Document:

EXHIBIT 10.5

 Exhibit 10.5 
  

			
	$50,000,000	  	August 10, 2004

  
 THIS NOTE HAS NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE MAY BE
REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED THAT THE REOFFER, RESALE,
PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN CERTIFICATED FORM TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501 (a)(1)–(3) OR (7) UNDER THE SECURITIES ACT) PURCHASING FOR INVESTMENT
AND NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE, SUBJECT TO THE RECEIPT BY THE SERVICER AND THE DEAL AGENT OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SERVICER AND THE DEAL AGENT THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE
JURISDICTION, (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (4) PURSUANT TO ANOTHER EXEMPTION AVAILABLE UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (5) PURSUANT TO A VALID REGISTRATION STATEMENT. THE PURCHASE OF THIS NOTE WILL BE DEEMED A REPRESENTATION BY THE ACQUIRER THAT EITHER: (I) IT IS NOT, AND IS NOT PURCHASING THIS NOTE FOR, ON BEHALF OF OR WITH THE ASSETS OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF ERISA AND/OR SECTION 4975 OF THE CODE, OR A GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3(32) OF ERISA) OR A CHURCH PLAN (AS DEFINED IN SECTION 3(33) OF ERISA FOR
WHICH NO ELECTION HAS BEEN MADE UNDER SECTION 410(d) OF THE CODE) THAT IS SUBJECT TO ANY FEDERAL, STATE, OR LOCAL LAW THAT IS SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR (II) PTCE 95–60, PTCE
96–23, PTCE 91–38, PTCE 90–1, PTCE 84–14 OR SOME OTHER PROHIBITED TRANSACTION EXEMPTION IS APPLICABLE TO THE PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE BY THE ACQUIRER. 
  
 THIS NOTE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED, EXCHANGED OR
OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE 

  

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WITH THE TERMS OF THE SECOND AMENDED AND RESTATED LOAN FUNDING AND SERVICING AGREEMENT REFERRED TO HEREIN. 
  
 THE PRINCIPAL AMOUNT OF THIS NOTE WILL VARY AS ADVANCES ARE MADE AND PAID
DOWN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE MAXIMUM AMOUNT SHOWN ON THE FACE THEREOF. 
  
 FOR VALUE RECEIVED, ACS FUNDING TRUST I, a Delaware statutory trust (the “Borrower”), promises to pay to JPMORGAN CHASE BANK, a New York
banking corporation, as the swingline lender (the “Swingline Lender”), or its successors and assigns, the principal sum of FIFTY MILLION DOLLARS ($50,000,000) or, if less, the unpaid principal amount of the aggregate swingline loans
(“Swingline Advances”) made by the Swingline Lender to the Borrower pursuant to the Second Amended and Restated Loan Funding and Servicing Agreement (as defined below), as set forth on the attached Schedule, on the dates specified
in Section 2.7 of the Second Amended and Restated Loan Funding and Servicing Agreement, and to pay interest on the unpaid principal amount of each Swingline Advance on each day that such unpaid principal amount is outstanding at the
applicable Interest Rate related to such Swingline Advance as provided in the Second Amended and Restated Loan Funding and Servicing Agreement on each Payment Date and each other dates specified in the Second Amended and Restated Loan Funding and
Servicing Agreement. 
  
 This Note is issued pursuant to the
Second Amended and Restated Loan Funding and Servicing Agreement, dated as of August 10, 2004 (as amended, modified, waived, supplemented or restated from time to time, the “Second Amended and Restated Loan Funding and Servicing
Agreement”), by and among the Borrower, American Capital Strategies, Ltd., as the servicer (the “Servicer”), the Conduit Lenders and Institutional Lenders from time to time party thereto, the Lender Agents from time to time
party thereto, Wachovia Capital Markets, LLC, as the deal agent, JPMorgan Chase Bank, as the swingline lender, and Wells Fargo Bank, National Association, as the backup servicer and as the collateral custodian. Capitalized terms used but not defined
in this Note are used with the meanings ascribed to them in the Second Amended and Restated Loan Funding and Servicing Agreement. 
  
 Notwithstanding any other provisions contained in this Note, if at any time the rate of interest payable by the Borrower under this Note, when combined
with any and all other charges provided for in this Note, in the Second Amended and Restated Loan Funding and Servicing Agreement or in any other document (to the extent such other charges would constitute interest for the purpose of any applicable
law limiting interest that may be charged on this Note), exceeds the highest rate of interest permissible under applicable law (the “Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be exceeded the rate of
interest under this Note shall be equal to the Maximum Lawful Rate. If at any time thereafter the rate of interest payable under this Note is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest under this Note at the
Maximum Lawful Rate until such time as the total interest paid by the Borrower is equal to the total interest that would have been paid had applicable law not limited the interest rate payable under this Note. In no event shall the total interest
received by the Swingline Lender under this Note exceed the amount which the Swingline Lender could 

  

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lawfully have received had the interest due under this Note been calculated since the date of this Note at the Maximum Lawful Rate. 
  
 Payments of the principal of, and interest on, Advances represented by this
Note shall be made by the Borrower to the holder hereof by wire transfer of immediately available funds in the manner and at the address specified for such purpose as provided in Article 2 of the Second Amended and Restated Loan Funding and
Servicing Agreement, or in such manner or at such other address as the holder of this Note shall have specified in writing to the Borrower for such purpose, without the presentation or surrender of this Note or the making of any notation on this
Note. 
  
 If any payment under this Note falls due on a day that
is not a Business Day, then such due date shall be extended to the next succeeding Business Day and interest shall be payable on any principal so extended at the applicable Interest Rate. 
  
 If all or a portion of (i) the principal amount hereof or (ii) any interest payable thereon or (iii) any other amounts
payable hereunder shall not be paid when due (whether at maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum that is equal to the Base Rate plus 1.0%, in each case from the date of such
non-payment to (but excluding) the date such amount is paid in full. 
  
 Portions or all of the principal amount of the Note shall become due and payable at the time or times set forth in the Second Amended and Restated Loan Funding and Servicing Agreement. Any portion or all of the principal amount of this Note
may be prepaid, together with interest thereon (and as set forth in the Second Amended and Restated Loan Funding and Servicing Agreement, certain costs and expenses of the Swingline Lender) at the time and in the manner set forth in, but subject to
the provisions of, the Second Amended and Restated Loan Funding and Servicing Agreement. 
  
 Except as provided in the Second Amended and Restated Loan Funding and Servicing Agreement, the Borrower expressly waives presentment, demand, diligence, protest and all notices of any kind whatsoever with respect to
this Note. 
  
 All amounts evidenced by this Note, the Swingline
Lender’s making such Advance and all payments and prepayments of the principal hereof and the respective dates and maturity dates thereof shall be endorsed by the Swingline Lender on the schedule attached hereto and made a part hereof or on a
continuation thereof which shall be attached hereto and made a part hereof, or otherwise recorded by the Swingline Lender in its internal records; provided, however, that the failure of the Swingline Lender to make such a notation
shall not in any way limit or otherwise affect the obligations of the Borrower under this Note as provided in the Second Amended and Restated Loan Funding and Servicing Agreement. 
  
 The holder hereof may sell, assign, transfer, negotiate, grant participations in or otherwise dispose of all or any portion
of any Advances made by the Swingline Lender and represented by this Note and the indebtedness evidenced by this Note. 
  
 This Note is secured by the security interests granted pursuant to Section 8.1 of the Second Amended and Restated Loan Funding and Servicing
Agreement. The holder of this Note 

  

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is entitled to the benefits of the Second Amended and Restated Loan Funding and Servicing Agreement and may enforce the agreements of the Borrower contained
in the Second Amended and Restated Loan Funding and Servicing Agreement and exercise the remedies provided for by, or otherwise available in respect of, the Second Amended and Restated Loan Funding and Servicing Agreement, all in accordance with,
and subject to the restrictions contained in, the terms of the Second Amended and Restated Loan Funding and Servicing Agreement. If a Termination Event shall occur and be continuing, the unpaid balance of the principal of all Advances, together with
accrued interest thereon, shall be declared, and become due and payable in the manner and with the effect provided in the Second Amended and Restated Loan Funding and Servicing Agreement. 
  
 This Note is the “Swingline Note” referred to in the Second Amended
and Restated Loan Funding and Servicing Agreement. This Note shall be construed in accordance with and governed by the laws of the State of New York. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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 IN WITNESS WHEREOF, the undersigned has executed this Note as on the date first written above.

  

			
	ACS FUNDING TRUST I, as Borrower
		
	By:	 	 /s/ Malon Wilkus

	 Name:
	 	 Malon Wilkus

	 Title:
	 	 Beneficiary Trustee

  

  
 SCHEDULE TO NOTE

  

							
	 Date of Swingline
 Advance or
 Repayment

	  	 Principal
Amount of
Swingline Advance

	  	 Principal
Amount of
Repayment

	  	 Outstanding
Principal
AmountEXHIBIT 10.6

  
 Exhibit 10.6

  

  
 SECOND AMENDED AND RESTATED 
 PURCHASE
AND SALE AGREEMENT 
  
 by and between 
  
 ACS FUNDING TRUST I,  
 as the Buyer  
  
 and 
  
 AMERICAN CAPITAL STRATEGIES, LTD.,  
 as the Seller  
  
 Dated as of August 10, 2004  
  

 TABLE OF CONTENTS 
  

					
		
	 ARTICLE I GENERAL
	  	1
			
	 Section 1.1
	  	 Certain Defined Terms
	  	1
			
	 Section 1.2
	  	 Other Terms
	  	3
			
	 Section 1.3
	  	 Computation of Time Periods
	  	3
			
	 Section 1.4
	  	 Interpretation
	  	3
			
	 Section 1.5
	  	 References
	  	4
			
	 Section 1.6
	  	 Calculations
	  	4
		
	 ARTICLE II SALE AND CONVEYANCE
	  	4
			
	 Section 2.1
	  	 Sale
	  	4
			
	 Section 2.2
	  	 Assignments, Etc.
	  	7
			
	 Section 2.3
	  	 Lien Release Dividends
	  	8
		
	 ARTICLE III PURCHASE PRICE AND PAYMENT; MONTHLY REPORT
	  	9
			
	 Section 3.1
	  	 Purchase Price
	  	9
			
	 Section 3.2
	  	 Payment of Purchase Price
	  	9
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	10
			
	 Section 4.1
	  	 Seller’s Representations and Warranties
	  	10
			
	 Section 4.2
	  	 Seller’s Representations and Warranties Regarding the Agreement and the Loans
	  	15
			
	 Section 4.3
	  	 Representations and Warranties of the Buyer
	  	16
		
	 ARTICLE V PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS
	  	17
			
	 Section 5.1
	  	 Custody of Loans
	  	17
			
	 Section 5.2
	  	 Filing
	  	17
			
	 Section 5.3
	  	 Name Change or Relocation
	  	17
			
	 Section 5.4
	  	 Chief Executive Office
	  	18
			
	 Section 5.5
	  	 Costs and Expenses
	  	18
			
	 Section 5.6
	  	 Sale Treatment
	  	18
			
	 Section 5.7
	  	 Separateness from Buyer
	  	18
		
	 ARTICLE VI COVENANTS
	  	18
			
	 Section 6.1
	  	 Seller Covenants
	  	18

  

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	 Section 6.2
	  	 Delivery of Loan Files
	  	20
			
	 Section 6.3
	  	 Release of Released Amounts
	  	20
		
	 ARTICLE VII REPURCHASE OBLIGATION
	  	21
			
	 Section 7.1
	  	 Repurchase of Ineligible Loans
	  	21
			
	 Section 7.2
	  	 Substitution of Loans
	  	22
			
	 Section 7.3
	  	 Deemed Collections
	  	23
		
	 ARTICLE VIII CONDITIONS PRECEDENT
	  	24
			
	 Section 8.1
	  	 Conditions to the Buyer’s Obligations Regarding Loans
	  	24
		
	 ARTICLE IX TERM AND TERMINATION
	  	24
			
	 Section 9.1
	  	 Termination
	  	24
		
	 ARTICLE X MISCELLANEOUS PROVISIONS
	  	25
			
	 Section 10.1
	  	 Amendment
	  	25
			
	 Section 10.2
	  	 Governing Law
	  	25
			
	 Section 10.3
	  	 Notices
	  	25
			
	 Section 10.4
	  	 Severability of Provisions
	  	26
			
	 Section 10.5
	  	 Assignment
	  	26
			
	 Section 10.6
	  	 Further Assurances
	  	27
			
	 Section 10.7
	  	 No Waiver; Cumulative Remedies
	  	27
			
	 Section 10.8
	  	 Counterparts
	  	27
			
	 Section 10.9
	  	 Binding Effect; Third-Party Beneficiaries
	  	28
			
	 Section 10.10
	  	 Liabilities to Obligors
	  	28
			
	 Section 10.11
	  	 Merger and Integration
	  	28
			
	 Section 10.12
	  	 Headings
	  	28
			
	 Section 10.13
	  	 No Bankruptcy Petition; Disclaimer
	  	28
			
	 Section 10.14
	  	 Schedules and Exhibits
	  	28
			
	 Section 10.15
	  	 Merger or Consolidation of, or Assumption of the Obligations of, the Seller
	  	28
			
	 Section 10.16
	  	 [Reserved.]
	  	29
			
	 Section 10.17
	  	 Costs, Expenses and Taxes
	  	29
			
	 Section 10.18
	  	 Indemnities by the Seller
	  	29
			
	 Section 10.19
	  	 Recourse Against Certain Parties
	  	30
			
	 Section 10.20
	  	 Sharing of Payments on Loans Subject to Retained Interest Provisions
	  	31

  

 ii 

 EXHIBITS AND SCHEDULES 
  

			
	 Schedule I
	  	 Loan List

		
	 Exhibit A
	  	 Form of Sale Assignment

	 Exhibit B
	  	 Form of Notice of Sale

  

 iii 

  
 SECOND AMENDED AND
RESTATED 
 PURCHASE AND SALE AGREEMENT 
  
 THIS SECOND AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT (such agreement as amended, modified, waived,
supplemented or restated from time to time, the “Agreement”), is dated as of August 10, 2004, by and between AMERICAN CAPITAL STRATEGIES, LTD., a Delaware corporation, as the seller (together with its successors and assigns
in such capacity, the “Seller”), and ACS FUNDING TRUST I, a Delaware statutory trust, as the buyer (together with its successors and assigns in such capacity the “Buyer”). 
  
 R E C I T A L S

  
 WHEREAS, the Seller and the Buyer heretofore
executed and delivered an Amended and Restated Purchase and Sale Agreement, dated as of June 13, 2003 (as amended, modified, waived or supplemented, the “Original Purchase Agreement”), providing for the purchase by the Buyer of
certain loans originated or purchased by the Seller in the normal course of business, together with among other things, related rights of payment thereunder and the interest of the Seller in the related property and other interests securing the
payments to be made under such loans; 
  
 WHEREAS,
Section 10.1 of the Original Purchase Agreement provides that the Original Purchase Agreement shall not be amended without the written agreement of the Seller and the Buyer (with not less than ten Business Days’ prior written notice
provided to the Deal Agent); 
  
 WHEREAS, the Seller and
the Buyer hereby desire to amend and restate the Original Purchase Agreement to make certain changes that are necessary or in the interests of the parties; 
  
 WHEREAS, each of the Seller and the Buyer consents to (and the Deal Agent acknowledges its receipt of notice not less than ten Business Days prior
to) the amendments to the Original Purchase Agreement effected by this Agreement; 
  
 NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises and agreements contained herein, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows: 
  
 ARTICLE I 
 GENERAL 
  
 Section 1.1 Certain Defined Terms. 
  
 (a) Certain capitalized terms used throughout this Agreement are defined above or in this Section 1.1. In addition, capitalized terms used but not
defined herein have the meanings given to such terms in the Loan Funding Agreement (as defined below). 
  

 1 

 (b) As used in this Agreement and its exhibits and schedules, unless the context requires a different
meaning, the following terms shall have the following meanings: 
  
 Agreement: Defined in the Preamble. 
  
 Buyer: Defined in the Preamble. 
  
 Deemed Collection: Defined in Section 7.3. 
  
 Indemnified Amounts: Defined in Section 10.18(a). 
  
 Indemnified Party: Defined in Section 10.18(a). 
  
 Ineligible Loan: Defined in Section 7.1. 
  
 Lien Release Dividend: Defined in Section 2.3(a). 
  
 Lien Release Dividend Date: The date specified by the Buyer, which date may be any Business Day, provided notice is given in accordance with
Section 2.3(a). 
  
 Loan Funding Agreement: The
Second Amended and Restated Loan Funding and Servicing Agreement, dated as of August 10, 2004, by and among ACS Funding Trust I, as the borrower, American Capital Strategies, Ltd., as the servicer, each of the Conduit Lenders and Institutional
Lenders from time to time party thereto, each of the Lender Agents from time to time party thereto, Wachovia Capital Markets, LLC, as the deal agent, JPMorgan Chase Bank, as the swingline lender, and Wells Fargo Bank, National Association, as the
backup servicer and the collateral custodian, as such agreement may be amended, modified, supplemented, waived or restated from time to time. 
  
 Notice of Sale: A written notice, in the form of Exhibit B, to be used for each transfer hereunder. 
  
 Obligor Account: Defined in Section 6.1(c). 
  
 Original Purchase Agreement: Defined in the Recitals.

  
 Purchase: Any transfer made hereunder pursuant to
Section 2.1. 
  
 Purchase Date: Any Business Day on
which any Purchased Asset is acquired by the Buyer pursuant to the terms of this Agreement, including any Substitution Date, as set forth in the related Sale Assignment. 
  
 Purchase Price: Defined in Section 3.1. 
  
 Purchased Assets: Defined in Section 2.1(a). 
  
 Purchased Loans: The Loans listed on Schedule I hereto. 
  
 Replaced Loan: Defined in Section 7.2(a). 
  

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 Sale Assignment: Defined in Section 2.2(a). 
  
 Sale Papers: Defined in Section 4.1(a). 
  
 Schedule I: The schedule of all Purchased Assets that are sold,
transferred, assigned and/or contributed by the Seller to the Buyer on a Purchase Date, which schedule as to Purchased Assets identified as of the initial Purchase Date is attached hereto and as to any Purchased Assets identified on any subsequent
Purchase Date is supplemented by “Schedule I” attached to the applicable Sale Assignment, and incorporated herein by reference, as such schedule may be amended, modified or supplemented from time to time in accordance with the terms
hereof. 
  
 Seller: Defined in the Preamble.

  
 Substitute Loan: Defined in Section 7.2.

  
 Substitution Date: Any date on which the Seller
transfers a Substitute Loan to the Buyer. 
  
 Section 1.2
Other Terms. 
  
 All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted accounting principles. The symbol “$” shall mean the lawful currency of the United States. All terms used in Article 9 of the UCC in the State of New York, and not
specifically defined herein, are used herein as defined in such Article 9. 
  
 Section 1.3 Computation of Time Periods. 
  
 Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding.” 
  
 Section 1.4 Interpretation. 
  
 In this Agreement and the other Sale Papers, unless a contrary intention appears: 
  
 (i) the singular number includes the plural number and vice versa; 
  
 (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if
such successors and assigns are permitted by the Sale Papers; 
  
 (iii) reference to any gender includes each other gender; 
  
 (iv) reference to day or days without further qualification means calendar days; 
  
 (v) unless otherwise stated, reference to any time means
Charlotte, North Carolina time; 
  
 (vi)
references to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible form; 
  

 3 

 (vii) reference to any agreement (including any of the Sale Papers), document or
instrument means such agreement, document or instrument as amended, modified, waived, supplemented or restated and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Sale Papers and reference
to any promissory note includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor; and 
  
 (viii) reference to any Applicable Law means such Applicable Law as amended, modified, codified, replaced or reenacted, in whole or in
part, and in effect from time to time, including rules and regulations promulgated thereunder and reference to any section or other provision of any Applicable Law means that provision of such Applicable Law from time to time in effect and
constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision. 
  
 Section 1.5 References. 
  
 All section references (including references to the Preamble), unless otherwise indicated, shall be to Sections (and the Preamble) in this
Agreement. 
  
 Section 1.6 Calculations. 

 
 Except as otherwise provided herein, all interest rate and basis point
calculations hereunder will be made on the basis of a 360–day year and the actual days elapsed in the relevant period and will be carried out to at least three decimal places. 
  
 ARTICLE II 
 SALE AND CONVEYANCE 
  
 Section 2.1
Sale. 
  
 (a) Subject to and upon the terms and
conditions set forth herein, on each Purchase Date, the Seller hereby sells, assigns, sets over and otherwise conveys, and the Buyer hereby purchases and takes from the Seller, without recourse except as provided herein, all right, title, and
interest, whether now owned or hereafter acquired or arising, and wherever located, of the Seller in and to the property described in clauses (i) through (x) below and all accounts, cash and currency, chattel paper, tangible chattel paper,
electronic chattel paper, copyrights, copyright licenses, equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, security entitlements,
commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit rights, software, supporting obligations, accessions, and other property consisting of, arising out of, or related to any of the following (in each case
excluding the Retained Interest and the Excluded Amounts) (collectively, the “Purchased Assets”): 
  
 (i) the Loans that are identified by the Seller as of the initial Cut-Off Date, which are listed on Schedule I hereto, and the
Loans that are listed on Schedule I to any Sale Assignment, and all monies due or to become due in payment of such Loans on and after the related Cut-Off Date, including but not limited to all Collections and all obligations owed to the
Seller in connection with such Loans; 
  

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 (ii) any Related Property securing or purporting to secure such Loans (to the extent the
Seller, other than solely in its capacity as collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon) including the related security interest granted by the Obligor under such Loans, all proceeds from any sale or
other disposition of such Related Property; 
  
 (iii) all security interests, liens, guaranties, warranties, letters of credit, accounts, bank accounts, mortgages or other encumbrances and property subject thereto from time to time purporting to secure or support payment of such Loans,
together with all UCC financing statements or similar filings signed by an Obligor relating thereto; 
  
 (iv) all claims (including “claims” as defined in Bankruptcy Code § 101(5)), suits, causes of action, and any other right
of the Seller, whether known or unknown, against the related Borrower, the related Obligors, if any, or any of their respective Affiliates, agents, representatives, contractors, advisors, or any other Person that in any way is based upon, arises out
of or is related to any of the foregoing, including, to the extent permitted to be assigned under applicable law, all claims (including contract claims, tort claims, malpractice claims, and claims under any law governing the purchase and sale of, or
indentures for, securities), suits, causes of action, and any other right of the Seller against any attorney, accountant, financial advisor, or other Person arising under or in connection with the related Loan Documents; 
  
 (v) all cash, securities, or other property, and all setoffs
and recoupments, received or effected by or for the account of the Seller under such Loans (whether for principal, interest, fees, reimbursement obligations, or otherwise) after the related Cut-Off Date, including all distributions obtained by or
through redemption, consummation of a plan of reorganization, restructuring, liquidation, or otherwise of any related Obligor or the related Loan Documents, and all cash, securities, interest, dividends, and other property that may be exchanged for,
or distributed or collected with respect to, any of the foregoing; 
  
 (vi) all Insurance Policies; 
  
 (vii) the Loan Documents with respect to such Loans; 
  
 (viii) the Collection Account, each Lock-Box and all Lock-Box Accounts, together with all funds held in or credited to such accounts, and
all certificates and instruments, if any, from time to time representing or evidencing each of the foregoing or such funds (to the extent of the Seller’s interest therein, if any); 
  
 (ix) the “Purchased Assets”, under, and as defined in, the Original Purchase Agreement,
excluding, however, all right, title, and interest in, under and to the “Pledge Agreement” and the related “Supplemental Interests”, in each case under, and as defined in, the Original Purchase Agreement; and

  
 (x) all income and proceeds of the foregoing.

  

 5 

 To the extent the Purchase Price (as defined herein) paid to the Seller for any Loan is less than the Fair Market Value
of such Loan, the difference between such Fair Market Value and the Purchase Price (as defined herein) shall be deemed to be a capital contribution made by the Seller to the Buyer on the applicable Purchase Date. 
  
 (b) The Seller and the Buyer acknowledge that the representations and
warranties of the Seller in Section 4.1 and 4.2 will run to and be for the benefit of the Deal Agent and the Secured Parties, and the Deal Agent and the Secured Parties may enforce, directly without joinder of the Buyer, the repurchase
obligations of the Seller with respect to breaches of such representations and warranties as set forth herein. 
  
 (c) The sale, transfer, assignment, set–over and conveyance of the Purchased Assets by the Seller to the Buyer pursuant to this Agreement does not
constitute and is not intended to result in a creation or an assumption by the Buyer, the Deal Agent or the Secured Parties of any obligation of the Seller in connection with the Purchased Assets, or any agreement or instrument relating thereto,
including, without limitation, (i) any obligation to any Obligor, if any, not financed by, or with an unfunded commitment from, the Seller, (ii) any taxes, fees, or other charges imposed by any Governmental Authority and (iii) any insurance premiums
that remain owing with respect to any Loan at the time such Loan is sold hereunder. Without limiting the foregoing, the Buyer does not assume any obligation to purchase any additional notes or loans under agreements governing the Purchased Assets.

  
 (d) The Seller and the Buyer intend and agree that (i) the
transfer of the Purchased Assets from the Seller to the Buyer is intended to be a sale, conveyance and transfer of ownership of the Purchased Assets rather than the mere granting of a security interest to secure a borrowing and (ii) such Purchased
Assets shall not be part of the Seller’s estate upon the occurrence of an Insolvency Event or in the event of any other action by or against such Person under any Insolvency Law. In the event, however, that notwithstanding such intent and
agreement, such transfers are deemed to be a grant of a mere security interest to secure indebtedness, the Seller shall be deemed to have granted (and hereby does grant) to the Buyer a perfected first priority security interest in such Purchased
Assets, and this Agreement shall constitute a security agreement under Applicable Law, securing the repayment of the Purchase Price paid hereunder and the other obligations of the Seller to the Buyer hereunder, and subject to the other terms and
conditions of, this Agreement together with such other obligations or interests as may arise hereunder and thereunder in favor of the parties hereto and thereto and the Seller agrees to execute such documents and take such other actions as shall be
reasonably necessary or reasonably advisable to insure, protect or preserve such security interest including, without limitation, those specified in Section 2.1(f). 
  
 (e) If such transfer of the Purchased Assets is deemed to be the mere granting of a security interest to secure a borrowing,
the Buyer may, to secure the Buyer’s obligations under the Loan Funding Agreement repledge and reassign (i) all or a portion of the Purchased Assets pledged to the Buyer by the Seller and with respect to which the Buyer has not released its
security interest at the time of such pledge and assignment, and (ii) all proceeds thereof. Such repledge and reassignment may be made by the Buyer with or without a repledge and reassignment by the Buyer of its rights under any agreement with the
Seller, and without further notice to or acknowledgment from the Seller. The Seller waives, to the extent permitted by 

  

 6 

 
Applicable Law, all claims, causes of action and remedies, whether legal or equitable (including any right of setoff), against the Buyer or any assignee of
the Buyer relating to such action by the Buyer in connection with the transactions contemplated by this Agreement and the Transaction Documents. 
  
 (f) In connection with the sale of any Purchased Assets, the Seller agrees (i) to record and file, at its own expense, any financing statements,
assignments of financing statements (and continuation statements with respect to such financing statements when applicable) and Assignments of Mortgage, as the case may be, with respect to the Purchased Assets, meeting the requirements of Applicable
Law in such manner and in such jurisdictions as are necessary to evidence the sale of the Purchased Assets and to perfect, and maintain the perfection of, the transfer of the Purchased Assets from the Seller to the Buyer on and after the applicable
Purchase Date, (ii) that such financing statements, assignments of financing statements and Assignments of Mortgage, as the case may be, shall name the Seller, as seller/debtor/assignor, and the Buyer, as purchaser/secured party/assignee, of the
Purchased Assets and (iii) to deliver a file-stamped copy of such financing statements or other evidence of such filings (excluding continuation statements, which shall be delivered as filed). 
  
 Section 2.2 Assignments, Etc. 
  
 (a) Sale Assignment. The Seller shall on or prior to each Purchase
Date, with respect to the Purchased Assets to be sold, assigned and conveyed on such date, execute and deliver to the Buyer a written assignment (the “Sale Assignment”) from Seller to the Buyer substantially in the form of
Exhibit A hereto. The failure of the Seller to execute and deliver a Sale Assignment shall not limit or otherwise affect the validity and enforceability of the sale, assignment and conveyance of the Purchased Assets or the status of such
sale, assignment and conveyance as an absolute sale of the Loans and other Purchased Assets. From and after such Purchase Date, such Purchased Assets shall be deemed to be part of the Purchased Assets hereunder. 
  
 (b) Covenants of the Seller In Connection With Additions. On or before
any Purchase Date with respect to any Loans and other Purchased Assets acquired by the Buyer, the Seller shall: 
  
 (i) clearly indicate in its files that such Loans and other Purchased Assets have been sold to the Buyer and deliver to the Buyer a list
that the Seller shall represent to contain a true and complete list of such Loans and the Purchased Assets, identified by account number, which computer file shall be as of such date incorporated into and made a part of the Loan List attached as
Schedule I of this Agreement; and 
  
 (ii)
provide the Buyer with an Officer’s Certificate certifying as follows: (A) each such Loan was, as of the related Purchase Date, an Eligible Loan, (B) no selection procedures believed by the Seller to be adverse to the interest of the Buyer were
utilized in selecting such Loans from the available Eligible Loans in the Seller’s portfolio, (C) such Loans and other Purchased Assets and all proceeds thereof will be conveyed to the Buyer free and clear of any Lien of any Person claiming
through or under the Seller or any of its Affiliates, and (D) as of the related Purchase Date, (x) no Insolvency Event with respect to the Seller has occurred, and (y) the sale of such Loans and other 

  

 7 

 
Purchased Assets to the Buyer has not been made in contemplation of the occurrence of any Insolvency Event with respect to the Seller. 
  
 Section 2.3 Lien Release Dividends. 
  
 (a) Notwithstanding any provision contained in this Agreement to the
contrary, provided there is neither an Unmatured Termination Event, a Termination Event nor a Servicer Termination Event, on a Lien Release Dividend Date, the Buyer may dividend to the Seller a portion of the Loans or portions thereof (each, a
“Lien Release Dividend”), subject to the following terms and conditions: 
  
 (i) The Buyer and the Seller shall have given to the Deal Agent, as the Buyer’s assignee, at least two Business Days’ prior
written notice of its intent to effect an Lien Release Dividend, unless such notice is waived or reduced by the Deal Agent; 
  
 (ii) Any Lien Release Dividend shall be in connection with a Permitted Securitization Transaction; 
  
 (iii) After giving effect to the Lien Release Dividend and
the dividend to the Seller of the Loans or portions thereof on the Lien Release Dividend Date, (A) the representations and warranties contained in Sections 4.1 and 4.2 hereof shall continue to be correct in all material respects,
except to the extent relating to an earlier date and (B) neither an Unmatured Termination Event, a Termination Event nor a Servicer Termination Event shall have resulted; 
  
 (iv) Such Lien Release Dividend must be in compliance with Applicable Law and may not (A) be made with the
intent to hinder, delay or defraud any creditor of the Buyer or (B) leave the Buyer, immediately after giving effect to the Lien Release Dividend, (i) insolvent, (ii) with insufficient funds to pay its obligations as and when they become due or
(iii) with inadequate capital for its present and anticipated business and transactions; 
  
 (v) On or prior to the Lien Release Dividend Date, the Buyer shall have (A) delivered to the Seller a list specifying all Loans or
portions thereof to be transferred pursuant to such Lien Release Dividend and the Seller shall have approved same in its sole discretion and (B) obtained all authorizations, consents and approvals required to effectuate the Lien Release Dividend;
and 
  
 (vi) A portion of a Loan may be
transferred pursuant to the Lien Release Dividend, provided, that (A) such transfer does not have an adverse effect on the portion of the Loan remaining as a part of the Collateral under the Loan Funding Agreement, any other Collateral under
the Loan Funding Agreement, the Lenders, the Deal Agent or the other Secured Parties, (B) the Loan Documents for such portion of the Loan remaining as a part of the Collateral have been amended to contain pro rata sharing, intercreditor and, if
applicable, subordination provisions substantially the same as those contained in the form of intercreditor and subordination agreement attached as Exhibit U to the Loan Funding Agreement, and (C) a new promissory note for the portion of the Loan
remaining as a part of the Collateral under the Loan Funding Agreement has been 

  

 8 

 
executed by the Obligor, and the original thereof has been endorsed to the Deal Agent and delivered to the Collateral Custodian. 
  
 (b) In connection with the Lien Release Dividend, there shall be assigned to
the Seller, without recourse, representation or warranty, all of the right, title and interest of the Buyer in, to and under the Loans or portions thereof so retransferred (together with, in the case of the transfer of the Loans but not portions
thereof, the related Purchased Assets) and such Loans or portions thereof so retransferred (together with, in the case of the transfer of the Loans but not portions thereof, the related Purchased Assets) shall be released from the Lien of this
Agreement (subject to the requirements of clause (a)(iii) above). 
  
 (c) The Seller hereby agrees to pay the reasonable legal fees and expenses of the Buyer in connection with any Lien Release Dividend hereunder and under the Loan Funding Agreement (including, but not limited to,
expenses incurred in connection with the release of the Liens of the Deal Agent, on behalf of the Secured Parties, the Buyer and any other party having an interest in the Loans in connection with such Lien Release Dividend). 
  
 (d) In connection with any Lien Release Dividend, on the related Lien Release
Dividend Date, the Buyer shall, at the expense of the Seller (1) execute such instruments of release with respect to the Loans or portions thereof to be transferred to the Seller (together with, in the case of the transfer of the Loans but not
portions thereof, the related Collateral), in recordable form if necessary, in favor of the Seller as the Seller may reasonably request, (2) deliver any portion of the Loans or portions thereof to be transferred to the Seller (together with, in the
case of the transfer of the Loans but not portions thereof, the related Collateral) in its possession to the Seller and (3) otherwise take such actions as are necessary and appropriate to release the Lien of the Buyer on the Loans or portions
thereof to be transferred to the Seller (together with, in the case of the transfer of the Loans but not portions thereof, the related Collateral) and release and deliver to the Seller such Loans or portions thereof to be transferred to the Seller
(together with, in the case of the transfer of the Loans but not portions thereof, the related Collateral). 
  
 ARTICLE III 
 PURCHASE PRICE AND PAYMENT; MONTHLY REPORT 
  
 Section 3.1 Purchase Price. 
  
 The purchase price for each Purchased Asset sold to the Buyer by the Seller
under this Agreement (the “Purchase Price”) shall be a dollar amount equal to the Outstanding Loan Balance of such Loan. 
  
 Section 3.2 Payment of Purchase Price. 
  
 (a) The Purchase Price shall be paid by the Buyer on each related Purchase Date either (i) in cash or (ii) if the Buyer does not have sufficient cash to
pay the full amount of the Purchase Price, by means of a capital contribution by the Seller to the Buyer. 
  
 (b) Unless otherwise specified herein, all payments of the Purchase Price of any Purchased Asset sold hereunder shall be made not later than 2:00 p.m.
(Charlotte, North Carolina 

  

 9 

 
time) on the date specified therefor in lawful money of the United States in same day funds by depositing such amounts in the bank account designated in
writing by the Seller to the Purchaser. 
  
 ARTICLE IV

 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Seller’s Representations and Warranties. 
  
 The Seller hereby represents and warrants to the Buyer, as of the Closing Date and each Purchase Date, that: 
  
 (a) Organization and Good Standing; Power and Authority. The Seller is
a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of its formation and has full power, authority and legal right to own its properties and conduct its business as such properties are presently
owned and as such business is presently conducted and to execute, deliver and perform its obligations under this Agreement and each other document or instrument to be delivered by the Seller hereunder (collectively, the “Sale
Papers”). 
  
 (b) Due Qualification. The Seller is
duly qualified to do business and is in good standing as a foreign corporation and has obtained all necessary licenses and approvals, in each jurisdiction in which the nature of its business requires it to be so qualified. 
  
 (c) Valid Sale. This Agreement and each Sale Assignment shall effect a
valid sale, transfer and assignment of the Purchased Assets from the Seller to the Buyer, enforceable against the Seller in accordance with their terms. 
  
 (d) Due Authorization. The execution and delivery of this Agreement and each of the Sale Papers, and the consummation of the transactions provided
for herein and therein have been duly authorized by the Seller by all necessary corporate action on the part of the Seller. 
  
 (e) No Conflict. The execution and delivery of this Agreement and each of the Sale Papers, the performance of the transactions contemplated hereby
and thereby and the fulfillment of the terms hereof and thereof, will not conflict with, result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under the
Seller’s organizational documents or any Contractual Obligation of the Seller. 
  
 (f) No Violation. The execution and delivery of this Agreement and each of the Sale Papers, the performance of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and
thereof (including, without limitation, the sale of Purchased Assets by the Seller or remittance of Collections in accordance with the provisions of this Agreement), will not conflict with or violate, in any material respect, any requirements of
laws applicable to the Seller. 
  
 (g) No Proceedings.
Except as previously disclosed to the Deal Agent and each Lender Agent in writing, there are no proceedings or investigations (formal or informal) pending or, to the best knowledge of the Seller, threatened against the Seller before any court,
regulatory body, administrative agency, or other tribunal or governmental instrumentality (i) asserting the invalidity of this Agreement or any of the Sale Papers, (ii) seeking to prevent the consummation 

  

 10 

 
of any of the transactions contemplated by this Agreement or any of the Sale Papers, or (iii) seeking any determination or ruling that could reasonably be
expected to be adversely determined, and if adversely determined, would materially and adversely affect the performance by the Seller of its obligations under this Agreement or any of the Sale Papers. 
  
 (h) All Consents Required. All approvals, authorizations, consents,
orders or other actions of any Person or of any Governmental Authority required in connection with the execution and delivery of this Agreement and the Sale Papers, the performance of the transactions contemplated by this Agreement and the Sale
Papers and the fulfillment of or terms hereof and thereof, have been obtained. 
  
 (i) Bulk Sales. The execution, delivery and performance of this Agreement do not require compliance with any “bulk sales” law by the Seller. 
  
 (j) Solvency. The transactions contemplated under this Agreement and
the Sale Papers do not and will not render the Seller insolvent. 
  
 (k) Selection Procedures. No selection procedures believed by the Seller to be adverse to the interests of the Buyer were utilized by the Seller in selecting the Loans to be sold, assigned, transferred, set-over and otherwise
conveyed hereunder. 
  
 (l) Taxes. The Seller has filed or
caused to be filed all tax returns that, to its knowledge, are required to be filed by it and has paid all taxes shown to be due and payable on such returns or on any assessments made against it or any of its property and all other taxes, fees or
other charges imposed on it or any of its property by any Governmental Authority (other than any amount of tax due the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in
accordance with generally accepted accounting principles have been provided on the books of the Seller); no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with respect to any such tax, fee or other charge.

  
 (m) Agreements Enforceable. This Agreement and each of
the Sale Papers to which the Seller is a party constitute the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with their respective terms, except as such enforceability may be limited by Insolvency Laws
and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). 
  
 (n) Reports Accurate. All reports, information, exhibits, financial statements, documents, books, records or reports, whether written, verbal or
electronic, furnished by the Seller to the Buyer in connection with this Agreement are and were true, complete and accurate as of the date they are or were dated or as of the date so furnished, and no such document contains or contained any material
misstatement of fact or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 
  
 (o) Location of Offices. The Seller’s name is set forth in Section 10.3 and its location (within the meaning of Article 9 of the UCC)
is the State of Delaware. The Seller has not changed its name, identity, structure, existence or state of formation, whether by amendment of 

  

 11 

 
its certificate of incorporation, by reorganization or otherwise, and has not changed its location (within the meaning of Article 9 of the UCC) within the
four months preceding the Closing Date. 
  
 (p) Tradenames.
Seller has no trade names, fictitious names, assumed names or “doing business as” names or other names under which it has done or is doing business. 
  

(q) Purchase Agreement. This Agreement (together with the related Sale Assignments) is the only agreement pursuant to which the Seller sells
Purchased Assets (other than the Hedge Collateral). 
  
 (r)
Value Given. The Purchase Price received by the Seller for each Purchased Asset under this Agreement constitutes reasonably equivalent value therefor and the transfer by the Seller thereof to the Buyer was not made for or on account of an
antecedent debt owed by the Seller to the Buyer, and such transfer was not and is not voidable or subject to avoidance under any section of the Bankruptcy Code. 
  

(s) Special Purpose Entity. The trust agreement of the Buyer is substantially in the form of Exhibit C to the Loan Funding Agreement.

  
 (t) Separate Entity. The Seller is operated as an
entity with assets and liabilities distinct from those of the Buyer, and the Seller hereby acknowledges that the Deal Agent and the Lenders under the Loan Funding Agreement are entering into the transactions contemplated by the Loan Funding
Agreement in reliance upon the Seller’s identity as a separate legal entity from the Buyer. 
  
 (u) Marking of Files. The Seller will have, at its own expense, prior to the close of business on the Closing Date, (i) indicated in its Computer
Records that ownership of the Loans transferred by it to the Buyer and identified on the Loan List have been sold to the Buyer and (ii) cause to be affixed to the original of each Underlying Note and a copy of each loan agreement the following
legend: 
  
 This loan agreement/note is subject to a security
interest granted to Wachovia Capital Markets, LLC, as Deal Agent on behalf of the Secured Parties. UCC–1 Financing Statements covering this loan agreement/note have been filed with the Secretary of State of the State of Delaware. Such Lien will
be released only in connection with appropriate filings in such offices. Consequently, potential purchasers of this loan agreement/note must refer to such filings to determine whether such Lien has been released. 
  
 (v) Security Interest. 
  
 (i) This Agreement creates a valid, continuing and
enforceable security interest (as defined in the applicable UCC) in the Purchased Assets in favor of the Buyer, which security interest is prior to all other Liens (except for Permitted Liens), and is enforceable as such against creditors of and
purchasers from the Seller; 
  

 12 

 (ii) the Loans, along with the related Loan Files, constitute either a “general
intangible,” an “instrument,” an “account,” “investment property,” or “chattel paper,” within the meaning of the applicable UCC; 
  
 (iii) the Seller is the lawful owner of and has good and marketable title to the Purchased Assets free and
clear of any Lien (other than Permitted Liens); 
  
 (iv) the Seller has received all consents and approvals required by the terms of the Purchased Assets to the grant of a security interest in the Purchased Assets hereunder to the Buyer and for the Buyer to grant a security interest in such
Purchased Assets to the Deal Agent under the Loan Funding Agreement; 
  
 (v) the Seller has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in such
Purchased Assets granted to the Buyer; 
  
 (vi)
other than the security interest granted to the Buyer pursuant to this Agreement, the Seller has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of such Purchased Assets; 
  
 (vii) the Seller has not authorized the filing of and is not
aware of any financing statements against the Seller that include a description of collateral covering such Purchased Assets other than any financing statement (A) relating to the security interest granted to the Buyer under this Agreement, or (B)
that has been terminated; 
  
 (viii) the Seller
is not aware of the filing of any judgment or tax Lien filings against the Seller; 
  
 (ix) all original Underlying Notes that constitute or evidence any Loans included in the Purchased Assets have been delivered to the
Collateral Custodian; 
  
 (x) the Seller and the
Buyer have received a written acknowledgment from the Collateral Custodian that the Collateral Custodian or its bailee is holding the Underlying Notes that constitute or evidence the Loans included in the Purchased Assets solely on behalf of and for
the benefit of the Buyer or its assignees provided, however, notwithstanding, the foregoing, with respect to any Pre-Positioned Loan to be purchased with the proceeds of an Advance or a Swingline Advance, the Seller and the Buyer shall
have received a written acknowledgment from the Collateral Custodian (A) that the Collateral Custodian has received a faxed copy of the Underlying Note and (B) within two Business Days after such Purchase Date, that the Collateral Custodian or its
bailee is holding the Underlying Notes that constitutes or evidence the Loans included in the Purchased Assets solely on behalf of the Buyer or its assignees; and 
  
 (xi) none of the Underlying Notes that constitute or evidence the Loans has any marks or notations
indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Seller and the Buyer. 
  

 13 

 (w) ERISA. The Seller is in compliance with ERISA and has not incurred and does not expect to
incur any liabilities (except for premium payments arising in the ordinary course of business) payable to the Pension Benefit Guaranty Corporation under ERISA. 
  

(x) No Broker. No broker or finder acting on behalf of the Seller was employed or utilized in connection with this Agreement or the other Sale
Papers or the transactions contemplated hereby or thereby and the Seller has no obligation to any Person in respect of any finder’s or brokerage fees in connection therewith. 
  
 (y) An Investment Company. The Seller is an “investment company” that has elected to be regulated as a
“business development company” within the meaning of the 1940 Act, and is, and after the consummation of the transactions contemplated by this Agreement and the other Transaction Documents will be, in compliance with all requirements of
the 1940 Act. 
  
 (z) Accuracy of Representations and
Warranties. Each representation or warranty by the Seller contained herein or in any certificate or other document furnished by the Seller pursuant hereto or in connection herewith is true and correct. 
  
 (aa) Government Regulations. The Seller is not engaged in the business
of extending credit for the purpose of “purchasing” or “carrying” any Margin Stock. The Seller owns no Margin Stock, and no portion of the proceeds of any Purchase hereunder will be used, directly or indirectly, for the purpose
of purchasing or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause any portion of such proceeds to be
considered a “purpose credit” within the meaning of Regulation T, U or X of the Federal Reserve Board. The Seller will not take or permit to be taken any action that might cause any Related Document to violate any regulation of the Federal
Reserve Board. 
  
 (bb) [Reserved]. 
  
 (cc) Environmental. At the time of origination of any Loan where real
property that is material to the operations of the related business serves as the Related Property for such Loan, the related mortgaged property was free of contamination from toxic substances or hazardous wastes requiring action under Applicable
Law or is subject to ongoing environmental rehabilitation approved by the Servicer, and, as of the related Cut-Off Date of such Loan, the Seller has no knowledge of any such contamination from toxic substances or hazardous waste material on any such
real property unless such items are below action levels. 
  
 (dd)
Material Adverse Change. Since the Closing Date, there has been no Material Adverse Change with respect to the Seller. 
  
 (ee) USA PATRIOT Act. Neither the Seller nor any Affiliate of the Seller is (i) a country, territory, organization, person or entity named on an
OFAC list, (ii) a Person that resides or has a place of business in a country or territory named on such lists or which is designated as a Non-Cooperative Jurisdiction by the Financial Action Task Force on Money Laundering (“FATF”),
or whose subscription funds are transferred from or through such a jurisdiction; (iii) a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank that does not have a physical presence in any country and that is
not affiliated with 

  

 14 

 
a bank that has a physical presence and an acceptable level of regulation and supervision; or (iv) a person or entity that resides in or is organized under
the laws of a jurisdiction designated by the United States Secretary of the Treasury under Section 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns. 
  
 The representations and warranties in Section 4.1 shall survive the
termination of this Agreement and such representations and warranties may not be waived by any party hereto. 
  
 The representations and warranties set forth in this Section 4.1 shall survive the sale, transfer and assignment of the Purchased Assets to the
Buyer. Upon discovery by the Seller or the Buyer of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other immediately upon obtaining knowledge of such
breach. 
  
 Section 4.2 Seller’s Representations and
Warranties Regarding the Agreement and the Loans. 
  
 The
Seller hereby represents and warrants to the Buyer, as of each Purchase Date that: 
  
 (a) Binding Obligation; Valid Transfer and Security Interest. 
  
 (i) This Agreement and each of the Sale Papers constitutes a legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its terms, except as such enforceability may be limited by Insolvency Laws and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity) or by an implied
covenant of good faith and fair dealing. 
  
 (ii)
This Agreement constitutes a valid sale, assignment and conveyance to the Buyer of all right, title and interest of the Seller in, to and under the Purchased Assets, and such transfer is free and clear of any Lien of any Person claiming through or
under the Seller or its Affiliates. 
  
 (b) Eligibility of
Loans. As of each Purchase Date, (i) the Loan List delivered in connection therewith is an accurate and complete listing in all material respects of all the Loans and the other Purchased Assets transferred hereunder as of such date and the
information contained therein with respect to the identity of such Loans and the other Purchased Assets and the amounts owing thereunder is true and correct in all material respects as of such date, (ii) each such Loan sold or contributed is an
Eligible Loan, (iii) each such Loan and the Seller’s interest in the Related Property and other related Purchased Assets, has been transferred absolutely to the Buyer free and clear of any Lien (other than Permitted Liens) and in compliance, in
all material respects, with all requirements of laws applicable to the Seller and (iv) with respect to each such Loan and other related Purchased Assets, all consents, licenses, approvals or authorizations of or registrations or declarations with
any Governmental Authority required to be obtained, effected or given by the Seller in connection with the transfer of such Loan and the Related Property and other related Purchased Assets to the Buyer have been duly obtained, effected or given and
are in full force and effect. 
  

 15 

 (c) No Fraud. Each Loan was originated without any fraud or material misrepresentation by the
Seller or to the best of the Seller’s knowledge, on the part of the Obligor. 
  
 (d) Representations; Covenants and Notice of Breach. The representations and warranties set forth in this Sections 4.1 and 4.2 shall be true and correct and the covenants set forth in Article
VI to be performed shall have been performed, in each case as of each Purchase Date and, further, shall survive the transfer and assignment of the respective Loans, Related Property and other related Purchased Assets, or interests therein, to
the Buyer. Upon discovery by the Seller or the Buyer of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give written notice thereof to the other immediately upon obtaining knowledge of such
breach. 
  
 Section 4.3 Representations and Warranties of
the Buyer. 
  
 The Buyer hereby represents and warrants
to the Seller, as of the Closing Date and each Purchase Date, that: 
  
 (a) Organization and Good Standing; Power and Authority. The Buyer is a Delaware statutory trust duly organized and validly existing in good standing under the laws of the State of Delaware, and has full trust power, authority and
legal right to own its properties and conduct its business as such properties are presently owned and such business is presently conducted, and to execute, deliver and perform its obligations under this Agreement and each of the Sale Papers.

  
 (b) Due Qualification. The Buyer is duly qualified to
do business and is in good standing in the jurisdiction of its formation, and has obtained or will obtain all necessary licenses and approvals, in each jurisdiction in which failure to so qualify or to obtain such licenses and approvals would have a
material adverse effect on its ability to perform its obligations hereunder or under the Sale Papers. 
  
 (c) Due Authorization. The execution and delivery of this Agreement and each of the Sale Papers and the consummation of the transactions provided
for herein or therein have been duly authorized by the Buyer by all necessary trust action on the part of the Buyer. 
  
 (d) Agreement Enforceable. This Agreement constitutes the legal, valid and binding obligation of the Buyer enforceable against the Buyer in
accordance with its terms, except as such enforceability may be limited by Insolvency Laws and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). 
  
 (e) No Conflicts. The execution and delivery of this Agreement and
each of the Sale Papers, the performance of the transactions contemplated hereby or thereby and the fulfillment of the terms hereof and thereof will not conflict with, result in any breach of any of the material terms and provisions of, or
constitute (with or without notice or lapse of time or both) a material default under, any material indenture, loan, agreement, mortgage, deed of trust, or other instrument to which the Buyer is a party or by which it or any of its property is
bound. 
  
 (f) No Violation. The execution and delivery of
this Agreement and each of the Sale Papers, the performance of the transactions contemplated hereby and thereby, and the fulfillment 

  

 16 

 
of the terms hereof and thereof (including, without limitation, the purchase of Purchased Assets by the Buyer in accordance with the provisions of this
Agreement) will not conflict with or violate, in any material respect, any requirements of law applicable to the Buyer. 
  
 (g) No Proceedings. Except as previously disclosed to the Deal Agent and each Lender Agent in writing, there are no proceedings or investigations
(formal or informal) pending or, to the best knowledge of the Buyer, threatened against the Buyer, before any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality (i) asserting the invalidity of this
Agreement or any of the Sale Papers, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any of the Sale Papers, or (iii) seeking any determination or ruling that could reasonably be expected to be
adversely determined, and if adversely determined, would materially and adversely affect the performance by the Buyer of its obligations under this Agreement or any of the Sale Papers. 
  
 (h) Separate Entity. The Buyer is operated as an entity with assets and liabilities distinct from those of the Seller
and any Affiliates thereof and has not taken or refrained from taking and will not take or refrain from taking, as applicable, any action such as would cause the representations and warranties contained in Section 4.1(t)(i) - (xxviii) of the Loan
Funding Agreement to be untrue or inaccurate, and the Buyer hereby acknowledges that the Deal Agent, the Conduit Lenders, the Institutional Lenders and the Swingline Lender under the Loan Funding Agreement are entering into the transactions
contemplated by the Loan Funding Agreement in reliance upon the Buyer’s identity as a separate legal entity from the Seller and from each Affiliate of the Seller. 
  
 ARTICLE V 
  
 PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS 
  

Section 5.1 Custody of Loans. 
  
 The contents of each Loan File shall be held in the custody of the Collateral Custodian under the terms of the Loan Funding Agreement for the benefit of
the Deal Agent, as agent for the Secured Parties. 
  
 Section 5.2 Filing. 
  
 On or prior to the
Closing Date, the Seller shall cause the UCC financing statement(s) referred to in Section 2.1(f) hereof to be filed. 
  
 Section 5.3 Name Change or Relocation. 
  
 (a) During the term of this Agreement, the Seller shall not change its name, identity, structure, existence or location (as defined in Article 9 of the
UCC) without first giving at least 30 days’ prior written notice to the Buyer, the Deal Agent and the Collateral Custodian. 
  
 (b) If any change in the Seller’s name, identity, structure, existence, location (as defined in Article 9 of the UCC) or other action would make any
financing or continuation statement or notice of ownership interest or Lien relating to any Purchased Asset seriously 

  

 17 

 
misleading within the meaning of applicable provisions of the UCC or any title statute, the Seller, no later than five Business Days after the effective date
of such change, shall file such amendments as may be required or reasonably advisable to preserve and protect the Buyer’s, the Deal Agent’s and the Collateral Custodian’s interests in the Purchased Assets and the proceeds
thereof. 
  
 Section 5.4 Chief Executive Office.

  
 During the term of this Agreement, and subject to the
other terms and provisions herein relating to changes in location, the Seller will maintain its chief executive office in one of the States of the United States. 
  
 Section 5.5 Costs and Expenses. 
  
 The Seller hereby confirms that the Servicer will pay all reasonable costs and disbursements in connection with the
perfection and the maintenance of perfection, as against all third parties, of the Buyer’s and the Secured Parties’ right, title and interest in and to the Purchased Assets (including, without limitation, the security interest in the
Related Property related thereto and the security interests provided for in the Loan Funding Agreement). 
  
 Section 5.6 Sale Treatment. 
  
 The Seller shall treat the transfer of Purchased Assets made hereunder for all purposes (other than for federal income tax and financial accounting
purposes) as a sale and purchase on all of its relevant books, records, financial statements and other applicable documents. 
  
 Section 5.7 Separateness from Buyer. 
  
 The Seller agrees to take or refrain from taking or engaging in with respect to the Buyer each of the actions or activities specified in the
“substantive consolidation” opinion of Winston & Strawn (including any certificates of the Seller attached thereto), delivered on the Closing Date, upon which the conclusions therein are based. 
  
 ARTICLE VI 
 COVENANTS 
  
 Section 6.1 Seller Covenants. 
  
 The
Seller hereby covenants that: 
  
 (a) Preservation of Corporate
Existence. The Seller will preserve and maintain its corporate existence, rights, franchises, qualifications and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing in each jurisdiction where the
failure to maintain such existence, rights, franchises, privileges and qualification could reasonably be expected to have a Material Adverse Effect. 
  
 (b) Security Interests. Except for the transfers hereunder, the Seller will not sell, pledge, assign or transfer to any other Person, or grant,
create, incur, assume or suffer to exist 

  

 18 

 
any Lien on any Loan transferred hereunder or, except for Permitted Liens, on any Related Property or other Purchased Assets, whether now existing or
hereafter transferred hereunder, or any interest therein, and Seller will not sell, pledge, assign or suffer to exist any Lien on any Purchased Asset. The Seller will immediately notify the Buyer of the existence of any Lien on any Loan transferred
hereunder or on any Related Property or other Purchased Asset; and the Seller shall defend the right, title and interest of the Buyer in, to and under the Loans transferred hereunder and the Related Property or other Purchased Asset, against all
claims of third parties. 
  
 (c) Delivery of Collections.
Consistent with the Buyer’s ownership of the Purchased Assets, in the event the Seller shall receive any Collections in respect of any Purchased Assets after the Purchase Date therefor, the Seller shall (i) accept and hold such Collections in
trust for the account and sole benefit of the Buyer, (ii) have no equitable or beneficial interest therein and (iii) deposit in the Collection Account promptly (but in no event later than two Business Days after receipt) such Collections. Further,
on or before the related Purchase Date for any Purchased Asset, the Seller shall have instructed all Obligors to make all payments in respect of all Loans included in the Collateral to a Lock-Box or directly to the Lock-Box Account. 
  
 (d) Compliance with Law. The Seller hereby agrees to comply in all
material respects with all requirements of laws applicable to the Seller, the Loans and the Related Property and the related Purchased Assets. 
  
 (e) Activities of the Seller. The Seller shall not engage in any business or activity of any kind with the Buyer, or enter into any transaction or
indenture, mortgage, instrument, agreement, loan, lease or other undertaking with the Buyer, which is not directly related to the transactions contemplated and authorized by this Agreement, the other Sale Papers, and the Trust Agreement of the
Buyer. 
  
 (f) Guarantees. The Seller shall not become or
remain liable, directly or contingently, in connection with any Indebtedness or other liability of the Buyer, whether by guarantee, endorsement (other than endorsements of negotiable instruments for deposit or collection in the ordinary course of
business), agreement to purchase or repurchase, agreement to supply or advance funds, or otherwise, except as contemplated by this Agreement and the other Sale Papers. 
  
 (g) Merger; Sales. The Seller shall not enter into any transaction of merger or consolidation, or liquidate or
dissolve itself (or suffer any liquidation or dissolution), or acquire or, subject to Section 10.15 be acquired by any Person, or convey, sell, lease or otherwise dispose of all or substantially all of its property or business, except as
provided for in this Agreement. 
  
 (h) ERISA Matters. The
Seller will not (a) engage in any prohibited transaction for which an exemption is not available or has not previously been obtained from the United States Department of Labor; (b) permit to exist any accumulated funding deficiency, as defined in
Section 302(a) of ERISA and Section 412(a) of the Code, or funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan; (c) fail to make any payments to an Multiemployer Plan that the Seller may be required to make under the
agreement relating to such Multiemployer Plan or any law pertaining thereto; (d) terminate any Benefit Plan so as to result 

  

 19 

 
in any liability; or (e) permit to exist any occurrence of any reportable event described in Title IV of ERISA that represents a material risk of a liability
of the Seller under ERISA or the Code. 
  
 Section 6.2
Delivery of Loan Files. 
  
 (a) The Seller shall
deliver, on behalf of the Buyer, possession of all “instruments” (within the meaning of Article 9 of the UCC) not constituting part of “chattel paper” (within the meaning of Article 9 of the UCC) that evidence any Purchased Asset
set forth on a Loan List, including all Underlying Notes, and all portions of the Loan Files to the Collateral Custodian on behalf of the Secured Parties prior to the applicable Purchase Dates in each case endorsed in blank without recourse;
provided, however, that notwithstanding the foregoing, with respect to any Pre-Positioned Loan to be purchased by the Seller with the proceeds of an Advance or a Swingline Advance, the Seller shall (i) have a copy of the executed
Underlying Note faxed to the Collateral Custodian on the applicable Purchase Date with the original to be received by the Collateral Custodian within two Business Days after such Purchase Date and (ii) within ten Business Days of the Purchase Date
deliver all other portions of the Loan File to the Collateral Custodian in each case endorsed in blank without recourse. Pursuant to Section 7.10 of the Loan Funding Agreement, the Seller is required to deliver such instruments and Loan Files
to the Collateral Custodian for the benefit of the Secured Parties. Accordingly, the Seller shall deliver possession of all such instruments and Loan Files to the Collateral Custodian on behalf of the Buyer and for the account of Deal Agent, as
agent for the Secured Parties, and agrees that such delivery shall satisfy the condition set forth in the first sentence of this Section 6.2(a). The Seller shall also identify on the Loan List (including any amendment thereof), whether by
attached schedule or marking or other effective identifying designation, all Purchased Assets that are not evidenced by such instruments. 
  
 (b) Prior to the occurrence of a Termination Event or Servicer Termination Event, the Collateral Custodian shall not record the Assignments of Mortgage
delivered pursuant to Section 6.2(a) and the definition of Loan Documents. Upon the occurrence of a Termination Event or a Servicer Termination Event, the Collateral Custodian shall cause to be recorded in the appropriate offices each Assignment of
Mortgage delivered to it with respect to all Purchased Assets except those Purchased Assets covered by the proviso to the definition of Assignment of Mortgage. Each such recording shall be at the expense of the Servicer; provided, however, to the
extent the Servicer does not pay such expenses, the Collateral Custodian shall be reimbursed pursuant to the provisions of Section 2.9. 
  
 Section 6.3 Release of Released Amounts. 
  
 Immediately upon the release to the Buyer by the Deal Agent of the Released Amounts, the Buyer hereby irrevocably agrees to release to the Seller such
Released Amounts, which release shall be automatic and shall require no further act by the Buyer; provided, that, the Buyer shall execute and deliver such instruments of release and assignment, or otherwise confirming the foregoing
release of any Released Amounts, as may be reasonably requested by the Seller. 
  

 20 

 ARTICLE VII 
 REPURCHASE OBLIGATION 
  
 Section 7.1 Repurchase of Ineligible Loans. 
  
 (a) In the event of a breach of any representation or warranty set forth in Section 4.2 with respect to a Loan or other Purchased Asset transferred hereunder (each such Loan, Related Property and other Related Purchased Asset, an
“Ineligible Loan”), no later than 30 days after the earlier of (i) knowledge of such breach on the part of the Seller and (i) receipt by the Seller of written notice thereof given by the Buyer, the Seller shall either (a) repurchase
each such Ineligible Loan to which such breach relates on the terms and conditions set forth below, or (b) substitute for such Ineligible Loan a Substitute Loan; provided, however, that no such repurchase shall be required to be made
with respect to such Ineligible Loan (and such Loan shall cease to be an Ineligible Loan) if, on or before the expiration of such 30 day period, the representations and warranties in Section 4.2 with respect to such Ineligible Loan shall be
made true and correct in all material respects with respect to such Ineligible Loan as if such Ineligible Loan had been transferred to the Buyer on such day. Notwithstanding anything contained in this Section 7.1 to the contrary, in the event
a of breach of any representation and warranty set forth in Section 4.2 with respect to each Loan, Related Property and other related Purchased Assets having been (A) conveyed to the Buyer free and clear of any Lien of any Person claiming
through or under the Seller and its Affiliates and (B) in compliance, in all material respects, with all requirements of laws applicable to the Seller, immediately upon the earlier to occur of the discovery of such breach by the Seller or receipt by
the Seller of written notice of such breach given by the Buyer, the Seller shall repurchase and the Buyer shall convey, free and clear of any Lien created pursuant to this Agreement or the Loan Funding Agreement, all of the Buyer’s right, title
and interest in such Ineligible Loan, and the Buyer shall, in connection with such conveyance and without further action, be deemed to represent and warrant that it has the corporate authority and has taken all necessary corporate action to
accomplish such conveyance, but without any other representation or warranty, express or implied. In the foregoing instances, the Seller shall repurchase each such Ineligible Loan and on and after the date of such repurchase, each Ineligible Loan so
repurchased shall not be included in the pool of Purchased Assets. In consideration of any such repurchase the Seller shall, on the date of repurchase of such Ineligible Loan, remit to the Buyer in immediately available funds an amount equal to the
Retransfer Price therefor. Upon each repurchase of such Ineligible Loan, the Buyer shall automatically and without further action be deemed to transfer, assign and set-over to the Seller all the right, title and interest of the Buyer in, to and
under such Ineligible Loan and all monies due or to become due with respect thereto, all proceeds thereof and all rights to security for any such Ineligible Loan, and all proceeds and products of the foregoing. The Buyer shall, at the sole expense
of the Seller, execute such documents and instruments of transfer as may be prepared by the Seller and take such other actions as shall reasonably be requested by the Seller to effect the transfer of such Ineligible Loan pursuant to this Section
7.1. 
  
 (b) The Seller hereby agrees that (i) if any real
property collateral securing any Purchased Asset becomes the subject of any claims, proceedings, Liens or encumbrances with respect to any material violation or claimed material violation of any federal or state environmental laws or regulations or
(ii) in the event of a breach of a representation and warranty in Section 4.1(cc), such Purchased Assets shall for all purposes hereunder be, at and following the time of discovery by the Seller, the Buyer, the Deal Agent or any Secured Party
of such fact, deemed an Ineligible Loan, and the Seller shall either (1) repurchase such Ineligible Loan or (2) substitute for such Ineligible Loan a Substitute Loan. Such Ineligible Loan shall otherwise be 

  

 21 

 
treated in accordance with Section 7.1(a) above and shall be subject to the same remedial and recourse provisions hereunder as other Purchased Assets
determined to be Ineligible Loans hereunder. 
  
 Section 7.2
Substitution of Loans. 
  
 On any day prior to the
occurrence of a Termination Event (and after the Termination Date at the discretion of the Buyer), the Seller may, subject to the conditions set forth in this Section 7.2 and subject to the other restrictions contained herein, replace any
Loan included in the Purchased Assets with one or more Eligible Loans (each, a “Substitute Loan”), provided that no such replacement shall occur unless each of the following conditions is satisfied as of the date of such replacement
and substitution: 
  
 (a) the Seller has recommended to the Buyer
(with a copy to the Deal Agent and the Collateral Custodian) in writing that the Loan included in the Purchased Assets to be replaced should be replaced (each a “Replaced Loan”); 
  
 (b) each Substitute Loan is an Eligible Loan on the date of substitution;

  
 (c) the aggregate Outstanding Loan Balance of such Substitute
Loans shall be equal to or greater than the aggregate Outstanding Loan Balance of the Replaced Loans; 
  
 (d) all representations and warranties of the Seller contained in Sections 4.1 and 4.2 shall be true and correct as of the date of substitution of any
such Substitute Loan; 
  
 (e) the substitution of any Substitute
Loan does not cause a Termination Event or Unmatured Termination Event to occur; 
  
 (f) as of any date of determination, the sum of the Outstanding Loan Balances of all Substitute Loans does not exceed 20% of the highest Aggregate Outstanding Loan Balance of any month during the 12 month period
immediately preceding such date of determination; 
  
 (g) as of
any date of determination, the sum of the Outstanding Loan Balances of all Substitute Loans substituted for Defaulted Loans, Charged-Off Loans and Loans subject to a Warranty Event shall not exceed 10% of the highest Aggregate Outstanding Loan
Balance of any month during the 12 month period immediately preceding such date of determination; 
  
 (h) the remaining maturity of the Substitute Loan is less than or equal to the remaining maturity of the Replaced Loan; 
  
 (i) the Weighted Average Life of such Substitute Loan is less than or equal
to that of the Replaced Loan; 
  
 (j) no adverse selection
procedures shall have been employed in the selection of such Substitute Loan from the Seller’s portfolio; 
  

 22 

 (k) all actions or additional actions (if any) necessary to perfect the security interest and assignment
of such Substitute Loan and related Collateral to the Buyer shall have been taken as of or prior to the Substitution Date; 
  
 (l) the Eligible Risk Rating of the Substitute Loan is equal to or higher than the Replaced Loan; 
  
 (m) the Loan Rate on the Substitute Loan is not less than the Loan Rate on
the Loan to be replaced and reconveyed to the Originator in exchange for such Substitute Loan; 
  
 (n) the total interest rate (inclusive of any deferred interest component) of the Substitute Loan is greater than or equal to the total interest rate on the Loan to be replaced and reconveyed to the Originator in
exchange for such Substitute Loan; and 
  
 (o) the Seller shall
deliver to the Buyer on the date of such substitution a certificate of a Responsible Officer certifying that each of the foregoing is true and correct as of such date. 
  
 In addition, the Seller shall in connection with such substitution deliver to the Collateral Custodian the related Loan
Documents. In connection with any such substitution, the Buyer, shall, automatically and without further action, be deemed to transfer to the Seller, free and clear of any Lien created in favor of the Buyer, all of the right, title and interest of
the Buyer, in, to and under such Replaced Loan, but without any representation and warranty of any kind, express or implied. 
  
 Section 7.3 Deemed Collections. 
  
 If on any day the Buyer does not own or have a valid and perfected first priority security interest in any Loan and Related Property included in the
Purchased Assets (subject to Permitted Liens), upon the earlier of the Seller’s receipt of notice from the Buyer or the Deal Agent, or the Seller’s becoming aware thereof, and the Seller’s failure to cure such breach within 30 days
(if cure is reasonably possible and otherwise immediately upon receipt of notice or upon the Seller becoming aware), the Seller shall be deemed to have received on such day a collection (a “Deemed Collection”) of such Loan in full
and shall on such day pay to the Buyer, an amount equal to the Outstanding Loan Balance of such Loan plus accrued and unpaid interest thereon, plus any other costs and expenses related to the retransfer of such Loan and any Related Property
contemplated by this Section 7.3. In connection with any such Deemed Collection, the Buyer, shall automatically and without further action (unless otherwise necessary or requested by the Seller) be deemed to release the Lien on such Loan and
any Related Property created by this Agreement in favor of the Buyer and transfer to the Seller, free and clear of any Lien created by the Buyer, all of the right, title and interest of the Buyer, in, to, and under the Loan and Related Property with
respect to which the Buyer has received such Deemed Collection, but without any recourse, representation and warranty of any kind, express or implied. 
  

 23 

 ARTICLE VIII 
 CONDITIONS PRECEDENT 
  
 Section 8.1 Conditions to the Buyer’s Obligations Regarding Loans. 
  
 The obligations of the Buyer to purchase Purchased Assets from the Seller on any Purchase Date shall be subject to the satisfaction of the following
conditions: 
  
 (a) all representations and warranties of the
Seller contained in Sections 4.1 and 4.2 shall be true and correct in all material respects on and as of such day as though made on and as of such date; 
  
 (b) on and as of such date, the Seller shall have performed all obligations required to be performed by it on or prior to
such day pursuant to the provisions of this Agreement; 
  
 (c) no
event has occurred and is continuing, or would result from such purchase that constitutes a Termination Event or Unmatured Termination Event; 
  
 (d) no law or regulation shall prohibit, and no order, judgment or decree of any federal, state or local court or governmental body, agency or
instrumentality shall prohibit or enjoin, the making of any such purchase by the Buyer in accordance with the provisions hereof; and 
  
 (e) all corporate and legal proceedings and all instruments in connection with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the Buyer, and the Buyer shall have received from the Seller copies of all documents (including, without limitation, records of corporate proceedings, approvals and opinions) relevant to the transactions herein contemplated as
the Buyer may reasonably have requested. 
  
 ARTICLE IX

 TERM AND TERMINATION 
  
 Section 9.1 Termination. 
  
 (a) This Agreement shall commence as of the date of execution and delivery hereof and shall continue in full force and effect until the Collection Date;

  
 (b) Notwithstanding any provisions contained herein to the
contrary, the Seller’s representations, covenants and obligations set forth in Article IV, V, VI, and VII create and constitute the continuing obligation of the parties hereto in accordance with its terms, and shall
remain in full force and effect until the Collection Date; provided, however, that the rights and remedies with respect to any breach of any representation and warranty made or deemed made by the Seller pursuant to Articles III
and IV and the provisions of Section 7.1, 7.2 and 7.3, the indemnification and payment provisions of Sections 10.17 and 10.18 and the provisions of Sections 10.5, 10.6, 10.7,
10.9, 10.10, 10.13, 10.15 and 10.16 shall be continuing and shall survive any termination of this Agreement. 
  

 24 

 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
  
 Section 10.1 Amendment. 
  
 This Agreement
and the rights and obligations of the parties hereunder may not be amended, waived or changed orally, but only by an instrument in writing signed by the Buyer and the Seller and consented to in writing by the Deal Agent. The Buyer shall provide not
less than ten Business Days prior written notice of any such amendment to the Deal Agent. 
  
 Section 10.2 Governing Law. 
  
 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY AGREES TO THE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF
NEW YORK. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. 
  
 Section
10.3 Notices. 
  
 All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing (including email communication and communication by facsimile copy) and mailed, emailed, transmitted or delivered, as to each party hereto, at its address set forth below or
at such other address as shall be designated by such party in a written notice to the other party hereto. All such notices and communications shall be effective upon receipt, or in the case of (a) notice by mail, five days after being deposited in
the United States mail, first class postage prepaid, (b) notice by telex, when telexed against receipt of answer back, or (c) notice by facsimile copy, when verbal communication of receipt is obtained. 
  

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

  
 ACS Funding Trust I 
 c/o American Capital
Strategies, Ltd. 
 2 Bethesda Metro Center, 14th Floor 
 Bethesda, MD 20814 
 Attention: Compliance Officer 
 Facsimile No.:
(301) 654-6714 
 Confirmation No.: (301) 951-6122 
  

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

  
 American Capital Strategies, Ltd. 
 2 Bethesda
Metro Center, 14th Floor 
 Bethesda, MD 20814 
 Attention: Compliance Officer 
 Facsimile No.: (301) 654-6714 
 Confirmation
No.: (301) 951-6122 
  

 25 

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

  
 Wachovia Capital Markets, LLC 
 One Wachovia
Center, Mail Code: NC06010 
 Charlotte, North Carolina 28288 
 Attention: Conduit Administration 
 Facsimile No.: (704) 383-7979 
 Confirmation No.: (704) 374-6230 
 email:
cp.conduits@wachovia.com 
            scp.mmloans@wachovia.com 
  
 Section 10.4 Severability of Provisions. 
  
 If any one or more of the covenants, agreements, provisions or terms of this
Agreement or any of the Sale Papers shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this Agreement and
the Sale Papers and shall in no way affect the validity or enforceability of the other provisions of this Agreement or any of the Sale Papers. 
  
 Section 10.5 Assignment. 
  
 (a) Notwithstanding anything to the contrary contained herein, this Agreement may not be assigned by the Buyer or the Seller except as permitted by this
Section 10.5. Simultaneously with the execution and delivery of this Agreement, the Buyer shall hereby assign all of its right, title and interest herein to the Deal Agent, as agent for the Secured Parties under the Loan Funding Agreement, as
provided in the Loan Funding Agreement, to which assignment the Seller hereby expressly consents. The Seller agrees that the Deal Agent, as agent for the Secured Parties under the Loan Funding Agreement, and the Secured Parties shall be third party
beneficiaries hereof. The Deal Agent, as agent for the Secured Parties under the Loan Funding Agreement, may enforce the provisions of this Agreement, exercise the rights of the Buyer and enforce the obligations of the Seller hereunder as provided
in the Loan Funding Agreement. This Agreement may not be assigned by the Seller except in connection with a merger or consolidation of the Seller with or into, or disposition of the Seller’s properties and assets to, another Person;
provided, however, that any such merger, consolidation or disposition shall satisfy the requirements of Section 10.13, and shall be upon not less than ten Business Days’ prior written notice to the Buyer and the Deal Agent.

  
 (b) The Seller acknowledges that, pursuant to the Loan Funding
Agreement, the Buyer shall assign its rights of indemnity granted hereunder to the Deal Agent, the Conduit Lenders, the Institutional Lenders, the Swingline Lender, the other Secured Parties, the Backup 

  

 26 

 
Servicer and the Collateral Custodian. Upon such assignment, (i) the Deal Agent, the Conduit Lenders, the Institutional Lenders, the Swingline Lender, the
other Secured Parties, the Backup Servicer and the Collateral Custodian as applicable, shall have all rights of the Buyer hereunder and may in turn assign such rights, and (ii) the obligations of the Seller under Section 10.18 shall inure to
the Deal Agent, the Conduit Lenders, the Institutional Lenders, the Swingline Lender, the other Secured Parties, the Backup Servicer and the Collateral Custodian. The Seller agrees that, upon such assignment, the Deal Agent, the Conduit Lenders, the
Institutional Lenders, the Swingline Lender, the other Secured Parties, the Backup Servicer and the Collateral Custodian or the assignee of any such Person, as applicable, may enforce directly, without joinder of the Buyer, the indemnities set forth
in Section 10.18. 
  
 (c) In connection with any permitted
assignment of this Agreement by the Seller, the Seller shall deliver to the Buyer and the Deal Agent an Officer’s Certificate that such assignment complies with this Section 10.5, and shall cause such assignee to execute an agreement
supplemental hereto, in form and substance satisfactory to the Seller, pursuant to which such assignee shall expressly assume and agree to the performance of every covenant and obligation of the Seller hereunder, to provide for the delivery of an
Opinion of Counsel that such supplemental agreement is legal, valid and binding with respect to such assignee, and to take such other actions and execute such other instruments as may reasonably be required to effectuate such assignment. 

 
 Section 10.6 Further Assurances. 
  
 The Buyer and the Seller agree to do and perform, from time to time, any and
all acts and to execute any and all further instruments required or reasonably requested by the other party more fully to effect the purposes of this Agreement and the Sale Papers, including, without limitation, the execution of any financing
statements, continuation statements, termination statements, releases or equivalent documents relating to the Purchased Assets for filing under the provisions of the UCC or other applicable laws of any applicable jurisdiction. 
  
 Section 10.7 No Waiver; Cumulative Remedies. 
  
 No failure to exercise and no delay in exercising, on the part of the Buyer
or the Seller, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privilege provided by law. 
  
 Section 10.8 Counterparts. 
  
 This Agreement may be executed in two or more counterparts including
facsimile transmission thereof (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 
  

 27 

 Section 10.9 Binding Effect; Third-Party Beneficiaries. 
  
 Except as otherwise specifically provided herein, the parties hereto hereby
manifest their intent that no third party, other than the Deal Agent and each Secured Party shall be deemed a third party beneficiary of this Agreement, and specifically that the Obligors are not third party beneficiaries of this Agreement.

  
 Section 10.10 Liabilities to Obligors.

  
 No obligation or liability to any Obligor under any of
the Loans is intended to be assumed by the Buyer, the Deal Agents and the Secured Parties, under or as a result of this Agreement and the transactions contemplated hereby. 
  
 Section 10.11 Merger and Integration. 
  
 Except as specifically stated otherwise herein, this Agreement, together with the Loan Funding Agreement and the other
Transaction Documents, to the extent that a party is a signatory thereto, sets forth the entire understanding of the parties relating to the subject matter hereof, there are no other agreements between the parties for transactions relating to or
similar to the transactions contemplated by this Agreement, and all prior understandings, written or oral, are superseded by this Agreement. This Agreement may not be modified, amended, waived or supplemented except as provided herein. 

 
 Section 10.12 Headings. 
  
 The headings of the various Articles and Sections herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
  
 Section 10.13 No Bankruptcy Petition; Disclaimer. 
  

(a) Each of the Seller and the Buyer covenants and agrees that, prior to the date that is one year and one day (or such longer preference period as
shall then be in effect) after the Collection Date, it will not institute against the Buyer, or join any other Person in instituting against the Buyer, any Insolvency Proceeding under the laws of the United States or any state of the United States.
This Section 10.13 will survive the termination of this Agreement. 
  
 The provisions of this Section 10.13 shall be for the third party benefit of those entitled to rely thereon, including the Deal Agent and the Secured Parties, and shall survive the termination of this
Agreement. 
  
 Section 10.14 Schedules and Exhibits.

  
 The schedules and exhibits attached hereto and referred
to herein shall constitute a part of this Agreement and are incorporated into this Agreement for all purposes. 
  
 Section 10.15 Merger or Consolidation of, or Assumption of the Obligations of, the Seller. 
  
 (a) Subject to Section 10.15(b), the Seller will keep in full force
and effect its existence, rights and franchises as a Delaware corporation, and the Seller will obtain and 

  

 28 

 
preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement and of any of the Loans and to perform its duties under this Agreement. 
  
 (b) The Seller shall not consolidate or merge with or into, or sell, lease or transfer all or substantially all of its assets to, any other Person, unless
in the case of any such action (i) no Termination Event or Material Adverse Effect would occur or be reasonably likely to occur as a result of such transaction, (ii) the Buyer and the Deal Agent provide their prior written consent to such
transaction and (iii) such Person executes and delivers to the Deal Agent an agreement by which such Person assumes the obligations of the Seller hereunder and under the other Transaction Documents to which it is a party, or confirms that such
obligations remain enforceable against it, together with such certificates and opinions of counsel as the Deal Agent may reasonably request. 
  
 Section 10.16 [Reserved.] 
  
 Section 10.17 Costs, Expenses and Taxes. 
  
 (a) The Seller agrees to pay on demand all costs and expenses of the Buyer incurred in connection with the preparation, execution, delivery,
administration (including periodic auditing), amendment or modification of, or any waiver or consent issued in connection with, this Agreement and the other documents to be delivered hereunder or in connection herewith to which the Seller is a
party, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Buyer with respect thereto and with respect to advising the Buyer as to its rights and remedies under this Agreement and the other documents to
be delivered hereunder or in connection herewith to which the Seller is a party, and all costs and out-of-pocket expenses, if any (including reasonable counsel fees and expenses), incurred by the Buyer in connection with the enforcement of this
Agreement and the other documents to be delivered hereunder or in connection herewith to which the Seller is a party. 
  
 (b) The Seller shall pay on demand any and all stamp, sales, excise and other taxes (excluding income and franchise taxes of the Buyer) and fees payable
or determined to be payable in connection with the execution, delivery, filing and recording of this Agreement or any agreement or other document delivered in connection with this Agreement. 
  
 (c) The Seller shall pay on demand all other costs, expenses and taxes
(excluding income taxes) (“Other Costs”), including, without limitation, all reasonable costs and expenses incurred by the Deal Agent in connection with periodic audits of the Borrower’s or the Servicer’s books and
records, the cost of rating VFCC’s commercial paper by independent financial rating agencies, which are incurred as a result of the execution of this Agreement, and the amount of any taxes and insurance due and unpaid by an Obligor with respect
to any Transferred Loan or Related Property and any fees and expenses agreed to be borne by the Buyer under Section 7.16(b) of the Loan Funding Agreement. 
  

	Section	10.18 Indemnities by the Seller.  

  
 (a) Without limiting any other rights that any such Person may have hereunder or under Applicable Law, the Seller hereby agrees to indemnify the Buyer,
the Deal Agent, the 

  

 29 

 
Backup Servicer, the Collateral Custodian, any Secured Party or its assignee and each of their respective Affiliates and officers, directors, employees and
agents thereof (collectively, the “Indemnified Parties”), forthwith on demand, from and against any and all damages, losses, claims, liabilities and related costs and expenses, including reasonable attorneys’ fees and
disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by, any such Indemnified Party or other non-monetary damages of any such Indemnified Party any of them arising
out of or as a result of this Agreement, excluding, however, Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of any Indemnified Party. 
  
 (b) Any amounts subject to the indemnification provisions of this Section
10.18 shall be paid by the Seller to the Indemnified Party within two Business Days following such Person’s demand therefor. 
  
 (c) If for any reason the indemnification provided above in this Section 10.18 is unavailable to the Indemnified Party or is insufficient to hold
an Indemnified Party harmless, then the Seller, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative
benefits received by such Indemnified Party on the one hand and the Seller, on the other hand but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations. 
  
 (d) The obligations of the Seller under this Section 10.18 shall
survive the removal of the Deal Agent, the Backup Servicer or the Collateral Custodian and the termination of this Agreement. 
  
 (e) The parties hereto agree that the provisions of Section 10.18 shall not be interpreted to provide recourse to the Seller against loss by reason
of the bankruptcy, insolvency or lack of creditworthiness of or nonpayment by an Obligor on any Loan. 
  
 Section 10.19 Recourse Against Certain Parties. 
  
 (a) No recourse under or with respect to any obligation, covenant or agreement (including, without limitation, the payment of any fees or any other
obligations) of the Seller as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any administrator of the Seller or any incorporator, officer,
employee, shareholder or director of the Seller or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that
the agreements of the Seller contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of the Seller, and
that no personal liability whatsoever shall attach to or be incurred by any administrator of the Seller or any incorporator, officer, employee, shareholder or director of the Seller or of any such administrator, as such, or any other them, under or
by reason of any of the obligations, covenants or agreements of the Seller contained in this Agreement or in any other such instruments, documents or agreements, or that are implied therefrom, and that any and all personal liability of every such
administrator of the 

  

 30 

 
Seller and each incorporator, officer, employee or director of the Seller or of any such administrator, or any of them, for breaches by the Seller of any
such obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the execution of this Agreement.
The provisions of this Section 10.19(a) shall survive the termination of this Agreement. 
  
 (b) No recourse under or with respect to any obligation, covenant or agreement (including, without limitation, the payment of any fees or any other
obligations) of the Buyer as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any administrator of the Buyer or any incorporator, officer,
employee, shareholder or director of the Buyer or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that
the agreements of the Buyer contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of the Buyer, and
that no personal liability whatsoever shall attach to or be incurred by any administrator of the Buyer or any incorporator, officer, employee, shareholder or director of the Buyer or of any such administrator, as such, or any other them, under or by
reason of any of the obligations, covenants or agreements of the Buyer contained in this Agreement or in any other such instruments, documents or agreements, or that are implied therefrom, and that any and all personal liability of every such
administrator of the Buyer and each incorporator, officer, employee or director of the Buyer or of any such administrator, or any of them, for breaches by the Buyer of any such obligations, covenants or agreements, which liability may arise either
at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the execution of this Agreement. The provisions of this Section 10.19(b) shall survive the
termination of this Agreement. 
  
 (c) From and after the Closing
Date, the Buyer shall have the right, in its discretion, to direct all Obligors to henceforth direct their payments to the respective Obligor Account. 
  
 Section 10.20 Sharing of Payments on Loans Subject to Retained Interest Provisions. 
  
 (a) With respect to any Loan (including, without limitation, any Revolving
Loan) included in the Purchased Assets subject to the Retained Interest provisions of this Agreement, the Buyer will own only the principal portion of such Loans outstanding as of the applicable Cut-off Date. Principal Collections received by the
Servicer on any such Loan will be allocated first to the portion of such Loan owned by the Buyer, until the principal amount of such portion is reduced to zero, and then to the portion not owned by the Buyer; provided, however, (i) if
a payment with respect to such Loan is Delinquent beyond any applicable grace period, (ii) a Termination Event occurs or (iii) a Servicer Termination Event occurs, then Principal Collections received on (x) the applicable Loan (in the case of
clause (i) above) or (y) all the Loans included in the Purchased Assets subject to the Retained Interest provisions of this Agreement (in the case of clauses (ii) or (iii) above) will be allocated between the portion not 

  

 31 

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

 32 

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

			
	ACS FUNDING TRUST I, as the Buyer
		
	By:	 	 /s/ Malon Wilkus

	Name:	 	 Malon Wilkus

	Title:	 	 Beneficiary Trustee

	
	 ACS Funding Trust I
 c/o American Capital Strategies, Ltd.
 2 Bethesda Metro Center, 14th Floor
 Bethesda, Maryland 20814
 Attention: Malon Wilkus, Beneficiary Trustee
 Facsimile No.: (301)
654-6714
 Confirmation No.: (301) 951-6122

	
	 AMERICAN CAPITAL STRATEGIES, LTD.,
 as
the Seller

		
	By:	 	 /s/ John Erickson

	Name:	 	 John Erickson

	Title:	 	 Executive Vice President, Chief Financial
 Officer and Secretary

	
	 American Capital Strategies, Ltd.
 2 Bethesda Metro Center, 14th Floor
 Bethesda, Maryland 20814

					
	 Attention:
	 	 Compliance Officer

	 Facsimile No.:
	 	 (301) 654-6714

	 Confirmation No.:
	 	 (301) 951-6122

  

 S-1 

 Acknowledge and Agreed to: 
  

			
	 WACHOVIA CAPITAL MARKETS, LLC
 as the Deal Agent

		
	By:	 	 /s/ Paul A. Burkhart

	Name:	 	 Paul A. Burkhart

	Title:	 	 Vice President

	
	 Wachovia Capital Markets, LLC
 One Wachovia Center, Mail Code: NC0600
 Charlotte, North Carolina 28288

					
	 Attention:
	 	 Conduit Administration

	 Facsimile No.:
	 	 (704) 383-7979

	Telephone No.:	 	 (704) 374-6230

  

 S-2 

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

 EXHIBIT A 
  
 FORM OF SALE ASSIGNMENT 
  
 SALE ASSIGNMENT, dated as of
                            , from AMERICAN CAPITAL STRATEGIES, LTD., a Delaware corporation
(the “Seller”), to ACS FUNDING TRUST I, a Delaware statutory trust (the “Buyer”). 
  
 1. We refer to the Second Amended and Restated Purchase and Sale Agreement, dated as of August 10, 2004 (as amended, modified, supplemented or restated
from time to time, the “Agreement”), by and between the Seller and the Buyer. All capitalized terms used herein shall have the meanings set forth in the Agreement. 
  
 2. On the terms and subject to the conditions set forth in this Agreement, on each Purchase Date, the Seller hereby sells,
assigns, sets over and otherwise conveys, and the Buyer hereby purchases and takes from the Seller all right, title, and interest, whether now owned or hereafter acquired or arising, and wherever located, of the Seller in and to the property
described in clauses (i) through (viii) below and all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright licenses, equipment, fixtures, contract rights, general intangibles,
instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, security entitlements, commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit rights, software,
supporting obligations, accessions, and other property consisting of, arising out of, or related to any of the following (in each case excluding the Retained Interest and the Excluded Amounts) (collectively, the “Purchased Assets”):

  
 (i) the Loans that are identified by the
Seller as of the initial Cut-off Date, which are listed on Schedule I hereto, and the Loans that are listed on Schedule I to any Assignment, and all monies due or to become due in payment of such Loans on and after the related Cut-Off Date,
including but not limited to all Collections and all obligations owed to the Seller in connection with such Loans; 
  
 (ii) any Related Property securing or purporting to secure such Loans (to the extent the Seller, other than solely in its capacity as
collateral agent under any loan agreement with an Obligor, has been granted a Lien thereon) including all proceeds from any sale or other disposition of such Related Property; 
  
 (iii) all security interests, liens, guaranties, warranties, letters of credit, accounts, bank accounts,
mortgages or other encumbrances and property subject thereto from time to time purporting to secure or support payment of such Loans, together with all UCC financing statements or similar filings signed by an Obligor relating thereto; 
  
 (iv) all claims (including “claims” as defined in
Bankruptcy Code § 101(5)), suits, causes of action, and any other right of the Seller, whether known or unknown, against the related Borrower, the related Obligors, if any, or any of their respective Affiliates, agents, representatives,
contractors, advisors, or any other Person that in any way is based upon, arises out of or is related to any of the foregoing, including, to the 

  

 A-1 

 
extent permitted to be assigned under applicable law, all claims (including contract claims, tort claims, malpractice claims, and claims under any law
governing the purchase and sale of, or indentures for, securities), suits, causes of action, and any other right of the Seller against any attorney, accountant, financial advisor, or other Person arising under or in connection with the related Loan
Documents; 
  
 (v) all cash, securities, or other
property, and all setoffs and recoupments, received or effected by or for the account of the Seller under such Loans (whether for principal, interest, fees, reimbursement obligations, or otherwise) after the related Cut-Off Date, including all
distributions obtained by or through redemption, consummation of a plan of reorganization, restructuring, liquidation, or otherwise of any related Obligor or the related Loan Documents, and all cash, securities, interest, dividends, and other
property that may be exchanged for, or distributed or collected with respect to, any of the foregoing; 
  
 (vi) all Insurance Policies; 
  
 (vii) the Loan Documents with respect to such Loans; 
  
 (viii) the Collection Account, each Lock-Box and all Lock-Box Accounts, together with all funds held in or
credited to such accounts, and all certificates and instruments, if any, from time to time representing or evidencing each of the foregoing or such funds (to the extent of the Seller’s interest therein, if any); and 
  
 (ix) all income and proceeds of the foregoing. 

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

			
	 AMERICAN CAPITAL STRATEGIES, LTD.,
 as the Seller

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 A-2 

 EXHIBIT B 
  
 [FORM OF ] 
  
 NOTICE OF SALE 
  
 AMERICAN CAPITAL STRATEGIES, LTD. 
  
 I,
                                        
                                        
,                                  of American Capital Strategies,
Ltd., a Delaware corporation, as the seller (together with its successors and assigns in such capacity, the “Seller”) hereby certify that, with respect to that certain Second Amended and Restated Purchase and Sale Agreement (as
amended, modified, supplemented or restated from time to time, the “Agreement”), dated as of August 10, 2004, by and between the Seller, and ACS Funding Trust I, a Delaware statutory trust, as the buyer (together with its successors
and assigns in such capacity, the “Buyer”). 
  
 Seller hereby certifies as follows: 
  
 1. The Purchase
to be made will be in accordance with the following terms: 
  
 (a) The aggregate Purchase Price of such Purchase shall be $                    . 
  
 (b) The date of such Purchase shall be
                                . 
  
 2. The representations and warranties contained in Sections 4.1 and
4.2 of the Agreement are true and correct as though made on the date thereof. 
  
 3. On and as of such day, Seller has each performed in all material respects all of the agreements contained in the Agreement and all other Transaction Documents to which it is a party, to be performed by Seller at or
prior to such day. 
  
 4. No law, rule or regulation prohibits,
and no order, judgment or decree of any federal, state or local court or governmental body, agency or instrumentality prohibits or enjoins, the making of such Purchase. 
  
 IN WITNESS WHEREOF, the undersigned has caused this Purchase Notice to be duly executed this 10th day of August, 2004. 
  

			
	 AMERICAN CAPITAL STRATEGIES, LTD.,
 as the Seller

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 B-1

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