Document:

Exhibit 10.4

 

EXECUTION VERSION

 

TERMINATION LETTER

 

June 3, 2016

 

BDCA 2L Funding I, LLC

450 Park Avenue, 14th Floor

New York, NY 10022

Attention: General Counsel

Facsimile No.: (646) 861-7804

 

Ladies and Gentlemen:

 

We have been
requested to provide this letter setting forth the amount necessary, as of June 3, 2016 (the “Payoff
Date”), to pay all Obligations of the Borrower under that certain Loan Financing and Servicing Agreement dated as
of February 21, 2014 (as amended, restated, supplemented and otherwise modified from time to time, the “Loan
Financing and Servicing Agreement”) among BDCA 2L Funding I, LLC, as the borrower (the
“Borrower”), Business Development Corporation of America, as the equityholder and the servicer, the
lenders from time to time parties thereto (the “Lenders “), Deutsche Bank AG, New York Branch, as the
administrative agent (the “Administrative Agent”), the other agents parties thereto and U.S. Bank National
Association (“U.S. Bank “) as collateral agent and collateral custodian. Capitalized terms used but not
otherwise defined herein shall have the respective meanings provided therefor in the Loan Financing and
Servicing Agreement.

 

1.          In
accordance with the foregoing, Deutsche Bank AG, New York Branch acknowledges that the Borrower has paid to Deutsche Bank AG, New
York Branch, in its capacity as a Committed Lender (the “Committed Lender”) under the Loan Financing and Servicing
Agreement, an amount equal to (a) $60,000,000.00, in repayment of all outstanding principal owed to the Committed Lender under
the Loan Financing and Servicing Agreement as of the Payoff Date and (b) $10,307.42, in repayment of outstanding interest and fees
owed to the Committed Lender and other Secured Parties under the Loan Financing and Servicing Agreement as of the Payoff Date.

 

2.          Each
of the Borrower, the Servicer and the Administrative Agent hereby waives all conditions set forth in the Loan Financing and Servicing
Agreement and the other Transaction Documents in connection with the permanent reduction of the Facility Amount in whole.

 

3.          Each
Secured Party hereby acknowledges receipt of all amounts owing to it under the Terminated Transaction Documents (as hereinafter
defined), as each is specified on Schedule I hereto. The parties hereto agree and acknowledge that (i) all the security
interests, liens and pledges in favor of the Collateral Agent securing the above referenced Loans and Collateral under the Transaction
Documents are automatically released with no further action on the part of the Borrower, (ii) all obligations of the Borrower in
respect of the Terminated Transaction Documents are deemed to be paid off, satisfied and discharged in full, (iii) the Commitments
are terminated and (iv) each of the Loan Financing and Servicing Agreement, the Notes, the Sale and Contribution Agreement and
the Fee Letter (each a “Terminated Transaction Document” and collectively, the “Terminated Transaction
Documents”) is deemed terminated and of no further force and effect, except for indemnification and other provisions
of the Terminated Transaction Documents which by their express terms survive the termination of the Loan Financing and Servicing
Agreement or such other Terminated Transaction Document. For the avoidance of doubt, the parties hereto agree that each of the
Account Control Agreement, as amended, restated or otherwise modified, and the Collateral Agent and Collateral Custodian Fee Letter
(to the extent such Collateral Agent and Collateral Custodian Fee Letter applies to the services provided under the Account Control
Agreement, as amended, restated or otherwise modified) remains in effect.

 

     

     

    

 

4.          The
Borrower hereby requests that the Collateral Custodian promptly deliver to the Borrower any Collateral and Collateral Obligation
Files held by the Collateral Custodian. The foregoing shall be at the sole cost and expense of the Borrower with no liability to
the Collateral Custodian.

 

5.          The
parties hereto acknowledge that the recipient hereof will rely on this letter and the acknowledgments, certifications, confirmations
and agreements of the Secured Parties contained herein. The parties hereto authorize the filing of termination statements on form
UCC-3 or other security interest terminations with respect to the Transaction Documents and we shall procure, deliver or execute
and deliver all further instruments and documents, and take any other actions, which are reasonably required to evidence the consummation
of the payoff contemplated hereby.

 

6.          This
letter may be executed by the parties hereto individually or in any combination, in one or more counterparts, each of which shall
be an original and all of which shall constitute one and the same letter. Delivery of an executed counterpart of a signature page
to this letter agreement by telecopy shall be effective as delivery of a manually executed counterpart of this letter.

 

7.          EACH
OF THE BORROWER AND EACH SECURED PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS LETTER OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

8.          This
letter shall be governed by, and construed in accordance with, the laws of the State of New York.

 

9.          The
Administrative Agent hereby authorizes and directs U.S. Bank, in its capacity as Collateral Agent and as Custodian under the Loan
Financing and Servicing Agreement, to execute and perform this Termination Letter.

 

    	 	-2-	 

     

    

  

The instructions set forth above are irrevocable
instructions which can only be changed by an instruction signed by the parties hereto.

 

	 	Very truly yours,
	 	 
	 	DEUTSCHE BANK AG, NEW YORK
    BRANCH,
	 	as Administrative Agent and as a Committed
    Lender
	 	 
	 	By: 	/s/ KEITH
    ALLMAN
	 	 	Name: KEITH
    ALLMAN
	 	 	Title: DIRECTOR
	 	 
	 	By: 	/s/ MARY
    CONNER
	 	 	Name: MARY
    CONNER
	 	 	Title:
    Director
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Collateral Agent and as Collateral
    Custodian
	 	 
	 	By: 	/s/ Jeffrey B. Stone
	 	 	Name: Jeffrey B. Stone
	 	 	Title: Vice President
	 	 
	 	BUSINESS DEVELOPMENT CORPORATION
    OF AMERICA, as Equityholder and as Servicer
	 	 
	 	By: 	/s/ Corinne Pankovcin
	 	 	Name: Corinne Pankovcin
	 	 	Title: Chief Financial Officer

 

[Signature Page to Termination Letter]

 

     

     

    

  

	ACKNOWLEDGED AND AGREED 

    as of the date first set forth above:	 
	 	 
	BDCA 2L FUNDING I, LLC, as
    Borrower	 
	 	 	 
	By:	BUSINESS DEVELOPMENT

    CORPORATION OF AMERICA, its sole member	 
		 	 
	By:  	/s/ Corinne Pankovcin	 
	Name:	Corinne Pankovcin	 
	Title:	Chief Financial Officer	 

 

[Signature Page to Termination Letter]Exhibit 10.1

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT
TO CREDIT AGREEMENT (the “Agreement”), effective as of June 3, 2016 (the “Effective Date”), is by
and among SANTANDER BANK, N.A. (formerly known as Sovereign Bank, N.A.) as agent for the Lenders hereunder (in such capacity, together
with its successors in such capacity, the “Agent”), each of the lenders that is a party or signatory hereto
and identified under the caption “LENDERS” on the signature pages hereto or that shall become a “Lender”
thereunder (individually, a “Lender” and, collectively, the “Lenders”), and FULL CIRCLE CAPITAL
CORPORATION, a Maryland corporation having an office at 102 Greenwich Avenue, 2nd Floor, Greenwich, CT 06830 (the “Borrower”).

 

W I T N E S S E T H:

 

WHEREAS, the Agent,
the Lenders and the Borrower entered into a certain Credit Agreement dated June 3, 2013, as previously amended (collectively, the
“Credit Agreement”), pursuant to which the Lenders agreed to extend certain credit and make certain loans to
the Borrower; and

 

WHEREAS, the Borrower
has requested the Agent and the Lenders, and the Agent and the Lenders have agreed, to make certain amendments to the Credit Agreement,
all as more fully described herein; and

 

WHEREAS, the
Borrower has a New Subsidiary, FC Shale, Inc., a Delaware corporation (“FCSH”), that is,
contemporaneously herewith, becoming a Guarantor.

 

NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.Defined Terms.
Except as otherwise indicated herein, all words and terms defined in the Credit Agreement shall have the same meanings when used
herein.

 

2.Amendments
to Credit Agreement and other Loan Documents.

 

		(a)	The following definitions appearing in Section 1.1
of the Credit Agreement are hereby amended to read in their entirety as follows:

 

“Revolving
Commitment” means $5,000,000.

 

“Revolving
Loan Termination Date” means October 3, 2016.

 

		(b)	Section 8.1 of the Credit Agreement is hereby amended
to read in its entirety as follows:

 

    	 

     

    

 

8.1Financial Covenants.

 

		(a)	The Borrower shall not cause, suffer or permit:

 

		i.	its Balance Sheet Leverage Ratio to exceed 0.50 at any
time;

 

		ii.	its Asset Coverage Ratio to be less than 2.0:1.0 at any
time from and after December 31, 2014; and

 

		iii.	its Interest Coverage Ratio to be less than 2.5:1.0,
tested as of the last day of each Applicable Fiscal Quarter for the trailing 12-month period.

 

		(b)	Between June 3, 2016 and the Revolving Loan Termination
Date (the “Extension Period”), in no event shall the Borrower pay any dividends, or make distributions, redemptions
or other acquisitions of securities or other equity interests in the Borrower that exceed $10,000,000 in the aggregate.

 

3.Substitute
Revolving Note. Concurrently herewith, the Borrower is executing and delivering to Santander Bank, N.A. a substitute Revolving
Note in the maximum principal amount of $5,000,000 (the “Santander Substitute Note”) in substitution for, but
not in repayment of, the Revolving Note dated November 6, 2013 in the maximum principal amount of $30,000,000 previously issued
to Santander Bank, N.A. (the “Prior Santander Note”). The execution and delivery by the Borrower of the Santander
Substitute Note pursuant to the provisions hereof shall not constitute a refinancing, repayment, accord and satisfaction or novation
of the Prior Santander Note or the indebtedness evidenced thereby. The Agent shall promptly return the Prior Santander Note to
Borrower marked “cancelled.”

 

4.Reaffirmation
of Guaranty. Concurrently herewith, the Guarantors and FCSH are executing and delivering to the Agent and the Lenders a Reaffirmation
of and Joinder to Guaranty Agreement.

 

5.Other Deliverables.
Concurrently herewith, FCSH is executing and delivering to the Agent and the Lenders a Joinder to the Guarantor Security Agreement
and a Joinder to the Guarantor Pledge Agreement. FCSH shall also deliver to the Agent a UCC-1 financing statement covering all
assets and properties of FCSH to be filed in the Office of the Secretary of State of Delaware naming Agent as the secured party.
The parties agree that on before June 10, 2016, FCSH shall deliver to Agent a certificate of a Senior Officer of FCHS as to (i)
resolutions authorizing entry into, execution, delivery and performance of its obligations under the Credit Agreement and the other
Loan Documents to which it is a party, (ii) the incumbency and signatures of the managers or officers authorized to execute on
its behalf the Loan Documents to which it is a party, (iii) its certificate of incorporation and by-laws, and (iv) a certificate
of the appropriate Governmental Authority official as of a recent date, as to the good standing of FCSH in the state of its formation
and each other state where it is qualified to do business as a foreign entity.

 

6.Amendments
to Other Loan Documents. Each of the other Loan Documents is hereby amended to the extent necessary to reflect the amendments
to the terms of the Credit Agreement effected by this Agreement.

 

    	 

     

    

 

7.Representations
and Warranties. In order to induce the Agent and the Lenders to enter into this Agreement and amend the Credit Agreement as
provided herein, the Borrower hereby represents and warrants to the Agent and the Lenders that:

 

(a)All of the representations
and warranties of the Borrower set forth in the Credit Agreement are true, complete and correct in all material respects on and
as of the date hereof with the same force and effect as if made on and as of the date hereof and as if set forth at length herein
(except to the extent that such representations and warranties relate solely to an earlier date in which case such representations
and warranties were true and correct in all material respects on such earlier date).

 

(b)No Default or
Event of Default presently exists and is continuing on and as of the date hereof.

 

(c)Since the date
of the Borrower’s most recent financial statements delivered to the Agent, no material adverse change has occurred in the
business, assets, liabilities, financial condition or results of operations of the Borrower, and no event has occurred or failed
to occur which has had or could reasonably be expected to have a material adverse effect on the business, assets, liabilities,
financial condition or results of operations of the Borrower.

 

(d)The Borrower has
all corporate power and authority to execute, deliver and perform any action or step which may be necessary to carry out the terms
of this Agreement and all other documents, if any, executed in connection herewith (together with this Agreement, the “Amendment
Documents”), and each Amendment Document to which the Borrower is a party has been duly executed and delivered by the
Borrower and each such Amendment Document is the legal, valid and binding obligation of the Borrower enforceable in accordance
with its terms, subject to any applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the
enforcement of creditors’ rights generally.

 

(e)The execution,
delivery and performance of the Amendment Documents to which the Borrower is a party will not (i) violate any provision of any
existing law, statute, rule, regulation or ordinance, (ii) conflict with, result in a breach of, or constitute a default under
(A) the certificate of incorporation or the bylaws of the Borrower, (B) any order, judgment, award or decree of any court, governmental
authority, bureau or agency, or (C) any mortgage, indenture, lease, contract or other material agreement or undertaking to which
the Borrower is a party or by which the Borrower or any of its properties or assets may be bound, or (iii) result in the creation
or imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by
the Borrower, other than liens in favor of the Agent for the benefit of the Lenders.

 

(f)Except for filings
required under applicable securities laws, no consent, license, permit, approval or authorization of, exemption by, notice to,
report to, or registration, filing or declaration with any person is required in connection with the execution, delivery and performance
by the Borrower of the Amendment Documents to which the Borrower is a party or the validity thereof or the transactions contemplated
thereby.

 

    	 

     

    

 

8.Costs.
The Borrower shall reimburse the Agent and the Lenders on demand for all costs, including reasonable legal fees and expenses and
recording or filing fees, incurred by them in connection with this Agreement and the transactions referenced herein.

 

9.Amendment
Fees. Upon the execution and delivery of this Agreement and as a condition to its effectiveness, the Borrower shall pay to
the Agent for the ratable benefit of the Lenders (i) a closing fee in the amount of $20,000, and (ii) an administrative fee in
the amount of $30,000, both of which shall be fully-earned when paid and not subject to rebate or refund for any reason whatsoever.

 

10.Counterparts.
This Agreement may be signed in several counterparts, each of which shall be an original and all of which shall constitute one
and the same instrument.

 

11.No Change.
Except as expressly set forth herein, all of the terms and provisions of the Credit Agreement shall continue in full force and
effect.

 

12.Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard
to its conflict of laws principles.

 

[Signatures on following pages]

 

    	 

     

    

 

[Signature
page to Fourth Amendment to Credit Agreement]

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized representatives
as of the date set forth on the first page hereof.

 

	 	BORROWER:
	 	 
	 	FULL CIRCLE CAPITAL CORPORATION
	 	 
	 	 
	 	By:________________________
	 	Name:
	 	Title:
	 	 
	Address:	102 Greenwich Avenue, 2nd Floor
	 	Greenwich, CT 06830
	 	Attention: John E. Stuart
	 	 
	 	Telephone: (203) 900-2120
	 	Telecopy: (203) 900-2103
	 	 
	 	AGENT:
	 	 
	 	SANTANDER BANK, N.A. (formerly known as Sovereign Bank, N.A.)
	 	 
	 	 
	 	By: ________________________
	 	Name:
	 	Title:
	 	 
	 	LENDERS:
	 	 
	 	SANTANDER BANK, N.A. (formerly known as Sovereign Bank, N.A.)
	 	 
	 	 
	 	By: ________________________
	 	Name:
	 	Title:

 

 

	Lending Offices:	45 East 53rd Street
	 	New York, NY 10573
	 	 
	Amount of Revolving Commitment:	$5,000,000.00
	Percentage of Revolving Commitment:	100%

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