean any Notes owned by the Collateral Manager, an Affiliate thereof, or any account, fund, client or portfolio
established and controlled by the Collateral Manager or an Affiliate thereof or for which the Collateral Manager or an Affiliate thereof
acts as the investment adviser or with respect to which the Collateral Manager or an Affiliate thereof exercises discretionary control.

 

“Cumulative Deferred
Management Fee” shall have the meaning set forth in Section 8(a).

 

“Current Deferred
Management Fee” shall have the meaning set forth in Section 8(a).

 

“Expenses”
shall have the meaning set forth in Section 10(b).

 

“Fee Basis Amount”
shall mean, as of any date of determination, the sum of (a) the Pool Balance, (b) the Aggregate Principal Balance of all Defaulted
Obligations, (c) the amounts on deposit in any Account (including Eligible Investments therein) representing Principal Proceeds
and (d) the aggregate amount of all interest payments owing to the Issuer that represent Principal Financed Accrued Interest and
that have not yet been received by the Issuer.

 

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“Final Offering
Circular” shall mean the final offering circular, dated as of January 21, 2022, with respect to the Notes.

 

“Indemnified Party”
shall have the meaning set forth in Section 10(b).

 

“Indenture”
shall have the meaning set forth in the recitals hereto.

 

“Independent Review
Party” shall have the meaning set forth in Section 5.

 

“Instrument of Acceptance”
shall have the meaning set forth in Section 12(c).

 

“Internal Policies”
shall have the meaning set forth in Section 3(b).

 

“Issuer”
shall have the meaning set forth in the preamble.

 

“Losses”
shall have the meaning set forth in Section 10(b).

 

“Material Adverse
Effect” shall mean, with respect to any event or circumstance, a material adverse effect on (a) the business, financial
condition (other than the performance of the Assets) or operations of the Issuer, taken as a whole, (b) the validity or enforceability
of the Indenture, this Agreement or the Issuer’s Organizational Instruments or (c) the existence, perfection, priority or
enforceability of the Trustee’s lien on the Assets.

 

“Offering Circulars”
shall mean, collectively, the Final Offering Circular and each Preliminary Offering Circular.

 

“Organization Costs”
shall mean all out-of-pocket costs and expenses incurred directly by the Issuer, the Collateral Manager or their Affiliates in connection
with the formation and capitalization of the Issuer, the offering of Issuer shares and Notes, and the preparation by the Issuer to commence
its business operations, including, without limitation, (i) expenses for legal services rendered to or for the benefit of the Issuer
or the Collateral Manager; (ii) expenses incurred in connection with the preparation, documentation, and negotiation, as applicable,
of offering circulars (including any supplement thereto or amendment and restated thereof) and governing documents, including the Transaction
Documents and any constitutive documents of the Issuer; (iii) expenses incurred in preparing and making securities filings and any
required registration of the Issuer and responding to queries from actual or prospective investors; (iv) accountant fees and other
fees for professional services; and (v) travel costs and other out-of-pocket expenses.

 

“Organizational
Instruments” shall mean the memorandum and articles of association or certificate of incorporation and bylaws (or the comparable
documents for the applicable jurisdiction), in the case of a corporation, or the certificate of partnership and partnership agreement
(or the comparable documents for the applicable jurisdiction), in the case of a partnership, or the certificate of formation and limited
liability company agreement (or the comparable documents for the applicable jurisdiction), in the case of a limited liability company.

 

“Owner”
shall mean, with respect to any Person, any direct or indirect shareholder, member, partner or other equity or beneficial owner thereof.

 

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“Preliminary Offering
Circular” shall mean each of (i) the preliminary offering circular, dated December 17, 2021, with respect to the
Notes and (ii) the second preliminary offering circular, dated January 13, 2022, with respect to the Notes.

 

“Prime Rate”
shall mean, as of any date of determination, that certain rate quoted in the Wall Street Journal as the U.S. “prime rate”
on such date (or, if not quoted on such date, on the preceding date on which it is so quoted).

 

“Proceedings”
shall have the meaning set forth in Section 22.

 

“Related Person”
shall mean, with respect to any Person, the owners of the equity interests therein, directors, officers, employees, managers, agents
and professional advisors thereof.

 

“Responsible Officer”
shall mean, with respect to any Person, any duly authorized director, officer or manager of such Person with direct responsibility for
the administration of the applicable agreement and also, with respect to a particular matter, any other duly authorized director, officer
or manager of such Person to whom such matter is referred because of such director’s, officer’s or manager’s knowledge
of and familiarity with the particular subject. Each party may receive and accept a certification of the authority of any other party
(which may contain contact information including an email address) as conclusive evidence of the authority of any Person to act, and
such certification may be considered as in full force and effect until receipt by such other party of written notice to the contrary.

 

“Section 28(e)”
shall have the meaning set forth in Section 3(b).

 

“Statement of Cause”
shall have the meaning set forth in Section 14(a).

 

“Termination Notice”
shall have the meaning set forth in Section 14(a).

 

“Transaction”
shall mean any action taken by the Collateral Manager on behalf of the Issuer with respect to the Assets, including, without limitation,
(i) selecting the Collateral Obligations and Eligible Investments to be acquired by the Issuer, (ii) investing and reinvesting
the Assets, (iii) amending, waiving and/or taking any other action commensurate with managing the Assets and (iv) instructing
the Trustee with respect to any acquisition, disposition or tender of a Collateral Obligation, Equity Security, Eligible Investment or
other assets received in respect thereof in the open market or otherwise by the Issuer.

 

“Trustee”
shall have the meaning set forth in the recitals hereto.

 

(b)            Capitalized
terms used but not otherwise defined herein shall have the respective meanings assigned thereto in the Indenture. Unless the context
requires otherwise, references to “Section” mean a section of this Agreement.

 

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Section 2.           General
Duties and Authority of the Collateral Manager.

 

(a)            GC
Advisors is hereby appointed as Collateral Manager of the Issuer for the purpose of performing certain investment management functions
including, without limitation, supervising and directing the investment and reinvestment of the Collateral Obligations and Eligible Investments
and performing certain administrative and advisory functions on behalf of the Issuer in accordance with the applicable provisions of
this Agreement, the Collateral Administration Agreement and the Indenture, and GC Advisors hereby accepts such appointment. Except as
may otherwise be expressly provided in this Agreement or the Indenture, the Collateral Manager will perform its obligations hereunder
and under the Indenture with reasonable care and in good faith, (i) using a degree of skill and attention no less than that which
the Collateral Manager exercises with respect to comparable assets that it may manage for itself and its other clients and (ii) in
accordance with the Collateral Manager’s existing practices and procedures with respect to investing in assets of the nature and
character of the Assets. To the extent not inconsistent with the foregoing, the Collateral Manager will follow its customary standards,
policies and procedures in performing its duties under this Agreement and the Indenture; provided that the Collateral Manager
shall not be liable for any loss or damages resulting from any failure to satisfy the standard of care set forth in this Section 2(a) except
to the extent such failure would result in liability pursuant to Section 10(a).

 

(b)            Subject
to Section 2(a), Section 2(c)(i), Section 2(e), Section 2(f), Section 5,
Section 7 and Section 10 and to the applicable provisions of the Indenture and of this Agreement, the Collateral
Manager shall, and is hereby authorized to:

 

(i)              select
the Collateral Obligations and Eligible Investments to be acquired, sold, terminated or otherwise disposed of by the Issuer;

 

(ii)             invest
and reinvest the Assets (provided that investments and reinvestments in Collateral Obligations are subject to certain conditions);

 

(iii)            instruct
the Trustee with respect to any acquisition, disposition or tender of, or Offer with respect to, a Collateral Obligation, Equity Security,
Eligible Investment or other assets received in respect thereof in the open market or otherwise by the Issuer; and

 

(iv)            perform
all other tasks and may, in the Collateral Manager’s sole discretion, take all other actions that are specified, or not inconsistent
with, the duties of the Collateral Manager set forth in the Indenture, the Collateral Administration Agreement or this Agreement.

 

The Collateral Manager shall,
and is hereby authorized to, perform its obligations hereunder and under the Indenture and the Collateral Administration Agreement in
a manner which is consistent with the terms hereof and of the Indenture and the Collateral Administration Agreement. The Collateral Manager
will not be bound to comply with any supplement to the Indenture, however, until it has received a copy of any such supplement from the
Issuer or the Trustee and unless the Collateral Manager has consented thereto, as provided in the Indenture.

 

     5

     

    

 

Notwithstanding anything
to the contrary in this Section 2(b), none of the services performed by the Collateral Manager shall result in or be construed
as resulting in an obligation to perform any of the following: (i) the Collateral Manager acting repeatedly or continuously as an
intermediary in securities or loans for the Issuer; (ii) the Collateral Manager providing investment banking services to the Issuer;
(iii) the Collateral Manager having direct contact with, or actively soliciting or finding, outside investors to invest in the Issuer;
or (iv) the Collateral Manager authorizing or causing the disbursement of money or other assets of the Issuer, except in accordance
with this Agreement, the Indenture, or any other Transaction Documents or in connection with the acquisition, sale or disposal of the
Issuer’s Assets, it being understood that it is the intention of the parties that the Collateral Manager not take any action through
the power of attorney granted hereby that would cause the Collateral Manager to have custody of the Issuer’s funds or securities
within the meaning of Rule 206(4)-2 under the Advisers Act. Without limitation to the foregoing, in no event shall the Collateral
Manager have authority to cause a disbursement by the Issuer except upon the approval of the Issuer’s designated manager.

 

(c)            Subject
to the provisions concerning its general duties and obligations as set forth in paragraphs (a) and (b) above and the terms
of the Indenture, the Collateral Manager shall provide, and is hereby authorized to provide, the following services to the Issuer:

 

(i)            The
Collateral Manager shall perform the investment-related duties and functions (including, without limitation, the furnishing of Issuer
Orders and Responsible Officer’s certificates) as are expressly required hereunder and under the Indenture with regard to acquisitions,
sales or other dispositions of Collateral Obligations, Equity Securities, Eligible Investments and other assets permitted to be acquired
or sold under, and subject to, the Indenture (including any proceeds received by way of Offers, workouts and restructurings on assets
owned by the Issuer) and shall comply with the Investment Criteria and the other requirements in the Indenture. The Collateral Manager
shall have no obligation to perform any other duties other than as expressly specified herein or in the Indenture and the Collateral
Manager shall be subject to no implicit obligations of any kind. The Issuer hereby irrevocably (except as provided below) appoints the
Collateral Manager as its true and lawful agent and attorney-in-fact (with full power of substitution) in its name, place and stead and
at its expense, in connection with the performance of its duties provided for in this Agreement or in the Indenture, but subject in all
cases to Section 2(f) herein, including, without limitation, the following powers: (A) to give or cause to be given any
necessary receipts or acquittance for amounts collected or received hereunder, (B) to make or cause to be made all necessary transfers
of the Collateral Obligations, Equity Securities and Eligible Investments in connection with any acquisition, sale or other disposition
made pursuant hereto and the Indenture, (C) to execute (under hand, under seal or as a deed) and deliver or cause to be executed
and delivered on behalf of the Issuer all necessary or appropriate bills of sale, assignments, agreements and other instruments in connection
with any such acquisition, sale or other disposition and (D) to execute (under hand, under seal or as a deed) and deliver or cause
to be executed and delivered on behalf of the Issuer any consents, votes, proxies, waivers, notices, amendments, modifications, agreements,
instruments, orders or other documents in connection with or pursuant to this Agreement or the Indenture and relating to any Collateral
Obligation, Equity Security or Eligible Investment. Notwithstanding the foregoing, it is understood that the power of attorney granted
herein is in all cases and for all purposes qualified and limited by the Indenture and other Transaction Documents and, as such, the
power of attorney granted hereby is limited rather than general. The Issuer hereby ratifies and confirms all that such attorney-in-fact
(or any substitute) shall lawfully do hereunder and pursuant hereto and authorizes such attorney-in-fact to exercise full discretion
and act for the Issuer in the same manner and with the same force and effect as the managers or officers of the Issuer might or could
do in respect of the performance of such services, as well as in respect of all other things the Collateral Manager deems necessary or
incidental to the furtherance or conduct of such services, subject in each case to the other terms of this Agreement. The Issuer hereby
authorizes such attorney-in-fact, in its sole discretion (but subject to applicable law and the provisions of this Agreement and the
Indenture), to take all actions that it considers reasonably necessary and appropriate in respect of the Assets, this Agreement, the
Indenture and the other Transaction Documents. Nevertheless, if so requested by the Collateral Manager or by a purchaser of any Collateral
Obligation, Equity Security or Eligible Investment, the Issuer shall ratify and confirm any such sale or other disposition by executing
and delivering to the Collateral Manager or such purchaser all proper bills of sale, assignments, releases, powers of attorney, proxies,
dividends, other orders and other instruments as may reasonably be designated in any such request. Except as otherwise set forth and
provided for herein, this grant of power of attorney is coupled with an interest, and it shall survive and not be affected by the subsequent
dissolution or bankruptcy of the Issuer. Notwithstanding anything herein to the contrary, the appointment herein of the Collateral Manager
as the Issuer’s agent and attorney-in-fact shall automatically cease and terminate upon the effective date of any termination of
this Agreement, the resignation of the Collateral Manager pursuant to Section 12 or any removal of the Collateral Manager
pursuant to Section 14. Each of the Collateral Manager and the Issuer shall take such other actions, and furnish such certificates,
opinions and other documents, as may be reasonably requested by the other party hereto in order to effectuate the purposes of this Agreement
and to facilitate compliance with applicable laws and regulations and the terms of this Agreement and the Indenture.

 

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(ii)             The
Collateral Manager shall instruct the Issuer with respect to the acquisition of Collateral Obligations by the Issuer in accordance with
the Indenture.

 

(iii)            The
Collateral Manager shall monitor the Assets on behalf of the Issuer on an ongoing basis and shall provide or cause to be provided to
the Issuer all reports, schedules and other data reasonably available to the Collateral Manager that the Issuer is required to prepare
and deliver or cause to be prepared and delivered under the Indenture, in such forms and containing such information required thereby,
in reasonably sufficient time for such required reports, schedules and data to be reviewed and delivered by or on behalf of the Issuer
to the parties entitled thereto under the Indenture. Pursuant to the terms of the Collateral Administration Agreement, the Collateral
Administrator shall provide certain reports, schedules and calculations to the Collateral Manager regarding the Collateral Obligations.
The obligation of the Collateral Manager to furnish such information is subject to the Collateral Manager’s timely receipt of necessary
reports and the appropriate information from the Person responsible for the delivery of or preparation of such reports and such information
(including without limitation, Obligors of the Collateral Obligations, the Rating Agency, the Trustee and the Collateral Administrator)
and to any confidentiality restrictions with respect thereto. The Collateral Manager shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing reasonably
believed by it to be genuine and to have been signed or sent by a Person that the Collateral Manager has no reason to believe is not
duly authorized. The Collateral Manager also may rely upon any statement made to it orally or by telephone and made by a Person the Collateral
Manager has no reason to believe is not duly authorized, and shall not incur any liability for relying thereon. The Collateral Manager
is entitled to rely on any other information furnished to it by third parties that it reasonably believes in good faith to be genuine.

 

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(iv)            The
Collateral Manager, on behalf of the Issuer, shall be responsible for obtaining, to the extent reasonably practicable and to the extent
such information is readily available to it, any information concerning whether a Collateral Obligation is a Discount Obligation or has
become a Defaulted Obligation, a Credit Risk Obligation, a Deferring Obligation, a Current Pay Obligation or a Credit Improved Obligation.

 

(v)            The
Collateral Manager may, subject to and in accordance with the Indenture, as agent of the Issuer and on behalf of the Issuer, take or,
if applicable, direct the Trustee to take any of the following actions with respect to a Collateral Obligation, Equity Security or Eligible
Investment, as applicable:

 

(A)            purchase
or otherwise acquire such Collateral Obligation or Eligible Investment;

 

(B)            retain
such Collateral Obligation, Equity Security or Eligible Investment;

 

(C)            sell
or otherwise dispose of such Collateral Obligation, Equity Security or Eligible Investment (including any assets received by way of Offers,
workouts and restructurings on assets owned by the Issuer) in the open market or otherwise;

 

(D)            if
applicable, tender such Collateral Obligation, Equity Security or Eligible Investment;

 

(E)            if
applicable, consent to or refuse to consent to any proposed amendment, modification, restructuring, exchange, waiver or Offer;

 

(F)            retain
or dispose of any securities or other property (if other than cash) received by the Issuer;

 

(G)            waive
any default with respect to any Defaulted Obligation;

 

(H)            vote
to accelerate the maturity of any Defaulted Obligation;

 

(I)            participate
in a committee or group formed by creditors of an issuer or a borrower under a Collateral Obligation, Eligible Investment or Equity Security;

 

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(J)            after
or in connection with the payment in full of all amounts owed under the Secured Notes and the termination without replacement of the
Indenture or in connection with any redemption of the Notes (other than a Refinancing), advise the Issuer as to when, in the view of
the Collateral Manager, it would be in the best interest of the Issuer to liquidate all or a portion of the Issuer’s investment
portfolio (and, if applicable, after discharge of the Indenture) and render such assistance as may be necessary or required by the Issuer
in connection with such liquidation or any actions necessary to effectuate a redemption of the Notes (other than a Refinancing);

 

(K)            advise
and assist the Issuer with respect to the valuation of the Assets, to the extent required or permitted by the Indenture;

 

(L)            provide
strategic and financial planning (including advice on utilization of assets), financial statements and other similar reports;

 

(M)            negotiate,
modify or amend any loan for the Issuer as authorized by the Indenture in accordance with a Refinancing; and

 

(N)            exercise
any other rights or remedies with respect to such Collateral Obligation, Equity Security or Eligible Investment as provided in the Underlying
Instruments of the obligor under such Assets or the other documents governing the terms of such Assets or take any other action consistent
with the terms of this Agreement or the Indenture which the Collateral Manager reasonably determines to be in the best interests of the
Holders.

 

(vi)            The
Collateral Manager may, upon request of the Issuer, retain accounting, tax, counsel and other professional services on behalf of the
Issuer.

 

(vii)            In
connection with the acquisition of any loan or Participation Interest by the Issuer, the Collateral Manager shall prepare, on behalf
of the Issuer, the information required to be delivered to the Trustee pursuant to the Indenture.

 

(viii)            Where
the Collateral Manager executes on behalf of the Issuer an agreement or instrument pursuant to which any security interest over any assets
of the Issuer is created or released, the Collateral Manager shall promptly give written notice thereof to the Issuer and shall provide
the Issuer with such information and/or copy documentation in respect thereof as the Issuer may reasonably require.

 

(d)            In
performing its duties hereunder and when exercising its discretion and judgment in connection with any transactions involving the Assets,
the Collateral Manager shall carry out any reasonable written directions of the Issuer for the purpose of the Issuer’s compliance
with its Organizational Instruments and the Indenture; provided that such directions are not inconsistent with any provision of
this Agreement or the Indenture by which the Collateral Manager is bound or prohibited by applicable law.

 

(e)            In
providing services hereunder, the Collateral Manager may, without the consent of any party, delegate to third parties (including without
limitation its Affiliates) the duties assigned to the Collateral Manager under this Agreement, and employ third parties (including without
limitation its Affiliates) to render advice (including investment advice), to provide services to arrange for trade execution and otherwise
provide assistance to the Issuer, and to perform any of the Collateral Manager’s duties under this Agreement; provided that
the Collateral Manager shall not (i) delegate investment decision-making responsibilities to non-Affiliates or (ii) be relieved
of any of its duties hereunder regardless of the performance of any services by third parties, including Affiliates.

 

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(f)            Notwithstanding
anything herein or any other Transaction Document to the contrary, the Collateral Manager shall have no authority to hold (directly or
indirectly), or otherwise obtain possession of, any funds or securities of the Issuer (including Collateral Obligations or Eligible Investments).
The Collateral Manager agrees that any requests regarding the disbursement of any funds in any Account must be made in accordance with
the Indenture or other Transaction Documents and must be sent to the Trustee, and shall be considered only as informing the Trustee of
such request. All disbursements requested by the Collateral Manager may be paid only upon the approval of the Trustee.

 

Without limiting the foregoing,
the Collateral Manager shall have no authority to (i) sign checks on the Issuer’s behalf, (ii) deduct fees from any Account,
(iii) withdraw funds or securities from any Account, or (iv) dispose of funds in any Account for any purpose other than pursuant
to transactions authorized by the Indenture. The Collateral Manager agrees that any requests regarding the disbursement of any funds
in any Account must be made in accordance with the Indenture and must be sent to the Trustee. Nothing in this Section 2(f) shall
prohibit the Collateral Manager from issuing instructions to the Trustee or Custodian to effect or to settle any bills of sale, assignments,
agreements and other instruments in connection with any acquisition, sale or other disposition of any Asset of the Issuer as permitted
by the Indenture.

 

Section 3.           Purchase
and Sale Transactions; Brokerage.

 

(a)            The
Collateral Manager, subject to and in accordance with the Indenture, hereby agrees that it shall cause any Transaction to be conducted
on terms and conditions negotiated on an arm’s-length basis and in accordance with applicable law. Except as expressly permitted
under the Indenture, no Assets (other than any Delayed Draw Loan or Revolving Loan) shall be purchased if such Assets may give rise to
any obligation or liability on the Issuer’s part to take any action or make any payment other than at the Issuer’s option.
Further, the Collateral Manager will not cause or allow the Issuer to acquire any obligation of a Portfolio Company.

 

(b)            The
Collateral Manager will seek to obtain the best execution (but shall have no obligation to obtain the lowest price available) for all
orders placed with respect to any Transaction, in a manner permitted by law and in a manner it believes to be in the best interests of
the Issuer. Subject to the preceding sentence, the Collateral Manager may, in the allocation of business, select brokers and/or dealers
with whom to effect trades on behalf of the Issuer and may open cash trading accounts with such brokers and dealers; provided
that none of the Assets may be credited to, held in or subject to the lien of the broker or dealer with respect to any such account.
In addition, subject to the first sentence of this paragraph, the Collateral Manager may, in the allocation of business, take into consideration
research and other brokerage services furnished to the Collateral Manager or its Affiliates by brokers and dealers which are not Affiliates
of the Collateral Manager; provided that the Collateral Manager in good faith believes that the compensation for such services
rendered by such brokers and dealers complies with the requirements of Section 28(e) of the Securities Exchange Act of 1934,
as amended (“Section 28(e)”), or in the case of principal or fixed income transactions for which the “safe
harbor” of Section 28(e) is not available, the amount of the spread charged is reasonable in relation to the value of
the research and other brokerage services provided. Such services may be used by the Collateral Manager in connection with its other
advisory activities or investment operations. The Collateral Manager may aggregate sales and purchase orders placed with respect to the
Assets with similar orders being made simultaneously for other accounts managed by the Collateral Manager or with accounts of the Affiliates
of the Collateral Manager, if in the Collateral Manager’s reasonable judgment such aggregation can be expected to result in an
overall economic benefit to the Issuer, taking into consideration the advantageous selling or purchase price, brokerage commission or
other expenses, as well as the availability of such Assets on any other basis. In accounting for such aggregated order price, commissions
and other expenses may be apportioned on a weighted average basis. When a Transaction occurs as part of any aggregate sales or purchase
orders, the objective of the Collateral Manager will be to use commercially reasonable efforts to allocate the executions among the accounts
in a manner that is fair and equitable and over time the Collateral Manager believes, in its reasonable business judgment, to be appropriate
and in accordance with its internal policies and procedures (as such may be amended from time to time, the “Internal Policies”)
and applicable law.

 

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(c)            The
Issuer acknowledges and agrees that (i) the determination by the Collateral Manager of any benefit to the Issuer will be subjective
and will represent the Collateral Manager’s evaluation at the time that the Issuer can be expected to be benefited by relatively
better purchase or sales prices, lower brokerage commissions, lower transaction costs and expenses and beneficial timing of transactions
or any combination of any of these and/or other factors and (ii) the Collateral Manager shall be fully protected with respect to
any such determination to the extent the Collateral Manager acts in accordance with Section 2(a). The Issuer acknowledges
and agrees that one or more Affiliates of the Collateral Manager will hold or beneficially own all of the Outstanding Subordinated Notes
on and potentially after the Closing Date and that accounts advised or sub-advised by the Collateral Manager or its Affiliates may acquire
other Notes and that such investments may give rise to conflicts of interest between the Collateral Manager’s duties to the Issuer
under this Agreement and the interests of the Collateral Manager, its Affiliates or its Related Persons. The Issuer hereby acknowledges
that various potential and actual conflicts of interest do or may exist with respect to the Collateral Manager, including in its capacity
as investment adviser for both the Issuer and the BDC, as described in this Agreement and in the Final Offering Circular.

 

(d)            Subject
to compliance with applicable laws and regulations and subject to the Indenture and the Collateral Manager’s execution obligations
described in Sections 3(a), 3(b) and 3(e) and the covenants set forth in Section 5, the Collateral
Manager is hereby authorized to effect client cross-transactions where the Collateral Manager causes a Transaction to be effected between
the Issuer and another account advised by it or any of its Affiliates; provided that, if and to the extent required by the Advisers
Act, such authorization is terminable prior to the initiation of such cross-transaction at the Issuer’s option without penalty.
Such termination shall be effective upon receipt by the Collateral Manager of written notice from the Issuer. Subject to the Collateral
Manager’s execution obligations described in Sections 3(a), 3(b) and 3(e) and the covenants set
forth in Section 5, the Collateral Manager is hereby authorized to effect principal transactions and transactions where the
Issuer may invest in securities of issuers in which the Collateral Manager and/or its Affiliates have a debt, equity or participation
interest, in each case in accordance with applicable law.

 

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(e)            The
Issuer acknowledges and agrees that the Collateral Manager or any of its Affiliates may acquire or sell obligations or securities, for
its own account or for the accounts of its customers, without either requiring or precluding the acquisition or sale of such obligations
or securities for the account of the Issuer. Such investments may be the same or different from those made on behalf of the Issuer as
to direction, amount, timing or other terms. The Issuer acknowledges that the Collateral Manager and its Affiliates may enter into, for
their own accounts or for the accounts of others, credit default swaps relating to obligors with respect to the Collateral Obligations
included in the Assets.

 

Section 4.           Additional
Activities of the Collateral Manager.

 

Nothing herein shall prevent
the Collateral Manager or any of its Affiliates from engaging in other businesses, or from rendering services of any kind to the Issuer,
the Trustee, the Initial Purchaser, any holder or beneficial owner of a Note or their respective Affiliates or any other Person or entity
regardless of whether such business is in competition with the Issuer or otherwise. Without prejudice to the generality of the foregoing,
partners, members, shareholders, directors, managers, officers, employees and agents of the Collateral Manager, Affiliates of the Collateral
Manager, and the Collateral Manager may:

 

(a)            serve
as managers or directors (whether supervisory or managing), officers, employees, partners, agents, nominees or signatories for the Issuer
or any Affiliate thereof, or for any obligor in respect of any of the Collateral Obligations, Equity Securities or Eligible Investments
or any Affiliate thereof, to the extent permitted by their respective Organizational Instruments and Underlying Instruments, as from
time to time amended, or by any resolutions duly adopted by the Issuer, its Affiliates or any obligor in respect of any of the Collateral
Obligations, Eligible Investments or Equity Securities (or any Affiliate thereof) pursuant to their respective Organizational Instruments;

 

(b)            receive
fees for services of whatever nature rendered to the obligor in respect of any of the Collateral Obligations, Eligible Investments or
Equity Securities or any Affiliate thereof;

 

(c)            be
retained to provide services unrelated to this Agreement to the Issuer or its Affiliates, and be paid therefor, on an arm’s-length
basis;

 

(d)            be
a secured or unsecured creditor of, or hold a debt obligation of or equity interest in, the Issuer or any Affiliate thereof or any obligor
of any Collateral Obligation, Eligible Investment or Equity Security or any Affiliate thereof;

 

(e)            subject
to Section 3(b), Section 5 and applicable law sell any Collateral Obligation or Eligible Investment to, or purchase
or acquire any Collateral Obligation, Equity Security or Eligible Investment from, the Issuer while acting in the capacity of principal
or agent;

 

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(f)             underwrite,
arrange, structure, originate, syndicate, act as a distributor of or make a market in any Collateral Obligation, Equity Security or Eligible
Investment;

 

(g)            serve
as a member of any “creditors’ board”, “creditors’ committee” or similar creditor group with respect
to any Collateral Obligation, Defaulted Obligation, Eligible Investment or Equity Security; or

 

(h)            act
as collateral manager, portfolio manager, investment manager and/or investment adviser or sub-adviser in collateralized bond obligation
vehicles, collateralized loan obligation vehicles and other similar warehousing or financing vehicles or other investment vehicles.

 

As a result, such individuals
may possess information relating to obligors of Collateral Obligations that is (a) not known to or (b) known but restricted
as to its use by the individuals at the Collateral Manager responsible for monitoring the Collateral Obligations and performing the other
obligations of the Collateral Manager under this Agreement. Each of such ownership and other relationships may result in securities laws
restrictions on transactions in such securities by the Issuer and otherwise create conflicts of interest for the Issuer. The Issuer acknowledges
and agrees that, in all such instances, the Collateral Manager and its Affiliates may in their discretion make investment recommendations
and decisions that may be the same as or different from those made with respect to the Issuer’s investments and they have no duty,
in making or managing such other investments, to act in a way that is favorable to the Issuer.

 

The Issuer acknowledges that
there are generally no ethical screens or information barriers among the Collateral Manager and certain of its Affiliates of the type
that many firms implement to separate Persons who make investment decisions from others who might possess material, non-public information
that could influence such decisions. The officers or Affiliates of the Collateral Manager may possess information relating to obligors
of Collateral Obligations that is not known to the individuals at the Collateral Manager responsible for monitoring the Collateral Obligations
and performing the other obligations under this Agreement. The Collateral Manager may from time to time come into possession of material
nonpublic information that limits the ability of the Collateral Manager to effect a transaction for the Issuer, and the Issuer’s
investments may be constrained as a consequence of the Collateral Manager’s inability to use such information for advisory purposes
or otherwise to effect transactions that otherwise may have been initiated on behalf of its clients, including the Issuer.

 

Unless the Collateral Manager
determines in its sole discretion that a Transaction complies with the provisions of Section 5, the Collateral Manager will
not direct the Trustee to acquire or sell securities issued by (i) Persons of which the Collateral Manager, any of its Affiliates
or any of its officers, directors or employees are directors or officers, (ii) Persons of which the Collateral Manager, or any of
its respective Affiliates act as principal or (iii) Persons about which the Collateral Manager or any of its Affiliates have material
non-public information which the Collateral Manager deems would prohibit it from advising as to the trading of such securities in accordance
with applicable law. For the avoidance of doubt, the Trustee will have no obligation or duty to ensure compliance with the foregoing.

 

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It is understood that the
Collateral Manager and any of its Affiliates may engage in any other business and furnish investment management and advisory services
to others, including Persons which may have investment policies similar to or different from those followed by the Collateral Manager
with respect to the Assets and which may own securities or debt obligations of the same class, or which are of the same type, as the
Collateral Obligations or the Eligible Investments or other securities or debt obligations of the obligors of the Collateral Obligations
or the Eligible Investments as well as other assets that are the same or similar to other assets owned by the Issuer. The Collateral
Manager will be free, in its sole discretion, to make recommendations to others, or effect transactions on behalf of itself or for others,
which may be the same as or different from those effected with respect to the Assets. Nothing in the Indenture or this Agreement shall
prevent the Collateral Manager or any of its Affiliates, acting either as principal or agent on behalf of others, from buying or selling,
or from recommending to or directing any other account to buy or sell, at any time, securities or obligations of the same kind or class,
or securities or obligations of a different kind or class of the same obligor, as those directed by the Collateral Manager to be purchased
or sold on behalf of the Issuer. It is understood that, to the extent permitted by applicable law, the Collateral Manager, its Owners,
their Affiliates or their respective Related Persons or any member of their families or a Person or entity advised by the Collateral
Manager may have an interest in a particular transaction or in securities or obligations of the same kind or class, or securities or
obligations of a different kind or class of the same obligor, as those whose acquisition or sale the Collateral Manager may direct hereunder.
If, in light of market conditions and investment objectives, the Collateral Manager determines that it would be advisable to purchase
the same item of Collateral Obligation both for the Issuer, and either the proprietary account of the Collateral Manager or any Affiliate
of the Collateral Manager or another client of the Collateral Manager, the Collateral Manager will allocate such investment opportunities
across such entities for which such opportunities are appropriate consistent with (i) its Internal Policies, as the same may be
amended from time to time, (ii) any applicable requirements of the Advisers Act and (iii) any allocation and/or co-investment
policy or agreement entered into with any such entity. The Collateral Manager shall use commercially reasonable efforts to allocate such
investment opportunities in a manner that will be fair and equitable over time. The Issuer agrees that, in the course of managing the
Collateral Obligations held by the Issuer, the Collateral Manager may consider its relationships with other Clients (including obligors
and issuers) and its Affiliates. The Collateral Manager may decline to make a particular investment for the Issuer in view of such relationships.

 

The Issuer acknowledges that
the Collateral Manager and its Affiliates or their other clients may make and/or hold investments in an obligor’s obligations or
securities that may be pari passu, senior or junior in ranking to an investment in such obligor’s obligations or securities
made and/or held by the Issuer, or otherwise have interests different from or adverse to those of the Issuer.

 

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Section 5.           Conflicts
of Interest.

 

Subject to compliance with
applicable laws and regulations and subject to this Agreement and the Indenture, the Collateral Manager is hereby authorized to effect
client cross-transactions where the Collateral Manager may cause the Issuer and direct the Trustee to acquire a Collateral Obligation
or Eligible Investment from, or sell a Collateral Obligation, Equity Security or Eligible Investment to, any client advised by the Collateral
Manager or any of its Affiliates for market value (or, in the case of a sale to any such client or its Affiliate, for at least market
value) or, in the absence of a readily ascertainable market value, at an amount that is equal to “fair value” (or, in the
case of a sale to any such client or its Affiliate, for an amount that is at least equal to “fair value”) as reasonably determined
by the Collateral Manager in accordance with its relevant policies and procedures. Subject to compliance with applicable laws and regulations
and subject to this Agreement and the Indenture, the Collateral Manager may effect principal transactions where the Collateral Manager
may cause the Issuer and direct the Trustee to acquire a Collateral Obligation or Eligible Investment from, or sell a Collateral Obligation,
Equity Security or Eligible Investment to, the Collateral Manager or any of its Affiliates for market value (or, in the case of a sale
to the Collateral Manager or its Affiliates, for at least market value) or, in the absence of a readily ascertainable market value, at
an amount that is equal to “fair value” (or, in the case of a sale to the Collateral Manager or its Affiliates, for an amount
that is at least equal to “fair value”) as reasonably determined by the Collateral Manager in accordance with its relevant
policies and procedures; provided that the Collateral Manager shall obtain consent to such transaction from the Independent Review
Party following written disclosure thereto prior to settlement of such transaction which shall constitute the consent of the Issuer required
under Section 206(3) of the Advisers Act (an “Affiliate Transaction”). The Issuer understands and acknowledges
that, solely for the purposes of compliance with the U.S. Risk Retention Rules, the Collateral Manager shall, with the consent of a majority
of the directors of the BDC who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act) of the
BDC, enter into the Closing Date Master Loan Sale Agreement with the BDC and the Issuer pursuant to which the Issuer shall acquire Collateral
Obligations from the BDC, as seller, through the Collateral Manager, as closing date seller, on the Closing Date in a series of transactions
occurring immediately following one another.  The Issuer further understands and acknowledges that the Collateral Manager will not
receive any compensation for effectuating, or achieve any profits or losses as a result of its entry into the Closing Date Master Loan
Sale Agreement and that, at the time of the transactions referenced in the Closing Date Master Loan Sale Agreement, the Collateral Manager
will not be insolvent, and the Collateral Obligations transferred through the Collateral Manager in such transactions would not be encumbered
by any lien solely by virtue of such transactions. Subject to compliance with applicable laws and regulations and subject to this Agreement
and the Indenture, the Collateral Manager is hereby authorized to effect agency cross-transactions where the Collateral Manager or any
of its Affiliates may act as broker for the Issuer or for the other party in connection with the acquisition of a Collateral Obligation
or Eligible Investment or disposition or exchange of a Collateral Obligation, Equity Security or Eligible Investment and receive compensation
therefor; provided that, if and to the extent required by the Advisers Act, such authorization is terminable prior to the completion
of such agency cross-transaction at the Issuer’s option without penalty, such termination to be effective upon receipt by the Collateral
Manager of written notice from the board of directors of the BDC, as designated manager of the Issuer. The Collateral Manager and its
Affiliates so acting have a potentially conflicting division of loyalties and responsibilities to both parties to such transactions.
The Issuer understands and expects that the Collateral Manager will engage in a significant amount of client cross-transactions. The
Issuer understands that Collateral Obligations or Equity Securities that are fair valued in accordance with the Collateral Manager’s
valuation policies generally will not have readily ascertainable market values and that the fair value assigned to such Collateral Obligations
or Equity Securities, as determined in good faith by the Collateral Manager in accordance with its policies and procedures, may not match
the next available and reliable market price or, in retrospect, have been the price at which the Collateral Obligation or Equity Security
could have been purchased or sold. The Issuer acknowledges that the Collateral Manager or an Affiliate thereof may hold or beneficially
own a portion of the outstanding Notes. In certain circumstances, the interests of the Issuer and/or the holders with respect to matters
as to which the Collateral Manager is advising the Issuer may conflict with the interests of the Collateral Manager and its Affiliates.
The Issuer hereby acknowledges that various potential and actual conflicts of interest may exist with respect to the Collateral Manager
as described in this Agreement, the Indenture, the Offering Circulars provided by the Issuer for the Notes or the Form ADV of the
Collateral Manager; provided that nothing in this Section 5 shall be construed as altering the duties of the Collateral
Manager as set forth herein, in the Indenture or under applicable law. With respect to the approval of Affiliate Transactions, the Issuer
hereby appoints the independent directors of the BDC, the Issuer’s designated manager, to act on the Issuer’s behalf by majority
vote (a majority of such directors, the “Independent Review Party”).

 

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Section 6.           Records;
Confidentiality.

 

The Collateral Manager shall
maintain or cause to be maintained appropriate books of account and records relating to its services performed hereunder, and such books
of account and records shall be accessible for inspection by representatives of the Issuer, the Trustee, the Holders, and the Independent
accountants appointed by the Collateral Manager on behalf of the Issuer pursuant to Article X of the Indenture at any time during
normal business hours and upon not less than three Business Days’ prior notice. The Collateral Manager shall keep confidential
any and all information obtained in connection with the services rendered hereunder and shall not disclose any such information to non-affiliated
third parties (excluding any Holders and beneficial owners of Notes) except (a) with the prior written consent of the Issuer, (b) such
information as a Rating Agency shall reasonably request in connection with its rating of the Secured Notes or supplying credit estimates
on any obligation included in the Assets, (c) in connection with establishing trading or investment accounts or otherwise in connection
with effecting Transactions on behalf of the Issuer, (d) as required by (i) applicable law, regulation, court order, or a request
by a governmental regulatory agency with jurisdiction over the Collateral Manager or any of its Affiliates, (ii) the rules or
regulations of any self-regulating organization, body or official having jurisdiction over the Collateral Manager or any of its Affiliates
or (iii) the rules and regulations of any stock exchange on which the Notes may be listed, (e) to its professional advisors
(including, without limitation, legal, tax and accounting advisors), (f) such information as shall have been publicly disclosed
other than in known violation of this Agreement or the provisions of the Indenture or shall have been obtained by the Collateral Manager
on a non-confidential basis, (g) such information as is necessary or appropriate to disclose so that the Collateral Manager may
perform its duties hereunder, under the Indenture or any other Transaction Document or (h) general performance information which
may be used by the Collateral Manager, its Affiliates or Owners in connection with their marketing activities. Notwithstanding the foregoing,
it is agreed that the Collateral Manager may disclose (a) that it is serving as collateral manager of the Issuer, (b) the nature,
aggregate principal amount and overall performance of the Issuer’s assets, (c) the amount of earnings on the Assets, (d) such
other information about the Issuer, the Assets and the Notes as is customarily disclosed by managers of collateralized loan obligations
and (e) each of its respective employees, representatives or other agents may disclose to any and all Persons, without limitation
of any kind, the U.S. federal income tax treatment and U.S. federal income tax structure of the transactions contemplated by the Indenture,
this Agreement and the related documents and all materials of any kind (including opinions and other tax analyses) that are provided
to them relating to such U.S. federal income tax treatment and U.S. income tax structure. For purposes of this Section 6,
the Holders shall not be considered “non-affiliated third parties.”

 

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Nothing in this Section 6
prohibits any Person from reporting possible violations of federal law or regulation to any governmental agency or entity, including
but not limited to the Department of Justice, the Securities and Exchange Commission, the United States Congress, and any agency
inspector general, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.
There is no prior authorization necessary hereunder to make any such reports or disclosures and there is no requirement hereunder to
notify the Collateral Manager that any such reports or disclosures have been made.

 

Section 7.           Obligations
of Collateral Manager.

 

In accordance with the performance
standard set forth in Section 2(a), the Collateral Manager shall take care to avoid taking any action that would (a) materially
adversely affect the status of the Issuer for purposes of United States federal or state law, or other law applicable to the Issuer,
(b) not be permitted by the Issuer’s Organizational Instruments, copies of which the Collateral Manager acknowledges the Issuer
has provided to the Collateral Manager, (c) violate any law, rule or regulation of any governmental body or agency having jurisdiction
over the Issuer, including, without limitation, actions which would violate any United States federal, state or other applicable securities
law that is known by the Collateral Manager to be applicable to it and, in each case, the violation of which would have a Material Adverse
Effect on the Issuer or have a material adverse effect on the ability of the Collateral Manager to perform its obligations hereunder,
(d) require registration of the Issuer or the pool of Assets as an “investment company” under Section 8 of the
1940 Act, or (e) knowingly and willfully adversely affect the interests of the Holders in the Assets in any material respect (other
than (i) as expressly permitted hereunder or under the Indenture or (ii) in connection with any action taken in the ordinary
course of business of the Collateral Manager in accordance with its fiduciary duties to its clients). If the Collateral Manager is ordered
by the designated manager of the Issuer or the requisite Holders or beneficial owners of Notes to take any action which would, or could
reasonably be expected to, in each case in its reasonable business judgment, have any such consequences, the Collateral Manager shall
promptly notify the Issuer that such action would, or could reasonably be expected to, in each case in its reasonable business judgment,
have one or more of the consequences set forth above and shall not take such action unless the designated manager of the Issuer then
request the Collateral Manager to do so and both a Majority of the Controlling Class and a Majority of the Subordinated Notes have
consented thereto in writing. Notwithstanding any such request, the Collateral Manager shall not take such action unless (1) arrangements
satisfactory to it are made to insure or indemnify the Collateral Manager, Affiliates of the Collateral Manager and shareholders, partners,
directors, members, managers, officers or employees of the Collateral Manager or such Affiliates from any liability and expense it may
incur as a result of such action and (2) if the Collateral Manager so requests in respect of a question of law, the Issuer delivers
to the Collateral Manager an Opinion of Counsel (from outside counsel satisfactory to the Collateral Manager) that the action so requested
does not violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Issuer or over the
Collateral Manager. Neither the Collateral Manager nor its Affiliates, shareholders, partners, directors, members, managers, officers
or employees shall be liable to the Issuer or any other Person, except as provided in Section 10. Notwithstanding anything
contained in this Agreement to the contrary, any indemnification or insurance by the Issuer provided for in this Section 7
or Section 10 shall be payable out of the Assets in accordance with the Priority of Payments, and the Collateral Manager
may take into account such Priority of Payments in determining whether any proposed indemnity arrangements contemplated by this Section 7 are
satisfactory.

 

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Section 8.           Compensation.

 

(a)            As
compensation for its performance of its obligations as Collateral Manager under this Agreement, the Collateral Manager will be entitled
to receive on each Payment Date (in accordance with the Priority of Payments) a fee (the “Collateral Management Fee”).
The Collateral Management Fee shall be payable on each Payment Date to the extent of the funds available for such purpose in accordance
with the Priority of Payments.

 

The Collateral Management
Fee is payable to the Collateral Manager in arrears, on each Payment Date (prorated for the related Interest Accrual Period) in an amount
equal to 0.35%, per annum (calculated on the basis of the actual number of days in the applicable Collection Period divided by
360) of the Fee Basis Amount at the beginning of the Collection Period relating to such Payment Date; provided that the Collateral
Management Fee payable on any Payment Date shall not include any such fee (or any portion thereof) that has been waived or deferred by
the Collateral Manager pursuant to this Section 8 no later than the Determination Date immediately prior to such Payment
Date.

 

The Collateral Management
Fee is payable on each Payment Date only to the extent that sufficient Interest Proceeds or Principal Proceeds are available. To the
extent the Collateral Management Fee is not paid on a Payment Date due to insufficient Interest Proceeds or Principal Proceeds (and such
fee was not voluntarily deferred or waived by the Collateral Manager), the unpaid portion of the Collateral Management Fee due on such
Payment Date (the “Collateral Management Fee Shortfall Amount”) will be automatically deferred for payment on the
succeeding Payment Date, with interest, in accordance with the Priority of Payments. Interest on Collateral Management Fee Shortfall
Amounts shall accrue at the Prime Rate for the period beginning on the first Payment Date on which the related Collateral Management
Fee was due (and not paid) through the Payment Date on which such Collateral Management Fee Shortfall Amount (including accrued interest)
is paid.

 

At the option of the Collateral
Manager, by written notice to the Trustee and the Collateral Administrator, no later than the Determination Date immediately prior to
such Payment Date, on each Payment Date, (i) all or a portion of the Collateral Management Fees or the Collateral Management Fee
Shortfall Amount (including accrued interest) due and owing on such Payment Date may be deferred for payment on a subsequent Payment
Date, without interest (the “Current Deferred Management Fee”) and (ii) all or a portion of the previously deferred
Collateral Management Fees or Collateral Management Fee Shortfall Amounts (collectively, the “Cumulative Deferred Management
Fee”) may be declared due and payable (to the extent there are sufficient Interest Proceeds and Principal Proceeds therefor).

 

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At such time as the Secured
Notes are redeemed in connection with an Optional Redemption, a Tax Redemption or a Clean-Up Call Redemption without duplication, all
accrued and unpaid Collateral Management Fees, Current Deferred Management Fees, Collateral Management Fee Shortfall Amounts (including
accrued interest) and Cumulative Deferred Management Fees (the “Aggregate Collateral Management Fee”) shall be due
and payable to the Collateral Manager.

 

(b)            The
Collateral Manager may, in its sole discretion (but shall not be obligated to), elect to waive all or any portion of the Collateral Management
Fee payable to the Collateral Manager on any Payment Date, notwithstanding that the Collateral Manager may be entitled to such Collateral
Management Fee. Any such election shall be made by the Collateral Manager delivering written notice thereof to the Trustee and the Collateral
Administrator no later than the Determination Date immediately prior to such Payment Date. Any election to waive the Collateral Management
Fee may also be made by written standing instructions to the Trustee and the Collateral Administrator; provided that such standing
instructions may be rescinded by the Collateral Manager at any time.

 

(c)            Except
as otherwise set forth herein and in the Indenture, the Collateral Manager will continue to serve as collateral manager under this Agreement
notwithstanding that the Collateral Manager will not have received amounts due to it under this Agreement because sufficient funds were
not then available hereunder to pay such amounts in accordance with the Priority of Payments.

 

(d)            If
this Agreement is terminated for any reason, or the Collateral Manager resigns or is removed, (i) any Collateral Management Fees
calculated as provided in Section 8(a) shall be prorated for any partial period elapsing from the last Payment Date
on which such Collateral Manager received the Collateral Management Fee to the effective date of such termination, resignation or removal
and (ii) any unpaid Cumulative Deferred Management Fees and Collateral Management Fee Shortfall Amounts (including related interest)
shall be determined as of the effective date of such termination, resignation or removal and, in each case, shall be due and payable
on each Payment Date following the effective date of such termination, resignation or removal in accordance with the Priority of Payments
until paid in full; provided, however, that, notwithstanding the foregoing or any other provision contained herein, in the event the
Collateral Manager’s services terminate other than by reason of an involuntary termination not for cause, then the terminating
Collateral Manager shall not be entitled to any deferred Collateral Management Fee on any Payment Date following the date of such termination.
Otherwise, such Collateral Manager shall not be entitled to any further compensation hereunder for further services but shall be entitled
to receive any expense reimbursement accrued to the effective date of termination, resignation or removal and any indemnity amounts owing
(or that may become owing) under Section 10. Any Aggregate Collateral Management Fee expense reimbursement and indemnities
owed to such Collateral Manager or owed to any successor Collateral Manager on any Payment Date shall be paid pro rata based on
the amount thereof then owing to each such Person, subject to the Priority of Payments.

 

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Section 9.           Benefit
of the Agreement.

 

The Collateral Manager shall
perform its obligations hereunder and under the Indenture in accordance with the terms of this Agreement and the terms of the Indenture
applicable to it. The Collateral Manager agrees and consents to the provisions contained in Section 15.1(f) of the Indenture.
In addition, the Collateral Manager acknowledges the pledge under the granting clause of the Indenture.

 

Section 10.         Limits
of Collateral Manager Responsibility.

 

(a)            None
of the Collateral Manager, its Affiliates, its Owners or their respective Related Persons assumes any responsibility under this Agreement
except that the Collateral Manager agrees to render the services required to be performed by it hereunder and under the terms of the
Indenture applicable to it. The Collateral Manager shall not be responsible for any action or inaction of the Issuer or the Trustee in
following or declining to follow any advice, recommendation or direction of the Collateral Manager including as set forth in Section 7.
The Indemnified Parties shall not be liable to the Issuer, the Trustee, any Holder, any beneficial owner of Notes, the Initial Purchaser,
any of their respective Affiliates, Owners or Related Persons or any other Persons for any act, omission, error of judgment, mistake
of law, or for any claim, loss, liability, damage, judgment, assessment, settlement, cost, or other expense (including attorneys’
fees and expenses and court costs) arising out of any investment, or for any other act or omission in the performance of the Collateral
Manager’s obligations under or in connection with this Agreement or the terms of any other Transaction Document applicable to the
Collateral Manager, incurred as a result of actions taken or recommended or for any omissions of the Collateral Manager, or for any decrease
in the value of the Assets, except for liability to which the Collateral Manager would be subject (i) by reason of acts or omissions
constituting bad faith, willful misconduct or gross negligence in the performance of its duties hereunder and under the terms of the
Indenture or (ii) with respect to the CM Information in each Offering Circular, as of the date made, containing any untrue statement
of a material fact or omitting to state a material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading (the preceding clauses (i) and (ii) collectively referred to for purposes of this Section 10
as “Collateral Manager Breaches”). The Collateral Manager shall not be liable for any consequential, indirect,
special, punitive, exemplary or treble damages or lost profits hereunder or under the Indenture. The Collateral Manager and any of its
Affiliates may consult with counsel, independent accountants or any other experts selected by them and shall not be liable for any action
taken or omitted to be taken by them in accordance with their advice. Nothing contained herein shall be deemed to waive any liability
which cannot be waived under applicable state or federal law or any rules or regulations adopted thereunder.

 

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(b)            The
Issuer shall indemnify and hold harmless the Collateral Manager, its Affiliates and Owners and their respective Related Persons (each,
an “Indemnified Party”) from and against any and all losses, claims, damages, judgments, assessments, costs or other
liabilities (collectively, “Losses”) and will promptly reimburse each such Indemnified Party for all reasonable fees
and expenses incurred by an Indemnified Party with respect thereto (including reasonable fees and expenses of counsel) (collectively,
 “Expenses”) arising out of or in connection with the issuance of the Notes (including, without limitation, any untrue
statement of material fact contained in each Offering Circular, or omission or alleged omission to state therein a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, other than CM
Information), the transactions contemplated by the applicable Offering Circular, the Indenture, this Agreement, the other Transaction
Documents, any Underlying Instruments and the performance of the Assets and any acts or omissions of any such Indemnified Party; provided
that such Indemnified Party shall not be indemnified for any Losses or Expenses incurred as a result of any Collateral Manager Breach.
Notwithstanding anything contained herein to the contrary, the obligations of the Issuer under Section 10 to indemnify any
Indemnified Party for any Losses or Expenses are non-recourse obligations of the Issuer payable solely out of the Assets in accordance
with the Priority of Payments set forth in the Indenture.

 

(c)            The
Collateral Manager shall not be responsible or liable for any failure or delay in the performance of its duties and obligations under
this Agreement and/or the Indenture arising out of or caused by, directly or indirectly, forces beyond its control, including, without
limitation, strikes, pandemics, epidemics, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear
or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services.

 

(d)            It
is understood that certain provisions of this Agreement may serve to limit the potential liability of the Collateral Manager. The Issuer
has had the opportunity to consult with the Collateral Manager as well as, if desired, its professional advisors and legal counsel as
to the effect of these provisions. It is further understood that certain applicable laws, including applicable federal or state securities
laws, may impose liability or allow for legal remedies even where the Collateral Manager has acted in good faith and that the rights
under those laws may be non-waivable. Nothing in this Agreement shall, in any way, constitute a waiver or limitation of any rights which
may not be so limited or waived in accordance with applicable law, including with respect to the breach of any fiduciary duty owed under
Section 206 of the Advisers Act.

 

Section 11.         No
Joint Venture.

 

The Issuer and the Collateral
Manager are not partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint
venturers or impose any liability as such on either of them. The Collateral Manager shall be deemed, for all purposes herein, an independent
contractor and shall, except as otherwise expressly provided herein or in the Indenture or authorized by the Issuer from time to time,
have no authority to act for or represent the Issuer in any way or otherwise be deemed an agent of the Issuer. It is acknowledged that
neither the Collateral Manager nor any of its Affiliates has provided or shall provide any tax, accounting or legal advice or assistance
to the Issuer or any other Person in connection with the transactions contemplated hereby.

 

Section 12.         Term;
Termination.

 

(a)            This
Agreement shall commence as of the date first set forth above and shall continue in force until the first of the following occurs: (i) the
final liquidation of the Assets and the final distribution of the proceeds of such liquidation to the Holders, (ii) the payment
in full of the Notes, and the satisfaction and discharge of the Indenture in accordance with its terms or (iii) the early termination
of this Agreement in accordance with Section 12(b) or (e) or Section 14.

 

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(b)            Subject
only to clause (c) below, the Collateral Manager may resign, upon 90 days’ prior written notice to the Issuer (or such
shorter notice as is acceptable to the Issuer), the Holders and the Trustee; provided that the Collateral Manager shall have the
right to resign immediately upon the effectiveness of any material change in applicable law or regulations which renders the performance
by the Collateral Manager of its duties hereunder or under the Indenture to be a violation of such law or regulation.

 

(c)            Notwithstanding
the provisions of clause (b) above, no resignation or removal of the Collateral Manager or termination of this Agreement
pursuant to such clause shall be effective until the date as of which a successor Collateral Manager shall have been appointed and approved
in accordance with Section 12(d) and has accepted all of the Collateral Manager’s duties and obligations pursuant
to this Agreement in writing (an “Instrument of Acceptance”) and has assumed such duties and obligations.

 

(d)            Promptly
after notice of any removal under Section 14 or any resignation of the Collateral Manager that is to take place while any
of the Notes are Outstanding, the Issuer shall transmit copies of such notice to the Trustee (which shall forward a copy of such notice
to the Holders) and the Rating Agency and shall appoint an institution as Collateral Manager, at the direction of a Majority of the Subordinated
Notes, which institution (i) has demonstrated an ability, whether as an entity or by its principals or employees, to professionally
and competently perform duties similar to those imposed upon the Collateral Manager hereunder, (ii) is legally qualified and has
the capacity to assume all of the responsibilities, duties and obligations of the Collateral Manager hereunder and under the applicable
terms of the Indenture, (iii) does not cause or result in the Issuer becoming, or require the pool of Assets to be registered as,
an investment company under the 1940 Act, (iv) with respect to which the Rating Agency Condition has been satisfied and (v) has
been approved by a Majority of the Controlling Class.

 

(e)            If
(i) a Majority of the Subordinated Notes fails to nominate a successor within 30 days of initial notice of the resignation or removal
of the Collateral Manager or (ii) a Majority of the Controlling Class does not approve the proposed successor nominated by
the Holders of the Subordinated Notes within ten days of the date of the notice of such nomination, then a Majority of the Controlling
Class shall, within 60 days of the failure described in clauses (i) or (ii) of this sentence, as the case
may be, nominate a successor Collateral Manager that meets the criteria set forth in Section 12(d). If a Majority of the
Subordinated Notes approves such Controlling Class nominee, such nominee shall become the Collateral Manager. If no successor Collateral
Manager is appointed within 90 days (or, in the event of a change in applicable law or regulation which renders the performance by the
Collateral Manager of its duties under this Agreement or the Indenture to be a violation of such law or regulation, within 30 days) following
the termination or resignation of the Collateral Manager, any of the Collateral Manager, a Majority of the Subordinated Notes and a Majority
of the Controlling Class shall have the right to petition a court of competent jurisdiction to appoint a successor Collateral Manager,
in either such case whose appointment shall become effective after such successor has accepted its appointment and without the consent
of any holder or beneficial owner of any Note.

 

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(f)            The
successor Collateral Manager shall be entitled to the Collateral Management Fee set forth in Section 8(a) and no compensation
payable to such successor Collateral Manager shall be greater than as set forth in Section 8(a) without the prior written
consent of 100% of the Holders of each Class of Notes voting separately by Class, including Collateral Manager Notes. Upon the later
of the expiration of the applicable notice periods with respect to termination specified in this Section 12 or in Section 14
and the acceptance of its appointment hereunder by the successor Collateral Manager, all authority and power of the Collateral Manager
hereunder, whether with respect to the Assets or otherwise, shall automatically and without action by any person or entity pass to and
be vested in the successor Collateral Manager. The Issuer, the Trustee and the successor Collateral Manager shall take such action (or
the Issuer shall cause the outgoing Collateral Manager to take such action) consistent with this Agreement and as shall be necessary
to effect any such succession.

 

(g)            If
this Agreement is terminated pursuant to this Section 12, such termination shall be without any further liability or obligation
of either party to the other, except as provided in clause (h) below.

 

(h)            Sections
6, 7 (with respect to any indemnity or insurance provided thereunder), 10, 12(h), 15, 17, 21,
22, 23 and 25 shall survive any termination of this Agreement pursuant to this Section 12 or Section 14.

 

Section 13.         Assignments.

 

(a)            Except
as otherwise provided in this Section 13, the Collateral Manager may not assign or delegate (except as provided in Section 2(e))
its rights or responsibilities under this Agreement unless (i) the Rating Agency Condition has been satisfied with respect thereto,
(ii) the consent of the Issuer has been obtained with respect thereto and (iii) such assignment or delegation has not been
disapproved in writing by (A) a Majority of the Subordinated Notes and (B) for an assignment to any person who is not an Affiliate
of the Collateral Manager that is a Registered Investment Adviser, a Majority of the Controlling Class within 30 days notice of
such assignment. The Collateral Manager shall not be required to obtain such consents or satisfy such condition with respect to a change
of control transaction that is deemed to be an assignment within the meaning of Section 202(a)(1) of the Advisers Act at the
time of any such transaction; provided that, if the Collateral Manager is a Registered Investment Adviser, the Collateral Manager
shall obtain the consent of the Issuer to such assignment, in a manner consistent with SEC Staff interpretations of Section 205(a)(2) of
the Advisers Act.

 

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(b)            The
Collateral Manager may without satisfaction of the Rating Agency Condition, without obtaining the consent of any holder or beneficial
owner of any Note and, so long as such assignment or delegation does not constitute an “assignment” for purposes of Section 205(a)(2) of
the Advisers Act during such time as the Collateral Manager is a Registered Investment Adviser, without obtaining the prior consent of
the Issuer, (1) assign any of its rights or obligations under this Agreement to an Affiliate; provided that such Affiliate
(i) has demonstrated an ability to professionally and competently perform duties similar to those imposed upon the Collateral Manager
pursuant to this Agreement, (ii) has the legal right and capacity to act as Collateral Manager under this Agreement and (iii) shall
not cause the Issuer or the pool of Assets to become required to register under the provisions of the 1940 Act or (2) enter into
(or have its parent enter into) any consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all
of its assets to, another entity; provided further that, at the time of such consolidation, merger, amalgamation or transfer the
resulting, surviving or transferee entity assumes all the obligations of the Collateral Manager under this Agreement generally and the
other entity is solely a continuation of the Collateral Manager in another corporate or similar form and has substantially the same staff;
provided further that such action does not cause the Issuer to be subject to tax in any jurisdiction outside of its jurisdiction
of organization; provided further that the Collateral Manager shall deliver prior notice to the Rating Agency of any assignment,
delegation or combination thereof made pursuant to this sentence. Upon the execution and delivery of any such assignment by the assignee,
the Collateral Manager will be released from further obligations pursuant to this Agreement except with respect to its obligations and
agreements arising under Sections 10, 12(g), 17, 21 through 24, and 26 in respect of acts or
omissions occurring prior to such assignment and except with respect to its obligations under Section 15 after such assignment.

 

(c)            This
Agreement shall not be assigned by the Issuer without (i) the prior written consent of (A) the Collateral Manager, (B) a
Majority of the Subordinated Notes and (C) a Majority of each Class of Secured Notes (voting separately) and (ii) satisfaction
of the Rating Agency Condition, except in the case of assignment by the Issuer (1) to an entity which is a successor to the Issuer
permitted under the Indenture, in which case such successor organization shall be bound hereunder and by the terms of said assignment
in the same manner as the Issuer is bound thereunder or (2) to the Trustee as contemplated by the granting clause of the Indenture.
The Issuer has assigned its rights, title and interest in (but not its obligations under) this Agreement to the Trustee pursuant to the
Indenture; and the Collateral Manager by its signature below agrees to, and acknowledges, such assignment. Upon assignment by the Issuer,
the Issuer shall use reasonable efforts to cause such assignee to execute and deliver to the Collateral Manager such documents as the
Collateral Manager shall consider reasonably necessary to effect fully such assignment.

 

(d)            The
Issuer shall provide the Rating Agency and the Trustee (who shall provide a copy of such notice to the Controlling Class) with notice
of any assignment pursuant to this Section 13.

 

Section 14.         Removal
for Cause.

 

(a)            The
Collateral Manager may be removed for Cause upon 30 Business Days’ prior written notice by the Issuer (“Termination Notice”)
at the direction of a Supermajority of the Controlling Class or a Majority of the Subordinated Notes. Simultaneous with its direction
to the Issuer to remove the Collateral Manager for Cause, a Majority of the Subordinated Notes or a Supermajority of the Controlling
Class, as applicable, shall give to the Issuer a written statement setting forth the reason for such removal (“Statement of
Cause”). The Issuer shall deliver to the Trustee (who shall deliver a copy of such notice to the Holders) a copy of the Termination
Notice and the Statement of Cause within five Business Days of receipt. No such removal shall be effective (A) until the date as
of which a successor Collateral Manager shall have been appointed in accordance with Sections 12(d) and (e) and
delivered an Instrument of Acceptance to the Issuer and the removed Collateral Manager and the successor Collateral Manager has effectively
assumed all of the Collateral Manager’s duties and obligations and (B) unless the Statement of Cause has been delivered to
the Issuer as set forth in this Section 14(a). “Cause” means any of the following:

 

(i)              the
Collateral Manager shall willfully and intentionally violate, or takes any action that it actually knows breaches, any material provision
of this Agreement or the Indenture applicable to it (not including a willful and intentional breach that results from a good faith dispute
regarding reasonable alternative courses of action or interpretation of instructions);

 

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(ii)             the
Collateral Manager shall breach any material provision of this Agreement or any terms of the Indenture applicable to it (other than as
covered by clause (i) and it being understood that failure to meet any Concentration Limitation, Portfolio Tests or Borrowing
Base Condition is not a breach for purposes of this clause (ii)), which breach would reasonably be expected to have a Material
Adverse Effect on any Class of Holders and shall not cure such breach (if capable of being cured) within 30 days after the earlier
to occur of a Responsible Officer of the Collateral Manager receiving notice or having actual knowledge of such breach, unless, if such
breach is remediable, the Collateral Manager has taken action commencing the cure thereof within such 30 day period that the Collateral
Manager believes in good faith will remedy such breach within 60 days after the earlier to occur of a Responsible Officer receiving notice
or having actual knowledge thereof;

 

(iii)            the
failure of any representation, warranty, certification or statement made or delivered by the Collateral Manager in or pursuant to this
Agreement or the Indenture to be correct in any material respect when made which failure (A) would reasonably be expected to have
a Material Adverse Effect on any Class of Holders and (B) is not corrected by the Collateral Manager within 45 days of a Responsible
Officer of the Collateral Manager receiving notice of such failure, unless, if such failure is remediable, the Collateral Manager has
taken action commencing the cure thereof within such 45 day period that the Collateral Manager believes in good faith will remedy such
failure within 75 days after the earlier to occur of a Responsible Officer receiving notice thereof or having actual knowledge thereof;
provided that the delivery of a certificate or other report which corrects any inaccuracy contained in a previous report or certification
shall be deemed to cure such inaccuracy as of the date of delivery of such updated report or certificate and any and all inaccuracies
arising from continuation of such initial inaccurate report or certificate and the sale or other disposition of any asset that did not
satisfy clause (a) of the Investment Criteria shall cure any breach or failure arising therefrom as of the date of such failure;

 

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(iv)            the
Collateral Manager is wound up or dissolved or there is appointed over it or a substantial part of its assets a receiver, administrator,
administrative receiver, trustee or similar officer; or the Collateral Manager (A) ceases to be able to, or admits in writing its
inability to, pay its debts as they become due and payable, or makes a general assignment for the benefit of, or enters into any composition
or arrangement with, its creditors generally; (B) applies for or consents (by admission of material allegations of a petition or
otherwise) to the appointment of a receiver, trustee, assignee, custodian, liquidator or sequestrator (or other similar official) of
the Collateral Manager or of any substantial part of its properties or assets in connection with any winding up, liquidation, reorganization
or other relief under any bankruptcy, insolvency, receivership or similar law, or authorizes such an application or consent, or proceedings
seeking such appointment are commenced without such authorization, consent or application against the Collateral Manager and continue
undismissed for 60 days; (C) authorizes or files a voluntary petition in bankruptcy, or applies for or consents (by admission of
material allegations of a petition or otherwise) to the application of any bankruptcy, reorganization, arrangement, readjustment of debt,
insolvency, dissolution, or similar law, or authorizes such application or consent, or proceedings to such end are instituted against
the Collateral Manager without such authorization, application or consent and are approved as properly instituted and remain undismissed
for 60 days or result in adjudication of bankruptcy or insolvency or the issuance of an order for relief; or (D) permits or suffers
all or any substantial part of its properties or assets to be sequestered or attached by court order and the order (if contested in good
faith) remains undismissed for 60 days;

 

(v)            the
occurrence and continuation of an Event of Default pursuant to Section 5.1(a), (b) or (c) under the
Indenture that results primarily from any material breach by the Collateral Manager of its duties under this Agreement or under the Indenture
which breach or default is not cured within any applicable cure period; or

 

(vi)            (A) the
occurrence of an act by the Collateral Manager that constitutes fraud or criminal activity in the performance of its obligations under
this Agreement (as determined pursuant to a final adjudication by a court of competent jurisdiction) or the Collateral Manager being
indicted for a criminal offense materially related to its business of providing asset management services, or (B) any Responsible
Officer of the Collateral Manager primarily responsible for the performance by the Collateral Manager of its obligations under this Agreement
(in the performance of his or her investment management duties) is indicted for a criminal offense materially related to the business
of the Collateral Manager providing asset management services and continues to have responsibility for the performance by the Collateral
Manager under this Agreement for a period of 30 days after such indictment; provided that any indictment arising from practices
that have become the subject of contemporaneous actions against multiple investment advisers shall not constitute “Cause”
for purposes of this clause (vi) if the Collateral Manager enters into an agreement or settlement with any authority that has commenced
an indictment, which agreement is entered into without prejudice within the 90 days following such indictment.

 

(b)            If
any of the events specified in clauses (a)(i) through (vi) of this Section 14 shall occur, the Collateral Manager
shall give prompt written notice thereof to the Issuer, the Holders, the Trustee and the Rating Agency; provided that if any of
the events specified in Section 14(a)(iv) shall occur, the Collateral Manager shall give written notice thereof to the
Issuer, the Trustee, and the Rating Agency immediately upon the Collateral Manager’s becoming aware of the occurrence of such event.
A Majority of each Class of Notes, voting separately by Class, may waive any event described in Section 14(a)(i), (ii),
(iii), (v) or (vi) as a basis for termination of this Agreement and removal of the Collateral Manager
under this Section 14. In no event will the Trustee be required to determine whether or not Cause exists for the removal
of the Collateral Manager.

 

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(c)            Unless
all Notes of the applicable Class are Collateral Manager Notes, Collateral Manager Notes will be disregarded and have no voting
rights with respect to any vote in respect of (i) the removal of the Collateral Manager for “cause” under this Section 14
and (ii) the waiver of any event constituting “cause” as a basis for termination of this Agreement and removal of
the Collateral Manager, and such Notes will be deemed not to be Outstanding in connection with any such vote, except that only Notes
that a trust officer of the Trustee actually knows to be Collateral Manager Notes shall be so disregarded. Collateral Manager Notes will
have voting rights with respect to all other matters as to which the holders of the Notes of the applicable Classes are entitled to vote.

 

(d)            If
the Collateral Manager is removed pursuant to this Section 14, the Issuer shall have, in addition to the rights and remedies
set forth in this Agreement, all of the rights and remedies available with respect thereto at law or equity.

 

Section 15.         Obligations
of Resigning or Removed Collateral Manager.

 

(a)            On,
or as soon as practicable after, the date any resignation or removal is effective, the Collateral Manager shall (at the Issuer’s
expense):

 

(i)            deliver
to the Issuer or to such other Person as the Issuer shall instruct all property and documents of the Issuer or otherwise relating to
the Assets then in the custody of the Collateral Manager;

 

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(ii)            deliver
to the Trustee an accounting with respect to the books and records delivered to the Trustee or the successor Collateral Manager appointed
pursuant to Section 12; and

 

(iii)            agree
to cooperate with all reasonable requests related to any proceedings, even after its resignation or removal, which arise in connection
with this Agreement or the Indenture, assuming the Collateral Manager has received an indemnity in form reasonably satisfactory to the
Collateral Manager from an entity reasonably satisfactory to the Collateral Manager, and expense reimbursement reasonably satisfactory
to the Collateral Manager.

 

(b)            Notwithstanding
such resignation or removal, the Collateral Manager shall remain liable for its obligations under Section 10 and its acts
or omissions giving rise thereto and for any expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever
(including reasonable attorneys’ fees) in respect of or arising out of a Collateral Manager Breach, subject to the limitations
of liability set forth in Section 10.

 

Section 16.         Representations
and Warranties.

 

(a)            The
Issuer hereby represents and warrants to the Collateral Manager as follows:

 

(i)            The
Issuer is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Delaware,
has the full power and authority to own its assets and the securities proposed to be owned by it and included in the Assets and to transact
the business in which it is presently engaged and is duly qualified under the laws of each jurisdiction where its ownership or lease
of property, the conduct of its business or the performance of this Agreement, the Indenture and the Notes require such qualification,
except for those jurisdictions in which the failure to be so qualified, authorized or licensed would not have a Material Adverse Effect
on the Issuer.

 

(ii)            The
Issuer has full power and authority to execute, deliver and perform all of its obligations under this Agreement, the Indenture and the
Notes and has taken all necessary action to authorize this Agreement and the execution and delivery of this Agreement and the performance
of all obligations imposed upon it hereunder, and, as of the Closing Date, will have taken all necessary action to authorize the Indenture
and the Notes and the execution, delivery and performance of this Agreement, the Indenture and the Notes and the performance of all obligations
imposed upon it hereunder or thereunder. No consent of any other Person including, without limitation, members and creditors of the Issuer,
and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing (other than any filings
pursuant to the UCC required under the Indenture and necessary to perfect any security interest granted thereunder) or declaration with,
any governmental authority is required by the Issuer in connection with the execution, delivery, performance, validity or enforceability
of this Agreement, the Indenture or the Notes or the obligations imposed upon the Issuer hereunder and thereunder. This Agreement has
been, and each instrument and document to which the Issuer is a party required hereunder or under the Indenture or the Notes will be,
executed and delivered by a Responsible Officer of the Issuer, and this Agreement constitutes, and each instrument or document required
hereunder to which the Issuer is a party, when executed and delivered hereunder, will constitute, the legally valid and binding obligation
of the Issuer enforceable against the Issuer in accordance with its terms, subject, as to enforcement, (A) to the effect of bankruptcy,
receivership, insolvency, winding-up or similar laws affecting generally the enforcement of creditors’ rights as such laws would
apply in the event of any bankruptcy, receivership, insolvency, winding-up or similar event applicable to the Issuer and (B) to
general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity).

 

(iii)            The
execution, delivery and performance of this Agreement and the documents and instruments required hereunder and under the Indenture will
not violate any provision of any existing law or regulation binding on the Issuer, or any order, judgment, award or decree of any court,
arbitrator or governmental authority binding on the Issuer, or the Organizational Instruments of, or any securities issued by, the Issuer
or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Issuer is a party or by which
the Issuer or any of its assets may be bound, the violation of which would have a Material Adverse Effect on the Issuer, and will not
result in or require the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of
any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking (other than the lien of the Indenture).

 

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(iv)            The
Issuer is not in violation of its Organizational Instruments or in breach or violation of or in default under any contract or agreement
to which it is a party or by which it or any of its property may be bound, or any applicable statute or any rule, regulation or order
of any court, government agency or body having jurisdiction over the Issuer or its properties, the breach or violation of which or default
under which would have a material adverse effect on the validity or enforceability of this Agreement or the provisions of the Indenture
applicable to the Issuer, or the performance by the Issuer of its duties hereunder or thereunder.

 

(v)            The
Issuer acknowledges that it has received Part 2A, and relevant Part 2B, of the Collateral Manager’s Form ADV filed
with the Securities and Exchange Commission, as required by Rule 204-3 under the Advisers Act, prior to execution of this Agreement.

 

(b)            The
Collateral Manager hereby represents and warrants to the Issuer, as of the date hereof, as follows:

 

(i)            The
Collateral Manager is a limited liability company duly organized and validly existing and in good standing under the laws of the State
of Delaware and has full power and authority to own its assets and to transact the business in which it is currently engaged, and is
duly qualified to do business and is in good standing under the laws of each jurisdiction where the performance of this Agreement would
require such qualification, except for those jurisdictions in which the failure to be so qualified, authorized or licensed would not
have a material adverse effect on the ability of the Collateral Manager to perform its obligations under this Agreement and the provisions
of the Indenture applicable to the Collateral Manager, or on the validity or enforceability of this Agreement and the provisions of the
Indenture applicable to the Collateral Manager.

 

(ii)            The
Collateral Manager has full power and authority to execute and deliver this Agreement and to perform all of its obligations required
hereunder and under the provisions of the Indenture applicable to the Collateral Manager, and has taken all necessary action to authorize
this Agreement on the terms and conditions hereof and the execution and delivery of this Agreement and the performance of all obligations
required hereunder and under the terms of the Indenture applicable to the Collateral Manager. No consent of any other Person, including,
without limitation, members and creditors of the Collateral Manager, and no license, permit, approval or authorization of, exemption
by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Collateral Manager
or any Affiliate thereof in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this
Agreement or the obligations imposed on the Collateral Manager hereunder or under the terms of the Indenture applicable to the Collateral
Manager other than those which have been obtained or made. No representation is made herein with respect to the requirements of state
securities laws or regulations. This Agreement has been executed and delivered by a Responsible Officer of the Collateral Manager, and
this Agreement constitutes the valid and legally binding obligations of the Collateral Manager enforceable against the Collateral Manager
in accordance with its terms, subject, as to enforcement, (A) to the effect of bankruptcy, insolvency, winding-up or similar laws
affecting generally the enforcement of creditors’ rights as such laws would apply in the event of any bankruptcy, receivership,
insolvency, winding-up or similar event applicable to the Collateral Manager and (B) to general equitable principles (whether enforceability
of such principles is considered in a proceeding at law or in equity).

 

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(iii)            The
execution, delivery and performance of this Agreement and the terms of the Indenture applicable to the Collateral Manager will not violate
any provision of any existing law or regulation binding on the Collateral Manager (except that no representation is made herein with
respect to the requirements of state securities laws or regulations), or any order, judgment, award or decree of any court, arbitrator
or governmental authority binding on the Collateral Manager, or the Organizational Instruments of, or any securities issued by, the Collateral
Manager or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Collateral Manager
is a party or by which the Collateral Manager or any of its assets may be bound, the violation of which would have a material adverse
effect on the business, operations, assets or financial condition of the Collateral Manager or which would reasonably be expected to
adversely affect in a material manner its ability to perform its obligations hereunder or under the Indenture.

 

(iv)            There
is no charge, investigation, action, suit or proceeding before or by any court pending or, to the actual knowledge of the Collateral
Manager, threatened, that, if determined adversely to the Collateral Manager, would have a material adverse effect upon the performance
by the Collateral Manager of its duties under this Agreement or the provisions of the Indenture applicable to the Collateral Manager.

 

(c)            The
Collateral Manager makes no representation, express or implied, with respect to the Issuer or the disclosure with respect to the Issuer.

 

(d)            The
Collateral Manager is a “registered investment adviser” for purposes of the Advisers Act.

 

Section 17.         Limited
Recourse; No Petition.

 

The Collateral Manager hereby
agrees that it shall not institute against, or join any other Person in instituting against the Issuer any bankruptcy, reorganization,
arrangement, insolvency, moratorium or liquidation proceedings or other proceedings under United States federal or state or other bankruptcy
or similar laws until at least one year (or, if longer, the applicable preference period then in effect) plus one day after payment in
full of all Notes issued under the Indenture (and any other debt obligations of the Issuer that have been rated upon issuance by any
Rating Agency at the request of the Issuer); provided that nothing in this Section 17 shall preclude the Collateral
Manager from (A) taking any action prior to the expiration of such applicable preference period in (x) any case or proceeding
voluntarily filed or commenced by the Issuer or (y) any insolvency proceeding filed or commenced against the Issuer by any Person
other than the Collateral Manager or (B) commencing against the Issuer or any of its properties any legal action that is not a bankruptcy,
reorganization, arrangement, insolvency, moratorium or liquidation proceeding. The Collateral Manager hereby acknowledges and agrees
that the Issuer’s obligations hereunder will be solely the limited liability company obligations of the Issuer, and that the Collateral
Manager will not have any recourse to any of the authorized persons, managers, officers, employees, members or Affiliates of the Issuer
with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any Transactions contemplated
hereby. Notwithstanding any other provisions hereof or of any other transaction document, recourse in respect of any obligations of the
Issuer to the Collateral Manager hereunder or thereunder will be limited to the Assets as applied in accordance with the Priority of
Payments pursuant to the Indenture and, on the exhaustion of the Assets, all claims against the Issuer arising from this Agreement or
any Transaction Document or any Transactions contemplated hereby or thereby shall be extinguished and shall not revive. This Section 17
shall survive the termination of this Agreement for any reason whatsoever.

 

     30

     

    

 

Section 18.         Notices.

 

Unless expressly provided
otherwise herein, all notices, requests, demands and other communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of registered or
certified mail, postage prepaid, return receipt requested, or, in the case of telecopier notice, when received in legible form, addressed
as set forth below:

 

(a)            If
to the Issuer:

 

Golub Capital BDC 3 ABS 2022-1 LLC

c/o Golub Capital BDC 3, Inc.

200 Park Avenue, 25th Floor

New York, New York 10166

 

with a copy to:

 

GC Advisors LLC

200 Park Avenue, 25th Floor

New York, New York 10166

 

(b)            If
to the Collateral Manager:

 

GC Advisors LLC

200 Park Avenue, 25th Floor

New York, New York 10166

 

with a copy to:

 

Dechert LLP

300 S. Tryon Street

Suite 800

Charlotte, NC 28202

Telephone No.: (704) 339-3100

Telecopier No.: (704) 339-3101

Attention: John Timperio

 

     31

     

    

 

(c)            If
to the Trustee:

 

Deutsche Bank Trust Company Americas,

1761 East St. Andrew Place

Santa Ana, CA92705-4934

Attention: Structured Credit Services – GOLUB CAPITAL
BDC 3 ABS 2022-1

 

(d)            If
to the Holders:

 

At their respective addresses
set forth in the Register, as applicable.

 

Any party may change the
address or telecopy number to which communications or copies directed to such party are to be sent by giving notice to the other parties
of such change of address or telecopy number in conformity with the provisions of this Section 18 for the giving of notice.

 

Section 19.         Binding
Nature of Agreement; Successors and Assigns.

 

This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns as provided herein.

 

Section 20.         Entire
Agreement; Amendment.

 

(a)            This
Agreement and the Indenture contain the entire agreement and understanding among the parties hereto with respect to the subject matter
hereof, and supersede all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral
or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof and thereof control and supersede
any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

 

(b)            This
Agreement may not be modified or amended other than by an agreement in writing executed by each of the parties hereto. No amendment to
this Agreement may, without notice to the Rating Agency and the prior written consent of a Majority of the Controlling Class and
the Holders of the Subordinated Notes, (a) modify the definition of the term “Cause,” (b) modify the Collateral
Management Fee, including the method for calculation of any component of the Collateral Management Fee or any definition in this Agreement
directly related to the Collateral Management Fee (I) in connection with the appointment of a successor Collateral Manager or (II) in
any other circumstance or (c) modify the Class or Classes or the percentage of the Aggregate Outstanding Amount of any Class that
has the right to remove the Collateral Manager, consent to any assignment of this Agreement or nominate or approve any successor collateral
manager. This Agreement may be amended for any other purpose upon notice to the Rating Agency and 10 (ten) days’ prior written
notice to the Controlling Class and the Subordinated Notes without the consent of the Holders of any Notes; provided that,
(i) the prior written consent of a Majority of the Subordinated Notes shall be required if any such amendment would have a material
adverse effect on the Subordinated Notes and (ii) the prior written consent of a Majority of the Controlling Class shall be
required if any such amendment would have a material adverse effect on the Controlling Class. The Issuer shall provide the Holders with
notice of any amendment to this Agreement.

 

     32

     

    

 

Section 21.         Governing
Law.

 

THIS AGREEMENT AND ANY DISPUTE
ARISING UNDER OR RELATED TO THIS AGREEMENT (WHETHER IN CONTRACT, TORT OR OTHERWISE) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARDS TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN AS SET FORTH IN SECTIONS 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 22.         Submission
to Jurisdiction.

 

With respect to any suit,
action or proceedings relating to this Agreement or any matter between the parties arising under or in connection with this Agreement
(“Proceedings”), each party irrevocably: (i) submits to the non-exclusive jurisdiction of the Supreme Court of
the State of New York sitting in the Borough of Manhattan and the United States District Court for the Southern District of New York,
and any appellate court from any thereof; and (ii) waives any objection which it may have at any time to the laying of venue of
any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further
waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. Nothing
in this Agreement precludes any of the parties from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings
in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.

 

The Collateral Manager irrevocably
consents to the service of any and all process in any action or proceeding by the mailing or delivery of copies of such process to it
at the office to which notices are sent to it. The Issuer hereby irrevocably designates and appoints CT Corporation System as the agent
of the Issuer to receive on its behalf service of all process brought against it with respect to any such action or proceeding in any
such court in the State of New York, such service being hereby acknowledged by the Issuer to be effective and binding on it in every
respect. If for any reason such agent shall cease to be available to act as such, then the Issuer shall promptly designate a new agent
in the City of New York.

 

Section 23.         Waiver
of Jury Trial.

 

EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
PROCEEDING.

 

Section 24.         Conflict
with the Indenture.

 

In respect of any conflict
between the terms of this Agreement and the Indenture or actions required under the terms of the Indenture and the terms of this Agreement,
the terms of the Indenture shall control.

 

     33

     

    

 

Section 25.         Subordination;
Assignment of Agreement.

 

The Collateral Manager agrees
that the payment of all amounts to which it is entitled pursuant to this Agreement shall be subordinated to the extent set forth in,
and the Collateral Manager agrees to be bound by the provisions of, Article XI of the Indenture as if the Collateral Manager were
a party to the Indenture and hereby consents to the assignment of this Agreement as provided in Section 15.1 of the Indenture.

 

Section 26.         Indulgences
Not Waivers.

 

Neither the failure nor any
delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of
the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect
to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

Section 27.         Costs
and Expenses.

 

Except as otherwise agreed
to by the parties hereto, the costs and expenses (including the fees and disbursements of counsel and accountants but excluding all overhead
costs and employees’ salaries) of the Collateral Manager and of the Issuer incurred in connection with the negotiation and preparation
of and the execution of this Agreement and any amendment hereto, and all matters incidental thereto, shall be borne by the Issuer. The
Issuer shall reimburse the Collateral Manager for all fees, costs, expenses, liabilities and obligations relating to the Issuer, businesses
or actual or prospective investments, including all such items in the form of or relating to the following: (i) Organization Costs;
(ii) internally or externally provided legal services; accounting, auditing, tax, and other services of independent certified public
accountants; consulting, administration, and other third-party professional services; (iii) banking, custodial, trustee, record
keeping, registered agent, and similar services; (iv) the structuring, identifying, sourcing, negotiating, diligencing, researching,
financing, purchasing, holding, monitoring, managing, valuing, obtaining credit ratings for, disposing of or exiting actual or prospective
investments (including expenses related to brokerage services), and related environmental, social and governance matters; (v) filing,
title, transfer, and similar charges; and administrative, compliance or regulatory filings or reports (excluding non-Issuer-related filings
and reports attributable to the Collateral Manager’s ongoing registration as an investment adviser); (vi) taxes and other
governmental assessments against the Issuer; tax audits and similar proceedings; and services of the partnership representative for tax
matters; (vii) meetings, communications, capital calls, distribution, defaults, or reports with, to, or of Holders, including the
preparation and distribution of financial statements, tax returns and reports to Holders of the Notes; (viii) any web portal, extranet
tools, computer software (including accounting, compliance, administration, investor reporting and investment opportunity tracking or
allocation systems), or other administrative or reporting tools; (ix) any conflicts committee or other conflicts resolution procedure;
(x) actual or prospective indebtedness or guarantees, and all related fees and repayment of principal and interest; (xi) amendments
and waivers of, consents under, and compliance with this Agreement, the other Transaction Documents and other constitutive documents
(including in connection with any refinancing); (xii) actual or prospective transfers or other modifications of interests in the
Issuer; (xiii) the termination of the Issuer; (xiv) compliance and regulatory matters, including tax information exchange privacy,
data protection, know-your-customer, anti-money laundering, sanctions, or anti-terrorism laws and protecting confidential information;
(xv) indemnification or actual or threatened litigation, other dispute resolution processes, or governmental inquiries or investigations,
including any judgments, fines, penalties, amounts paid in settlement, attorneys’ fees and costs of investigation paid in connection
therewith, subject to the limits on indemnification in this Agreement; (xvi) insurance, including directors and officers liability,
management liability, cybersecurity, errors and omissions liability, crime coverage, and general partner liability premiums, and related
costs and expenses; (xvii) any fees, expenses or other amounts payable to the Rating Agency; (xviii) any out-of-pocket expenses
incurred by the Collateral Manager or the Retention Holder in connection with complying with the U.S. Risk Retention Rules, the E.U.
Securitization Laws and/or the U.K. Securitization Laws (excluding the purchase price of any Notes acquired by it to comply with the
U.S. Risk Retention Rules, the E.U. Securitization Laws and/or the U.K. Securitization Laws); (xix) travel, lodging, meals or entertainment
relating to any of the foregoing; (xx) fees and expenses incurred in obtaining the Market Value of Collateral Obligations (including
without limitation fees payable to any nationally recognized pricing service); and (xxi) as otherwise agreed upon by the Issuer
and the Collateral Manager. Expenses set forth above that are not otherwise attributable to specific advisory clients, such as expenses
for transactions that are not consummated, could be charged to the Issuer based on the proportion that the fair value of the assets of
the Issuer bears to the fair value of assets of all applicable advisory clients of the Collateral Manager or by using another reasonable
manner in the discretion of the Collateral Manager. Allocation of such costs and expenses among the Issuer and other applicable investment
funds and accounts managed by the Collateral Manager and its Affiliates may be based on the proportion that the fair value of the Issuer’s
assets bears to the fair value of assets of all such applicable funds and accounts, or any other reasonable method in the discretion
of the Collateral Manager. The fees and expenses payable to the Collateral Manager on any Payment Date are payable only as described
under the Priority of Payments.

 

     34

     

    

 

Section 28.         Third
Party Beneficiary.

 

The parties hereto agree
that the Trustee on behalf of the Secured Parties shall be a third party beneficiary of this Agreement, and shall be entitled to rely
upon and enforce such provisions of this Agreement to the same extent as if it were a party hereto. For the avoidance of doubt, the Holders
will not be third party beneficiaries of this Agreement.

 

Section 29.         Titles
Not to Affect Interpretation.

 

The titles of paragraphs
and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to
be used in the construction or interpretation hereof.

 

     35

     

    

 

Section 30.         Execution
in Counterparts; Electronic Signatures.

 

This Agreement may be executed
in any number of counterparts by telegraphic or other written form of communication, each of which shall be deemed to be an original
as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement
shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories. This Agreement may be executed and delivered by electronic signatures and the electronic signatures
appearing on this Agreement is the same as handwritten signatures for the purposes of validity, enforceability and admissibility.

 

Section 31.         Provisions
Separable.

 

The provisions of this Agreement
are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

Section 32.         Gender.

 

Words used herein, regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

 

Section 33.         Communications
with the Rating Agency.

 

The Collateral Manager shall,
on behalf of the Issuer, take all steps required for the Issuer to comply with its obligations under the Indenture and under the rating
application letters and any related side letters, in each case in respect of Rule 17g-5 under the Exchange Act.

 

     36

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first written above.

 

		Golub Capital
                                  BDC 3 ABS 2022-1 LLC, as Issuer
	 	 
	 	By: 	Golub Capital BDC 3, Inc.,
	 	 	its designated manager
	 	 	 
	 	By:	/s/ Christopher C. Ericson
	 	 	Name:	Christopher C. Ericson
	 	 	Title:	Chief Financial Officer
	 	 	 
	 	GC ADVISORS LLC,
	 	 	as Collateral Manager
	 	 	 
	 	By:	/s/ Joshua M. Levinson
	 	 	Name:	Joshua M. Levinson
	 	 	Title:	Co-General Counsel & Chief Compliance OfficerExhibit 10.4 

 

EXECUTION
VERSION

 

 

 

MASTER LOAN SALE AGREEMENT

 

by and among

 

GOLUB
CAPITAL BDC 3, INC.,

as the Seller,

 

GC
Advisors LLC,

as the Closing Date Seller,

 

Golub
Capital BDC 3 ABS 2022-1 LLC,

as the Buyer,

 

and

 

Golub
Capital 3 Holdings LLC,

as Holdings Subsidiary

 

Dated as of January 25, 2022

 

 

 

 

     

     

    

 

Table
of Contents

 

Page

 

	 	 	 	 	 	 
	ARTICLE I DEFINITIONS 	 	1
	 	 	 	 	 	 
	 	Section 1.01	 	Definitions.	 	1
	 	 	 	 	 	 
	 	Section 1.02	 	Other Terms.	 	4
	 	 	 	 	 	 
	 	Section 1.03	 	Computation of Time Periods.	 	4
	 	 	 	 	 	 
	 	Section 1.04	 	Interpretation.	 	4
	 	 	 	 	 	 
	 	Section 1.05	 	References.	 	5
	 	 	 	 	 	 
	 	Section 1.06	 	Calculations.	 	5
	 	 	 	 	 	 
	ARTICLE II TRANSFER OF LOAN ASSETS	 	6
	 	 	 	 	 	 
	 	Section 2.01	 	Sale, Transfer and Assignment.	 	6
	 	 	 	 	 	 
	 	Section 2.02	 	Purchase Price.	 	9
	 	 	 	 	 	 
	 	Section 2.03	 	Payment of Purchase Price.	 	9
	 	 	 	 	 	 
	 	Section 2.04	 	Allocation to Originator.	 	9
	 	 	 	 	 	 
	 	Section 2.05	 	[Reserved].	 	10
	 	 	 	 	 	 
	 	Section 2.06	 	[Reserved].	 	10
	 	 	 	 	 	 
	 	Section 2.07	 	Limitation on Sales to Seller and Affiliates.	 	10
	 	 	 	 	 	 
	ARTICLE III CONDITIONS PRECEDENT 	 	10
	 	 	 	 	 	 
	 	Section 3.01	 	Conditions Precedent	 	10
	 	 	 	 	 	 
	 	Section 3.02	 	Conditions Precedent to all Purchases.	 	10
	 	 	 	 	 	 
	 	Section 3.03	 	Release of Excluded Amounts.	 	11
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES 	 	11
	 	 	 	 	 	 
	 	Section 4.01	 	Representations and Warranties Regarding the Seller.	 	11
	 	 	 	 	 	 
	 	Section 4.02	 	Representations and Warranties of the Seller Relating to the Agreement and the Collateral.	 	14
	 	 	 	 	 	 
	 	Section 4.03	 	Representations and Warranties Regarding the Closing Date Seller.	 	15
	 	 	 	 	 	 
	 	Section 4.04	 	Representations and Warranties of the Closing Date Seller Relating to the Agreement and the Collateral.	 	17
	 	 	 	 	 	 
	 	Section 4.05	 	Representations and Warranties Regarding the Buyer.	 	17
	 	 	 	 	 	 
	ARTICLE V MISCELLANEOUS 	 	19
	 	 	 	 	 	 
	 	Section 5.01	 	Amendments and Waivers.	 	19
	 	 	 	 	 	 
	 	Section 5.02	 	Notices, Etc.	 	19
	 	 	 	 	 	 
	 	Section 5.03	 	Severability of Provisions.	 	20

 

    -i-  

     

    

 

Table
of Contents

(continued)

 

Page

 

	 	Section 5.04	 	GOVERNING LAW; JURY WAIVER.	 	20
	 	 	 	 	 	 
	 	Section 5.05	 	Electronic Signatures; Counterparts.	 	21
	 	 	 	 	 	 
	 	Section 5.06	 	Bankruptcy Non-Petition and Limited Recourse; Claims.	 	21
	 	 	 	 	 	 
	 	Section 5.07	 	Binding Effect; Assignability.	 	21
	 	 	 	 	 	 
	 	Section 5.08	 	Headings and Exhibits.	 	21

 

    -ii-  

     

    

 

SCHEDULE

 

		Schedule	 1	Collateral Obligations

 

    -iii-  

     

    

 

MASTER LOAN SALE AGREEMENT

 

THIS MASTER LOAN SALE AGREEMENT,
dated as of January 25, 2022 (as amended, modified, supplemented or restated from time to time, this “Agreement”),
is among GOLUB CAPITAL BDC 3, INC., a Maryland corporation (in its capacity as seller
hereunder, together with its successors and assigns, the “Seller”), GC ADVISORS LLC, a Delaware limited liability company
(together with its successors and assigns in its capacity as the closing date seller hereunder, the “Closing Date Seller”),
GOLUB CAPITAL BDC 3 ABS 2022-1 LLC, a Delaware limited liability company (together with
its successors and assigns, the “Buyer”), and GOLUB CAPITAL 3 HOLDINGS LLC, a Delaware limited liability company (together
with its successors and assigns, the “Holdings Subsidiary”).

 

WHEREAS, in the regular
course of its business, the Seller originates and/or otherwise acquires Collateral Obligations; and

 

WHEREAS, contemporaneously
on the Closing Date, the Seller desires to acquire from the Holdings Subsidiary, the Closing Date Seller desires to acquire from the Seller
and the Buyer desires to acquire from the Closing Date Seller the Collateral Obligations listed on Schedule 1 hereto, together
with certain related property as more fully described herein and included as part of the “Assets” in the Indenture, dated
as of January 25, 2022 (as amended, modified, restated or supplemented from time to time, the “Indenture”), among
the Buyer, as issuer, and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”).

 

NOW, THEREFORE, for
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 1.01     Definitions.

 

Capitalized terms used but
not defined in this Agreement shall have the meanings attributed to such terms in the Indenture, unless the context otherwise requires.
As used herein, the following defined terms shall have the following meanings:

 

“Agreement”
has the meaning provided in the first paragraph of this Agreement.

 

“Authority”
means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body,
public body, administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of government, including the FINRA, the SEC, the stock
exchanges, any Federal, state, territorial, county, municipal or other government or governmental agency, arbitrator, board, body, branch,
bureau, commission, court, department, instrumentality, master, mediator, panel, referee, system or other political unit or subdivision
or other entity of any of the foregoing, whether domestic or foreign.

 

     

     

    

 

“Authorized Officer”
means, with respect to the Seller or the Closing Date Seller, as applicable, any Person who is authorized to act for the Seller or the
Closing Date Seller in matters relating thereto, and binding thereupon, in connection with the transactions contemplated by this Agreement
and the other Transaction Documents to which such Person is a party.

 

“Buyer”
has the meaning provided in the first paragraph of this Agreement.

 

“Closing Date Seller”
has the meaning provided in the first paragraph of this Agreement.

 

“Collateral”
has the meaning provided in Section 2.01.

 

“Dodd-Frank”
means the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

“Excluded Amounts”
means (a) any amount received by, on or with respect to any Collateral Obligation in the Collateral, which amount is attributable
to the payment of any tax, fee or other charge imposed by any Authority on such Collateral Obligation, (b) any amount representing
escrows relating to taxes, insurance and other amounts in connection with any Collateral Obligation which is held in an escrow account
for the benefit of the related Obligor and the secured party (other than the Seller in its capacity as lender with respect to such Collateral
Obligation) pursuant to escrow arrangements, (c) any Retained Fee retained by the Person(s) entitled thereto in connection with
the origination of any Collateral Obligation and (d) any Equity Security related to any Collateral Obligation that the Seller determines
will not be transferred by the Seller in connection with the sale of any related Collateral Obligation hereunder.

 

“Governmental Authorizations”
means all franchises, permits, licenses, approvals, consents, orders and other authorizations of all Authorities.

 

“Governmental Filings”
means all filings, including franchise and similar tax filings, and the payment of all fees, assessments, interests and penalties associated
with such fillings with all Authorities.

 

“Holdings Subsidiary”
has the meaning provided in the first paragraph of this Agreement.

 

“Income Collections”
has the meaning set forth in Section 2.01(c).

 

“Indenture”
has the meaning provided in the Preamble to this Agreement.

 

“Lien”
means any grant of a security interest in, mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever,
including, without limitation, any conditional sale or other title retention agreement, and any financing lease having substantially the
same economic effect as any of the foregoing (including any UCC financing statement or any similar instrument filed against a Person’s
assets or properties).

 

“Loan List”
means the list of Collateral Obligations set forth on Schedule 1, as such list may be amended, supplemented or modified from time
to time in accordance with this Agreement.

 

     -2- 

     

    

 

“Material Adverse
Effect” means, with respect to the Person making the related representation and warranty or agreeing to the related covenant,
any event that has, or could reasonably be expected to have, a material adverse effect on (a) the business, assets, financial condition
or operations of such Person (b) the ability of such Person to perform its obligations under the Transaction Documents to which it
is a party or (c) the rights, interests, remedies or benefits (taken as a whole) available to the Trustee under the Transaction Documents.

 

“Net Purchased Loan
Balance” means, as of any date of determination, an amount equal to (a) the sum of (i) the Aggregate Principal Balance
of all Collateral Obligations sold and/or contributed to the Buyer by the Seller (directly or indirectly) hereunder prior to such date,
calculated as of the respective Cutoff Dates of such Collateral Obligations plus (ii) the Aggregate Principal Balance of all
Collateral Obligations acquired by the Buyer other than from the Seller prior to such date, in each case calculated as of the date of
the Buyer’s acquisition thereof minus (b) the Aggregate Principal Balance of all Collateral Obligations sold to, or
otherwise transferred to, the Seller prior to such date.

 

“Payment in Full”
means payment in full of the Notes and of all other obligations then due and payable by the Buyer pursuant to and in accordance with the
Indenture.

 

“Payment in Full
Date” means the date on which a Payment in Full occurs or the Indenture is otherwise satisfied and discharged in accordance
with its terms.

 

“Permitted Liens”
means, with respect to the interest of the Seller, the Closing Date Seller and the Buyer in the Collateral Obligations, as applicable:
(i) security interests, liens and other encumbrances in favor of the Closing Date Seller or of the Buyer, as applicable, pursuant
to this Agreement, (ii) security interests, liens and other encumbrances in favor of the Trustee created pursuant to the Indenture
and/or this Agreement, (iii) with respect to agented Collateral Obligations, security interests, liens and other encumbrances in
favor of the lead agent, the collateral agent or the paying agent on behalf of all holders of indebtedness of such Obligor under the related
facility, (iv) with respect to any Equity Security, any security interests, liens and other encumbrances granted on such Equity Security
to secure indebtedness of the related Obligor and/or any security interests, liens and other rights or encumbrances granted under any
governing documents or other agreement between or among or binding upon the Buyer as the holder of equity in such Obligor and (v) security
interests, liens and other encumbrances for taxes, assessments or governmental charges or claims that are not yet delinquent or that are
being contested in good faith by appropriate proceedings promptly instituted and diligently concluded (provided that any reserve
or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor).

 

“Purchase”
means a purchase or other acquisition of Collateral by the Buyer from the Closing Date Seller and by the Closing Date Seller from the
Seller pursuant to Section 2.01.

 

“Purchase Price”
has the meaning provided in Section 2.02.

 

     -3- 

     

    

 

“Related Contracts”
means all credit agreements, indentures, notes, security agreements, leases, financing statements, guaranties, and other contracts, agreements,
instruments and other papers evidencing, securing, guaranteeing or otherwise relating to any Collateral Obligation or Eligible Investment
or other investment with respect to any Collateral or proceeds thereof (including the related Underlying Instruments), together with all
of the Seller’s or the Closing Date Seller’s, as applicable right, title and interest in, to and under all property or assets
securing or otherwise relating to any Collateral Obligation or Eligible Investment or other investment with respect to any Collateral
or proceeds thereof or of any Related Contract.

 

“Retained Fee”
means any reasonable origination, structuring or similar closing fee charged by the Person originating a loan on behalf of its lenders
for services it has performed in connection with such origination, which is not customarily made available to the lenders as part of their
return with respect to such loan, and provided such Person is entitled to retain the same in accordance with applicable law.

 

“Securities Act”
means the United States Securities Act of 1933, as amended.

 

“Seller”
has the meaning provided in the first paragraph of this Agreement.

 

“Trustee”
has the meaning provided in the Preamble to this Agreement.

 

Section 1.02     Other
Terms.

 

All accounting terms used
but not specifically defined herein shall be construed in accordance with generally accepted accounting principles in the United States.
The symbol “$” shall mean the lawful currency of the United States of America. 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 1.03     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,” the words “to” and “until” each mean “to but excluding”.

 

Section 1.04     Interpretation.

 

In this Agreement, unless
a contrary intention appears:

 

		(i)	the singular number includes the plural number and vice versa;

 

		(ii)	reference to any Person includes such Person’s successors and assigns but, if applicable, only if
such successors and assigns are permitted by the Transaction Documents;

 

(iii)          references
to “including” means “including, without limitation”;

 

(iv)          reference
to day or days without further qualification means calendar days;

 

(v)           unless
otherwise stated, reference to any time means New York, New York time;

 

     -4- 

     

    

 

(vi)          references
to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible form;

 

(vii)         reference
to any agreement (including any Transaction Document), document or instrument means such agreement, document or instrument as amended,
modified, supplemented, replaced, restated, waived or extended and in effect from time to time in accordance with the terms thereof and,
if applicable, the terms of the other Transaction Documents, and reference to any promissory note includes any promissory note that is
an extension or renewal thereof or a substitute or replacement therefore;

 

(viii)        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; and

 

(ix)           reference
to any gender includes each other gender.

 

Section 1.05     References.

 

All section references (including
references to the preamble), unless otherwise indicated, shall be to Sections (and the preamble) in this Agreement.

 

Section 1.06     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.

 

     -5- 

     

    

 

ARTICLE II

 

TRANSFER
OF LOAN ASSETS

 

Section 2.01     Sale,
Transfer and Assignment.

 

(a)            Transfer
from the Seller to the Closing Date Seller on the Closing Date. Subject to and upon the terms and conditions set forth in this Agreement
(including the conditions to purchase set forth in Article III), on the Closing Date, the Seller hereby sells, transfers,
assigns, sets over and otherwise conveys to the Closing Date Seller and the Closing Date Seller 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 (including all
obligations of the Seller as lender to fund any Revolving Loan or Delayed Draw Loan conveyed by the Seller to the Closing Date Seller
hereunder which obligations the Closing Date Seller hereby assumes) in the property identified in clauses (i)-(v) below
and all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright licenses,
equipment, fixtures, general intangibles, instruments, commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit
rights, accessions, proceeds and other property consisting of, arising out of, or related to any of the following (in each case excluding
the Excluded Amounts) (collectively, the “Collateral”):

 

(i)            the
Collateral Obligations listed on each Loan List delivered on the Closing Date by the Seller to the Closing Date Seller (as set forth on
Schedule 1) and all monies due, to become due or paid in respect of such Collateral Obligations on and after the Closing Date,
including but not limited to all collections on such Collateral Obligations and other recoveries thereon, in each case as they arise after
the Closing Date;

 

(ii)           all
Liens with respect to the Collateral Obligations referred to in clause (i) above;

 

(iii)          all
Related Contracts with respect to the Collateral Obligations referred to in clause (i) above;

 

(iv)          all
collateral security granted under any Related Contracts; and

 

(v)           all
income and proceeds of the foregoing.

 

(b)           Transfers
from the Closing Date Seller to the Buyer on the Closing Date. Subject to and upon the terms and conditions set forth in this Agreement
(including the conditions to purchase set forth in Article III), on the Closing Date, with respect to the Collateral conveyed
by the Seller to the Closing Date Seller as set forth on Schedule 1, the Closing Date Seller hereby sells, transfers, assigns,
sets over and otherwise conveys to the Buyer, and the Buyer hereby purchases and takes from the Closing Date Seller all right, title and
interest (whether now owned or hereafter acquired or arising and wherever located) of the Closing Date Seller (including all obligations
of the Closing Date Seller as lender to fund any Revolving Loan or Delayed Draw Loan conveyed by the Closing Date Seller to Buyer hereunder
which obligations Buyer hereby assumes) in such Collateral.

 

(c)           [Reserved].

 

(d)           From
and after the Closing Date, the Collateral listed on the relevant Loan List shall be deemed to be Collateral hereunder.

 

(e)           On
the Closing Date with respect to the Collateral to be acquired by the Buyer on that date, the Seller shall be deemed to, and hereby does,
certify to the Buyer and to the Trustee, on behalf of the Secured Parties, as of the Closing Date, that each of the representations and
warranties in Section 4.02 is true and correct in all material respects as of the Closing Date.

 

(f)            Except
as specifically provided in this Agreement, the sale and purchase of Collateral under this Agreement shall be without recourse to the
Seller or the Closing Date Seller; it being understood that the Seller and the Closing Date Seller shall be liable (individually and not
jointly) to the Buyer for all representations and warranties made by the Seller and the Closing Date Seller, respectively, pursuant to
the terms of this Agreement, all of which obligations are limited so as not to constitute recourse to the Seller or the Closing Date Seller
for the credit risk of the Obligors.

 

     -6- 

     

    

 

(g)          In
connection with each Purchase of Collateral from the Closing Date Seller to the Buyer on the Closing Date as contemplated by this Agreement,
the Buyer hereby directs the Closing Date Seller to, and the Closing Date Seller hereby directs the Seller to, and the Seller agrees that
it will, Deliver in accordance with the Indenture, or cause to be Delivered in accordance with the Indenture (on behalf of the Buyer),
to the Custodian (with a copy to the Trustee), each Collateral Obligation being transferred to the Buyer on the Closing Date in accordance
with the applicable provisions of the Indenture.

 

(h)          The
Seller and/or the Closing Date Seller, as applicable, shall take such action requested by the Buyer, from time to time hereafter, that
may be necessary or appropriate to ensure that the Buyer has an enforceable ownership interest and its assigns under the Indenture have
an enforceable and perfected security interest in the Collateral purchased by the Buyer as contemplated by this Agreement.

 

(i)            In
connection with the Purchase by the Buyer of the Collateral as contemplated by this Agreement, with respect to the Collateral Purchased
on the Closing Date in accordance with this Agreement, each of the Seller and the Closing Date Seller, as applicable, agrees that it will,
at its own expense, indicate clearly and unambiguously in its computer files on and after the Closing Date that such Collateral has been
purchased by the Closing Date Seller and/or the Buyer, as applicable, and the Seller agrees that it will indicate clearly and unambiguously
on and after the Closing Date in its financial statements that such Collateral is owned by the Buyer and is not available to pay creditors
of the Seller.

 

(j)            The
Seller agrees to deliver to the Closing Date Seller and the Buyer on or before the Closing Date a computer file containing a true, complete
and correct Loan List (which shall contain the related Principal Balance, outstanding principal balance, loan number and Obligor name
for each Collateral Obligation) as of the Closing Date. Such file or list shall be marked as Schedule 1 to this Agreement, shall
be delivered to the Closing Date Seller and/or the Buyer, as applicable, as confidential and proprietary, and is hereby incorporated into
and made a part of this Agreement, as such Schedule 1 may be supplemented and amended from time to time.

 

(k)          In
a series of contemporaneous transactions on the Closing Date (i) the Holdings Subsidiary shall sell and/or distribute the Collateral
Obligations owned by the Holdings Subsidiary listed on Schedule 1 to the Seller (with respect to any distribution, in its capacity
as sole member of the Holdings Subsidiary), (ii) the Seller shall transfer the Collateral Obligations listed on Schedule 1
to the Closing Date Seller, (iii) the Closing Date Seller shall transfer the Collateral Obligations listed on Schedule 1 to
the Buyer, (iv) as consideration for its acquisition of the Collateral Obligations listed on Schedule 1 from the Closing Date
Seller, the Buyer shall issue to the Closing Date Seller a portion of its Subordinated Notes and (v) as consideration for its acquisition
of the Collateral Obligations listed on Schedule 1 from the Seller, the Closing Date Seller shall transfer such Subordinated Notes
to the Seller’s wholly-owned subsidiary, as directed by the Seller. The parties hereto intend for the transactions described in
this Agreement to occur consistent with that certain no-action letter from the Securities and Exchange Commission, dated as of September 7,
2018.

 

     -7- 

     

    

 

(l)            For
administrative convenience, (i) Collateral Obligations being transferred from the Seller to the Closing Date Seller and then from
the Closing Date Seller to the Buyer may settle directly from the Seller to the Buyer, (ii) Collateral Obligations being transferred
first from the Holdings Subsidiary to the Seller, second from the Seller to the Closing Date Seller, and third from the Closing Date Seller
to the Buyer, may settle directly from the Holdings Subsidiary to the Buyer, (iii) Subordinated Notes being issued to the Closing
Date Seller and then being transferred to the Seller’s wholly-owned subsidiary at the direction of the Seller shall settle directly
from the Buyer to such wholly-owned subsidiary of the Seller and (iv) any of the steps or transfers of cash or assets described in
this clause (l) that take place on the same day may be made on a net basis (any amounts owing by one party may be offset by amounts
owed to such party, and vice versa).

 

(m)          It
is the intention of the parties hereto that the conveyance of all right, title and interest in and to the Collateral to the Buyer by
the Closing Date Seller and to the Closing Date Seller by the Seller on the Closing Date as provided in this Section 2.01
is intended and shall, in each and every case, constitute an absolute sale, assignment, conveyance and transfer of ownership of such
Collateral conveying good title, free and clear of any Lien (other than Permitted Liens) and that the Collateral shall not be part of
the Seller’s or the Closing Date Seller’s, as applicable, bankruptcy estate in the event of any bankruptcy or insolvency
proceedings with respect to the Seller or the Closing Date Seller, as applicable. Furthermore, it is not intended that any such conveyance
be deemed a pledge of the Collateral Obligations and the other Collateral to the Closing Date Seller or the Buyer, as applicable, to
secure a debt or other obligation of the Closing Date Seller or the Seller, as applicable.

 

(n)          If,
however, notwithstanding the intention of the parties set forth in Section 2.01(m), any of the conveyances provided for in
this Section 2.01 by the Seller or the Closing Date Seller, as applicable, are determined to be a transfer to secure indebtedness,
then this Agreement shall also be deemed to be, and hereby is, a “security agreement” within the meaning of Article 9
of the UCC. With respect to the Collateral related to Schedule 1 transferred on the Closing Date hereunder, (A) the Seller
hereby grants to the Closing Date Seller (and the Closing Date Seller hereby assigns to the Buyer) and the Closing Date Seller hereby
grants to the Buyer, as the case may be, a duly perfected, first priority “security interest” within the meaning of Article 9
of the UCC in all of its right, title and interest in and to such Collateral, now existing and hereafter created, to secure the prompt
and complete payment of a loan deemed to have been made in an amount equal to the aggregate Purchase Price of such Collateral, (B) the
Buyer, as assignee secured party, shall have, in addition to the rights and remedies which it may have under this Agreement, all other
rights and remedies provided to a secured creditor under the UCC and other applicable law with respect thereto, which rights and remedies
shall be cumulative, and (C) the Seller authorizes the Buyer, the Closing Date Seller authorizes the Buyer, and, so long as the
Payment in Full Date has not occurred, each of the Seller and the Closing Date Seller authorize the Trustee on behalf of the Secured
Parties, to file UCC financing statements and amendments, as necessary, naming the Seller as “debtor”, the Closing Date Seller
as “debtor” or “assignor secured party”, as applicable, the Buyer as “assignor secured party” or
 “assignee secured party” and the Trustee as “assignee secured party,” or similar applicable designations, describing
such Collateral, in each jurisdiction that the Buyer deems necessary in order to protect the security interests in the Collateral granted
under this Section 2.01(n).

 

     -8- 

     

    

 

Section 2.02     Purchase
Price.

 

The purchase price for each
Collateral Obligation sold pursuant to this Master Loan Sale Agreement shall be a dollar amount equal to the fair market value thereof
as determined by the Seller, the Closing Date Seller and/or the Buyer, as applicable, and shall be on terms no less favorable to the buyer
than such buyer would then obtain in a comparable arm’s length transaction with a person that is not an Affiliate (in each case,
the “Purchase Price”).

 

Section 2.03     Payment
of Purchase Price.

 

(a)          The
Purchase Price for any Collateral related to Schedule 1 acquired by the Buyer from the Closing Date Seller on the Closing Date
pursuant to this Agreement shall be paid by issuance of certain Subordinated Notes by the Buyer to the Closing Date Seller and by subsequent
transfer of such Subordinated Notes from the Closing Date Seller to the Seller’s wholly-owned subsidiary as directed by the Seller.

 

(b)           The
Seller, in connection with each Purchase hereunder relating to any Collateral, shall be deemed to have certified, and hereby does certify,
with respect to the Collateral to be purchased by the Buyer on such day, 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.

 

(c)           Upon
the payment of the Purchase Price for any Purchase, title to the Collateral included in such Purchase shall vest initially in the Closing
Date Seller and then in the Buyer as provided herein, whether or not the conditions precedent to such Purchase and the other covenants
and agreements contained herein were in fact satisfied; provided that the Closing Date Seller and the Buyer, as applicable, shall
not be deemed to have waived any claim it may have under this Agreement for the failure by the Seller or the Closing Date Seller, as
applicable, in fact to satisfy any such condition precedent, covenant or agreement.

 

(d)           Collateral
Obligations may be purchased or acquired by the Buyer from the Seller or any of its Affiliates hereunder only if (i) the terms and
conditions thereof are no less favorable to the Buyer than the terms it would obtain in a comparable, timely purchase or acquisition
with a non-Affiliate and (ii) the transactions are effected in accordance with all applicable laws.

 

Section 2.04     Allocation
to Originator.

 

The parties hereto acknowledge
and agree that the Subordinated Notes acquired by the Closing Date Seller from the Buyer hereunder constitutes a portion of an “eligible
horizontal residual interest” under and as defined in the U.S. Risk Retention Rules and such Subordinated Notes are hereby
allocated by the Closing Date Seller to the Seller as an “originator” under and as defined in the U.S. Risk Retention Rules and
is offset by the Closing Date Seller against the Purchase Price owed by the Closing Date Seller to the Seller for the Collateral sold
by the Seller to the Closing Date Seller on the Closing Date.

 

     -9- 

     

    

 

Section 2.05     [Reserved].

 

Section 2.06     [Reserved].

 

Section 2.07     Limitation
on Sales to Seller and Affiliates.

 

At any time after the Closing
Date, the Buyer may sell any Collateral Obligation to the Seller or any affiliate thereof; provided that such transaction is conducted
in an arm’s length transaction in the ordinary course of business and the value of any such transferred Collateral Obligation shall
be the mid-point between the “bid” and “ask” prices provided by a nationally recognized independent pricing service
or, if unavailable or determined by the Collateral Manager to be unreliable, the fair market value of such Collateral Obligation as reasonably
determined by the Collateral Manager, and such Affiliate shall acquire such Collateral Obligation for a price equal to the value so determined;
provided further that an aggregate amount of Collateral Obligations not exceeding 20% of the Net Purchased Loan Balance may be
sold or otherwise transferred to the Seller or an affiliate of the Seller that is not a bankruptcy remote special purpose entity.

 

ARTICLE III

 

CONDITIONS
PRECEDENT

 

Section 3.01     Conditions
Precedent

 

This Agreement is subject
to the conditions precedent that on or prior to the Closing Date each of the conditions precedent to the execution, delivery and effectiveness
of each other Transaction Document (other than a condition precedent in any such other Transaction Document relating to the effectiveness
of this Agreement) shall have been fulfilled, and:

 

(a)           Counterparts
of this Agreement shall have been executed and delivered by or on behalf of the Seller, the Closing Date Seller, the Holdings Subsidiary
and the Buyer; and

 

(b)          The
Seller shall have delivered to the Buyer filed UCC-1 financing statements as required by Section 2.01(n) describing
the applicable Collateral and meeting the requirements of the laws of each jurisdiction in which it is necessary or reasonably desirable,
or in which the Seller is required by applicable law, and in such manner as is necessary or reasonably desirable, to perfect the back-up
security interest granted under Section 2.01(n).

 

Section 3.02         Conditions
Precedent to all Purchases.

 

(a)            The
obligation of the Closing Date Seller to purchase the Collateral from the Seller and the obligation of the Buyer to purchase the Collateral
from the Closing Date Seller on the Closing Date shall be subject to the satisfaction of the following conditions precedent that:

 

(i)            all
representations and warranties (A) of the Seller contained in Sections 4.01 and 4.02 and (B) of the Closing Date
Seller contained in Sections 4.03 and 4.04, as applicable, shall be true and correct in all material respects on and as
the Closing Date (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date); and

 

(ii)            the
Seller shall have delivered to the Closing Date Seller and the Buyer a duly completed Loan List that is true, accurate and complete in
all respects as of the Closing Date, which list is made a part of this Agreement.

 

     -10- 

     

    

 

Section 3.03     Release
of Excluded Amounts.

 

The parties acknowledge and
agree that each of the Closing Date Seller and the Buyer has no interest in the Excluded Amounts. Promptly upon the receipt by or release
to the Closing Date Seller or the Buyer, as applicable, of any Excluded Amounts, each of the Closing Date Seller and the Buyer hereby
irrevocably agrees to deliver and release to (or as directed by) the Seller such Excluded Amounts, which release shall be automatic and
shall require no further act by the Closing Date Seller or the Buyer, as applicable; provided that each of the Closing Date Seller
and the Buyer respectively agrees that it will execute and deliver such instruments of release and assignment or other documents, or otherwise
confirm the foregoing release of such Excluded Amounts, as may be reasonably requested by the Seller in writing.

 

ARTICLE IV

 

REPRESENTATIONS
AND WARRANTIES

 

Section 4.01     Representations
and Warranties Regarding the Seller.

 

The Seller makes the following
representations and warranties, on which each of the Closing Date Seller and the Buyer relies in acquiring the Collateral purchased hereunder
and each of the Secured Parties relies upon in entering into the Indenture or purchasing the Notes. As of the Closing Date (unless a specific
date is specified below), the Seller represents and warrants to the Closing Date Seller and the Buyer for the benefit of the Closing Date
Seller and the Buyer and each of their successors and assigns that:

 

(a)            Organization
and Good Standing. The Seller has been duly organized and is validly existing as a corporation in good standing under the laws of
its jurisdiction of incorporation, with all requisite corporate power and authority to own or lease its properties and to conduct its
business as such business is presently conducted, and had at all relevant times, and now has, all necessary power, authority and legal
right to acquire and own each Collateral Obligation and to sell or contribute such Collateral Obligation to the Closing Date Seller hereunder.

 

(b)            Due
Qualification. The Seller is duly qualified to do business and has obtained all necessary licenses and approvals, in all jurisdictions
in which the ownership or lease of its property or the conduct of its business requires such qualification, licenses and/or approvals
as required in each jurisdiction in which the failure to be so qualified or obtain such license or approval, is likely to have a Material
Adverse Effect.

 

(c)            Power
and Authority; Due Authorization; Execution and Delivery. The Seller (i) has all necessary corporate power, authority and legal
right to (a) execute and deliver this Agreement and (b) carry out the terms of this Agreement and (ii) has duly authorized
by all necessary corporate action the execution, delivery and performance of this Agreement and the sale and assignment of an ownership
interest in each Collateral Obligation on the terms and conditions herein provided. This Agreement has been duly executed and delivered
by the Seller.

 

     -11- 

     

    

 

(d)            Valid
Conveyance; Binding Obligations. This Agreement will be duly executed and delivered by the Seller, and this Agreement, other than
for accounting and tax purposes, shall effect valid sales of each Collateral Obligation, enforceable against the Seller and creditors
of and purchasers from the Seller, and this Agreement shall constitute legal, valid and binding obligations of the Seller enforceable
against the Seller in accordance with their respective terms, except as enforceability may be limited by the Bankruptcy Code and all other
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of
payments, or similar debtor relief laws from time to time in effect affecting the rights of creditors generally and general principles
of equity (whether such enforceability is considered in a suit at law or in equity).

 

(e)            No
Violation. The execution, delivery and performance of this Agreement and all other agreements and instruments executed and delivered
or to be executed and delivered by the Seller pursuant hereto or thereto in connection with the sale of any Collateral Obligation will
not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse
of time or both) a default under, the Seller’s organizational documentation or any contractual obligation of the Seller, (ii) result
in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Seller’s properties pursuant to the terms
of any such contractual obligation, other than this Agreement, or (iii) violate any applicable law in any material respect.

 

(f)            No
Proceedings. There is no litigation, proceeding or investigation pending or, to the knowledge of the Seller, threatened against the
Seller, before any Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any
of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that could reasonably be expected
to have a Material Adverse Effect.

 

(g)            All
Consents Required. All approvals, authorizations, consents, orders, licenses or other actions of any Person or of any Authority (if
any) required for the due execution, delivery, performance, validity or enforceability of this Agreement to which the Seller is a party
have been obtained.

 

(h)           State
of Organization, Etc. The Seller will not change its name, identity or corporate structure or relocate its chief executive office
or the location of the Seller’s records regarding the Collateral Obligations (other than those delivered to the Custodian) except
after advance notice to the Closing Date Seller and the Buyer and the delivery to the Closing Date Seller and the Buyer of all financing
statements, instruments and other documents reasonably requested by the Closing Date Seller or the Buyer.

 

(i)            Solvency.
The Seller is not the subject of any bankruptcy proceedings. The Seller is solvent and will not become insolvent after giving effect
to the transactions contemplated by this Agreement and the other Transaction Documents. The Seller, after giving effect to the transactions
contemplated by this Agreement and the other Transaction Documents, will have an adequate amount of capital to conduct its business.

 

(j)            Compliance
with Laws. The Seller has complied in all material respects with all applicable law to which it may be subject.

 

     -12- 

     

    

 

(k)            Taxes.
The Seller has filed or caused to be filed all tax returns that are required to be filed by it (subject to any extensions to file properly
obtained by the same). The Seller has paid or made adequate provisions for the payment of all Taxes and all assessments made against
it or any of its property (other than any amount of Tax the validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in accordance with GAAP 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, assessment or other charge.

 

(l)            Exchange
Act Compliance; Regulations T, U and X. None of the transactions contemplated herein or in the other Transaction Documents
(including, without limitation, the use of the proceeds from the sale of any Collateral Obligation) will violate or result in a violation
of Section 7 of the Exchange Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and
X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Seller does not own or intend to carry or purchase,
and no proceeds from the sale of the Collateral Obligations will be used to carry or purchase, any Margin Stock or to extend “purpose
credit” within the meaning of Regulation U.

 

(m)           No
Liens, Etc. Each Collateral Obligation or participation interest therein to be acquired by the Closing Date Seller or the Buyer, as
applicable, hereunder is owned by the Seller free and clear of any Lien, security interest, charge or encumbrance (subject only to Permitted
Liens), and the Seller has the full right, corporate power and lawful authority to sell the same and interests therein and, upon the sale
thereof hereunder, the Buyer will have acquired good and marketable title to and a valid and perfected ownership interest in such Collateral
Obligation or participation interests therein, free and clear of any Lien, security interest, charge or encumbrance (subject only to Permitted
Liens).

 

(n)            Information
True and Correct. All written information (other than projections, other forward-looking information, information of a general economic
or general industry nature and pro forma financial information) heretofore (as of each date when this representation and warranty is made)
furnished by or on behalf of the Seller to the Closing Date Seller or the Buyer, as applicable, or any assignee thereof in connection
with this Agreement or any transaction contemplated hereby is true and accurate in all material respects (to the best knowledge of the
Seller, in the case of information obtained by the Seller from Obligors or other unaffiliated third parties), and, taken as a whole, contained
as of the date of delivery thereof no untrue statement of a material fact (to the best knowledge of the Seller, in the case of information
obtained by the Seller from Obligors or other unaffiliated third parties) and did not omit to state a material fact necessary in order
to make the statements contained herein or therein not misleading in light of the circumstances under which such information was furnished
(to the best knowledge of the Seller, in the case of information obtained by the Seller from Obligors or other unaffiliated third parties)
as of the date such information was furnished. The projections and pro forma financial information contained in the materials referenced
above are based upon good faith estimates and assumptions believed by management of the Seller to be reasonable at the time made, it being
recognized by the Closing Date Seller and the Buyer that such projections and pro forma financial information as it relates to future
events are not to be viewed as fact and that actual results during the period or periods covered by such projections and pro forma financial
information may differ from the projected and pro forma results set forth therein by a material amount.

 

     -13- 

     

    

 

(o)          Intent
of the Seller. The Seller has not sold, contributed, transferred, assigned or otherwise conveyed any interest in any Collateral Obligation
or participation interest therein to the Closing Date Seller or the Buyer, as applicable, with any intent to hinder, delay or defraud
any of the Seller’s creditors.

 

(p)            Value
Given. The Seller has received reasonably equivalent value from the Closing Date Seller or the Buyer, as applicable, in exchange for
the sale of such Collateral Obligations sold hereunder. No such sale has been made for or on account of an antecedent debt owed by the
Seller and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code.

 

Section 4.02     Representations
and Warranties of the Seller Relating to the Agreement and the Collateral.

 

The Seller makes the following
representations and warranties, on which each of the Closing Date Seller and the Buyer relies in acquiring each Collateral Obligation
purchased hereunder and each of the Secured Parties relies upon in entering into the Indenture or purchasing the Notes. As of the Closing
Date, the Seller represents and warrants to the Closing Date Seller and the Buyer, as applicable, for the benefit of the Closing Date
Seller and the Buyer and each of their successors and assigns that:

 

(a)           Valid
Transfer and Security Interest. This Agreement constitutes a valid transfer to the Closing Date Seller or Buyer, as applicable, of
all right, title and interest in, to and under each Collateral Obligation, free and clear of any Lien of any Person claiming through or
under the Seller or its Affiliates, except for Permitted Liens. If the conveyances contemplated by this Agreement are determined to be
a transfer for security, then this Agreement constitutes a grant of a security interest in each Collateral Obligation to the Closing Date
Seller or Buyer, as applicable, which upon the delivery of the Collateral Obligation, in accordance with the definition of “Deliver”
under the Indenture, to the Closing Date Seller or Buyer, as applicable (or to the Custodian on behalf of the Trustee, for the benefit
of the Secured Parties) and the filing of the financing statements shall be a first priority perfected security interest in each such
Collateral Obligation, subject only to Permitted Liens.

 

(b)           Eligibility
of Sale Portfolio. (i) Schedule 1 is an accurate and complete listing of each Collateral Obligation transferred to the
Closing Date Seller as of the Closing Date and the information contained therein with respect to the identity of such Collateral Obligations
and the amounts owing thereunder is true and correct as of the Closing Date and (ii) with respect to each Collateral Obligation,
all consents, licenses, approvals or authorizations of or registrations or declarations of any governmental authority or any Person required
to be obtained, effected or given by the Seller in connection with the transfer of an ownership interest or security interest in each
Collateral Obligation to the Closing Date Seller or the Buyer, as applicable, have been duly obtained, effected or given and are in full
force and effect.

 

It is understood and agreed
that the representations and warranties provided in this Section 4.02 shall survive (x) the sale of the Collateral Obligations
to the Closing Date Seller or the Buyer, as applicable, (y) the grant of a first priority perfected security interest in, to and
under each Collateral Obligation pursuant to the Indenture by the Buyer and (z) the termination of this Agreement and the Indenture.
Upon discovery by the Seller, the Closing Date 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 and to the Trustee immediately upon obtaining
knowledge of such breach.

 

     -14- 

     

    

 

Section 4.03     Representations
and Warranties Regarding the Closing Date Seller.

 

As of the Closing Date, the
Closing Date Seller represents and warrants to the Buyer for the benefit of the Buyer and its successors and assigns that:

 

(a)           Due
Organization. The Closing Date Seller is a limited liability company duly formed and validly existing under the laws of the State
of Delaware, with full power and authority to own and operate its assets and properties, conduct the business in which it is now engaged
and to execute and deliver and perform its obligations under this Agreement.

 

(b)           Due
Qualification and Good Standing. The Closing Date Seller is in good standing in the State of Delaware. The Closing Date Seller is
duly qualified to do business and, to the extent applicable, is in good standing and has obtained all material governmental licenses
and approvals as required in Delaware and each other jurisdiction in which the failure to be so qualified, maintain good standing or
obtain such license or approval, is likely to have a Material Adverse Effect.

 

(c)           Due
Authorization; Execution and Delivery; Legal, Value and Binding; Enforceability; Valid Sale. The execution and delivery by the Closing
Date Seller of, and the performance of its obligations under this Agreement and the other instruments, certificates and agreements contemplated
hereby are within its powers and have been duly authorized by all requisite action by it and have been duly executed and delivered by
it and constitute its legal, valid and binding obligations enforceable against it in accordance with its terms, subject, as to enforcement,
(A) to the effect of bankruptcy, insolvency or similar laws affecting generally the enforcement of creditors’ rights as such
laws would apply in the event of any bankruptcy, receivership, insolvency or similar event applicable to the Closing Date Seller and
(B) to general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity).
This Agreement shall effect a valid sale, transfer and assignment of the Closing Date Seller to the Buyer of its right, title and interest
in the Collateral Obligations sold by the Closing Date Seller to the Buyer on the Closing Date as set forth herein, enforceable against
the Closing Date Seller, its creditors and purchasers from the Closing Date Seller, subject, as to enforcement, (A) to the effect
of bankruptcy, insolvency or similar laws affecting generally the enforcement of creditors’ rights as such laws would apply in
the event of any bankruptcy, receivership, insolvency or similar event applicable to the Closing Date Seller and (B) to general
equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity).

 

(d)          Non-Contravention.
The execution and delivery by the Closing Date Seller of this Agreement, the consummation of the transactions herein contemplated, or
performance and compliance by it with the terms, conditions and provisions hereof, will not (i) contravene in any material respect
the terms of the certificate of formation of the Closing Date Seller or its limited liability company operating agreement, or any amendment
of either thereof, (ii) (A) contravene in any material respect any applicable law, (B) conflict in any material respect,
with or result in any breach of, any of the terms and provisions of, or constitute a default under, any indenture, loan, agreement, mortgage,
deed of trust or other contractual restriction binding on or affecting it or any of its assets, or (C) contravene in any material
respect any order, writ, injunction or decree binding on or affecting it or any of its assets or properties or (iii) result in a
breach or violation of, or constitute a default under, any contractual obligation or any agreement or document to which it is a party
or by which it or any of its assets are bound (or to which any such obligation, agreement or document relates), in each case under this
clause (d) which would have a Material Adverse Effect.

 

     -15- 

     

    

 

(e)            Governmental
Authorizations; Governmental Filings. The Closing Date Seller has obtained, maintained and kept in full force and effect all Governmental
Authorizations which are necessary for the execution and delivery by it of this Agreement and the performance by it of its obligations
under this Agreement, and no Governmental Authorization or Governmental Filing which has not been obtained or made is required to be obtained
or made by it in connection with the execution and delivery by it of this Agreement or the performance of its obligations under this Agreement.

 

(f)            Solvency.
The Closing Date Seller, after giving effect to the conveyance by the Closing Date Seller of Collateral Obligations hereunder to the Buyer
on the Closing Date and after giving effect to the transactions contemplated hereunder and under the other Transaction Documents on such
date, is solvent on and as of the Closing Date.

 

(g)           Investment
Company Status. The Closing Date Seller is not required to be registered as an “investment company” within the meaning
of the Investment Company Act.

 

(h)           Sale
Treatment. The Closing Date has treated the transfer of Collateral Obligations by the Closing Date Seller to the Buyer hereunder
on the Closing Date for all purposes as a sale by the Closing Date Seller and purchase by the Buyer on all of its relevant books and
records (other than for tax and accounting purposes).

 

(i)            Value
Given. The cash payments, if any, received by the Closing Date Seller, and the Subordinated Notes issued by the Buyer to the Closing
Date Seller in respect of the Purchase Price of the Collateral Obligations sold hereunder by the Closing Date Seller to the Buyer on the
Closing Date constitute reasonably equivalent value in consideration for the transfer by the Closing Date Seller to the Buyer of such
Collateral Obligations under this Agreement, such transfer was not made for or on account of an antecedent debt owed by the Closing Date
Seller to the Buyer and such transfer was not and is not voidable or subject to avoidance under any applicable bankruptcy laws.

 

(j)            Lack
of Intent to Hinder, Delay or Defraud. The Closing Date Seller has not sold any interest in any Collateral Obligations conveyed by
the Closing Date Seller to the Buyer on the Closing Date hereunder with any intent to hinder, delay or defraud its creditors.

 

(k)            No
Proceedings. There is no action, suit or proceeding pending against or, to the actual knowledge of an Authorized Officer of the Closing
Date Seller, after due inquiry, threatened against or adversely affecting (i) the Closing Date Seller or (ii) the transactions
contemplated by this Agreement, before any court, arbitrator or any governmental body, agency or official, in each case, which has had
or would reasonably be expected to have a Material Adverse Effect.

 

     -16- 

     

    

 

The representations and warranties
set forth in this Section 4.03 shall survive the sale, transfer and assignment of the Collateral Obligations by the Closing
Date Seller to the Buyer on the Closing Date.

 

Section 4.04     Representations
and Warranties of the Closing Date Seller Relating to the Agreement and the Collateral.

 

The Closing Date Seller hereby
represents and warrants to the Buyer, as of the Closing Date that:

 

(a)           Valid
Transfer. This Agreement constitutes a valid transfer to the Buyer of all right, title and interest of the Closing Date Seller in,
to and under all of the Collateral transferred by the Closing Date Seller to the Buyer on the Closing Date, free and clear of any Lien
of any Person claiming through or under the Closing Date Seller or any of its Affiliates, except for Permitted Liens.

 

(b)            No
Fraud. Each Collateral Obligation sold by the Closing Date Seller to the Buyer on the Closing Date hereunder, to the best of the Closing
Date Seller’s knowledge, was originated without any fraud or material misrepresentation by the Seller or on the part of the Obligor.

 

(c)           Ordinary
Course of Business. Any sale of Collateral Obligations by the Closing Date Seller to the Buyer on the Closing Date pursuant to this
Agreement is in the ordinary course of business and financial affairs of the Closing Date Seller. Each remittance of collections on such
Collateral Obligations by the Closing Date Seller to the Buyer as transferee under this Agreement, will have been made in the ordinary
course of business or financial affairs of the Closing Date Seller and the Buyer.

 

Section 4.05     Representations
and Warranties Regarding the Buyer.

 

By its execution of this Agreement,
the Buyer represents and warrants to the Closing Date Seller and the Seller that:

 

(a)           Due
Organization. The Buyer is a limited liability company duly formed and validly existing under the laws of the State of Delaware,
with full power and authority to own and operate its assets and properties, conduct the business in which it is now engaged and to execute
and deliver and perform its obligations under this Agreement and the other Transaction Documents to which it is a party.

 

(b)           Due
Qualification and Good Standing. The Buyer is in good standing under the laws of the State of Delaware. The Buyer is duly qualified
to do business and, to the extent applicable, is in good standing and has obtained or will obtain all material governmental licenses
and approval in Delaware and in each other jurisdiction in which the nature of its business, assets and properties, including the performance
of its obligations under this Agreement and the other Transaction Documents to which it is a party requires such qualification, except
where the failure to be so qualified, maintain good standing or obtain such license or approval would not reasonably be expected to have
a Material Adverse Effect.

 

     -17- 

     

    

 

(c)            Due
Authorization; Execution and Delivery; Legal, Valid and Binding; Enforceability. The execution and delivery by the Buyer of, and the
performance of its obligations under this Agreement, the other Transaction Documents to which it is a party and the other instruments,
certificates and agreements contemplated hereby or thereby are within its powers and have been duly authorized by all requisite action
by it and have been duly executed and delivered by it and constitute its legal, valid and binding obligations enforceable against it in
accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally or general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

 

(d)            Non-Contravention.
None of the execution and delivery by the Buyer of this Agreement or the other Transaction Documents to which it is a party, the consummation
of the transactions herein or therein contemplated, or performance and compliance by it with the terms, conditions and provisions hereof
or thereof, will (i) contravene in any material respect or result in any breach of, any of the terms and provisions of, its articles
of incorporation and memorandum of association, (ii) conflict with or contravene (A) any applicable law, (B) any indenture,
agreement or other contractual restriction binding on or affecting it or any of its assets, including any Related Contract, or (C) any
order, writ, judgment, award, injunction or decree binding on or affecting it or any of its assets or properties or (iii) result
in a breach or violation of, or constitute a default under, or permit the acceleration of any obligation or liability in, or but for any
requirement of the giving of notice or the passage of time (or both) would constitute such a conflict with, breach or violation of, or
default under, or permit any such acceleration in, any contractual obligation or any agreement or document to which it is a party or by
which it or any of its assets are bound (or to which any such obligation, agreement or document relates), in each case under this clause
(d) which would have a Material Adverse Effect.

 

(e)           Governmental
Authorizations; Private Authorizations; Governmental Filings. No order, consent, approval, license, authorization, or validation
of, or filing, recording or registration with, or exemption by, any governmental or public body or authority, or any subdivision thereof,
is required to authorize, or is required in connection with the execution, delivery and performance of any Transaction Documents to which
the Buyer is a party or the consummation of any of the transactions contemplated thereby other than those that have already been duly
made or obtained and remain in full force and effect or those recordings and filings in connection with the Liens granted to the Trustee
under the Transaction Documents, except for any order, consent, approval, license, authorization, or validation of, or filing, recording
or registration with, or exemption, that, if not obtained, would not, either individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(f)            Place
of Business; No Changes. The Buyer’s location (within the meaning of Article 9 of the UCC) is the State of Delaware. The
Buyer has not changed its name nor its location, within the four months preceding the Closing Date.

 

(g)            Sale
Treatment. Other than for accounting and tax purposes, the Buyer has treated the transfer of Collateral Obligations hereunder to the
Buyer for all purposes as a sale by the Seller or the Closing Date Seller, as applicable, and purchase by the Buyer on all of its relevant
books and records and other applicable documents.

 

     -18- 

     

    

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.01     Amendments
and Waivers.

 

(a)            This
Agreement may be amended or waived from time to time by the parties hereto by written agreement, with prior written notice to the Trustee;
provided that no such amendment or waiver shall reduce the amount of, or delay the timing of, any amounts received on Collateral
Obligations which are required to be distributed with respect to any Class of Notes without the consent of the Holders of each Class materially
and adversely affected thereby, or change the rights or obligations of any other party hereto without the consent of such party. Failure
to object within ten Business Days of notice being given of any proposed amendment shall constitute consent for all purposes hereunder.
Notwithstanding the foregoing, the Loan Lists may be amended and modified by the Seller at any time in accordance with this Agreement
by providing updated Loan Lists to the Buyer and the Trustee.

 

(b)            Prior
to the execution of any such amendment or waiver, the Buyer shall furnish to the Trustee (and the Trustee shall furnish to the Rating
Agency and each Holder) written notification of the substance of such proposed amendment or waiver, together with a copy thereof.

 

(c)           Promptly
after the execution of any such amendment or waiver, the Buyer shall furnish (or cause the Trustee to furnish) a copy of such amendment
or waiver to the Rating Agency and to each Holder. It shall not be necessary for the consent of any Holders pursuant to Section 5.01(a) to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance
thereof.

 

(d)            Prior
to the execution of any amendment to this Agreement, the Buyer and the Trustee shall be entitled to receive and rely upon an Opinion of
Counsel (which Opinion of Counsel may rely upon one or more certificates from an Authorized Officer of the Seller, the Closing Date Seller,
the Buyer and/or the Collateral Manager with respect to factual matters and of the Buyer and/or the Collateral Manager with respect to
the effect of any such amendment or waiver on the economic interests of the Buyer or the Holders) stating that the execution of such amendment
is authorized or permitted by this Agreement.

 

Section 5.02     Notices,
Etc.

 

All demands, notices and other
communications hereunder shall, unless otherwise stated herein, be in writing (which shall include facsimile communication and communication
by e-mail in portable document format (.pdf)) and faxed, e-mailed or delivered, to each party hereto, at its address set forth below or
at such other address as shall be designated by such party in a written notice to the other parties hereto, and to the Trustee or the
Rating Agency, at its address set forth in the Indenture or at such other address as shall be designated by such Person in a written notice
to the other parties hereto. Notices and communications by facsimile and e-mail shall be effective when sent (and shall be followed by
hard copy sent by regular mail), and notices and communications sent by other means shall be effective when received. Notices and other
communications relating to this Agreement to be delivered by the Buyer (or the Trustee on its behalf) to any Holder shall be delivered
as provided in the Indenture.

 

     -19- 

     

    

 

The address for the Seller
is the following:

 

Golub Capital BDC 3, Inc.

200 Park Avenue, 25th Floor

New York, New York 10166

 

The address for the Closing
Date Seller is the following:

 

GC Advisors LLC

200 Park Avenue, 25th Floor

New York, New York 10166

 

The address for the Buyer
is the following:

 

Golub Capital BDC 3 ABS 2022-1 LLC,

c/o Golub Capital BDC 3, Inc.

200 Park Avenue, 25th Floor

New York, New York 10166

 

with a copy to:

 

GC Advisors LLC

200 Park Avenue, 25th Floor

New York, New York 10166

 

Section 5.03     Severability
of Provisions.

 

If any one or more of the
covenants, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, provisions or terms
shall be deemed severable from the remaining covenants, provisions or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement.

 

Section 5.04     GOVERNING
LAW; JURY WAIVER.

 

THIS AGREEMENT SHALL, IN
ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK. EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREUNDER.

 

     -20- 

     

    

 

Section 5.05     Electronic
Signatures; Counterparts.

 

This Agreement shall be valid,
binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an
original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted
by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act,
and/or any other relevant electronic signatures law, including any relevant provisions of the UCC (collectively, “Signature Law”),
in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for
all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall
be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature,
or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity
thereof. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts
shall, together, constitute one and the same instrument. For the avoidance of doubt, original manual signatures shall be used for execution
or indorsement of writings when required under the UCC or other Signature Law due to the character or intended character of the writings.

 

Section 5.06     Bankruptcy
Non-Petition and Limited Recourse; Claims.

 

Each of the parties hereto
hereby agrees that it will not institute against, or join any other Person in instituting against, the other party hereto any bankruptcy
proceeding so long as there shall not have elapsed one year and one day (or such longer preference period as shall then be in effect and
one day) after payment in full of all Notes. In addition, none of the parties hereto shall have any recourse for any amounts payable or
any other obligations arising under this Agreement against any officer, member, director, employee, partner, Affiliate or security holder
of the other party or any of its successors or assigns. The terms of Section 5.06 shall survive termination of this Agreement.

 

Section 5.07     Binding
Effect; Assignability.

 

This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. No third party (other than
the Trustee and the other Secured Parties) shall be third-party beneficiaries of this Agreement.

 

Section 5.08     Headings
and Exhibits.

 

The headings herein are for
purposes of references only and shall not otherwise affect the meaning or interpretation of any provision hereof. The schedules and exhibits
attached hereto and referred to herein shall constitute a part of this Agreement and are incorporated into this Agreement for all purposes.

 

[Remainder of Page Intentionally Left Blank.]

 

     -21- 

     

    

 

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

 

	 	 	GOLUB CAPITAL BDC 3, INC.,
	 	 	 	as the Seller
	 	 	 
	 	 	By:	/s/ Christopher C. Ericson
		 	 	Name: Christopher C. Ericson
		 	 	Title:   Chief Financial Officer

 

      

     

    

 

	 		GC ADVISORS LLC,
	 		 	as the Closing Date Seller
	 	 	 
	 		By:	/s/ Joshua M. Levinson
	 		 	Name: Joshua M. Levinson 
	 		 	Title:   Co-General Counsel & Chief
    Compliance Officer

 

      

     

    

 

		 	GOLUB CAPITAL BDC 3 ABS 2022-1 LLC,
		 	 	as the Buyer
	 	 	 
		 	By: 	Golub Capital BDC 3, Inc., its designated manager
	 	 	 
	 	 	By:	/s/ Christopher C. Ericson
			 	Name: Christopher C. Ericson 
			 	Title:   Chief Financial Officer

 

      

     

    

 

		 	GOLUB CAPITAL 3 HOLDINGS LLC,
		 	 	as Holdings Subsidiary
	 	 	 
		 	By:	/s/ David B. Golub
		 	 	Name: David B. Golub
		 	 	Title:   Chief Executive Officer

 

      

     

    

 

Schedule 1

 

Collateral Obligations

 

Loan List

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