Document:

Exhibit

Exhibit 10.3
EXECUTION VERSION

MORTGAGE ASSET PURCHASE AGREEMENT
This MORTGAGE ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of March 2, 2017 by and among ACRC Lender LLC, a Delaware limited liability company (the “Seller”), and ACRE Commercial Mortgage 2017-FL3 Ltd., an exempted company incorporated in the Cayman Islands with limited liability (the “Issuer”).
W I T N E S S E T H:
WHEREAS, the Issuer desires to purchase from the Seller and the Seller desires to sell to the Issuer an initial portfolio of Mortgage Assets, each as identified on Exhibit A attached hereto (the “Initial Mortgage Assets”);
WHEREAS, in connection with the sale of such Initial Mortgage Assets to the Issuer, the Seller desires to release any interest it may have in the Initial Mortgage Assets and desires to make certain representations and warranties regarding the Initial Mortgage Assets;
WHEREAS, the Seller or an affiliate thereof may sell to the Issuer, from time to time during the Reinvestment Period (as defined in the Indenture):
(i) Whole Loans or 
(ii) Pari Passu Participations
(collectively, the “Reinvestment Assets”, and together with the Initial Mortgage Assets, the “Mortgage Assets”), and the Issuer may purchase such Reinvestment Assets, and all payments and collections thereon after the related Subsequent Seller Transfer Date (as defined herein) from the Seller;
WHEREAS, the Issuer and ACRE Commercial Mortgage 2017-FL3 LLC, a Delaware limited liability company (the “Co-Issuer”), intend to issue (a) the U.S.$170,579,247 Class A First Priority Secured Floating Rate Notes Due March 2034 (the “Class A Notes”), (b) the U.S.$37,527,434 Class A-S Second Priority Secured Floating Rate Notes Due March 2034 (the “Class A-S Notes”), (c) the U.S.$10,234,755 Class B Third Priority Secured Floating Rate Notes Due March 2034 (the “Class B Notes”), (d) the U.S.$20,469,510 Class C Fourth Priority Secured Floating Rate Notes Due March 2034 (the “Class C Notes”), (e) the U.S.$34,115,849 Class D Fifth Priority Secured Floating Rate Notes Due March 2034 (the “Class D Notes” and, together with the Class A Notes, the Class A-S Notes, the Class B Notes, the Class C Notes, the “Offered Notes”), and the Issuer intends to issue the (a) the U.S.$20,469,510 Class E Sixth Priority Secured Floating Rate Notes Due March 2034 (the “Class E Notes”), and (b) the U.S. $15,352,132 Class F Seventh Priority Secured Floating Rate Notes Due March 2034 (the “Class F Notes” and together with the Class E Notes and the Offered Notes, the “Notes”) pursuant to an indenture, dated as of March 2, 2017 (the “Indenture”), by and among the Issuer, the Co-Issuer, Wilmington Trust, National Association, as trustee (together with any successor trustee permitted under the Indenture, the “Trustee”) and Wells Fargo Bank, National Association, as note administrator (together with any 

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successor note administrator permitted under the Indenture, in such capacity, the “Note Administrator”) and advancing agent;
WHEREAS, pursuant to its Governing Documents, certain resolutions of its Board of Directors and a preferred shares paying agency agreement, the Issuer also intends to issue the U.S.$32,410,056 aggregate notional amount preferred shares (the “Preferred Shares” and, together with the Notes, the “Securities”); and
WHEREAS, the Issuer intends to pledge the Mortgage Assets purchased hereunder by the Issuer to the Trustee as security for the Notes.
NOW, THEREFORE, the parties hereto agree as follows:
1.Defined Terms.
Capitalized terms used and not otherwise defined herein shall have the same meanings ascribed to such terms in the Indenture.
“ACRE”: Ares Commercial Real Estate Corporation, a Maryland corporation.
“Asset Documents”:  The documents evidencing a Mortgage Asset.
“Assignment of Leases, Rents and Profits”:  With respect to any Mortgage, an assignment of leases, rents and profits thereunder, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the Mortgaged Property is located to reflect the assignment of leases to the Mortgagee. 
“Assignment of Mortgage”:  With respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the Mortgage to the Mortgagee.
“Borrower”:  With respect to any Mortgage Loan, the related borrower or other obligor thereunder.
“Companion Participation Holder”:  With respect to any Pari Passu Participation, the holder of any related participation interest, including without limitation, an Unfunded Future Funding Participation.
“Credit Risk Retention Rule”:  As defined in Section 13.
“Cut-Off Date”:  With respect to each Initial Mortgage Asset, February 9, 2017 and, with respect to each Reinvestment Asset, the date specified as such in the related Subsequent Transfer Instrument.

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“Document Defect”: Any document or documents constituting a part of a Mortgage Asset File that has not been properly executed, has not been delivered within the time periods provided for herein, has not been properly executed, is missing, does not appear to be regular on its face or contains information that does not conform in any material respect with the corresponding information set forth in the Mortgage Asset Schedule on Schedule A of the Indenture or as set forth on an exhibit to a Subsequent Transfer Instrument.
“Exception Schedule”: The schedule identifying any exceptions to the representations and warranties made with respect to the Mortgage Assets to be conveyed hereunder, which is attached hereto as Schedule 1(a) or as attached to any Subsequent Transfer Instrument.
“Future Funding Amount”:  As defined in the Indenture.
“Material Breach”: As defined in Section 4(e).
“Material Document Defect”: A Document Defect that materially and adversely affects the value of a Mortgage Asset, the interest of the Noteholders or the ownership interests of the Issuer or any assignee thereof in such Mortgage Asset.
“Mortgage”:  With respect to each Mortgage Loan, the mortgage, deed of trust, deed to secure debt or similar instrument that secures the Mortgage Note and creates a lien on the fee or leasehold interest in the related Mortgaged Property.
“Mortgage Asset File”:  As defined in the Indenture.
“Mortgage Loan”:  Any Whole Loan or Pari Passu Participated Mortgage Loan, as applicable and as the context may require.
“Mortgage Note”:  With respect to each Mortgage Loan, the promissory note evidencing the indebtedness of the related Borrower, together with any rider, addendum or amendment thereto, or any renewal, substitution or replacement of such note.
“Mortgage Rate”:  The stated rate of interest on a Mortgage Loan.
“Mortgaged Property”:  With respect to each Mortgage Loan, the real property securing such Mortgage Loan.
“Mortgagee”:  With respect to each Mortgage Asset, the party secured by the related Mortgage.
“Pari Passu Participated Mortgage Loan”:  Any mortgage loan of which a Pari Passu Participation represents an interest.
“Pari Passu Participation”:  Any Mortgage Asset acquired by the Issuer on or after the Closing Date that is a fully funded pari passu participation interest in a whole loan secured by commercial real estate.

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“Pari Passu Participation Agreement”:  With respect to each Pari Passu Participated Mortgage Loan, the participation agreement that governs the rights and obligations of the holders of the related participation interests.
“Reinvestment Asset Purchase Price”: As defined in Section 2(b).
“Repurchase Price”: The sum of the following (in each case, without duplication) as of the date of such repurchase: (i) the then-Stated Principal Balance of such Mortgage Asset, plus (ii) accrued and unpaid interest on such Mortgage Asset, plus (iii) any unreimbursed advances made under the Indenture or the Servicing Agreement, plus (iv) accrued and unpaid interest on advances made under the Indenture or the Servicing Agreement on the Mortgage Asset, plus (v) any reasonable costs and expenses (including, but not limited to, the cost of any enforcement action incurred by the Issuer or the Trustee in connection with any such repurchase), plus (vi) the Liquidation Fee, if any, related to such Mortgage Asset, to the extent permitted to be paid under Section 5.03(b) of the Servicing Agreement.
“Retained Interest”:  Any origination fees paid on the Mortgage Assets and any interest in respect of any Mortgage Asset that accrued prior to the Closing Date and has not been paid to Seller.
“RRI Interest”:  As defined in Section 13.
“Servicing File”:  The file maintained by the servicer with respect to each Mortgage Asset.
“Stated Principal Balance”:  With respect to each Mortgage Asset, the principal balance as of the Cut-off Date as reduced (to not less than zero) on each Payment Date by (i) all payments or other collections of principal of such Mortgage Asset received or deemed received thereon during the related Collection Period and (ii) any principal forgiven by the Special Servicer and other principal losses realized in respect of such Mortgage Asset during the related Collection Period.
“Subsequent Seller Transfer Date”:  As defined in Section 2(b).
“Subsequent Transfer Instrument”:  As defined in Section 2(b).
“Unfunded Future Funding Participation”:  With respect to each Mortgage Asset that is a Pari Passu Participation, any portion of the related participation interest that is unfunded as of the Closing Date or Subsequent Transfer Date, as the case may be, which unfunded portion will not be an asset of the Issuer or part of the Collateral.
“Whole Loan”:  A mortgage loan secured by a first mortgage lien on a commercial property or multifamily property.
2.    Purchase and Sale of the Mortgage Assets.

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(a)    Set forth in Exhibit A hereto is a list of Initial Mortgage Assets and certain other information with respect to each of the Initial Mortgage Assets.  The Seller agrees to sell to the Issuer, and the Issuer agrees to purchase from the Seller, all of the Initial Mortgage Assets at an aggregate purchase price of U.S. $307,058,493 (the “Purchase Price”).  Immediately prior to such sale, the Seller hereby conveys and assigns to the Issuer all of the right, title and interest of the Seller in and to (i) the Initial Mortgage Assets and (ii) all amounts received or receivable on such Initial Mortgage Assets, whether now existing or hereafter acquired, after the Closing Date (other than amounts accrued prior to the Closing Date).  The sale and transfer of the Initial Mortgage Assets to the Issuer is conclusive of all rights and obligations from the Closing Date forward with respect to such Mortgage Assets; provided that (i) the sale and transfer of Initial Mortgage Assets that are Pari Passu Participations are made subject to the rights and obligations of each Companion Participation Holder under the related Pari Passu Participation Agreement and (ii) such sale and transfer expressly excludes any conveyance of any Retained Interest, which shall remain the property of the Seller and shall not be conveyed to the Issuer.  The Issuer shall cause any Retained Interest to be paid to the Seller (or the Seller’s designee) promptly upon receipt in accordance with the terms and conditions hereof, the Servicing Agreement and the Indenture.  For the avoidance of doubt, the Seller is not transferring any obligation to fund any Future Funding Amounts under the Pari Passu Participated Mortgage Loans, all of which will remain the obligation of the party specified under the related Pari Passu Participation Agreement.  Delivery or transfer of the Initial Mortgage Assets shall be made on March 2, 2017 (the “Closing Date”), at the time and in the manner agreed upon by the parties. Upon receipt of evidence of the delivery or transfer of the Initial Mortgage Assets to the Issuer or its designee, the Issuer shall pay or cause to be paid to the Seller the Purchase Price in the manner agreed upon by the Seller and the Issuer.
(b)    From time to time, and at any time following the Closing Date and so long as any Note is outstanding, the Seller may present Reinvestment Assets to the Issuer for purchase hereunder.  If the conditions set forth in Section 3 below are satisfied with respect to such Reinvestment Assets, the Issuer may purchase and the Seller shall sell and assign, without recourse, to the Issuer, but subject to the other terms and provisions of this Agreement, all of the right, title and interest of the Seller in and to (i) the Reinvestment Assets, as identified on the schedule attached to the related subsequent transfer instrument (a “Subsequent Transfer Instrument”), which Subsequent Transfer Instrument shall be in the form of Annex A attached hereto and delivered by the Seller on the date of such sale (each, a “Subsequent Seller Transfer Date”), and (ii) all amounts received or receivable on such Reinvestment Assets, whether now existing or hereafter acquired, after the related Subsequent Seller Transfer Date (other than amounts accrued prior to the related Cut-off Subsequent Seller Transfer Date).  Such sale and assignment of such Whole Loans or Pari Passu Participations, as the case may be, to the Issuer is conclusive of all rights and obligations from the Subsequent Seller Transfer Date forward, with respect to such Whole Loans or Pari Passu Participations, as the case may be; provided that the sale and transfer of Initial Mortgage Assets that are Pari Passu Participations are made subject to the rights and obligations of each Companion Participation Holder under the related Pari Passu Participation Agreement; provided, further, that such sale and transfer expressly excludes any conveyance of any Retained Interest, which shall remain the property of the Seller and shall not be conveyed to the Issuer hereunder.  The purchase price with respect to each such Whole Loans or Pari Passu Participations, as the case may be (the “Reinvestment Asset Purchase Price”), shall be at the price set forth in the related Subsequent 

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Transfer Instrument.  Each schedule of Reinvestment Assets to a Subsequent Transfer Instrument shall be marked as Schedule A to such Subsequent Transfer Instrument and is hereby incorporated and made a part of this Agreement.
(c)    The sale to the Issuer of each Mortgage Asset shall be absolute and is intended by the Seller and the Issuer to constitute and to be treated as an absolute sale of such Mortgage Asset by the Seller to the Issuer, conveying good title free and clear of any liens, claims, encumbrances or rights of others from the Seller to the Issuer and such Mortgage Asset shall not be part of the Seller’s estate in the event of the insolvency or bankruptcy of the Seller.  Each schedule of Reinvestment Assets pursuant to a Subsequent Transfer Instrument shall be marked as Schedule A to the Subsequent Transfer Instrument and is hereby incorporated and made a part of this Agreement.
(d)    With respect to each Mortgage Asset that is a Whole Loan, the Seller shall transfer record title of such Whole Loan to the Issuer in the manner described in subsection (e) below.  With respect to each Mortgage Asset that is a Pari Passu Participation, the Seller shall transfer record title of the related Pari Passu Participated Mortgage Loan to the Issuer in the manner described in subsection (e) below.
(e)    To the extent that the Issuer is designated to be the holder of record title of any Mortgage Loan, within 45 days after the Closing Date, the Seller shall, or shall at the expense of the Seller cause a third party vendor to, (1) complete (to the extent necessary) and submit for recording (in favor of the Issuer) in the appropriate public recording office (a) each assignment of mortgage referred to in clause (i)(8) of the definition of “Mortgage Asset File” in the Indenture which has not yet been submitted for recording and (b) each assignment of assignment of leases and rents referred to in clause (i)(13) of the definition of “Mortgage Asset File” in the Indenture (if not otherwise included in the related assignment of mortgage) which has not yet been submitted for recordation; and (2) complete (to the extent necessary) and file in the appropriate public filing office each UCC assignment of financing statement referred to in clause (i)(14) of the definition of “Mortgage Asset File” in the Indenture which has not yet been submitted for filing or recording.  In the event that any such document or instrument is lost or returned unrecorded or unfiled, as the case may be, because of a defect therein, the Seller shall promptly prepare or cause the preparation of a substitute therefor or cure or cause the curing of such defect, as the case may be, and shall thereafter deliver the substitute or corrected document to or at the direction of the Issuer (or any subsequent owner of the affected Mortgage Loan, including, without limitation, the Trustee) for recording or filing, as appropriate, at the Seller’s expense.  In the event that the Seller receives the original recorded or filed copy, the Seller shall, or shall cause a third party vendor or any other party under its control to, promptly upon receipt of the original recorded or filed copy (and in no event later than 5 Business Days following such receipt) deliver such original to the Custodian, with evidence of filing or recording thereon.  Notwithstanding anything to the contrary contained in this Section 2, in those instances where the public recording office retains the original mortgage, assignment of mortgage, assignment of leases and rents or assignment of assignment of leases and rents, if applicable, after any has been recorded, the obligations hereunder of the Seller shall be deemed to have been satisfied upon delivery to the Issuer (or the Custodian) of a copy of the recorded 

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original of such mortgage, assignment of mortgage, assignment of leases and rents or assignment of assignment of leases and rents.
3.    Conditions.
The obligations of the parties under this Agreement are subject to satisfaction of the following conditions:
(a)    the representations and warranties contained herein shall be accurate and complete (subject to any exception contained herein and in any applicable Exception Schedule), as of the Closing Date with respect to the Initial Mortgage Assets and as of each Subsequent Seller Transfer Date with respect to the applicable Reinvestment Assets;
(b)    on the Closing Date and on each Subsequent Seller Transfer Date, as applicable, counsel for the Issuer shall have been furnished with all such documents, certificates and opinions as such counsel may reasonably request in order to evidence the accuracy and completeness of any of the representations, warranties or statements of the Seller, the performance of any of the Mortgage Assets of the Seller hereunder or the fulfillment of any of the conditions herein contained;
(c)    with respect to the Initial Mortgage Assets, the issuance of the Securities and receipt by the Issuer of full payment therefor; and
(d)    with respect to the Reinvestment Assets sold on a Subsequent Seller Transfer Date, such Reinvestment Assets, collectively and individually (as applicable, after giving effect to the Grant of such Reinvestment Assets to the Issuer) satisfy, or with respect to satisfaction of the Rating Agency Condition are deemed to satisfy, the Reinvestment Criteria in accordance with the terms of the Indenture.
4.    Covenants, Representations and Warranties.
(a)    Each party to this Agreement hereby represents and warrants to the other party that (i) it is duly organized or incorporated, as the case may be, and validly existing as an entity under the laws of the jurisdiction in which it is incorporated, chartered or organized, (ii) it has the requisite power and authority to enter into and perform this Agreement, and (iii) this Agreement has been duly authorized by all necessary action, has been duly executed by one or more duly authorized officers and is the valid and binding agreement of such party enforceable against such party in accordance with its terms.
(b)    The Seller further represents and warrants to the Issuer as of the Closing Date and as of each Subsequent Seller Transfer Date, as applicable, that:
(i)    immediately prior to the sale of the applicable Mortgage Assets to the Issuer, the Seller shall own such Mortgage Assets, shall have good and marketable title thereto, free and clear of any pledge, lien, security interest, charge, claim, equity, or encumbrance of any kind, and upon the delivery or transfer of such Mortgage Assets to the Issuer as 

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contemplated herein, the Issuer shall receive good and marketable title to such Mortgage Assets, free and clear of any pledge, lien, security interest, charge, claim, equity or encumbrance of any kind;
(ii)    the Seller acquired its ownership in such Mortgage Assets in good faith without notice of any adverse claim, and upon the delivery or transfer of such Mortgage Assets to the Issuer as contemplated herein, the Issuer shall acquire ownership in such Mortgage Assets in good faith without notice of any adverse claim;
(iii)    the Seller has not assigned, pledged or otherwise encumbered any interest in such Mortgage Assets (or, if any such interest has been assigned, pledged or otherwise encumbered, it has been released);
(iv)    none of the execution, delivery or performance by the Seller of this Agreement shall (x) conflict with, result in any breach of or constitute a default (or an event which, with the giving of notice or passage of time, or both, would constitute a default) under, any term or provision of the organizational documents of the Seller, or any material indenture, agreement, order, decree or other material instrument to which the Seller is party or by which the Seller is bound which materially adversely affects the Seller’s ability to perform its obligations hereunder or (y) violate any provision of any law, rule or regulation applicable to the Seller of any regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or its properties which has a material adverse effect; 
(v)    no consent, license, approval or authorization from, or registration or qualification with, any governmental body, agency or authority, nor any consent, approval, waiver or notification of any creditor or lessor is required in connection with the execution, delivery and performance by the Seller of this Agreement the failure of which to obtain would have a material adverse effect except such as have been obtained and are in full force and effect;
(vi)    it has adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations.  It is generally able to pay, and as of the date hereof is paying, its debts as they come due.  It has not become or is not presently, financially insolvent nor will it be made insolvent by virtue of its execution of or performance under any of the provisions of this Agreement within the meaning of the bankruptcy laws or the insolvency laws of any jurisdiction.  It has not entered into this Agreement or the transactions effectuated hereby in contemplation of insolvency or with intent to hinder, delay or defraud any creditor; 
(vii)    no proceedings are pending or, to its knowledge, threatened against it before any federal, state or other governmental agency, authority, administrative or regulatory body, arbitrator, court or other tribunal, foreign or domestic, which, singularly or in the aggregate, could reasonably be expected to materially and adversely affect the ability of the Seller to perform any of its obligations under this Agreement; and 

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(viii)    the consideration received by it upon the sale of such Mortgage Assets owned by it constitutes fair consideration and reasonably equivalent value for such Mortgage Assets. 
(c)    The Seller further represents and warrants to the Issuer as of the Closing Date and as of each Subsequent Seller Transfer Date, as applicable, that:
(i)    the Asset Documents with respect to each such Mortgage Asset do not prohibit the Issuer from granting a security interest in and assigning and pledging such Mortgage Asset to the Trustee;
(ii)    none of such Mortgage Assets will cause the Issuer to have payments subject to foreign or United States withholding tax; 
(iii)    with respect to each Initial Mortgage Asset, except as set forth in the Exception Schedule, and with respect to any Reinvestment Assets, except as set forth in the applicable Subsequent Transfer Instrument, the representations and warranties set forth in Exhibit B are true and correct in all material respects; and
(iv)    the Seller has delivered to the Issuer or its designee (A) the original of any Mortgage Note (or a copy of such Mortgage Note together with a lost note affidavit and indemnity), participation certificate, certificate or other instrument, if any, constituting or evidencing such Mortgage Asset (and, in the case of a Pari Passu Participation, the note evidencing the related Pari Passu Participated Mortgage Loan) together with an assignment in blank and all other assignment documents reasonably necessary to evidence the transfer of the Mortgage Asset (and, in the case of a Pari Passu Participation, the related Pari Passu Participated Mortgage Loan, subject to the rights and obligations of the related Companion Participation Holder) including, where applicable, UCC assignments and any other Asset Documents and copies of any other documents related to the Mortgage Asset (and, in the case of a Pari Passu Participation, the related Mortgage Loan, subject to the rights and obligations of the related Companion Participation Holder) in the Seller’s possession, the delivery of which is necessary to perfect the security interest of the Trustee in such Mortgage Asset and (B) copies of the Asset Documents.
(d)    For purposes of the representations and warranties set forth in Exhibit B, the phrases “to the knowledge of the Seller” or “to the Seller’s knowledge” shall mean, except where otherwise expressly set forth in a particular representation and warranty, the actual state of knowledge of the Seller or any servicer acting on its behalf regarding the matters referred to, in each case:  (i) at the time of the Seller’s origination or acquisition of the particular Mortgage Asset, after the Seller having conducted such inquiry and due diligence into such matters as would be customarily performed by a prudent institutional commercial or multifamily, as applicable, mortgage lender; and (ii) subsequent to such origination, the Seller having utilized monitoring practices that would be utilized by a prudent commercial or multifamily, as applicable, mortgage lender and having made prudent inquiry as to the knowledge of the servicer servicing such Mortgage Asset on its behalf.  Also, for purposes of such representations and warranties, the phrases “to the actual knowledge of the Seller” or “to the Seller’s actual knowledge” shall mean, except where otherwise 

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expressly set forth below, the actual state of knowledge of the Seller or any servicer acting on its behalf without any express or implied obligation to make inquiry.  All information contained in documents which are part of or required to be part of a Mortgage Asset File shall be deemed to be within the knowledge and the actual knowledge of the Seller.  Wherever there is a reference to receipt by, or possession of, the Seller of any information or documents, or to any action taken by the Seller or not taken by the Seller, such reference shall include the receipt or possession of such information or documents by, or the taking of such action or the failure to take such action by, the Seller or any servicer acting on its behalf.
(e)    The Seller shall not later than ninety (90) days from discovery by the Seller or receipt of written notice from any party to the Indenture of (i) its breach of a representation or a warranty pursuant to this Agreement that materially and adversely affects the ownership interests of the Issuer (or the Trustee as its assignee) in a Mortgage Asset, the interests of the Noteholders or the value of a Mortgage Asset (a “Material Breach”), or (ii) any Material Document Defect relating to any Mortgage Asset or Reinvestment Asset, (1) cure such Material Breach or Material Document Defect; provided that if such Material Breach or Material Document Defect cannot be cured within such 90-day period, the Seller shall repurchase the affected Mortgage Asset not later than the end of such 90-day period at the Repurchase Price; provided, however, that if the Seller certifies to the Issuer and the Trustee in writing that (x) any such Material Breach or Material Document Defect, as the case may be, is capable of being cured in all material respects but not within the initial 90-day period and (y) the Seller has commenced and is diligently proceeding with the cure of such Material Breach or Material Document Defect, as the case may be, then the Seller shall have an additional 90-day period to complete such cure or, failing such, to repurchase the affected Mortgage Asset or the related Mortgaged Property; provided, further, that if any such Material Document Defect is still not cured in all material respects after the initial 90-day period and any such additional 90-day period solely due to the failure of the Seller to have received the recorded or filed document, then the Seller shall be entitled to continue to defer its cure and repurchase obligations in respect of such Material Document Defect so long as the Seller certifies to the Trustee every 30 days thereafter that such Material Document Defect is still in effect solely because of its failure to have received the recorded or filed document and that the Seller is diligently pursuing the cure of such Material Document Defect (specifying the actions being taken) except that no such deferral of cure or repurchase may continue beyond the date that is 18 months following the Closing Date or the Subsequent Seller Transfer Date, as the case may be, or (2) subject to the consent of a majority of the holders of each Class of Notes (excluding any Note held by the Seller or any of its affiliates), the Seller shall make a cash payment to the Issuer in an amount that the Special Servicer on behalf of the Issuer determines is sufficient to compensate the Issuer for such breach of representation or warranty or defect (such payment, a “Loss Value Payment”), which Loss Value Payment will be deemed to cure such Material Breach or Material Document Defect.  Such repurchase or cure obligation by the Seller shall be the Issuer’s sole remedy for any Material Breach or Material Document Defect pursuant to this Agreement with respect to any Mortgage Asset sold to the Issuer by the Seller.
(f)    The Seller hereby acknowledges and consents to the collateral assignment by the Issuer of this Agreement and all right, title and interest thereto to the Trustee, for the benefit of the Secured Parties, as required in Sections 15.1(f)(i) and (ii) of the Indenture.

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(g)    The Seller hereby covenants and agrees that it shall perform any provisions of the Indenture made expressly applicable to the Seller by the Indenture, as required by Section 15.1(f)(i)  of the Indenture.
(h)    The Seller hereby covenants and agrees that all of the representations, covenants and agreements made by or otherwise entered into by it in this Agreement shall also be for the benefit of the Secured Parties, as required by Section 15.1(f)(ii) of the Indenture and agrees that enforcement of any rights hereunder by the Trustee, the Note Administrator, the Servicer, or the Special Servicer, as the case may be, shall have the same force and effect as if the right or remedy had been enforced or executed by the Issuer but that such rights and remedies shall not be any greater than the rights and remedies of the Issuer under Section 4(e) above.
(i)    On or prior to the Closing Date, or each Subsequent Seller Transfer Date, as applicable, the Seller shall deliver the Asset Documents to the Issuer or, at the direction of the Issuer, to the Custodian, with respect to each Mortgage Asset sold to the Issuer hereunder or under the applicable Subsequent Transfer Instrument.  The Seller hereby covenants and agrees, as required by Section 15.1(f)(iii) of the Indenture, that it shall deliver to the Trustee duplicate original copies of all notices, statements, communications and instruments delivered or required to be delivered to the Issuer by each party pursuant to this Agreement.
(j)    The Seller hereby covenants and agrees, as required by Section 15.1(f)(iv) of the Indenture, that it shall not enter into any agreement amending, modifying or terminating this Agreement (other than in respect of an amendment or modification to cure any inconsistency, ambiguity or manifest error, in each case, so long as such amendment or modification does not affect in any material respects the interests of any Secured Party), without notifying the Rating Agencies through the 17g-5 Website as set forth in the Indenture.
(k)    ACRE and the Issuer hereby covenant, that at all times (1) ACRE will qualify as a REIT for federal income tax purposes and the Issuer will qualify as a Qualified REIT Subsidiary or other disregarded entity of ACRE for federal income tax purposes, or (2) based on an Opinion of Counsel, the Issuer will be treated as a Qualified REIT Subsidiary or other disregarded entity of a REIT other than ACRE, or (3) based on an Opinion of Counsel, the Issuer will be treated as a foreign corporation that is not engaged in a trade or business in the United States for U.S. federal income tax purposes (which Opinion may be conditioned on compliance with certain restrictions on the investment or other activities of the Issuer and/or the Servicer on behalf of the Issuer).
5.    Sale.
It is the intention of the parties hereto that each transfer and assignment contemplated by this Agreement shall constitute a sale of the related Mortgage Asset (and, if applicable, the related Mortgage Loan) from the Seller to the Issuer and the beneficial interest in and title to the Mortgage Assets (and, if applicable, the related Mortgage Loans) shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. In the event that, notwithstanding the intent of the parties hereto, the transfer and assignment contemplated hereby is held not to be a sale (for non-tax purposes), this Agreement shall constitute a security agreement under applicable law, and, in such event, the Seller shall be deemed to have 

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granted, and the Seller hereby grants, to the Issuer a security interest in the Mortgage Assets (and, if applicable, the related Mortgage Loans) for the benefit of the Secured Parties and its assignees as security for the Seller’s obligations hereunder and the Seller consents to the pledge of the Mortgage Assets to the Trustee.
6.    Non-Petition.
The Seller agrees not to 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 U.S. federal or state bankruptcy or similar laws in any jurisdiction until at least one year and one day or, if longer, the applicable preference period then in effect after the payment in full of all Notes issued under the Indenture.  This Section 6 shall survive the termination of this Agreement for any reason whatsoever.
7.    Amendments.
This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement by the parties hereto and satisfaction of the Rating Agency Condition; provided that no such amendment shall be effective without the consent of the majority by principal amount of each Class of Notes materially and adversely affected thereby.
8.    Communications.
Except as may be otherwise agreed between the parties, all communications hereunder shall be made in writing to the relevant party by personal delivery or by courier or first-class registered mail, or the closest local equivalent thereto, or by facsimile transmission confirmed by personal delivery or by courier or first-class registered mail as follows:

		
	To the Seller: 
	ACRC Lender LLC 
245 Park Avenue, 42nd Floor 
New York, NY, 10167 
Attention: Real Estate Debt Legal Department & Capital Markets 
Telecopy: 310-388-3041

with a copy to:
ACRC Lender LLC 
2000 Avenue of the Stars, 12th Floor 
Los Angeles, CA 90067 
Attention: Chief Accounting Officer 
Telecopy: 310-203-8820
		
	To the Issuer: 
	ACRE Commercial Mortgage 2017-FL3 Ltd.

c/o MaplesFS Limited

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Boundary Hall, Cricket Square 
Grand Cayman KY1-1102 
Cayman Islands 
Facsimile number: +1 345 945 7100 
Attention: The Directors
with a copy to the Seller (as addressed above);
or to such other address, telephone number or facsimile number as either party may notify to the other in accordance with the terms hereof from time to time. Any communications hereunder shall be effective upon receipt.
9.    Governing Law and Consent to Jurisdiction.
(a)    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF (OTHER THAN TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
(b)    The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York and any court in the State of New York located in the City and County of New York, and any appellate court hearing appeals from the Courts mentioned above, in any action, suit or proceeding brought against it and to or in connection with this Agreement or the transaction contemplated hereunder or for recognition or enforcement of any judgment, and the parties hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may be heard or determined in such New York State court or, to the extent permitted by law, in such federal court. The parties hereto agree that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, the parties hereto hereby waive and agree not to assert by way of motion, as a defense or otherwise in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in any inconvenient forum, that the venue of the suit, action or proceeding is improper or that the subject matter thereof may not be litigated in or by such courts.
(c)    To the extent permitted by applicable law, the parties hereto shall not seek and hereby waive the right to any review of the judgment of any such court by any court of any other nation or jurisdiction which may be called upon to grant an enforcement of such judgment.
(d)    The Issuer irrevocably appoints Corporation Services Company, as its agent for service of process in New York in respect of any such suit, action or proceeding. The Issuer agrees that service of such process upon such agent shall constitute personal service of such process upon it.

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(e)    The Seller irrevocably consents to the service of any and all process in any action or proceeding by the mailing by certified mail, return receipt requested, or delivery requiring proof of delivery of copies of such process to it at the address set forth in Section 8 hereof.
10.    Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement.  
11.    Limited Recourse Agreement.
All obligations of the Issuer arising hereunder or in connection herewith are limited in recourse to the Collateral and to the extent the proceeds of the Collateral, when applied in accordance with the Priority of Payments, are insufficient to meet the obligations of the Issuer hereunder in full, the Issuer shall have no further liability in respect of any such outstanding obligations and any obligations of, and claims against, the Issuer, arising hereunder or in connection herewith, shall be extinguished and shall not thereafter revive.  The obligations of the Issuer hereunder or in connection herewith will be solely the corporate obligations of the Issuer and the Seller will not have recourse to any of the directors, officers, employees, shareholders or affiliates of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions contemplated hereby or in connection herewith.  This Section 11 shall survive the termination of this Agreement for any reason whatsoever.
12.    Assignment and Assumption.
With respect to the Mortgage Assets that are subject to a Pari Passu Participation Agreement, the parties hereto intend that the provisions of this Section 12 serve as an assignment and assumption agreement between the Seller, as the assignor, and the Issuer, as the assignee.  Accordingly, the Seller hereby (and in accordance with and subject to all other applicable provisions of this Agreement) assigns, grants, sells, transfers, delivers, sets over, and conveys to the Issuer all right, title and interest of the Seller in, to and arising out of the related Pari Passu Participation Agreement and the Issuer hereby accepts (subject to applicable provisions of this Agreement) the foregoing assignment and assumes all of the rights and obligations of the Seller with respect to related Pari Passu Participation Agreement from and after the Closing Date or Subsequent Seller Transfer Date, as applicable.  In addition, the Issuer acknowledges that each of such Mortgage Assets (including any Pari Passu Participated Mortgage Loans) will be serviced by, and agrees to be bound by, the terms of the applicable Servicing Agreement (as defined in the related or Pari Passu Participation Agreement) .
13.    Risk Retention.
(a)    The Seller represents that it organized and initiated the securitization transaction in connection with which the Securities are being issued.
(b)    On the Closing Date, the Seller, or a “majority-owned affiliate” (as defined in the Credit Risk Retention Rule) of the Seller, will purchase from the Issuer, among other Securities, 

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100% of the Preferred Shares (the “RRI Interest”, which the parties acknowledge and agree is equal to at least 5% of the fair market value of the Securities.
(c)    The parties hereto acknowledge and agree that the RRI Interest is an “eligible horizontal residual interest” (as defined in the Credit Risk Retention Rule).
(d)    The Seller, or a majority-owned affiliate of the Seller, shall act as the “retaining sponsor” under the Credit Risk Retention Rule and (shall directly or indirectly) retain (or cause the retention of) the RRI Interest in accordance with the Credit Risk Retention Rule.
(e)    The Seller shall comply with the terms and conditions set forth in Section 2.5 of the Preferred Share Paying Agency Agreement applicable to the RRI Interest.

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Mortgage Asset Purchase Agreement as of the day and year first above written.
ACRC LENDER LLC, as Seller
By: /s/ Thomas A. Jaekel 
Name: Thomas A. Jaekel 
Title: Vice President
ACRE COMMERCIAL MORTGAGE 2017-FL3 LTD., as Issuer
By: /s/ Thomas A. Jaekel 
Name: Thomas A. Jaekel 
Title: Vice PresidentEX-10.13

 Exhibit 10.13 
 Execution Version 
 SOLAR LIFE SCIENCE PROGRAM LLC

 LIMITED LIABILITY COMPANY AGREEMENT 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
	ARTICLE 1 DEFINITIONS	  	 	1	 
		 	Section 1.1	 	Definitions	  	 	1	 
		 	Section 1.2	 	Other Definitional Provisions	  	 	5	 
		
	 ARTICLE 2 GENERAL PROVISIONS
	  	 	5	 
		 	Section 2.1	 	Formation of the Limited Liability Company	  	 	5	 
		 	Section 2.2	 	Company Name	  	 	6	 
		 	Section 2.3	 	Place of Business; Agent for Service of Process	  	 	6	 
		 	Section 2.4	 	Purpose and Powers of the Company	  	 	6	 
		 	Section 2.5	 	Fiscal Year	  	 	7	 
		 	Section 2.6	 	Liability of Members	  	 	7	 
		 	Section 2.7	 	Member List	  	 	7	 
		
	ARTICLE 3 COMPANY CAPITAL AND INTERESTS	  	 	7	 
		 	Section 3.1	 	Capital Commitments	  	 	7	 
		 	Section 3.2	 	Defaulting Members	  	 	8	 
		 	Section 3.3	 	Interest or Withdrawals	  	 	8	 
		
	ARTICLE 4 ALLOCATIONS	  	 	8	 
		 	Section 4.1	 	Capital Accounts	  	 	8	 
		 	Section 4.2	 	Allocations of Profits and Losses	  	 	9	 
		 	Section 4.3	 	Changes of Interests	  	 	9	 
		 	Section 4.4	 	Allocations for Tax Purposes	  	 	9	 
		
	ARTICLE 5 DISTRIBUTIONS	  	 	9	 
		 	Section 5.1	 	General	  	 	9	 
		 	Section 5.2	 	Tax Distributions	  	 	10	 
		 	Section 5.3	 	Withholding	  	 	10	 
		 	Section 5.4	 	Reinvestment; Certain Limitations; Distributions in Kind	  	 	10	 
		
	ARTICLE 6 MANAGEMENT OF COMPANY	  	 	11	 
		 	Section 6.1	 	Establishment of the Board	  	 	11	 
		 	Section 6.2	 	Board Composition; Vacancies	  	 	11	 
		 	Section 6.3	 	Removal; Resignation	  	 	11	 
		 	Section 6.4	 	Meetings	  	 	12	 
		 	Section 6.5	 	Quorum; Manner of Acting	  	 	12	 
		 	Section 6.6	 	Action By Written Consent	  	 	12	 
		 	Section 6.7	 	Expense Reimbursement	  	 	12	 
		 	Section 6.8	 	Committees	  	 	13	 
		 	Section 6.9	 	Servicing Agreement	  	 	13	 
		 	Section 6.10	 	Restrictions	  	 	13	 
		 	Section 6.11	 	No Personal Liability	  	 	14	 
		 	Section 6.12	 	Reliance by Third Parties	  	 	14	 
		 	Section 6.13	 	Members’ Outside Transactions; Investment Opportunities; Time and Attention; Conflict of Interest	  	 	14	 
		 	Section 6.14	 	Exculpation of Managers	  	 	16	 
		 	Section 6.15	 	Liabilities and Duties of the Members and Managers	  	 	16	 
		 	Section 6.16	 	Indemnification	  	 	16	 
		 	Section 6.17	 	Tax Matters Member	  	 	17	 

  
 i 

											
	 	 	 	 	 	 	 	  	Page	 
		 	ARTICLE 7 TRANSFERS OF COMPANY INTERESTS; WITHDRAWALS	  	 	18	 
		 		 	Section 7.1	 	Transfers by Members	  	 	18	 
		 		 	Section 7.2	 	Withdrawal by Members	  	 	19	 
			
		 	ARTICLE 8 TERM, DISSOLUTION AND LIQUIDATION OF COMPANY	  	 	19	 
		 		 	Section 8.1	 	Term	  	 	19	 
		 		 	Section 8.2	 	Dissolution	  	 	20	 
		 		 	Section 8.3	 	Wind-down	  	 	20	 
		 		 	Section 8.4	 	Cause Event	  	 	21	 
			
		 	ARTICLE 9 ACCOUNTING, REPORTING AND VALUATION PROVISIONS	  	 	22	 
		 		 	Section 9.1	 	Books and Accounts	  	 	22	 
		 		 	Section 9.2	 	Financial Reports; Tax Return	  	 	22	 
		 		 	Section 9.3	 	Tax Elections	  	 	22	 
		 		 	Section 9.4	 	Confidentiality	  	 	23	 
		 		 	Section 9.5	 	Valuation	  	 	24	 
			
		 	ARTICLE 10 MISCELLANEOUS PROVISIONS	  	 	25	 
		 		 	Section 10.1	 	Power of Attorney	  	 	25	 
		 		 	Section 10.2	 	Determination of Disputes	  	 	25	 
		 		 	Section 10.3	 	Other Documents	  	 	25	 
		 		 	Section 10.4	 	Force Majeure	  	 	25	 
		 		 	Section 10.5	 	Applicable Law	  	 	25	 
		 		 	Section 10.6	 	Waivers	  	 	25	 
		 		 	Section 10.7	 	Notices	  	 	26	 
		 		 	Section 10.8	 	Construction	  	 	26	 
		 		 	Section 10.9	 	Amendments	  	 	26	 
		 		 	Section 10.10	 	Legal Counsel	  	 	26	 
		 		 	Section 10.11	 	Execution	  	 	27	 
		 		 	Section 10.12	 	Binding Effect	  	 	27	 
		 		 	Section 10.13	 	Severability	  	 	27	 
		 		 	Section 10.14	 	Computation of Time	  	 	27	 
		 		 	Section 10.15	 	Entire Agreement	  	 	27	 

  
 ii 

 SOLAR LIFE SCIENCE PROGRAM LLC 

LIMITED LIABILITY COMPANY AGREEMENT 
 This Limited Liability Company Agreement, dated as of February 22, 2017, is entered into by and between Solar Capital Ltd., Solar Senior Capital Ltd. and Deerfield Solar Holdings LLC (each, a
“Member” and collectively, the “Members”). 
 WHEREAS, the Members desire to form a limited
liability company under the Act (as defined below) for the purposes and pursuant to the terms set forth herein; and 
 WHEREAS,
the Members acknowledge that PIMCO/SCP Corporate Lending Fund, L.P. shall become a Member of the Company at such time as PIMCO/SCP Corporate Lending Fund, L.P. holds its initial closing and is issued an interest in the Company pursuant to its
Subscription Agreement. 
 NOW THEREFORE, in consideration of the mutual agreements set forth below, and intending to be legally
bound, the Members hereby agree as follows: 
 ARTICLE 1 DEFINITIONS 

Section 1.1 Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 

“Act”: the Delaware Limited Liability Company Act, as from time to time in effect. 

“Affiliate”: with respect to a Person, any other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such Person, including, without limitation, any general partner or managing member of such Person and any investment fund now or hereafter existing which is controlled by one or more
general partners or management members of, or shares the same management company with, such Person. For purposes of this definition, “control,” when used with respect to any specified Person, shall mean the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and
“controlled” shall have correlative meanings. 
 “Agreement”: this Limited Liability Company
Agreement, as it may from time to time be amended. 
 “Allocation Requirements”: the meaning set forth in
Section 6.13(b). 
 “Approved Amendment List” the meaning set forth in Section 6.13(f). 

“Audit Committee”: a Committee having the powers described in a charter to be approved by the Board promptly after the
date hereof and which shall initially be comprised of two members, one of whom is the chief financial officer of SLRC and SUNS and the other member to be appointed by the Deerfield Manager after the date hereof. 

“Board”: the meaning set forth in Section 6.1. 

“Capital Account”: as to each Member, the capital account maintained on the books of the Company for such Member in
accordance with Section 4.1. 
 “Capital Commitment”: as to each Member, the total amount set forth in
such Member’s Subscription Agreement delivered herewith and on the Member List, which is contributed or agreed to be contributed to the Company by such Member as a Capital Contribution. 

 “Capital Contribution”: as to each Member, the aggregate amount of cash
actually contributed to the equity capital of the Company by such Member. The Capital Contribution of a Member that is an assignee of all or a portion of an equity interest in the Company shall include the Capital Contribution of the assignor (or a
pro rata portion thereof in the case of an assignment of less than the entire equity interest of the assignor). 

“Cause Event” means with respect to any Member (i) such Member has engaged in conduct which constitutes gross
negligence or willful misconduct with respect to the Company which has or reasonably could be expected to have in the good faith judgment of the other Members a material adverse effect on the business of the Company, (ii) such Member has been
convicted of a felony or any fraud, theft, wrongful appropriation, embezzlement or any other financial crime, (iii) a bankruptcy or other similar insolvency event has occurred with respect to such Member, (iv) a default by such Member
under this Agreement that has not been cured prior to the Default Date; or (v) such Member has triggered a Solar Triggering Event or a Deerfield Triggering Event that has been deemed a Cause Event pursuant to the terms hereof. 

“Certificate of Formation”: the certificate of formation for the Company filed under the Act, as from time to time
amended. 
 “Code”: the U.S. Internal Revenue Code of 1986, as from time to time amended. 

“Common Investment”: the meaning set forth in Section 9.5(a)(ii). 

“Conflict”: the meaning set forth in Section 6.13(e). 

“Committee”: a committee appointed by the Board, pursuant to Section 6.8, including the Audit
Committee. 
 “Company”: the limited liability company created and existing pursuant to the Certificate of
Formation and this Agreement. 
 “Company Counsel”: the meaning set forth in Section 10.9. 

“Credit Event”: the meaning set forth in Section 6.13(e). 

“Deerfield”: collectively, Deerfield Solar Holdings LLC and its Affiliates. 

“Deerfield Manager”: the individual designated by Deerfield to act as Manager hereunder pursuant to Section 6.2.
Deerfield may designate, remove, or designate a successor to, the Deerfield Manager by written notice thereof to the Solar Managers. 
 “Deerfield Triggering Event”: means an event which shall occur if (a) both James Flynn and Alex Karnal cease to be involved in the day-to-day management of the investment activities of Deerfield; and (b) Solar determines in its sole discretion to treat such event as a Cause Event. 

“Default Date”: the meaning set forth in Section 3.2(a). 

“Defaulting Member”: the meaning set forth in Section 3.2(a). 

“Distribution Date”: the meaning set forth in Section 5.1. 

“Excluded Amendments”: amendments which modify or waive the terms, conditions or material information of any Investment,
other than any immaterial, ministerial or administrative amendments for which the Deerfield Manager has not provided or withheld consent within three (3) calendar days following the receipt of notice of such amendment to Deerfield from Solar,
including amendments which result in: (1) an amendment 

  
 2 

 
or waiver of a material covenant of a borrower for more than four consecutive quarters; (2) approval of an acquisition or disposition; or (3) an amendment or waiver of any payment term,
including mandatory prepayments or any funding condition. 
 “Expenses”: all costs and expenses, of whatever
nature, directly or indirectly borne by the Company including under the Servicing Agreement and, for the avoidance of doubt, excluding any costs or expenses incurred by a Member in its capacity as a Member. 

“GAAP”: United States generally accepted accounting principles as in effect from time to time. 

“Independent Financing”: the meaning set forth in Section 6.13(g). 

“Interim Loan” shall mean an interim borrowing provided to the Company by any of the Members prior to the SCP PIMCO
Threshold Date. The terms and conditions of each Interim Loan shall be subject to Manager Approval and each of the Members shall be provided with the opportunity to participate as a lender with respect to each Interim Loan, on a pro rata basis.

 “Investment”: an investment of any type held, directly or indirectly, by the Company from time to time. It
is the intention of the Members that the Company only invest in Senior Secured Loans to public and private companies in the life sciences industry principally located in the United States and Canada that are sourced by Solar, provided, that the
Company’s investment strategy may be modified from time to time by Manager Approval. 
 “Investment Company
Act”: the U.S. Investment Company Act of 1940, as amended. 
 “Investor Laws”: the meaning set forth
in Section 7.2(b). 
 “Loss”: the meaning set forth in Section 6.16(a). 

“Manager”: the meaning set forth in Section 6.1. 

“Manager Approval”: as to any matter requiring Manager Approval hereunder, the unanimous approval or, solely with
respect to any matter that may be unwound if not ratified, unanimous subsequent ratification by the Managers. 

“Member”: each Person identified as a Member in the first sentence hereof, and any Person that is or becomes a Member of
the Company. 
 “Member List”: the meaning set forth in Section 2.7. 

“Order”: the order that was issued by the SEC on June 30, 2014 to Solar, which permits Solar to participate in
certain co-investment transactions that otherwise would be prohibited under Sections 17(d) or 57(a)(4) of the Investment Company Act. 
 “Organizational Expenses”: means all costs, expenses and fees incurred directly in connection with the formation of the Company including, but not limited to, the drafting and filing of
the Company’s certificate of formation, and fees of any service providers used to facilitate filings with the State of Delaware or any jurisdiction in which the Company applies for authority to do business, but excluding, for the avoidance of
doubt, expenses and fees incurred in a Member’s capacity as a Member, including the negotiation of this Agreement, the servicing agreement by and among the Company and the Servicer and the subscription agreement by and between the Company and
each of the Members. 

  
 3 

 “Person”: shall include an individual, corporation, partnership,
association, joint venture, company, limited liability company, trust, governmental authority or other entity. 
 “PIMCO
Appointee”: the meaning set forth in Section 6.13(e). 
 “Portfolio Company”: with respect to any
Investment, any Person that is the issuer of any equity securities, equity-related securities or obligations, debt instruments or debt-related securities or obligations (including senior debt instruments, investments in senior loans, senior debt
securities and any notes or other evidences of indebtedness, preferred equity, warrants, options, subordinated debt, mezzanine securities or similar securities or instruments) that are the subject of such Investment. Portfolio Companies do not
include Subsidiaries. 
 “Proceeding”: has the meaning set forth in Section 6.16(a). 

“Profit or Loss”: as to any fiscal period, the Company’s taxable income or loss for such period for federal income
tax purposes under the Code, including each item of the Company’s income, gains, losses and deductions for such period and as adjusted under the Code and the Treasury Regulations thereunder (including adjustments for non-deductible expenses, certain excluded items of income and any gains or losses as a result of adjustments made pursuant to Treasury Regulations Section
1.704-1(b)(2)(iv)(f)). 
 “Reinvestment Period”: the period of time
from the date of this Agreement to the fourth anniversary of the date of this Agreement, unless extended at any time upon Manager Approval or terminated earlier pursuant to the terms hereof. 

“SCP PIMCO”: PIMCO/SCP Corporate Lending Fund, L.P. or any Person substituted for PIMCO/SCP Corporate Lending Fund, L.P.
as a Member and approved by Manager Approval. 
 “SCP PIMCO Threshold Date”: the date that is the earlier of:
(i) the date on which SCP PIMCO can contribute capital to the Company, (ii) the date on which SCP PIMCO terminates its Capital Commitment pursuant to its Subscription Agreement or (iii) December 31, 2017. 

“SEC”: U.S. Securities and Exchange Commission. 

“Senior Secured Loans”: credit facilities which are secured by a first lien on some or all of the applicable
issuer’s assets. 
 “Servicer”: SLRC and SUNS or, subject to Manager Approval, an Affiliate of SLRC or
SUNS that performs administrative and loan services for the Company or, subject to the conditions of Section 8.4, a substitute Servicer appointed by the Deerfield Manager. Solar Capital Partners, LLC and Solar Capital Management, LLC are hereby
approved by Manager Approval to serve as delegates of the Servicer with respect to the Company. 
 “Servicing
Agreement”: the Servicing Agreement between the Company and the Servicer, as amended from time to time with Manager Approval. 
 “SLRC”: Solar Capital Ltd., or any Person substituted for Solar Capital Ltd. as a Member and approved by Manager Approval. 

“SLRC Manager”: the person designated by SLRC to act as a Manager hereunder pursuant to Section 6.2. SLRC may
designate, remove, or designate a successor to the SLRC Manager by written notice thereof to the Deerfield Manager and the SUNS Manager. 
 “Solar”: collectively, SLRC, SUNS and their Affiliates. 

“Solar Managers”: collectively the SLRC Manager and the SUNS Manager. 

  
 4 

 “Solar Triggering Event”: means an event which shall occur if (a) (i)
at least one of Michael Gross or Bruce Spohler is not serving as a Solar Manager, or (ii) both Michael Gross and Bruce Spohler cease to be involved in the
day-to-day management of the investment activities of Solar and (b) and Deerfield determines at its sole discretion to treat such event as a Cause Event.

 “Subscription Agreement”: Each of the several subscription agreements entered into between the Company and a
Member. 
 “Subsidiary”: any investment vehicle or financing vehicle directly or indirectly owned, in whole or
in part, by the Company. 
 “SUNS”: Solar Senior Capital Ltd., or any Person substituted for Solar Senior
Capital Ltd. as a Member and approved by Manager Approval. 
 “SUNS Manager”: the person designated by SUNS to
act as a Manager hereunder pursuant to Section 6.2. SUNS may designate, remove, or designate a successor to the SUNS Manager by written notice thereof to the Deerfield Manager and SLRC Manager. 

“Tax Liability”: as to any Member and any fiscal period, the amount of net taxable income allocated to such Member in
respect of such Member’s ownership in the Company with respect to such period, multiplied by the greater of (i) fifty percent (50%) and (ii) the highest combined marginal federal, state and local income tax rates for an individual
resident living in New York City, taking into account (x) the non-deductibility of any item for state or local income tax purposes that is deductible for federal income tax purposes, (y) the
deductibility for federal income tax purposes of state or local income taxes, and (z) the deductibility of any item for state income tax purposes that is not deductible for federal income tax purposes. The Tax Liability for any fiscal period in
which such Member was allocated net loss for federal income tax purposes shall be deemed to equal zero. 
 “Tax Matters
Member”: the meaning set forth in Section 6.17. 
 “Treasury Regulations”: all final and
temporary federal income tax regulations, as amended from time to time, issued under the Code by the United States Treasury Department. 
 “Value”: as of the date of computation with respect to some or all of the assets of the Company or any assets acquired by the Company, the value of such assets determined in accordance
with Section 9.5. 
 Section 1.2 Other Definitional Provisions. Terms defined in the singular shall have a
comparable meaning when used in the plural, and vice versa. Unless otherwise specified, references herein to applicable statutes or other laws are references to the federal laws of the United States. 

ARTICLE 2 GENERAL PROVISIONS 
 Section 2.1 Formation of the Limited Liability Company. The Company was formed under and pursuant to the Act upon the filing of the Certificate of Formation in the office of the Secretary of
State of the State of Delaware, and the Members hereby agree to continue the Company under and pursuant to the Act. Michael Gross is designated and hereby ratified as an “authorized person”, within the meaning of the Act, to execute,
deliver and file the Certificate of Formation of the Company and any amendments thereto with the Delaware Secretary of State pursuant to the Act as well as any other certificates (and any amendments to and/or restatements thereof) permitted or
required to be filed with the Secretary of State of the State of Delaware. The Members agree that the rights, duties and liabilities of the Members shall be as provided in the Act, except as otherwise provided herein. Each Person being admitted as a
Member as of the date hereof shall be admitted as a Member at the time such Person has executed this Agreement or a counterpart of this Agreement. 

  
 5 

 Section 2.2 Company Name. The name of the Company shall be “Solar Life
Science Program LLC” or such other name as approved by Manager Approval. 
 Section 2.3 Place of Business; Agent
for Service of Process. 
 (a) The registered office of the Company in the State of Delaware shall be c/o Corporation
Service Company, 2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19808, or such other place as the Members may designate. The principal business office of the Company shall be at 500 Park Avenue, 3rd Floor, New York, NY
10022 or such other place as may be approved by Manager Approval. The Company may also maintain additional offices at such place or places as may be approved by Manager Approval. 

(b) The agent for service of process on the Company pursuant to the Act shall be Corporation Service Company, 2711 Centerville Road,
Suite 400, Wilmington, New Castle County, Delaware 19808, or such other Person as the Board may designate with Manager Approval. 
 Section 2.4 Purpose and Powers of the Company. 
 (a) The purpose of
the Company is to make Investments, either directly or indirectly, through Subsidiaries or other Persons. 
 (b) In furtherance
of such purpose, subject to Section 6.10, the Company, either directly or indirectly, shall have the following powers: 
 (i) to form, invest in or through, transfer, dispose of or otherwise deal in the interests of, and exercise all rights, powers, privileges and other incidents of ownership with respect to, investment and
financing vehicles (formed in the United States or otherwise) which hold one or more Investments, including, without limitation, investment and financing vehicles that are wholly or partially controlled, managed or administered by a Member, the
Servicer or any of their Affiliates, and investment and financing vehicles that are partially owned by Persons other than the Company (including but not limited to Persons that may be controlled, managed or administered by a Member, the Servicer or
any of their Affiliates), and investment vehicles formed for the purpose of making and administering revolving credit investments; 
 (ii) to purchase or otherwise acquire, transfer, dispose of or otherwise deal in, and exercise all rights, powers, privileges and other incidents of ownership or possession with respect to, Investments
without regard to whether such Investments are publicly traded, readily marketable or restricted as to transfer; 

(iii) to incur indebtedness for borrowed money, and to pledge, hypothecate, mortgage, collaterally assign, or otherwise
grant security interests or liens on any Company assets, including without limitation the Capital Commitments and the power and authority to call the Capital Commitments; 

(iv) to guarantee, or otherwise become liable for, the obligations of other Persons, including Portfolio Companies;

 (v) to engage personnel and do such other acts and things as may be necessary or advisable in connection with
the powers hereunder; 
 (vi) to engage and compensate attorneys, accountants, investment advisors, technical
advisors, consultants, custodians, contractors and agents; 
 (vii) to pay and incur other expenses and
obligations incident to the operation of the Company, including Organizational Expenses; 
 (viii) to establish,
maintain, and close bank accounts and draw checks or other orders for the payment of money; 
 (ix) to enter
into, make and perform all such contracts, agreements and other undertakings, and to take any and all actions and engage in any and all activities, as may be incidental to, or necessary, advisable or appropriate to, the carrying out of the foregoing
purpose; and 

  
 6 

 (x) to take any other action permitted to be taken by a limited liability
company under the Act. 
 (c) The Company may enter into and perform Subscription Agreements among the Company and each Member,
without any further act, vote or approval of any Member notwithstanding any other provision of this Agreement, the Act or any other applicable law, rule or regulation. 
 Section 2.5 Fiscal Year. The fiscal year of the Company shall end on December 31 of each year. 
 Section 2.6 Liability of Members. Except as expressly provided in this Agreement, a Member shall have such liability for the repayment, satisfaction and discharge of the debts, liabilities and
obligations of the Company only as is provided by the Act. A Member that receives a distribution made in violation of the Act shall be liable to the Company for the amount of such distribution to the extent, and only to the extent, required by the
Act. The Members shall not otherwise be liable for the repayment, satisfaction or discharge of the Company’s debts, liabilities and obligations, except that each Member shall be required to make Capital Contributions in accordance with the
terms of this Agreement and shall be required to repay any distributions which are not made in accordance with this Agreement. Notwithstanding the foregoing provisions of this Section 2.6, no Member shall be required to pay to any other Member
or the Company any deficit or negative balance which may exist from time to time in such Member’s Capital Account (including upon and after dissolution of the Company). 
 Section 2.7 Member List. The Board shall cause to be maintained in the principal office of the Company a list (the “Member List”) setting forth, with respect to each Member,
such Member’s name, address, Capital Commitment, Capital Contributions and such other information as the Board may deem necessary or desirable or as required by the Act. The Board shall from time to time update the Member List as necessary to
reflect accurately the information therein. Any reference in this Agreement to the Member List shall be deemed to be a reference to the Member List as in effect from time to time. No action of the Members shall be required to supplement or amend the
Member List. Revisions to the Member List made by the Board as a result of changes to the information set forth therein made in accordance with this Agreement shall not constitute an amendment of this Agreement. 

ARTICLE 3 COMPANY CAPITAL AND INTERESTS 
 Section 3.1 Capital Commitments. 
 (a) Each Member’s Capital
Commitment shall be set forth on the Member List and in such Member’s Subscription Agreement and shall be payable in cash in U.S. dollars. Prior to the SCP PIMCO Threshold Date, subject to Manager Approval, the Servicer may utilize the proceeds
from any Interim Loan to fund Investments or pay expenses; provided that the aggregate principal amount of all Interim Loans outstanding shall not exceed the Capital Commitment of any Member. Following the SCP PIMCO Threshold Date, subject to
Manager Approval, each payment of a Member’s Capital Commitment shall be made from time to time within fifteen (15) business days after notice from the Servicer specifying the amount then to be paid, or such later date as may be specified
in such notice; provided, that the Members agree to use commercially reasonable efforts to contribute capital in fewer than fifteen (15) business days if practicable. Capital Contributions shall be made by all Members pro rata based on their
respective Capital Commitments. 
 (b) Each Member’s obligation to fund its Capital Commitment shall commence on the date
of the Member’s admission to the Company and expire upon the termination of the Reinvestment Period; provided that following the expiration of the Reinvestment Period, Members shall remain obligated to fund their respective Capital Commitments
for Investments approved by Manager Approval that the Company was contractually committed to make in whole or in part (as evidenced by a binding commitment letter, binding term sheet or binding letter of intent, or definitive legal documents under
which less than all advances have been made) on or before the expiration of the Reinvestment Period, Expenses and all other obligations of the Company including, for the avoidance of doubt, protective advances required under the Investments.

  
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 (c) A Member may terminate all or any portion of its remaining Capital Commitments at any
time upon thirty (30) days’ prior written notice to the other Members. For the avoidance of doubt, termination of all or any portion of a Member’s Capital Commitment shall not require Manager Approval or the consent of any other
Member. Upon any such termination, the Reinvestment Period shall terminate and the Company shall be wound down in accordance with Section 8.3. 
 (d) For the avoidance of doubt, termination of a remaining Capital Commitment by a Member pursuant to Section 3.1(c) shall not extinguish such Member’s obligation to contribute capital to the extent
any revolver or delay draw exists on or prior to the date of termination and shall not terminate the remaining Capital Commitment of any other Member. 
 Section 3.2 Defaulting Members. 
 (a) Upon the failure of any Member
(a “Defaulting Member”) to pay in full any portion of such Member’s Capital Commitment within ten (10) days after written notice from any other Member (the “Default Date”) that such payment is overdue,
each of the other Members, in its sole discretion, shall have the right to pursue one or more of the following remedies on behalf of the Company, and at the Company’s expense, if such failure has not been cured in full within such ten-day period: 
 (i) collect such unpaid portion (and all attorneys’
fees and other costs incident thereto) by exercising and/or pursuing any legal remedy the Company may have; 

(ii) pay to the Company the Defaulting Member’s unpaid portion of the capital call (and, upon such payment, a
corresponding portion of the Defaulting Member’s interest in the Company shall be transferred to such Member); and 
 (iii) upon thirty (30) days’ written notice (which period may commence during the ten-day notice period provided above), and provided that the overdue
payment has not been made, dissolve and wind down the Company in accordance with Article 8. 
 Except as set forth below, the non-defaulting Members’ election to pursue any one of such remedies shall not be deemed to preclude such Members from pursuing any other such remedy, or any other available remedy, simultaneously or
subsequently. 
 (b) Notwithstanding any provision of this Agreement to the contrary, 

(i) a Defaulting Member shall remain fully liable to the creditors of the Company to the extent provided by law as if such
default had not occurred; and 
 (ii) a Defaulting Member shall not be entitled to distributions made after the
Default Date until the default is cured; provided, however, that the Company shall have the right, but not the obligation, to apply any such distributions towards the amount otherwise payable by the Defaulting Member to the Company. 

Section 3.3 Interest or Withdrawals. No Member shall be entitled to receive any interest on any Capital Contribution to the
Company. Except as otherwise specifically provided herein, no Member shall be entitled to withdraw any part of its Capital Contributions or Capital Account balance. 
 ARTICLE 4 ALLOCATIONS 
 Section 4.1 Capital Accounts.

 (a) An individual capital account (a “Capital Account”) shall be maintained for each Member consisting of
such Member’s Capital Contribution, increased or decreased by Profit or Loss allocated to such Member, 

  
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decreased by the cash or Value of property (giving effect to any liabilities the property is subject to, or which the Member assumes) distributed to such Member, and otherwise maintained
consistent with this Agreement. In the event that the Board determines that it is prudent to modify the manner in which Capital Accounts, including all debits and credits thereto, are computed in order to be maintained consistent with this
Agreement, the Board is authorized to make such modifications to the extent that they do not result in a material adverse effect to any Member. Capital Accounts shall be maintained in a manner consistent with applicable Treasury Regulations.

 (b) Profit or Loss shall be allocated among Members as of the end of each fiscal year of the Company; provided that Profit or
Loss shall also be allocated at the end of (i) each period terminating on the date of any withdrawal by any Member, (ii) each period terminating immediately before the date of any admission or increase in Capital Commitment of any Member,
(iii) the liquidation of the Company, or (iv) any period which is determined by Manager Approval to be appropriate. 

Section 4.2 Allocations of Profits and Losses. 
 (a) Profit or Loss shall be allocated among the Members as provided by this Section 4.2. Loss shall be allocated among the Members pro rata in accordance with such Members’ Capital
Contributions. 
 (b) The Board shall cause the Company, at such times and in such amounts as determined by the Board, in good
faith, to make special allocations of Profit and Loss or specific items of income, gain, loss or deduction to the Members in order to comply with certain requirements of Treasury Regulations Sections
1.704-1(b) and 1.704-2 (including the minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(f), the partner
minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(i)(4) and the qualified income offset requirement of the alternate test for economic effect in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)). 
 Section 4.3 Changes of Interests. For
purposes of allocating Profit or Loss for any fiscal year or other fiscal period between any Members whose relative Company interests have changed during such period, or to any withdrawing Member that is no longer a Member in the Company, the
Company shall allocate according to any method allowed by the Code and selected with Manager Approval, provided, that if any such allocation would adversely affect a former Member to a greater extent than any permitted alternative, the approval of
such former Member shall be required. Distributions with respect to an interest in the Company shall be payable to the owner of such interest on the date of distribution. 
 Section 4.4 Allocations for Tax Purposes. 
 (a) Each item of income,
gain, loss, deduction or credit for federal income tax purposes shall be allocated in the same manner as such item is allocated pursuant to Section 4.2. 
 (b) In the event of any variation between the adjusted tax basis and value of any Company property reflected in the Members’ capital accounts maintained for federal income tax purposes, such
variation shall be taken into account in allocating taxable income or loss for federal income tax purposes in accordance with, and to the extent consistent with, the principles under Section 704(c) of the Code and applicable Treasury Regulations.

 ARTICLE 5 DISTRIBUTIONS 
 Section 5.1 General. Except as otherwise provided in this Article 5 or Section 8.3, distributions shall be shared among the Members as set forth in this Section 5.1. On the last day
of each fiscal quarter, Solar shall review the estimated earnings of the Company during such fiscal quarter, and to the extent Solar has determined, in its reasonable discretion, that there is available income sufficient to make a distribution from
available cash or cash equivalents received from one or more Investments (whether from principal repayment or otherwise and 

  
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after reduction, if any, as provided by Section 5.3 and Section 5.4), Solar shall cause the Company to make distributions of such amounts of income, shared among the Members in respect
of their interests in the Company in proportion to their respective Capital Accounts; provided that the amount of any such distribution may be reduced as provided by Section 5.3 and Section 5.4, including for the purpose of reinvesting
proceeds received from Investments as set forth in Section 5.4; and provided, further, that such distributions shall not require Manager Approval. Additionally, the Company shall make distributions of taxable earnings (which, for the avoidance
of doubt, shall not be GAAP earnings) on an annual basis as determined by Solar; provided, that such distributions do not violate the terms and conditions of any credit facilities or other borrowings of the Company. The Company shall not be required
to sell or dispose of any Investments to meet such distribution requests. In each case, the Company shall distribute such amounts to the Members on a date as soon as reasonably practicable after the relevant determination by Solar (each a
“Distribution Date”). Any distributions to be made by the Company which are not in accordance with the foregoing and any determination not to make any distributions as set forth in this Section 5.1 shall be subject to Manager
Approval. 
 Section 5.2 Tax Distributions. With respect to each fiscal year of the Company, if
and to the extent that the Tax Liability of any Member with respect to such fiscal year, but for this Section 5.2, would have exceeded the distributions otherwise made to such Member under Section 5.1 with respect to such fiscal year,
then, unless the Managers with Manager Approval otherwise direct, the Company shall distribute to all Members on a Distribution Date (but in no event later than March 15th following the end of such fiscal year), in proportion to
their respective Capital Accounts, an amount sufficient so that, together with distributions under Section 5.1 with respect to such fiscal year, each Member shall have received as of such relevant Distribution Date, distributions with respect
to such fiscal year no less than such Member’s Tax Liability with respect to such fiscal year, unless (i) the Company, as agreed by Manager Approval, has insufficient cash available (without the requirement for borrowings or the sale of
assets) to make any such distributions or (ii) such distributions violate the terms and conditions of any credit facilities or other borrowings of the Company. 
 Section 5.3 Withholding. To the extent the Company is required by law to withhold or to make tax payments (including any interest, penalties or additions imposed with respect thereto) on
behalf of or with respect to any Member (including backup withholding), the Company may withhold such amounts and make such tax payments as so required. If the Company pays or incurs any withholding tax or other tax obligation with respect to the
income allocable or distributable to one or more Members, then the amount of such withholding tax or tax obligation shall be treated as a distribution to such Member or Members, as applicable, pursuant to the terms of this Agreement. Such amount
shall be debited against the Capital Account(s) of such Member or Members as of the close of the accounting period during which the Company so withholds or pays such obligation. If the amount so withheld, paid or incurred is greater than the balance
of the Capital Account(s) of the relevant Member or Members, as applicable, then such Member or Members and any successors shall make a contribution to the capital of the Company, in the amount of such excess. If such Member or Members fail to make
such contribution, any amount which the Company is obligated to pay shall be deemed an interest-free advance from the Company to such Member or Members, payable by such Member by withholding from subsequent distributions or within ten (10) days
after receiving written request for payment from the Company. 
 Section 5.4 Reinvestment; Certain Limitations;
Distributions in Kind. 
 (a) Amounts constituting a return of Capital Contributions received by the Company during the
Reinvestment Period with respect to Investments may, upon Manager Approval, be retained and used, or reserved to be used during the Reinvestment Period, to make future Investments. Alternatively, the Members, with Manager Approval, may cause the
Company to distribute, in accordance with Section 5.1 through Section 5.3, any amount that could be retained for re-investment as set forth above. To the extent such distributed amount to a Member
represents a distribution out of such Member’s aggregate unreturned Capital Contributions, such amount shall be added to the unfunded Capital Commitment of such Member and may be recalled by the Company during the Reinvestment Period in
accordance with Article 3. 

  
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 (b) In no event shall the Company be required to make a distribution to the extent that it
would (i) render the Company insolvent, or (ii) violate Section 18-607(a) of the Act. 
 (c) No part of any distribution shall be paid to any Member from which there is due and owing to the Company, at the time of such distribution, any amount required to be paid to the Company pursuant to
Article 3. Any such withheld distribution shall be paid to such Member, without interest, when all past due installments of such Member’s Capital Commitment have been paid in full by such Member. 

(d) Manager Approval shall be required prior to the Company making any distribution in-kind.
Distributions of securities and of other non-cash assets of the Company other than upon the dissolution and liquidation of the Company shall only be made pro rata to all Members (in proportion to their
respective shares of the total distribution) with respect to each security or other such asset distributed. Securities listed on a national securities exchange that are not restricted as to transferability and unlisted securities for which an active
trading market exists and that are not restricted as to transferability shall be valued in the manner contemplated by Section 9.5 as of the close of business on the day preceding the distribution, and all other securities and non-cash assets shall be valued as determined pursuant to Section 9.5. 
 ARTICLE 6
MANAGEMENT OF COMPANY 
 Section 6.1 Establishment of the Board. Outside of the authority granted to the
Servicer hereunder and under the Servicing Agreement, the management and control of the Company shall be vested entirely in a board of managers of the Company (the “Board”) which shall act by Manager Approval. The Board is hereby
established and shall be comprised of natural Persons (each such Person, a “Manager”) who shall be appointed in accordance with the provisions of Section 6.2. The business and affairs of the Company shall be managed, operated
and controlled by or under the direction of the Board, and the Board shall have, and is hereby granted, the full and complete power, authority and discretion for, on behalf of and in the name of the Company, to take such actions as it may in its
sole discretion deem necessary or advisable to carry out any and all of the objectives and purposes of the Company, subject only to the terms of this Agreement. 
 Section 6.2 Board Composition; Vacancies. 
 (a) The Company and the
Members shall take such actions as may be required to ensure that the number of Managers constituting the Board is at all times three (3). The Board shall be comprised of the following Managers: (i) two (2) individuals designated by Solar, who
shall initially be Michael S. Gross and Bruce Spohler, and (ii) one (1) individual designated by Deerfield, who shall initially be Elise Wang. A Member may, by written notice to the other Members, appoint an alternate or proxy Board designee to
take action in place of any current designee who may be temporarily unavailable at the time such action is required. 
 (b) In
the event that a vacancy is created on the Board at any time due to the death, disability, retirement, resignation or removal of a Manager, then the Member who appointed such Manager pursuant to the terms of this Section 6.2 shall have the
right to designate an individual to fill such vacancy and the Company and each Member hereby agree to take such actions as may be required to ensure the election or appointment of such designee to fill such vacancy on the Board. 

Section 6.3 Removal; Resignation. 
 (a) A Manager may be removed or replaced at any time from the Board, with or without cause, upon, and only upon, the written request of the Member that designated the applicable Manager. 

(b) A Manager may resign at any time from the Board by delivering his written resignation to the Board. Any such resignation shall be
effective upon receipt thereof unless it is specified to be effective at some other time or upon the occurrence of some other event. The Board’s acceptance of a resignation shall not be necessary to make it effective. 

  
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 Section 6.4 Meetings. 

(a) The Board shall meet no less frequently than once per fiscal quarter, at such time and at such place as the Board may designate.
Meetings of the Board may be held either in person or by means of telephone or video conference or other communications device that permits all Managers participating in the meeting to hear each other, at the offices of the Company or such other
place (either within or outside the State of Delaware) as may be determined from time to time by the Board. Written notice of each meeting of the Board shall be given to each Manager at least three (3) business days’ written notice (if the
meeting is to be held in person) or two (2) business days’ written notice (if the meeting is to be held by telephone communications or video conference) prior to each such meeting or upon such shorter notice as may be approved by all the
Managers. 
 (b) Special meetings of the Board shall be held on the call of all Managers upon at least three (3) business
days’ written notice (if the meeting is to be held in person) or two (2) business days’ written notice (if the meeting is to be held by telephone communications or video conference) to the Managers, or upon such shorter notice as may
be approved by all the Managers. Any Manager may waive such notice as to himself. 
 (c) Attendance of a Manager at any meeting
shall constitute a waiver of notice of such meeting, except where a Manager attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. Neither the
business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice or waiver of notice of such meeting. Any Manager may waive notice as to himself. 

Section 6.5 Quorum; Manner of Acting. 
 (a) Attendance by all Managers serving on the Board shall constitute a quorum for the transaction of business of the Board. At all times when the Board is conducting business at a meeting of the Board, a
quorum of the Board must be present at such meeting. If a quorum shall not be present at any meeting of the Board, then the Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the
meeting, until a quorum shall be present. 
 (b) Any Manager may participate in a meeting of the Board by means of telephone or
video conference or other communications device that permits all Managers participating in the meeting to hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting. 

(c) Each Manager shall have one vote on all matters submitted to the Board or any Committee thereof. Except as otherwise set forth in
this Agreement, the Board shall act with Manager Approval, provided, that, notwithstanding the foregoing, the approval of a majority of the Managers constituting a quorum of the Board shall be sufficient for the Company to approve or make any
amendment that is not an Excluded Amendment to the terms of any Investment. For the avoidance of doubt, any action taken by the Servicer in its capacity as the Servicer and pursuant to the Servicing Agreement shall not be an act of the Solar
Managers, in their capacity as Managers, or Solar, in its capacity as a Member. 
 Section 6.6 Action By Written
Consent. Notwithstanding anything herein to the contrary, any action of the Board (or any Committee) may be taken without a meeting if either (a) a written consent executed by all of the Managers of the Board (or Committee members appointed
by Solar and Deerfield) shall approve such action; provided, that prior written notice of such action is provided to all Managers (or Committee members) at least one day before such action is taken. Such consent shall have the same force and
effect as a vote at a meeting where a quorum was present and may be stated as such in any document or instrument filed with the Secretary of State of Delaware. 
 Section 6.7 Expense Reimbursement. Each Manager shall be reimbursed by the Company for his reasonable
out-of-pocket expenses incurred in the performance of his duties as a Manager, pursuant to such policies as may from time to time be established by the Board.

  
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 Section 6.8 Committees. The Board may, by Manager Approval, designate from among
the Managers (or other persons) one or more Committees, each of which shall be comprised of one or more Managers (or other persons selected by the Managers); provided, that in no event may the Board designate any Committee with all of the authority
of the Board, and, provided, further, that each Committee shall include at least one member designated by the Deerfield Manager. The Board by Manager Approval may dissolve any Committee, and the Managers that appointed a member of a Committee may
remove such member of a Committee at any time. Effective on the date of this Agreement, the Board establishes the Audit Committee. The members of the Audit Committee shall be designated by the Board, and the charter for the Audit Committee shall be
approved by the Board promptly after the date hereof. 
 Section 6.9 Servicing Agreement. The Company is entering
into the Servicing Agreement with the Servicer, pursuant to which certain functions are delegated to the Servicer. The Servicing Agreement is hereby approved by the Members, provided that amendments thereto are subject to Manager Approval.
Notwithstanding any other provision of this Agreement, Deerfield, as an express third-party beneficiary of the Servicing Agreement, may enforce the terms thereof for Deerfield’s benefit, without Manager Approval or other approval or consent of
any Manager or Member or the Company; provided Deerfield provides notice of such action to the other Members. 

Section 6.10 Restrictions. Without Manager Approval, the Company shall not: 

(a) approve or make any Investments or acquire any other entity or business; 

(b) sell, dispose of or transfer to a third Person any Investments or interests in any Investments; 

(c) approve or make any Excluded Amendments to the terms of any Investments; 

(d) enter into any agreement with respect to (i) a plan of merger or consolidation of the Company with or into another entity
(which, for the avoidance of doubt, does not include the consolidation of entities as may be required by GAAP) or (ii) a sale of all or substantially all of the assets of the Company; 

(e) enter into any agreement with any Affiliate of a Member (except for the Servicing Agreement which has been approved by the Members);

 (f) amend, modify or extend the terms of the Servicing Agreement or any expense reimbursement agreement; 

(g) change the Servicer; 
 (h) incur any debt; 
 (i) enter into any contract, arrangement or agreement (or
any amendment or waiver of such contract, arrangement or agreement), whether written or oral, pursuant to which the Company would either reasonably expect to pay or be paid at least $150,000 in the aggregate over the life of such contract, agreement
or arrangement; provided that this restriction shall exclude ordinary course due diligence expenses related to pursuing Investments; 
 (j) liquidate or dissolve the Company; 
 (k) convert the Company into a
corporation for United States federal income tax purposes; 
 (l) create or issue any equity interests or securities convertible
into or exchangeable for equity interests of the Company; 

  
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 (m) subject to Solar’s ability to declare dividends, maintain reserves for working
capital in relation to quarterly or other distributions; 
 (n) make any tax or accounting elections or make a change in tax or
accounting positions; 
 (o) sue, prosecute or settle any claims against third parties; 

(p) delegate any duties of the Board except to Committees thereof as set forth in this Agreement; 

(q) change the name of the Company; 
 (r) enter into any new line of business; 
 (s) cause the Company to conduct an
initial public offering or register any class of its securities under the Securities Exchange Act of 1934, as amended; 
 (t)
amend or waive any provisions of any of the Company’s constituent documents, including, without limitation, the charters of any Committees; or 
 (u) commit or agree to do any of the foregoing. 
 Section 6.11 No Personal
Liability. Except as otherwise provided in the Act, by applicable law or expressly in this Agreement, no Manager will be obligated personally for any debt, obligation or liability of the Company, whether arising in contract, tort or otherwise,
solely by reason of being a Manager. 
 Section 6.12 Reliance by Third Parties. Notwithstanding any other provision
of this Agreement, any contract, instrument or act on behalf of the Company by a Member, a Manager, or any other Person previously delegated by Manager Approval, with the exception of such contracts, instruments or acts requiring Manager Approval
under this Agreement, shall be conclusive evidence in favor of any third party dealing with the Company that such Person has the authority, power and right to execute and deliver such contract or instrument and to take such act on behalf of the
Company. This Section shall not be deemed to limit the liabilities and obligations of such Person to seek approval of the Board or Manager Approval as set forth in this Agreement. 

Section 6.13 Members’ Outside Transactions; Investment Opportunities; Time and Attention; Conflict of Interest; Resolution
of Trading Conflicts. 
 (a) Each Manager shall devote such time and effort as is reasonably necessary to diligently
administer the activities and affairs of the Company, but shall not be obligated to spend full time or any specific portion of their time to the activities and affairs of the Company. 

(b) Solar and its Affiliates may manage or administer other investment funds and other accounts with similar or dissimilar mandates, and
may be subject to the provisions of the Investment Company Act, including, without limitation, Section 57 thereof, and the Investment Advisers Act of 1940, as amended, and the rules, regulations and interpretations thereof, with respect to the
allocation of investment opportunities among such other investment funds and other accounts (the “Allocation Requirements”). For the avoidance of doubt, any transaction that arises under or in connection with this Agreement shall be
subject to the terms and conditions of the Order. 
 (c) Subject to the other provisions of this Section 6.13 and other
provisions of this Agreement, each of the Members, the Servicer and each of their respective Affiliates and members may engage in, invest in, participate in or otherwise enter into other business ventures of any kind, nature and description,
individually and with others, including, without limitation, the formation and management of other investment funds with or without the same or similar purposes as the Company, and the ownership of and investment in securities, and neither the
Company nor any other Member shall have any right in or to any such activities or the income or profits derived therefrom. 

  
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 (d) In the event that any agreement (including with respect to any Interim Loan) or
Investment contemplated for the Company is with (i) any Affiliate of any Member or (ii) any other party with which a Member has an existing relationship or investment, such Member shall disclose such relationship to the Board in advance of
the Board’s consideration of such agreement or Investment and all material information with respect thereto. Any such conflicts of interest and/or related transactions that are presented to the Company may only be approved, waived or otherwise
consented to with Manager Approval. The Members and their respective Affiliates shall not enter into a new contract or agreement with any Portfolio Company without Manager Approval, including any terms (monetary or otherwise) or conditions thereof
that would be less favorable to the Company than such terms and conditions as would be reasonably expected to be obtainable at the time in a comparable arm’s length transaction with a person other than an Affiliate of Solar. 

(e) Deerfield shall disclose to Solar the name of any publicly traded issuer in which Deerfield has an investment if the Company proposes
to invest in the same issuer (including, by way of example and not limitation, any publicly traded equity, convertible securities, bonds or other instruments traded on an exchange or otherwise not acquired in a private transaction). In addition,
Deerfield and Solar each agree that, notwithstanding any other provision of this Agreement, a “Conflict” shall exist if (x) Deerfield or any of its Affiliates holds the publicly traded securities, bonds or any similar
instrument of or an interest in any Portfolio Company, and (y) the value of Deerfield’s securities, bonds or similar instrument or interest in such Portfolio Company exceeds 50% of Deerfield’s pro rata share of the Company’s
investment in such Portfolio Company. If a Conflict exists and an event (each, a “Credit Event”) requires the Company to approve one of the items on the Approved Amendment List below, Solar and Deerfield shall use commercially reasonable
efforts to mutually agree on a reasonable course of action to address the required actions from the Approved Amendment List. If Solar and Deerfield do not mutually agree on a reasonable course of action to address such Credit Event within four
(4) business days after which Deerfield is provided with appropriate materials to make such a decision, including all reasonable materials requested by Deerfield, then Solar and Deerfield will, together, request that a representative from PIMCO
having involvement with a PIMCO affiliate which is a Member of the Company (the “PIMCO Appointee”) be selected and be deemed a Manager under this Agreement in place of Deerfield solely for purposes of addressing the Credit Event in
accordance with this Section 6.13(e) and Section 6.13(f). 
 (f) Subject to the limitations set forth in Section 6.13(g), the
following are agreements and actions with respect to an Investment that can be approved pursuant to the procedures described in this Section 6.13 upon the occurrence of a Credit Event (the “Approved Amendment List”):

 (i) The exercise of any remedies under the relevant documentation including forbearance and restructuring upon
an event of default by such issuer; 
 (ii) Any amendment(s) to the relevant documentation to waive a default or
event of default or any event that, with the passage of time, could reasonably be expected to cause a default or an event of default by such issuer; 
 (iii) Any amendment(s) to the relevant documentation where the Company is granted a lien on intellectual property or other material additional collateral; 

(iv) Any amendment(s) to the relevant documentation that would result in a change to any amortization schedule described
therein as a response to (A) the Portfolio Company’s failure to meet any key milestone or (B) a material increase in the cash burn rate applicable to the borrower thereunder; and 

(v) Any determination that a material adverse effect has occurred with respect to the Portfolio Company under the relevant
governing documentation. 
 (g) Any agreement or action obligating the Company to make an Investment, increase its investment
in, or restore the principal balance of, a Portfolio Company, or that adversely affects Deerfield’s interest in an Investment in a materially disproportionate manner compared to any other Member is not permitted under the Approved Amendment
List. Furthermore, if a Conflict exists and the Deerfield Manager does not provide 

  
 15 

 
consent for purposes of Manager Approval to the Company investing in a debtor-in-possession financing facility for
the applicable Portfolio Company, then Solar may, notwithstanding this Section 6.13, pursue and consummate such financing independently of the Company (an “Independent Financing”), provided that Solar shall offer Deerfield the
right to participate as a lender in such Independent Financing, pro rata in accordance with relative percentage interests in the Company held by Solar and Deerfield as of the date of the consummation of such Independent Financing. 

Section 6.14 Exculpation of Managers. 
 (a) No Manager shall be liable to the Company or any other Manager for any loss, damage or claim incurred by reason of any action taken or omitted to be taken by such Manager in good-faith reliance on the
provisions of this Agreement, so long as such action or omission does not constitute, gross negligence, fraud or intentional misconduct by such Manager. 
 (b) A Manager shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements (including financial statements and information,
opinions, reports or statements as to the value or amount of the assets, liabilities, Profits or Losses of the Company or any facts pertinent to the existence and amount of assets from which distributions might properly be paid) of the following
Persons or groups: (i) another Manager; (ii) one or more officers or employees of the Company or the Servicer; (iii) any attorney, independent accountant, appraiser or other expert or professional employed or engaged by or on behalf
of the Company or the Servicer; or (iv) any other Person selected in good faith by or on behalf of the Company, in each case as to matters that such relying Person reasonably believes to be within such other Person’s professional or expert
competence. The preceding sentence shall in no way limit any Person’s right to rely on information to the extent provided in § 18-406 of the Delaware Act. 

Section 6.15 Liabilities and Duties of the Members and Managers. 

(a) Except as otherwise provided herein, this Agreement is not intended to, and does not, create or impose any fiduciary duty on any
Member or Manager with respect to the Company. Furthermore, each of the Members, Managers and the Company hereby waives any and all fiduciary duties that, absent such waiver, may be implied by the Act or other applicable law, and in doing so,
acknowledges and agrees that the duties and obligations of each Member and Manager to each other and to the Company are only as expressly set forth in this Agreement. Notwithstanding the forgoing, this Agreement is not intended to limit any
fiduciary duty that any Member or Manager may have with respect to any other entity. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Member or a Manager otherwise existing at law or in equity, are
agreed by the Members and the Managers to replace such other duties and liabilities of such Member or Manager. 
 (b) Whenever
in this Agreement a Member or a Manager is permitted or required to make a decision (including a decision that is in such Manager’s “discretion” or under a grant of similar authority or latitude), such Member or Manager shall be
entitled to consider only such interests and factors as such Member or Manager desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Company or any other
Person other than those required by applicable law, rule, regulation or order. Whenever in this Agreement a Member or Manager is permitted or required to make a decision in such Manager’s “good faith”, the Member or the Manager, as
applicable, shall act under such express standard and shall not be subject to any other or different standard imposed by this Agreement, the Act or any other applicable law. 
 Section 6.16 Indemnification. 
 (a) Subject to the limitations and
conditions as provided in this Section 6.16, each Person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative, investigative or arbitrative or in the nature of an 

  
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alternative dispute resolution in lieu of any of the foregoing (hereinafter a “Proceeding”), or any appeal in such a Proceeding or any inquiry or investigation that could lead to
such a Proceeding, by reason of the fact that such Person, or a Person of which such Person is the legal representative, is or was a Member or a Manager or a representative thereof, shall be indemnified by the Company to the fullest extent permitted
by applicable law including, but not limited to, the Act, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights
than said law permitted the Company to provide prior to such amendment) against all liabilities and expenses (including judgments, penalties (including excise and similar taxes and punitive damages), losses, fines, settlements and reasonable
expenses (including, without limitation, reasonable attorneys’ and experts’ fees)) actually incurred by such Person in connection with such Proceeding, appeal, inquiry or investigation (each a “Loss”), unless such Loss
shall have been primarily the result of gross negligence, fraud or intentional misconduct by the Person seeking indemnification hereunder, in which case such indemnification shall not cover such Loss to the extent resulting from such gross
negligence, fraud or intentional misconduct. Indemnification under this Section 6.16 shall continue as to a Person who has ceased to serve in the capacity which initially entitled such Person to indemnity hereunder. The rights granted pursuant
to this Section 6.16 shall be deemed contract rights, and no amendment, modification or repeal of this Section 6.16 shall have the effect of limiting or denying any such rights with respect to actions taken or Proceedings, appeals,
inquiries or investigations arising prior to any amendment, modification or repeal. To the fullest extent permitted by law, no Person entitled to indemnification under this Section 6.16 shall be liable to the Company or any Member for any act
or omission performed or omitted by or on behalf of the Company; provided that such act or omission has not been fully adjudicated to constitute fraud, intentional misconduct or gross negligence. In addition, any Person entitled to indemnification
under this Section 6.16 may consult with legal counsel selected with reasonable care and shall incur no liability to the Company or any Member to the extent that such Person acted or refrained from acting in good faith in reliance upon the
opinion or advice of such counsel. 
 (b) The right to indemnification conferred in Section 6.16(a) shall include the right to
be paid or reimbursed by the Company for the reasonable expenses incurred by a Person entitled to be indemnified under Section 6.16(a) who was, is or is threatened to be made a named defendant or respondent in a Proceeding in advance of the final
disposition of the Proceeding and without any determination as to the Person’s ultimate entitlement to indemnification; provided, however, that the payment of such expenses incurred by any such Person in advance of the final disposition of a
Proceeding shall be made only upon delivery to the Company of a written undertaking by such Person to repay all amounts so advanced if it shall be finally adjudicated that such indemnified Person is not entitled to be indemnified under this
Section 6.16 or otherwise. 
 (c) The Company, with Manager Approval, may indemnify and advance expenses to an employee or
agent of the Company to the same extent and subject to the same conditions under which it may indemnify and advance expenses to a Member or Manager under Sections 6.16(a) and 6.16(b). 

(d) The right to indemnification and the advancement and payment of expenses conferred in this Section 6.16 shall not be exclusive
of any other right that a Member or other Person indemnified pursuant to this Section 6.16 may have or hereafter acquire under any law (common or statutory), contract or provision of this Agreement. 

(e) The indemnification rights provided by this Section 6.16 shall inure to the benefit of the heirs, executors, administrators,
successors, and assigns of each Person indemnified pursuant to this Section 6.16. 
 Section 6.17 Tax Matters
Member. 
 (a) SLRC (or any Affiliate designated by SLRC as its replacement) is hereby designated, and shall serve as, the
“tax matters partner” (as defined in Section 6231 of the Code) or, after the effective date of Section 1101 of the Bipartisan Budget Act of 2015 (or any successor or similar provision of federal, state or local law) (the
“New Partnership Audit Rules”), the “partnership representative” (“Tax Matters Member”). Except as provided in this 

  
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Section 6.17, the Tax Matters Member shall be authorized and required to make any determination, decision or election related to its capacity as Tax Matters Member, in its sole discretion,
and to represent the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs by any relevant governmental agency, including resulting administrative and judicial proceedings and to expend Company
funds for professional services and costs associated therewith. The settlement of any material tax examination or proceeding by the Tax Matters Member shall be subject to the prior written consent of Deerfield, which shall not be unreasonably
withheld, conditioned or delayed. The Tax Matters Member shall have the right to retain professional assistance in respect of any audit of the Company and all reasonable, documented
out-of-pocket expenses and fees incurred by the Tax Matters Member on behalf of the Company as Tax Matters Member shall be reimbursed by the Company. Each Member shall
be a “notice partner” within the meaning of Section 6231(a)(8) of the Code. 
 (b) For taxable years beginning after
December 31, 2017 or later date, if applicable, the Tax Matters Member (i) except as agreed to by all of the Members, shall make an election under Section 6221 of the New Partnership Audit Rules, to the extent available under
applicable law; and (ii) shall be permitted to make an election under Section 6226 of the New Partnership Audit Rules, in each case as and when permitted by applicable law; provided, that in the course of deciding whether to make the
election described in clause (ii), the Tax Matters Member shall take into account the potential tax impact to each Member of such election. For purposes of the preceding sentence, the Tax Matters Member shall not be liable for making (or not making)
such election after taking into account the potential tax impact of such election. If the Company is subject to any tax liabilities under Section 6225 of the New Partnership Audit Rules, the Tax Matters Member shall, in its reasonable
discretion exercised in good faith, allocate among the Members any tax liability imposed under Section 6225 of the New Partnership Audit Rules, to the extent applicable, after applying the procedures set forth under Section 6225(c) by reducing
amounts otherwise distributable to the Members hereunder in a fair and equitable manner (it being understood that any tax liabilities so allocated shall be treated as distributed to the applicable Members in accordance with Section 5.3).

 (c) Notwithstanding anything to the contrary in this Section 6.17, the Tax Matters Partner shall at all times act at the
lawful direction of the Board. 
 ARTICLE 7 TRANSFERS OF COMPANY INTERESTS; 

WITHDRAWALS 
 Section 7.1 Transfers by Members. 
 (a) The interest of a Member in
the Company and any Interim Loans held by a Member may not be assigned, pledged or otherwise hypothecated without Manager Approval, provided, that, a Member shall be permitted to transfer or assign (with or without consideration) some or all of its
membership interests in the Company (and all or any portion of its remaining Capital Commitments) or Interim Loans to one or more Affiliates of such Member without Manager Approval so long as no such transfer or assignment will adversely impact any
other Member. Any purported assignment in violation of this Section 7.1(a) shall be void ab initio. 
 (b) In connection
with the permitted transfer of any equity in the Company, each transferee shall execute a joinder to this Agreement in the form as determined by the Managers. Upon execution of such joinder by the transferee, the transferring Member shall be
released from all rights, obligations, and liabilities arising from and after the date thereof with respect to the transferred interest, as applicable, including the right to vote on any matters relating to the Company. Upon such a transfer, the
transferee shall assume the economic obligations and liabilities (and all economic rights and benefits) including, without limitation, the Capital Commitment of the transferring Member with respect to such transferred interest and shall become a
party to this Agreement and be treated as Member hereunder. 

  
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 Section 7.2 Withdrawal by Members. 

Members may withdraw from the Company only as provided by this Agreement. 

(a) Notwithstanding any provision contained herein to the contrary, if a Member shall obtain an opinion of counsel to the effect that, as
a result of any other Member’s ownership of an interest in the Company, the Company would be required to register as an investment company under the Investment Company Act of 1940, as amended, such other Member or Members shall at their
election, upon written notice from such first Member, either (i) withdraw from the Company or (ii) all Members shall reduce on a pro rata basis (in accordance with the provisions of clause (d) below) their respective interest in the
Company (including their respective Capital Commitment) to the extent such first Member has determined, based upon such opinion of counsel, to be necessary in order for the Company not to be required to so register. Each Member shall, upon written
request from any of the other Members, promptly furnish to the other Members such information as the other Members may reasonably request from time to time in order to make a determination pursuant to this Section 7.2(a), but in no event later than
ten (10) business days after such request. 
 (b) Notwithstanding any provision herein to the contrary, if a Member shall
breach such Member’s obligation under the immediately following sentence, or if any of the other Members shall obtain an opinion of counsel to the effect that any contribution or payment by a Member to the Company would cause the Company or the
other Member to be in violation of, or to the effect that such Member is in violation of, the United States Bank Secrecy Act, the United States Money Laundering Act of 1986, the United States International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, the USA Patriot Act or any other similar law or regulation to which the Company, a Member, or such Member’s investment in the Company may be subject from time to time (collectively, “Investor
Laws”), such Member shall, upon written notice from any of the other Members, withdraw from the Company in accordance with the provisions of clause (c) below. Each Member shall, upon written request from the other Members, promptly
furnish to the other Members such information as the other Members may reasonably request from time to time in order to make a determination pursuant to this Section 7.2(b), but in no event later than ten (10) business days after such request.

 (c) Notwithstanding any provision contained herein to the contrary, if any Member obtains an opinion of counsel or its
independent auditor, as applicable, to the effect that (i) its investment in the Company is not or ceases to be a permitted investment for such Member under applicable laws or (ii) pursuant to GAAP the financial statements of the Company
must be consolidated for accounting purposes on the books of such Member, such Member may, at its option, upon written notice to the other Members, withdraw from the Company in accordance with the provisions of clause (d) below. Each Member
shall, upon written request from any other Member, promptly furnish to such other Member any information as it may reasonably request from time to time in order to make a determination pursuant to this Section 7.2(c), but in no event later than ten
(10) business days after such request. 
 (d) If a Member withdraws its interest in the Company pursuant to this
Section 7.2, the Members shall work together in good faith to negotiate the manner and timing of such withdrawal. Upon the withdrawal of any Member, the Company shall be wound down in accordance with Section 8.3. 

ARTICLE 8 TERM, DISSOLUTION AND LIQUIDATION OF 
 COMPANY 
 Section 8.1 Term. Except as provided in
Section 8.2, the Company shall continue without dissolution until all Investments are liquidated by the Company and the proceeds thereof are distributed to the Members. Upon liquidation or termination of all Investments by the Company, any
Member shall have the right to elect the dissolution of the Company by providing written notice to the other Members. 

  
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 Section 8.2 Dissolution. The Company shall be dissolved and its affairs wound up
upon the occurrence of any of the following events: 
 (a) the expiration of the term of the Company pursuant to
Section 8.1; 
 (b) (i) a determination by the SEC or its staff to subject Solar’s participation in the Company
to an accounting or reporting treatment or other consequence which Solar, in its sole discretion, determines to be materially adverse to it, or (ii) a change by the SEC or its staff of their position with respect to the ability of a business
development company to participate in entities like the Company in the manner described in this Agreement which Solar, in its sole discretion, determines to be materially adverse to it, in each case at the election of Solar by providing written
notice of such election to the other Members, and in each such case the Members shall work together in good faith regarding the timing and manner of such dissolution; 
 (c) the entry of a decree of judicial dissolution pursuant to the Act, in which event the provisions of Section 8.3, as modified by said decree, shall govern the winding up of the Company’s
affairs; 
 (d) the election of a Member to terminate its Capital Commitment pursuant to Section 3.1(c); provided that, the
Company shall not be dissolved and wound up if SCP PIMCO elects to terminate its Capital Commitment on or prior to the SCP PIMCO Threshold Date; or 
 (e) a withdrawal of a Member pursuant to Section 7.2. 
 Section 8.3
Wind-down. 
 (a) Upon the dissolution of the Company, the Company shall be liquidated in accordance with this Article
and the Act. The liquidation shall be conducted and supervised by the Members in the same manner provided by Article 6 with respect to the operation of the Company during its term. 

(b) From and after the date on which an event set forth in Section 8.2 becomes effective, the Company shall cease to make
Investments after that date, except for (i) Investments which the Company was committed to make in whole or in part (as evidenced by a binding commitment letter, term sheet or letter of intent, or definitive legal documents under which less
than all advances have been made) on or before such effective date, and (ii) at the election of all Members within three (3) business days after receipt by the Members of written notice of the availability of such election from any Member,
any Investment in a Portfolio Company in which the Company then has an Investment. Capital calls against the Capital Commitment of the Members shall cease from and after such effective date of dissolution; provided that capital calls against the
Capital Commitment of the Members may continue to fund the allocable share of Investments in which the Company continues to participate (as set forth in the immediately preceding sentence), Expenses and all other obligations of the Company
including, for the avoidance of doubt, protective advances required under the Investments. Subject to the foregoing, the Members shall continue to bear an allocable share of Expenses and other obligations of the Company until all Investments in
which the Company participates are repaid or otherwise disposed of in the normal course of the Company’s activities. 
 (c)
Distributions to the Members during the winding down of the Company shall be made no less frequently than quarterly to the extent consisting of a Member’s allocable share of cash and cash equivalents, after taking into account reasonable
reserves deemed appropriate by Manager Approval, to fund Investments in which the Company continues to participate (as set forth in the immediately preceding paragraph), Expenses and all other obligations (including without limitation contingent
obligations) of the Company. Unless waived by Manager Approval, the Company also may withhold ten percent (10%) of distributions in any calendar year, which withheld amount shall be distributed within sixty (60) days after the completion of the
annual audit covering such year. A Member shall remain a member of the Company until all Investments in which the Company participates are repaid or otherwise disposed of, the Member’s allocable share of all Expenses and all other obligations
(including without limitation contingent obligations) of the Company are paid, and all distributions are made hereunder, at which time the Member shall have no further rights under this Agreement. 

  
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 (d) Upon dissolution of the Company, final allocations of all items of Company Profit and
Loss shall be made in accordance with Section 4.2. Upon dissolution of the Company, the assets of the Company shall be applied in the following order of priority: 

(i) To creditors (other than Members) in satisfaction of liabilities of the Company (whether by payment or by the making
of reasonable provision for payment thereof), including to establish any reasonable reserves which the Board may, in its reasonable judgment, deem necessary or advisable for any contingent, conditional or unmatured liability of the Company;

 (ii) To establish any reserves which the Board may, in its reasonable judgment, deem necessary or advisable
for any contingent, conditional or unmatured liability of the Company to Members; and 
 (iii) The balance, if
any, to the Members in accordance with their respective positive Capital Account balances. 
 (e) In the event that an audit or
reconciliation relating to the fiscal year in which a Member receives a distribution under this Section 8.3 reveals that such Member received a distribution in excess of that to which such Member was entitled, each of the other Members may, in
its discretion, seek repayment of such distribution to the extent that such distribution exceeded what was due to such Member. 

(f) Each Member shall be furnished with a statement prepared by the Company’s accountant, which shall set forth the assets and
liabilities of the Company as at the date of complete liquidation, and each Member’s share thereof. Upon compliance with the distribution plan set forth in this Section 8.3, the Members shall cease to be such, and any Member may execute,
acknowledge and cause to be filed a certificate of cancellation of the Company. 
 Section 8.4 Cause Event. If there
is a Cause Event during the term of the Company, then: 
 (a) the Reinvestment Period shall terminate automatically; 

(b) in the case of a Cause Event resulting from the conduct of SLRC and/or SUNS, then any amendment to an existing Investment shall be
deemed to be an Excluded Amendment and the Deerfield Manager shall have the option to: 
 (i) on a going-forward
basis, approve the actions set forth in Section 6.10(a), (b), (c), (d)(ii), (g) (subject to the limitation in clause (ii) of this Section 8.4(b)), (i), (m), (o) and any action under clause (u) that applies to the foregoing provisions,
without the vote or approval of the Solar Managers; and/or 
 (ii) require Solar, in its capacity as Servicer, to
consent to the appointment of a new Servicer reasonably acceptable to Solar within fifteen (15) business days’ notice to Solar from Deerfield, to fulfill the Servicer’s obligations, and receive its rights and benefits, under the
Servicing Agreement; and 
 (c) in the case of a Cause Event resulting from the conduct of Deerfield, then the Solar Managers
shall have the option to approve the actions set forth in Section 6.10(a), (b), (c), (d)(ii), (i), (m), (o) and any action under clause (u) that applies to the foregoing provisions, without the vote or approval of the Deerfield Manager.

 In the event that the remedy listed in clause (b)(i) or (c) of this Section 8.4 is exercised, then the Member
exercising such remedy shall owe a fiduciary duty as a Manager serving on the Board (and exercising Manager Approval) to each Member of the Company as set forth in this Agreement (and shall provide a written acknowledgement of such fiduciary duty to
the Members). 
 In the event that a new Servicer is appointed pursuant to clause (b)(ii) of this Section 8.4, such
Servicer shall be responsible for the duties and obligations to the Company and its Members to the same extent set forth in the Servicing Agreement in effect as of the date of such appointment. 

  
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 ARTICLE 9 ACCOUNTING, REPORTING AND VALUATION 

PROVISIONS 

Section 9.1 Books and Accounts. 
 (a) Complete and accurate books and accounts shall be maintained for the Company at its principal office. Such books and accounts shall be kept on the accrual basis method of accounting and shall include
separate Capital Accounts for each Member. Capital Accounts for financial reporting purposes and for purposes of this Agreement shall be maintained in accordance with Section 4.1 and, for federal income tax purposes, the Servicer shall maintain
the Members’ Capital Accounts pursuant to the Servicing Agreement and in accordance with the Code and applicable Treasury Regulations. Each Member or its duly authorized representative, at its own expense, shall at all reasonable times and upon
reasonable prior written notice to the Servicer have access to, and may inspect, such books and accounts and any other records of the Company for any purpose reasonably related to its interest in the Company. 

(b) All funds received by the Company shall be deposited in the name of the Company in such bank account or accounts or with such
custodian, and securities owned by the Company may be deposited with such custodian, as may be designated by Manager Approval from time to time and withdrawals therefrom shall be made upon such signature or signatures on behalf of the Company as may
be designated by Manager Approval from time to time. 
 Section 9.2 Financial Reports; Tax Return. 

(a) Within thirty (30) days after the end of each calendar month, pursuant to the Servicing Agreement, the Members shall cause the
Servicer to prepare (or supervise the preparation of) and deliver, by any of the methods described in Section 10.6, to each Member (i) high-level summary financial information of the Company and (ii) any material information
concerning new Investments made during such month or any defaults or potential defaults in investments discovered during such month. 
 (b) Within forty-five (45) days after the end of each calendar quarter, pursuant to the Servicing Agreement, the Servicer shall prepare (or supervise the preparation of) and deliver, by any of the
methods described in Section 10.6, to each Member unaudited financial statements for such quarter-end (including schedule of Investments, balance sheet, income statement, statement of changes in net
assets and financial highlights and ratios) of the Company. 
 (c) Within forty-five (45) days after the end of each
calendar quarter, pursuant to the Servicing Agreement, the Servicer shall prepare (or supervise the preparation of) and deliver to the Company a summary of expenses by category in addition to a high level summary around how any such reimbursable
expenses were allocated to the Company. 
 (d) Within ninety (90) days after the end of each calendar year, pursuant to the
Servicing Agreement, the Servicer shall prepare (or supervise the preparation of) and deliver, by and of the methods described in Section 10.6, to each Member, audited financial statements for such calendar year. 

(e) The Company’s auditor shall at all times be the same auditor as engaged by Solar, which as of the date of this Agreement is KPMG
LLP. 
 (f) The Servicer shall prepare or supervise the preparation and timely filing after the end of each fiscal year of the
Company all federal and state income tax returns of the Company for such fiscal year. 
 Section 9.3 Tax Elections.
Company may, by Manager Approval, but shall not be required to, make any election required or permitted to be made by or with respect to the Company (including, an election pursuant to the provisions of Section 754 or 1045 of the Code).

  
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 Section 9.4 Confidentiality. 

(a) Each Member agrees to maintain the confidentiality of the Company’s records, reports and affairs, and all information and
materials furnished to such Member by the Company, the Servicer or their Affiliates with respect to their respective businesses and activities; each Member agrees not to provide to any other Person copies of any financial statements, tax returns or
other records or reports, or other information or materials, provided or made available to such Member; and each Member agrees not to disclose to any other Person any information contained therein (including any information respecting Portfolio
Companies), without the express prior written consent of the disclosing party; provided that any Member may provide financial statements, tax returns and other information contained therein (i) to such Member’s accountants, internal and
external auditors, legal counsel, financial advisors and other fiduciaries and representatives (who may be Affiliates of such Member) as long as such Member instructs such Persons to maintain the confidentiality thereof and not to disclose to any
other Person any information contained therein, (ii) to any permitted transferees of such Member’s Company interest that agree in writing, for the benefit of the Company, to maintain the confidentiality thereof, but only after reasonable
advance notice to the Company, (iii) if and to the extent required by law (including judicial or administrative order and the rules and regulations of the SEC, including if required, filing a copy of this Agreement); provided that, to the
extent legally permissible, the Company is given prior notice to enable it to seek a protective order or similar relief, (iv) to representatives of any governmental regulatory agency or authority with jurisdiction over such Member, or as
otherwise may be necessary to comply with regulatory requirements applicable to such Member and (v) in order to enforce rights under this Agreement. Notwithstanding the foregoing, the following shall not be considered confidential information
for purposes of this Agreement: (A) information generally known to the public in the absence of any breach of this Section 9.4(a); (B) information obtained by a Member from a third party who is not prohibited from disclosing the information;
(C) information in the possession of a Member prior to its disclosure by the Company, the Servicer or their Affiliates; or (D) information which a Member can show by written documentation was developed independently of disclosure by the
Company, the Servicer or their Affiliates. Deerfield acknowledges that Solar and its affiliates are subject to reporting obligations under the Securities Exchange Act of 1934, as amended, which will require, among other things, the filing and
disclosure of this Agreement and details regarding the Investments of the Company. 
 (b) Notwithstanding the foregoing, absent
the prior written consent of Deerfield, Solar and its Affiliates shall not make any press release, public announcement, internet posting, other mass communication that contains the Company’s or its Affiliates’ identity as a client of the
Servicer or any information concerning the composition of the assets of the Company or its Affiliates, except (i) to the extent set forth in Section 9.4(a)(iii) and (ii) for ordinary course marketing information regarding Investments
including tombstone advertisements that do not reference Deerfield or its Affiliates. To the extent permitted by applicable law, and notwithstanding the provisions of this Article 9, each of the Company, the Servicer or any of their Affiliates may,
in its reasonable discretion, keep confidential from any Member information to the extent such Person reasonably determines that disclosure of such information to such Member likely would have a material adverse effect upon the Company or a
Portfolio Company due to an actual or likely conflict of business interests between such Member and one or more other parties or an actual or likely imposition of additional statutory or regulatory constraints upon the Company, the Servicer, its
Affiliates or a Portfolio Company. Notwithstanding the foregoing, each of the Company, the Servicer or any of their Affiliates shall promptly provide to each Member all relevant information and documents related to any notice or request (whether
written or oral) received from any governmental or regulatory agency involving any pending or threatened Proceeding in connection with the activities or operations of the Company. 

(c) The Members: (i) acknowledge that the Company, the Servicer, its Affiliates, and their respective direct or indirect members,
managers, officers, directors and employees are expected to acquire confidential third-party information (e.g., through Portfolio Company directorships held by such Persons) that, pursuant to fiduciary, contractual, legal or similar obligations,
cannot be disclosed to the Company or the Members; and (ii) agree that none of such Persons shall be in breach of any duty under this Agreement or the Act as a result of acquiring, 

  
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holding and/or failing to disclose such information to the Company or the Members; provided that, without the prior written consent of Deerfield, in its sole discretion, Solar shall use, and
shall cause the Servicer to use, reasonable best efforts to (x) cause each such Persons (if applicable) enumerated in item (i) to avoid incurring any such obligations which would restrict the sharing of such information with the Company,
the Managers or the Members as a result of such fiduciary, contractual, legal or similar obligations, (y) to not disclose any material non-public information regarding any Portfolio Company or potential
Portfolio Company to Deerfield or the Deerfield Manager without the prior consent of such recipient, and (z) cooperate with Deerfield’s compliance department to assist with Deerfield’s compliance with respect to internal trade
restriction policies. 
 Section 9.5 Valuation. 

(a) Valuations shall be made as required under this Agreement and as of the end of each fiscal quarter and on an annual basis, in
accordance with Accounting Standards Codification 820 (or any successor guidance regarding determination of fair value of assets) and the following provisions: 
 (i) Within forty-five (45) days after the end of each fiscal quarter of each fiscal year, the Board shall determine the valuation of the assets of the Company using valuations provided to the Board
by Servicer within thirty (30) business days after the date as of which such valuation is to be made (which valuations shall be made in accordance with the valuation guidelines set forth on Exhibit A hereto). In the event that Solar does
not provide valuations to the Board within thirty (30) business days of the end of any fiscal quarter, Deerfield shall have the right, at the Company’s expense, to hire an independent appraiser or other valuation expert with the requisite
experience in valuing investments to determine the value of the Company’s assets (with such independent appraiser or valuation expert being reasonably acceptable to Solar), which valuation shall be binding on the Company and deemed approved by
the Board in accordance with Section 9.5(b). The Board shall promptly deliver any such Board-approved valuations to the Servicer for delivery to the Members. 
 (ii) In the event that an Investment held by the Company is also held by another investment vehicle managed by the investment adviser to SLRC or SUNS or any Affiliate of such investment adviser (a
“Common Investment”), it is expected that the valuation of such Common Investment shall be determined by Solar in a consistent manner. In the event that Solar provides the Board with a valuation of a Common Investment that is
different from the valuation provided to another investment vehicle managed by Solar, Solar shall disclose such discrepancy to the Board, and the Deerfield Manager shall have the right to require the Company to hire an independent appraiser or other
valuation expert with the requisite experience in valuing investments mutually acceptable to the Members, which acceptance shall not be unreasonably withheld, at the Company’s expense to determine the value of the applicable asset which is the
subject of the discrepancy. The determination made by such appraiser or expert shall be binding on the Company and the Members in accordance with Section 9.5(b) below. 

(iii) To the extent a valuation is required under this Agreement at a time other than the end of a fiscal quarter or as of
a Distribution Date hereunder, Solar shall determine the valuation of the assets of the Company as of the relevant date in accordance with the Company’s valuation guidelines then in effect. 

(iv) Anything in this Section 9.5 to the contrary notwithstanding, the Deerfield Manager shall have the right to
object to the Servicer’s valuation of the Company’s assets and may require the Company to hire an independent appraiser or other valuation expert with the requisite experience in valuing investments mutually acceptable to the Members,
which acceptance shall not be unreasonably withheld, at the Company’s expense to determine the value of the applicable asset which is the subject of the objection; provided that any such objection is provided to the Servicer by the Deerfield
Manager in writing within fifteen (15) business days of its receipt. Such objection shall be made automatically in relation to any valuation provided in connection with any in-kind distribution under this
Agreement. The determination made by such appraiser or expert shall be binding on the Company and the Members in accordance with Section 9.5(b) below. 
 (b) All valuations shall be made in accordance with the foregoing and shall be final and binding on all Members, absent actual and apparent error. 

  
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 (c) For the avoidance of doubt, the market value of all of the outstanding equity tranche of
the Company shall equal the net asset value (or shareholder’s equity) calculated in accordance with GAAP. 
 ARTICLE 10
MISCELLANEOUS PROVISIONS 
 Section 10.1 Power of Attorney. Each Member irrevocably constitutes and appoints
Solar the true and lawful attorney-in-fact of such Member to execute, acknowledge, swear to and file, on behalf of the Company such ministerial acts or documents
(including regulatory, administrative or corporate filings) as Solar may determine, in its reasonable discretion, are appropriate in connection with the operation of the Company. The power of attorney granted hereunder is not intended to be a
general grant of power to independently exercise discretionary judgment on behalf of the Company or the Members. 

Section 10.2 Determination of Disputes. Any dispute or controversy among the Members (other than a suit brought against a
Defaulting Member) arising in connection with (i) this Agreement or any amendment hereof, (ii) the breach or alleged breach hereof, (iii) the actions of any of the Members, or (iv) the formation, operation or dissolution and
liquidation of the Company, shall be determined and settled by arbitration in New York, New York, by a panel of three members who shall be selected, and such arbitration shall be conducted, in accordance with the commercial rules of the American
Arbitration Association. Any award rendered therein shall be final and binding upon the Members and the Company and judgment upon any such award rendered by said arbitrators may be entered in any court having jurisdiction thereof. The party or
parties against which an award is made shall bear its or their own expenses and those of the prevailing party or parties, including reasonable fees and disbursements of attorneys, accountants, and financial experts, and shall bear all arbitration
fees and expenses of the arbitrators. 
 Section 10.3 Other Documents. 

(a) The Members agree to execute such other instruments and documents as may be required by law or which a Member deems necessary or
appropriate to carry out the intent of this Agreement. 
 (b) Each Member shall directly bear all of its own fees and expenses
associated with the preparation, negotiation, execution and delivery of this Agreement and the other documents contemplated hereby, except for documents used in the formation of the Company which shall constitute an Organizational Expense.

 Section 10.4 Force Majeure. Whenever any act or thing is required of the Company or a Member hereunder to be done
within any specified period of time, the Company and such Member shall be entitled to such additional period of time to do such act or thing as shall equal any period of delay resulting from causes beyond the reasonable control of the Company or
such Member, including, without limitation, bank holidays, and actions of governmental agencies, and excluding, without limitation, economic hardship; provided that this provision shall not have the effect of relieving the Company or such Member
from the obligation to perform any such act or thing. 
 Section 10.5 Applicable Law. This Agreement shall be
governed by, and construed in accordance with, the internal law of the State of Delaware, except to the extent that the provisions of the Act are mandatorily applicable. 
 Section 10.6 Waivers. 
 (a) No waiver of the provisions hereof shall
be valid unless in writing and then only to the extent therein set forth. Any right or remedy of the Members hereunder may be waived by unanimous agreement of the Members, 

  
 25 

 
and any such waiver shall be binding on all Members. Except as specifically herein provided, no failure or delay by any party in exercising any right or remedy hereunder shall operate as a waiver
thereof, and a waiver of a particular right or remedy on one occasion shall not be deemed a waiver of any other right or remedy or a waiver on any subsequent occasion. 
 (b) Except as otherwise provided in this Agreement, any approval or consent of the Members may be given by unanimous approval of the Members, and any such approval or consent shall be binding on all
Members. 
 Section 10.7 Notices. All notices, demands, solicitations of consent or approval, and other
communications hereunder shall be in writing or by electronic mail (with or without attached PDFs), and shall be sufficiently given if personally delivered or sent by postage prepaid, registered or certified mail, return receipt requested, or sent
by electronic mail, overnight courier or facsimile transmission, addressed as follows: if intended for the Company, to the Company’s principal office determined pursuant to Section 2.3; and if intended for any Member, to the address of
such Member set forth on the Company’s records, or to such other address as any Member may designate by written notice. Notices shall be deemed to have been given (i) when personally delivered, (ii) if sent by registered or certified
mail, on the earlier of (A) three days after the date on which deposited in the mails or (B) the date on which received, or (iii) if sent by electronic mail, overnight courier or facsimile transmission, on the date on which received;
provided that notices of a change of address shall not be deemed given until the actual receipt thereof. The provisions of this Section shall not prohibit the giving of written notice in any other manner; any such written notice shall be deemed
given only when actually received. 
 Section 10.8 Construction. 

(a) The captions used herein are intended for convenience of reference only and shall not modify or affect in any manner the meaning or
interpretation of any of the provisions of this Agreement. 
 (b) As used herein, the singular shall include the plural, the
masculine gender shall include the feminine and neuter, and the neuter gender shall include the masculine and feminine, unless the context otherwise requires. 
 (c) The words “hereof,” “herein,” and “hereunder,” and words of similar import, when used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. 
 (d) References in this Agreement to Articles and Sections are intended to refer to Articles and
Sections of this Agreement unless otherwise specifically stated. 
 (e) Nothing in this Agreement shall be deemed to create any
right in or benefit for any creditor of the Company that is not a party hereto, and this Agreement shall not be construed in any respect to be for the benefit of any creditor of the Company that is not a party hereto. 

Section 10.9 Amendments. 
 (a) This Agreement may be amended at any time and from time to time by Manager Approval. Any amendment which adversely impacts any individual Member vis-à -vis the other Members will require the consent of the Member adversely impacted and no amendment may increase a Member’s Capital Commitment or otherwise increase its obligation to make Capital Contributions
without such Member’s consent. 
 (b) Notwithstanding the foregoing, a Member may amend this Agreement and the Member List
at any time and from time to time to reflect the admission or withdrawal of any Member or the change in any Member’s Capital Commitment, as contemplated by this Agreement. 

Section 10.10 Legal Counsel. Solar has engaged Akin Gump Strauss Hauer & Feld LLP (“Company
Counsel”), as legal counsel to the Company, Solar and the Servicer. Moreover, Company Counsel has previously 

  
 26 

 
represented and/or concurrently represents the interests of Solar, the Servicer and/or parties related thereto in connection with matters other than the preparation of this Agreement and may
represent such Persons in the future. Each Member: (a) approves Company Counsel’s representation of the Company, Solar and the Servicer in the preparation of this Agreement; and (b) acknowledges that Company Counsel has not been
engaged by any other Member to protect or represent the interests of such Member vis-à-vis the Company or the preparation of this Agreement, and that actual or
potential conflicts of interest may exist among the Members in connection with the preparation of this Agreement. In addition, each Member: (i) acknowledges the possibility of a future conflict or dispute among Members or between any Member or
Members and the Company or the Servicer; and (ii) acknowledges the possibility that, under the laws and ethical rules governing the conduct of attorneys, Company Counsel may be precluded from representing the Company and/or Solar and/or the
Servicer (or any equity holder thereof) in connection with any such conflict or dispute. Nothing in this Section 10.9 shall preclude the Company from selecting different legal counsel to represent it at any time in the future, and no Member
shall be deemed by virtue of this Section 10.9 to have waived its right to object to any conflict of interest relating to matters arising from and after the date hereof whether or not arising out of this Agreement or the transactions
contemplated hereunder. 
 Section 10.11 Execution. This Agreement may be executed in any number of counterparts and
all such counterparts together shall constitute one agreement binding on all Members. This Agreement and any amendments, waivers, consents or supplements may be executed by facsimile or portable document format (.pdf), which shall be valid for all
purposes. 
 Section 10.12 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of
the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto; provided that this provision shall not be construed to permit any assignment or transfer which is otherwise prohibited hereby.

 Section 10.13 Severability. If any one or more of the provisions contained in this Agreement, or any application
thereof, shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and all other applications thereof shall not in any way be affected or impaired thereby.

 Section 10.14 Computation of Time. In computing any period of time under this Agreement, the day of the act,
event, or default from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday or legal holiday on which banks in New York are closed, in
which event the period shall run until the end of the next day which is not a Saturday, Sunday or such a legal holiday. Any reference to “business day” shall refer to any day which is not a Saturday, Sunday or such a legal holiday. Any
references to time of day shall refer to New York time. 
 Section 10.15 Entire Agreement. This Agreement and the
Subscription Agreements entered into between the Company and each Member in connection with the Members’ subscription of interests in the Company set forth the entire understanding among the parties relating to the subject matter hereof, any
and all prior correspondence, conversations, memoranda or other writings being merged herein and replaced and being without effect hereon. No promises, covenants or representations of any character or nature other than those expressly stated herein,
in such Subscription Agreements, or in any such other agreement have been made to induce any party to enter into this Agreement. 

[Remainder of page left blank] 

  
 27 

 IN WITNESS WHEREOF, the Members have caused this Agreement to be executed and delivered as
of date first above written. 
  

			
	SOLAR CAPITAL LTD.
		
	 By:    
	 	 /s/ Michael S. Gross

		 	 Name: Michael S. Gross

		 	 Title: Chief Executive Officer

	
	SOLAR SENIOR CAPITAL LTD.
		
	 By:
	 	 /s/ Michael S. Gross

		 	 Name: Michael S. Gross

		 	 Title: Chief Executive Officer

	
	DEERFIELD SOLAR HOLDINGS, LLC
		
	 By:
	 	 Deerfield Mgmt, L.P.

		 	 Its Manager

		
	 By:
	 	 J.E. Flynn Capital, LLC

		 	 General Partner

		
	 By:
	 	 /s/ David J. Clark

		 	Name: David J. Clark
		 	 Title: Authorized Signatory

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