Document:

Collaboration Agreement

 Exhibit 10.4 
  
 COLLABORATION AGREEMENT 
  
 This Agreement is entered into as of June 14, 2005 by and between SEATTLE GENETICS, INC., a Delaware corporation, having its principal place of business at 21823
30th Drive S.E., Bothell, Washington 98021 (hereinafter referred to as “SGI”), and PSMA DEVELOPMENT COMPANY LLC, a Delaware limited liability corporation, having its principal place of business at 777 Old Saw Mill River Road,
Tarrytown, New York 10591 (hereinafter referred to as “Licensee”). 
  
 WITNESSETH 
  
 WHEREAS, SGI
Controls (as defined below) intellectual property rights relating to certain technology useful for linking certain proprietary [***] to other molecules, such as antibodies, capable of directing such [***] to specific tissues and/or
cells; 
  
 WHEREAS, Licensee Controls intellectual property rights relating
to the Designated Antigen (as defined below), and is currently conducting research and development relating to Antibodies (as defined below) that bind to the Designated Antigen pursuant to a Research Collaboration Agreement dated [***], as
amended (the “Research Collaboration Agreement”); and 
  
 WHEREAS, Licensee wishes to acquire from SGI, and SGI wishes to grant to Licensee, an exclusive, worldwide license under SGI patent rights and know-how related to SGI’s proprietary [***] for use in conjunction with such
Antibodies for the development, commercialization, manufacture, marketing and sale of Licensed Products (as defined below). 
  
 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth herein, the Parties hereto, intending to be legally bound, agree as follows:

  
 ARTICLE 1 
  
 DEFINITIONS AND INTERPRETATION 
  
 1.1 Definitions: For the purposes of this Agreement the
following words and phrases shall have the following meanings: 
  
 1.1.1 “AAA” has the meaning set forth in Section 19.3.4. 
  
 1.1.2 “ADC” or “Antibody-Drug Conjugate” means an Antibody [***] and that contains, uses
or is made using SGI Technology. 
  
 1.1.3
“ADC Access Fee” has the meaning set forth in Section 6.1.1. 
  
 1.1.4 “Adverse Drug Experience” shall mean any “adverse experience” as defined or contemplated by 21
C.F.R. § 312.32 or 21 C.F.R. § 314.80. 
  
 1.1.5 “Affiliate” of a Party means any corporation or other business entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with a Party. As
used herein, the term “control” means the direct or indirect ownership of [***] or more of the stock having the right to vote for directors thereof or the ability to otherwise control the management thereof. For purposes of
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Progenics Pharmaceuticals, Inc. (“Progenics”) and Cytogen Corporation (“Cytogen”) shall be deemed an Affiliate of Licensee
so long as their respective [***]. 
  
 1.1.6 “Agreement” means this agreement, all duly executed amendments and supplements to this Agreement and all schedules to this Agreement, including the following: 
  
 Schedule A - Research Plan. 
  
 Schedule B - SGI Patents. 
  
 Schedule C - SGI In-Licenses. 
  
 1.1.7 “Antibody” or
“Antibodies” means any molecule that binds specifically to an Antigen, including, but not limited to, [***]. 
  
 1.1.8 “Antigen” means any molecule that will induce an [***], including but not limited to a [***].

  
 1.1.9 “[***]”
means the SGI Technology licensed to SGI under the BMS Agreement (as defined in the definition of “SGI In-Licenses”). 
  
 1.1.10 “Breaching Party” has the meaning set forth in Section 13.3. 
  
 1.1.11 “Calendar Quarter” means any
of the three-month periods beginning January 1, April 1, July 1 and October 1 in any year. 
  
 1.1.12 “Combination Product” means any Licensed Product that contains, in [***], and (b) [***].

  
 1.1.13 “Commercially
Reasonable Efforts” means, with respect to a Party, the efforts and resources typically used by biotechnology companies similar in size and scope to such Party to perform the obligation at issue; in each case with respect to a product or
potential product of similar nature at a similar stage in its development or product life and of similar market potential, in view of conditions prevailing at the time, and evaluated taking into account all relevant factors, including without
limitation, the mechanism of action, efficacy, safety, the anticipated regulatory authority approved labeling, the competitiveness of alternative products that are in the marketplace or under development, the patent and other proprietary position of
the product, the likelihood of Regulatory Approval, the profitability of the product and other technical, scientific, legal, medical, marketing and competitive factors. 
  
 1.1.14 “Confidential Information” has the meaning set forth in Section 8.1.

  
 1.1.15 “Control”
means, with respect to any information or intellectual property right, possession by a Party of the ability to grant the right to access or use, or to grant a license or a sublicense to, such information or intellectual property right without
violating the terms of any agreement or other arrangement with any Third Party. In the case of an Antigen, such Antigen will be deemed to be Controlled by Licensee if Licensee Controls [***]. 
  

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 1.1.16 “Cost of Goods” shall mean with respect to Drug
Conjugation Materials or ADCs supplied to Licensee by SGI: (a) for manufacturing activities performed by Third Parties, SGI’s reasonably documented out-of-pocket costs actually incurred in such manufacture and supply of Drug Conjugation
Materials or ADCs, as well as SGI’s reasonable internal costs incurred in supporting the Third Party manufacturing relationship, including without limitation [***]; and (b) for manufacturing activities performed by SGI or its Affiliates,
the consolidated fully burdened cost of manufacturing such Drug Conjugation Materials or ADCs, which shall mean costs of the following as such costs are actually incurred by SGI or its Affiliates: [***], and as determined in accordance with
GAAP as consistently applied by SGI.  
  
 1.1.17 “Designated Antigen” means the PSMA Antigen having a GenBank Accession No. [***]. 
  
 1.1.18 “Disclosing Party” has the meaning set forth in Section 8.1. 
  
 1.1.19 “Drug Conjugation Materials”
means the [***] and certain [***], as well as other compounds that are useful in attaching such compounds to [***]. Drug Conjugation Materials shall also include SGI Inventions to the foregoing, and shall also include any
additional [***] compound or other compounds that are useful in attaching compounds to Antibodies and that are included in New Technologies that the Parties agree to include under this Agreement pursuant to Section 3.3. 
  
 1.1.20 “Effective Date” means the
date set forth in the first line of this Agreement. 
  
 1.1.21 “Events of Force Majeure” has the meaning set forth in Article 15. 
  
 1.1.22 “Exclusive License” has the meaning set forth in Section 3.1. 
  
 1.1.23 “Exclusive License Renewal
Fee” has the meaning set forth in Section 6.2. 
  
 1.1.24 “Existing Third Party Royalties” has the meaning set forth in Section 6.4.3. 
  
 1.1.25 “Extended Research Program Term” has the meaning set forth in Section 2.2. 
  
 1.1.26 “FD&C Act” means the
federal Food, Drug & Cosmetic Act, as amended. 
  
 1.1.27 “FDA” means the United States Food and Drug Administration and its subdivisions, and any successor agency thereto. 
  
 1.1.28 “Field” means the [***]. 
  
 1.1.29 “First Commercial Sale”
means, in each country of the Territory, the first commercial sale of a Licensed Product by Licensee, its Affiliates or Sublicensees to a Third Party following, if required by law, Regulatory Approval and, when Regulatory Approval is not 

  

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required by law, the first commercial sale in that country, in each case for use or consumption of such Licensed Product in such country by the general
public. 
  
 1.1.30 “Former
Designated Antigen” has the meaning set forth in Section 3.6. 
  
 1.1.31 “FTE” means a full time equivalent person year, based upon a total of [***]. 
  
 1.1.32 “GAAP” means generally accepted accounting principles in the United States. 
  
 1.1.33 “Generic Version” means, with
respect to a Licensed Product in a [***] and (ii) a [***]. 
  
 1.1.34 “Good Clinical Practices” means the standards, practices and procedures set forth in the guidelines entitled “Guidance for Industry E6 Good Clinical Practice: Consolidated
Guidance,” including related regulatory requirements imposed by the FDA, any successor agency and, as applicable, the equivalent thereof in jurisdictions outside the United States. 
  
 1.1.35 “Good Laboratory Practices” means the then-current good laboratory practice
standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58, and comparable regulatory standards in jurisdictions outside the United States. 
  

1.1.36 “Good Manufacturing Practices” means the then-current good manufacturing practices required by the FDA
and set forth in the U.S. Federal Food, Drug, and Cosmetic Act, as amended, and the regulations promulgated thereunder, for the manufacturing and testing of pharmaceutical materials, and any other laws or regulations applicable to the manufacturing
and testing of pharmaceutical materials in jurisdictions outside the United States. 
  
 1.1.37 “IND” means (a) an Investigational New Drug Application filed with the FDA or its equivalent in any country
outside the United States where a regulatory filing is required or obtained to conduct a clinical trial; or (b) with respect to any country where a regulatory filing is not required or obtained to conduct a clinical trial, the first enrollment of a
patient in the first trial involving the first use of a Licensed Product in humans. 
  
 1.1.38 “Indemnitee” has the meaning set forth in Section 14.3.1. 
  
 1.1.39 “Indemnitor” has the meaning
set forth in Section 14.3.1. 
  
 1.1.40
“Initial Research Program Term” has the meaning set forth in Section 2.2. 
  
 1.1.41 “Initiation” means, with respect to a human clinical trial, the dosing of the first patient with a Licensed
Product pursuant to the clinical protocol for the specified clinical trial. 
  

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 1.1.42 “Inventions” means any patentable or non-patentable
inventions, discoveries or other know-how discovered, created or developed and Controlled by either Party that arise out of activities conducted under this Agreement or the Research Collaboration Agreement; provided that Inventions shall not
include any [***]. 
  
 1.1.43
“Joint Inventions” has the meaning set forth in Section 9.1.2(c). 
  
 1.1.44 “Joint Patents” has the meaning set forth in Section 9.2.2. 
  
 1.1.45 “Licensed Product” means any
and all products containing an ADC comprised of an Antibody that binds to the Designated Antigen. 
  
 1.1.46 “Licensee” has the meaning set forth in the first paragraph of this Agreement. Each reference to
“Licensee” shall, where appropriate, be deemed to include applicable “Sublicensees”. 
  
 1.1.47 “Licensee ADC Know-How” means all technical information, processes, formulae, data, inventions, methods,
chemical compounds, biological or physical materials, know-how and trade secrets Controlled by Licensee, in each case that are not in the public domain, that are developed by Licensee using SGI Technology, and that relate to or are useful in
identifying, developing, making, using or selling [***]. 
  
 1.1.48 “Licensee ADC Patents” means all patent applications and patents that are Controlled by Licensee that claim inventions made using SGI Technology, which inventions are for identifying,
developing, making, using or selling [***]. 
  
 1.1.49 “Licensee Know-How” means all technical information, processes, formulae, data, inventions, methods, chemical compounds, biological or physical materials, know-how and trade secrets
Controlled by Licensee, in each case that are not in the public domain, that relate to or are useful in (a) [***] or (b) [***]. 
  
 1.1.50 “Licensee Indemnified Parties” has the meaning set forth in Section 14.2. 
  
 1.1.51 “Licensee Invention Patents”
has the meaning set forth in Section 9.3.3. 
  
 1.1.52 “Licensee Inventions” has the meaning set forth in Section 9.1.2(a). 
  
 1.1.53 “Licensee Patents” means all patent applications and patents that are Controlled by Licensee that claim (a)
[***], or (b) [***]. 
  
 1.1.54
“Losses” has the meaning set forth in Section 14.1. 
  
 1.1.55 “Net Sales” means, as to each calendar quarter, the gross invoiced sales prices charged for all Licensed Products sold by or for Licensee, its Affiliates and Sublicensees to independent
Third Parties during such quarter, [***] with respect to sales of Licensed Products: 
  

	 	(a)	[***]; 

  

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	 	(b)	[***]; 

  

	 	(c)	[***]; and 

  

	 	(d)	[***]. 

  
 All of the foregoing [***] shall be determined in accordance with GAAP. In the event that Licensee, its Affiliates or Sublicensees
make any adjustments to such [***] have been reported pursuant to this Agreement, the adjustments shall be reported and reconciled in the next report and payment of any royalties due. 
  
 In the event a Licensed Product is sold as part of a
[***] during the applicable royalty reporting period, by the [***] in each case during the applicable royalty reporting period or, if sales of the Licensed Product [***] did not occur in such period or country, then in the most
recent royalty reporting period in which [***] Licensed Product occurred in such country or if no such sales have occurred in such country, the [***] during the applicable royalty period. In the event that such [***].

  
 1.1.56 “New
Technologies” means any [***] (i) that are [***] Controlled by SGI, or (ii) that are first developed by SGI after the Effective Date and that are [***], including but not limited to the chemical compositions and the
methods useful for [***].  
  
 1.1.57 “Notice of Dispute” has the meaning set forth in Section 19.3.1. 
  
 1.1.58 “Parties” means Licensee and SGI, and “Party” means either of them. 
  
 1.1.59 “Person” means a natural
person, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture or an unincorporated organization. 
  
 1.1.60 “Personnel Fees” has the meaning set forth in Section 6.1.2. 
  
 1.1.61 “Phase I Clinical Trial”
means a human clinical trial, the principal purpose of which is a preliminary determination of safety in healthy individuals or patients. 
  
 1.1.62 “Phase II Clinical Trial” means a controlled dose clinical trial prospectively designed to evaluate the
efficacy and safety of a candidate drug in the targeted patient population and to define the optimal dosing regimen. 
  
 1.1.63 “Phase III Clinical Trial” means a controlled, and usually multi-center, clinical trial, involving patients
with the disease or condition of interest to obtain sufficient efficacy and safety data to support Regulatory Approval of a candidate drug. 
  
 1.1.64 “Publication” has the meaning set forth in Section 8.5. 
  
 1.1.65 “Receiving Party” has the
meaning set forth in Section 8.1. 
  

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 1.1.66 “Regulatory Approval” means final regulatory approval
(including, where applicable, pricing approval in the event that actual sales do not take place before such approval) required to market a Licensed Product for a disease or condition in accordance with the applicable laws and regulations of a given
country. In the United States, its territories and possessions, Regulatory Approval means approval of a New Drug Application (“NDA”), Biologics License Application (“BLA”) or an equivalent by the FDA. 
  
 1.1.67 “[***]” has the meaning set
forth in Section 3.6. 
  
 1.1.68
“Replacement Antigen Fee” has the meaning set forth in Section 3.6. 
  
 1.1.69 “Reports” has the meaning set forth in Section 7.1.1. 
  
 1.1.70 “Research Fees” has the
meaning set forth in Section 6.1.2. 
  
 1.1.71
“Research Fees Report” has the meaning set forth in Section 6.1.2. 
  
 1.1.72 “Research Plan” means the plan for the Research Program agreed upon by the Parties and attached hereto as
Schedule A. 
  
 1.1.73
“Research Program” means the research program conducted pursuant to Article 2. 
  
 1.1.74 “Research Program Term” means the term of the Research Program set forth in Section 2.2. 
  
 1.1.75 “Royalty Term” means, on a
Licensed Product-by-Licensed Product and country-by-country basis, the later to occur of: (a) the tenth anniversary of the date of First Commercial Sale of the Licensed Product in such country; or (b) the expiration of the last to expire Valid
Patent Claim that would be infringed by the sale of the Licensed Product in such country, if not for the licenses granted hereunder. 
  
 1.1.76 “Serious Adverse Drug Experience” shall mean any Adverse Drug Experience that is fatal or life-threatening,
is permanently disabling, requires in-patient hospitalization or prolongation of existing hospitalization, results in a persistent or significant disability or incapacity, or is a congenital anomaly, or overdose, or other event which would
constitute a “serious” adverse experience pursuant to the terms of 21 C.F.R. § 312.32 or 21 C.F.R. §314.80. 
  
 1.1.77 “SGI Indemnified Parties” has the meaning set forth in Section 14.1. 
  
 1.1.78 “SGI In-Licenses” means the
following agreements between SGI and the indicated Third Parties: (a) [***]. 
  
 1.1.79 “SGI Inventions” has the meaning set forth in Section 9.1.2(b). 
  
 1.1.80 “SGI Know-How” means all
technical information, processes, formulae, data, inventions, methods, chemical compounds, biological or physical materials, know-how and 

  

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trade secrets Controlled by SGI, in each case that are not in the public domain, that relate to or are useful in the discovery, research, development,
manufacture or use of Drug Conjugation Materials or ADCs for purposes of the offer and sale of Licensed Products in the Field, including but not limited to the chemical compositions and the methods useful for attaching the Drug Conjugation Materials
to Antibodies. SGI Know-How shall exclude any [***]. 
  
 1.1.81 “SGI Patents” means: 
  
 (a) any patents and patent applications listed in Schedule B to this Agreement (each, an “Existing SGI Patent”),
which shall be amended from time to time to add any other patents and patent applications which shall be included as SGI Patents; 
  
 (b) any patents and patent applications covering SGI Know-How or SGI Inventions and, solely to the extent the parties so agree pursuant to
[***], and Schedule B to this Agreement shall be amended from time to time to add patents or patent applications that arise from any of the foregoing;  
  
 (c) any future patents issued from any patent applications referred to above and any future patents issued
from any continuation, continuation-in-part (to the extent Controlled by SGI), divisional or provisional of any of the foregoing patent applications or any patent applications from which the foregoing patents issued; and 
  
 (d) any reissues, reexaminations, confirmations, renewals,
registrations, substitutions, extensions, or counterparts of any of the foregoing. 
  
 1.1.82 “SGI Technology” means the SGI Patents, the Drug Conjugation Materials, the SGI Know-How, SGI’s rights
in the Joint Inventions and the SGI Inventions. For purposes of clarification, SGI Technology shall include, without limitation, the technology comprising [***] in each case as set forth on Schedule B, or as may otherwise be identified
as an SGI In-License pursuant to Section 1.1.78. 
  
 1.1.83 “Sublicensees” means any person or entity that is granted a sublicense under the SGI Technology by Licensee or its Affiliates in accordance with the terms of this Agreement. 

 
 1.1.84 “Supply Fees” has the
meaning set forth in Section 5.3. 
  
 1.1.85
“Term” has the meaning set forth in Article 13.  
  
 1.1.86 “Territory” means all countries in the world. 
  
 1.1.87 “Third Party” means any person or entity other than Licensee, SGI and their respective Affiliates.

  
 1.1.88 “Third Party
Claim” has the meaning set forth in Section 14.1. 
  
 1.1.89 “Valid Patent Claim” means a claim (a) of any issued and unexpired SGI Patent (as applicable) which has not been revoked or held unenforceable or invalid by a decision 

  

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of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or with respect to which an appeal is not taken within the
time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, or (b) of any patent application contained in the SGI Patents (as applicable) which shall not
have been pending on or after the [***] of the date of issuance of a first patent office communication during examination of the first application related thereto (in the relevant country), and shall not have been earlier cancelled, withdrawn
or abandoned, and, on a country-by-country basis, which is enforceable on the operative date of inquiry by virtue of applicable law in such country. 
  
 1.2 Certain Rules of Interpretation in this Agreement and the Schedules. 
  
 1.2.1 Unless otherwise specified, all references to monetary amounts are to United States of America
currency (U.S. Dollars); 
  
 1.2.2 The
preamble to this Agreement and the descriptive headings of Articles and Sections are inserted solely for convenience of reference and are not intended as complete or accurate descriptions of the content of this Agreement or of such Articles or
Sections; 
  
 1.2.3 The use of words in
the singular or plural, or with a particular gender, shall not limit the scope or exclude the application of any provision of this Agreement to such person or persons or circumstances as the context otherwise permits; 
  
 1.2.4 The words “include” and
“including” have the inclusive meaning frequently identified with the phrases “without limitation” and “but not limited to”; 
  
 1.2.5 Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be
calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next business day following if the last day of the period is not a business day in the jurisdiction of
the Party to make such payment or do such act; and 
  
 1.2.6 Whenever any payment is to be made or action to be taken under this Agreement is required to be made or taken on a day other than a business day, such payment shall be made or action taken on the next business day following
such day to make such payment or do such act. 
  
 ARTICLE 2

  
 RESEARCH PROGRAM 
  
 2.1 Objective and Conduct of the Research Program.
Licensee intends to conduct a Research Program, with SGI’s support, to evaluate ADCs for commercial development under this Agreement. Licensee acknowledges that, in addition to the licenses to the SGI Patents granted hereunder, the SGI Know-How
transferred to Licensee under this Agreement contains valuable information that is critical to Licensee’s development of ADCs hereunder. SGI’s research activities hereunder which are designated by Licensee to be used in support of
regulatory filings will be performed in a good scientific manner, consistent with Good 

  

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Laboratory Practices. SGI shall deliver to Licensee a report summarizing the results of such research activities within [***] of the end of any
calendar quarter in which such research activities were conducted. 
  
 2.2 Term of the Research Program. The initial term of the Research Program shall be for a period of [***] after the Effective Date (the “Initial Research Program Term”), [***]; provided,
however, that, upon notice and payment to SGI of [***], Licensee may renew (prior to the end of Initial Research Program Term) the Research Program for an [***] (the “Extended Research Program Term”, and together with
the Initial Research Program Term, the “Research Program Term”). 
  
 2.3 SGI Preparation of ADCs. SGI will prepare, in accordance with the procedures set forth in the Research Plan, such research quantities of ADCs as may be reasonably requested by Licensee using
Antibodies supplied by Licensee to SGI and Drug Conjugation Materials manufactured by SGI, or by or on behalf of Licensee, and shall deliver the resulting ADCs to Licensee in accordance with the reasonable timelines requested by Licensee (or as
otherwise set forth in the Research Plan). SGI will also provide Licensee, in accordance with Article 4 and the Research Plan, with [***]. All such Drug Conjugation Materials provided by SGI to Licensee hereunder will be deemed Confidential
Information of SGI pursuant to Article 8. 
  
 2.4
Payment. Licensee shall pay SGI the amounts set forth in Section 6.1.2 for any research efforts or other assistance provided by SGI pursuant to Section 2.3. 
  
 2.5 Disclaimer. EXCEPT AS MAY BE OTHERWISE PROVIDED IN ARTICLE 12, NEITHER PARTY MAKES ANY
REPRESENTATION OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, REGARDING THE DRUG CONJUGATION MATERIALS, ANTIBODIES, ANTIGENS, ADCs OR LICENSED PRODUCTS, INCLUDING ANY WARRANTY OF
QUALITY, MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR USE OR PURPOSE. 
  
 ARTICLE 3 
  
 EXCLUSIVE LICENSE 
  
 3.1 Exclusive
License Grant. Upon payment of the ADC Access Fee set forth in Section 6.1.1, subject to the terms and conditions of this Agreement, SGI shall be automatically deemed to grant to Licensee a worldwide, exclusive (even as to SGI),
royalty-bearing license under the SGI Technology, with the right to sublicense as permitted in Section 3.2, to discover, research, develop, make, have made, import, have imported and use, Licensed Products in the Field and Drug Conjugation Materials
for the offer and sale of Licensed Products in the Field in the Territory (the “Exclusive License”). The Exclusive License shall continue for the Royalty Term, unless earlier terminated pursuant to Article 13, subject to payment of
applicable milestones, royalties and the Exclusive License Renewal Fees set forth in Section 6.2. 
  

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 3.2 Rights to Sublicense. 
  
 3.2.1 Licensee shall have the right to grant sublicenses of the rights granted to Licensee pursuant
to this Agreement to any Affiliate or any Third Party, subject to the restrictions contained in this Section 3.2 and the requirements of Section 3.4. Licensee shall not have the right to sublicense the SGI Technology outside the scope of the license
granted in Section 3.1, including to develop further Drug Conjugation Materials on a stand alone basis or to create ADCs that include or are based upon any Antibodies that do not bind to the Designated Antigen or Replacement Antigen, if any.

  
 3.2.2 Licensee agrees that it shall
have responsibility to make payments to SGI for the achievement of any milestones set forth in Section 6.5 by its Sublicensee(s), and to pay royalties on Net Sales of any Licensed Products by any such Sublicensee(s) pursuant to Section 6.3 (subject
to reduction in accordance with Section 6.4). In addition, Licensee shall be responsible for the compliance by its Sublicensee(s) with all terms of this Agreement applicable to Licensee (including all terms of this Agreement identified as applicable
to such Sublicensee(s)). Licensee shall also require any such Sublicensee(s) to agree in writing to keep books and records and permit SGI to review the information concerning such books and records in accordance with Section 7.2. 
  
 3.2.3 Licensee shall notify SGI of each sublicense
granted to Affiliates or Third Parties and shall provide SGI with the name and address of each Sublicensee and a description of the rights granted and the territory covered by each Sublicensee. 
  
 3.3 [***]. The Exclusive License shall extend to
[***] as follows: SGI shall promptly notify Licensee of any [***] to which it obtains rights (with the right to grant sublicenses thereunder) during the Term by providing to Licensee a [***], including all [***] under
which Licensee would be able to access such [***]. If Licensee is interested in practicing such [***], the Parties shall discuss in good faith modifications to this Agreement to reflect the terms governing Licensee’s access to any
[***] pursuant to this Agreement, which shall include without limitation Licensee’s agreement to [***]; provided, however, that in no event shall the costs to Licensee associated with Licensee’s use of such [***]
exceed the amount of any [***].  
  
 3.4
Compliance with the SGI In-Licenses. 
  
 3.4.1 Licensee, its Affiliates and Sublicensees shall comply with all obligations, covenants and conditions of the SGI In-Licenses listed in Schedule C (unless such obligations, conditions or covenants have been redacted by
SGI in the version of SGI In-License delivered to Licensee), and any amendments thereto following written disclosure thereof to Licensee, to the extent (i) expressly applicable to sublicensees under such SGI In-Licenses, and (ii) technology included
within such SGI In-License is being utilized in the Research Program or is incorporated into a Licensed Product. Licensee shall be entitled to all rights expressly provided sublicensees under the terms of the SGI In-Licenses, including but not
limited to the rights provided under [***]. The Parties agree that BMS is a Third Party beneficiary to this Agreement to the extent SGI Technology includes BMS Technology. SGI shall use best efforts to include in each SGI In-License executed
after the Effective Date a provision requiring the licensor of such rights to treat Licensee as a direct licensee under the terms of such SGI In-License in the event that such SGI In-License is terminated; provided that Licensee is then in
compliance with the terms of such SGI In-License. 
  

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 3.4.2 SGI shall perform all obligations required to be performed by it under each
SGI In-License in accordance with the terms and conditions of each such SGI In-License, and SGI will use its Commercially Reasonable Efforts to maintain each SGI In-License in full force and effect. SGI will not [***]. In the event that SGI
receives notice of a material breach of any SGI In-License, SGI shall immediately inform Licensee of receipt of such notice. 
  
 3.4.3 SGI will not [***] any [***] to an [***] that [***]. 
  
 3.5 Limited License to SGI. Subject to the provisions of
this Agreement, Licensee hereby grants to SGI, during the Research Program Term, a non-exclusive, royalty-free, non-sublicenseable (except to the extent that the Research Plan provides for the use of a Third Party subcontractor by SGI) license under
the Licensee Patents and Licensee Know-How in the Territory, for the sole purpose of enabling SGI to perform its obligations under Article 2 and the Research Plan. 
  
 3.6 [***]. At any time during the [***], Licensee shall have the right to [***] subject to and
in accordance with the procedures described below and upon payment of [***]. Once the Designated Antigen [***], such Designated Antigen shall be considered the “Former Designated Antigen” and (a) [***] and (b) [***]
provided, however, that the terms of this Section 3.6 shall not be deemed to grant to SGI any rights in the Licensee Patents, Licensee Know-How, Licensee Inventions, Licensee Invention Patents, or Joint Inventions, beyond the [***]. For
the avoidance of doubt, the grant of this license is not [***]. Thereafter, the [***] shall be considered the Designated Antigen for purposes of this Agreement (except, for the limited purpose of the license provided in [***]) to the
extent the Designated Antigen is considered the Former Designated Antigen and this Agreement shall be appropriately amended or modified to establish the [***] as the Designated Antigen. The [***], will have no effect on the intellectual property
ownership rights of the parties relating to such Designated Antigen as such rights existed on the date of the replacement. In addition, upon designation of the [***].  
  
 3.7 Availability of [***]. To determine if an Antigen is available to become the
[***], Licensee shall provide SGI with a [***], including to the extent available, the [***], which Licensee desires to [***] for purposes of this Agreement. Within [***], SGI shall notify Licensee in writing
whether the Exclusive License is available with respect to such Antigen. If the Exclusive License is available for such Antigen, such Antigen shall [***]. The Parties hereby acknowledge and agree that an Antigen [***] (a) [***]
or (b) [***]. 
  
 ARTICLE 4 
  
 TECHNOLOGY DISCLOSURE 
  
 As soon as reasonably practicable following the Effective Date, and from time to time during
the Term upon the reasonable request of Licensee, SGI shall deliver to Licensee, in such form as may reasonably be requested by Licensee from time to time, the SGI Know-How as is necessary or reasonably useful to enable Licensee to manufacture or
have manufactured and use the Drug Conjugation Materials and the ADCs as provided in this Agreement, including, without limitation, available written or electronic information relating to the [***]. During the Term, upon Licensee’s
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may be designated by Licensee, with assistance and training regarding the manufacture and/or use of Drug Conjugation Materials and ADCs; provided that if
in-person assistance is required, such assistance shall take place upon at least [***] prior written notice to SGI at SGI’s facilities, unless otherwise mutually agreed upon. Licensee shall pay to SGI for such assistance an amount equal
to the Personnel Fees in accordance with Section 6.1.2 for SGI employees providing such assistance. 
  
 ARTICLE 5 
  
 DEVELOPMENT AND COMMERCIALIZATION; MANUFACTURING 
  
 5.1 Diligence. Licensee shall use Commercially Reasonable Efforts to develop, commercialize and market Licensed Products. Notwithstanding the foregoing, Licensee shall have [***].

  
 5.2 Funding and Progress Reports. Except
as set forth herein, as between SGI and Licensee, Licensee shall be solely responsible for funding all costs of the development and commercialization of Licensed Products. Beginning on [***], and annually thereafter within [***]
following the [***], Licensee shall provide SGI with a written report summarizing Licensee’s significant activities related to research and development of Licensed Products and status of clinical trials and applications for
Regulatory Approval necessary for marketing Licensed Products. Such reports shall be deemed Licensee’s Confidential Information for the purposes of Article 8. 
  
 5.3 Manufacturing. 
  
 5.3.1 Except as otherwise set forth in this Agreement, Licensee shall be responsible for all
manufacturing and supply of Licensed Products. Licensee shall pay SGI for all Drug Conjugation Materials and/or ADCs supplied by SGI to Licensee under Section 2.3 at the [***] (the “Supply Fees”). 
  
 5.3.2 SGI shall, upon request by Licensee (i)
[***], and (ii) provide Licensee, or Third Parties manufacturing Drug Conjugation Materials on behalf of Licensee, such assistance related to the manufacture of Drug Conjugation Materials as may reasonably be requested by Licensee pursuant to
the terms of Article 4 and the Research Plan. Notwithstanding the foregoing, SGI shall [***]. 
  
 5.3.3 SGI shall, upon reasonable request by Licensee, [***]. 
  

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 ARTICLE 6 
  
 FEES, ROYALTIES AND PAYMENTS 
  

6.1 Research Fees. Licensee shall pay to SGI the following amounts in consideration of the Research Program: 
  
 6.1.1 Within ten (10) days of the Effective Date,
Licensee shall pay to SGI the sum of Two Million U.S. Dollars ($2,000,000) by wire transfer of immediately available funds (the “ADC Access Fee”). 
  
 6.1.2 Licensee shall pay SGI at a rate of [***] per FTE for the performance by such FTEs as
requested by Licensee pursuant to Sections 2.4, 5.3.2 and 5.3.3 and Articles 2, 4 and 11 of this Agreement (the “Personnel Fees”). Commencing upon the [***] of the Effective Date and upon every [***] thereafter, the
Personnel Fees will increase by [***] per FTE per year. The Personnel Fees and the Supply Fees are collectively referred to herein as the “Research Fees”. For purposes of clarification, costs for labor that are appropriately
includable within the calculation of Personnel Fees shall not be included in the calculation of Supply Fees. Within [***] days after the end of each [***], SGI shall submit a report to Licensee supporting the calculation of the
Research Fees due for such [***] (a “Research Fees Report”). Licensee shall pay all Research Fees to SGI within [***] of receipt of each Research Fees Report. 
  
 6.1.3 SGI shall be obligated to maintain all books
and records relating to Research Fees billed to Licensee during the Term. Licensee shall have the right to engage an independent certified public accounting firm of internationally recognized standing, selected by Licensee and reasonably acceptable
to SGI, to audit the books and records of SGI related to the Research Fees to verify the accuracy of the Research Fees Reports upon at least [***] prior notice and [***]. Such accountants may audit the books and records relating to the
Research Fees Reports for any year [***] of such request. The accounting firm shall disclose to Licensee only whether such Research Fees Reports were correct or not, and the specific details concerning any discrepancies. No other information
obtained by such accountants shall be shared with Licensee. If such accounting firm concludes that there was an overpayment of the Research Fees during any time period that is subject to the audit, SGI shall refund such overpayment within [***]
of the date Licensee delivers to SGI such accounting firm’s written report so correctly concluding. The fees charged by such accounting firm shall be paid by [***]; provided, however, if the audit discloses that the
Research Fees charged for the audited period are more than [***] of the Research Fees actually due for such period, then [***] shall pay the reasonable fees and expenses charged by such accounting firm. If such accounting firm
concludes that the Research Fees paid were less than what was owed during such period, Licensee shall pay the amount of any underpayment within [***] of the date Licensee receives such accounting firm’s written report so concluding.

  
 6.2 License Maintenance Fees. Licensee
shall be [***] to SGI in the sum of [***] by wire transfer of immediately available funds (the “Exclusive License Renewal Fee”) on [***]. Notwithstanding the foregoing, the Exclusive License Renewal Fee
[***]. 
  
 6.3 Royalties Payable by
Licensee. In consideration for the Exclusive License granted to Licensee herein, during the Royalty Term, and subject to Section 6.4, Licensee shall pay to SGI royalties on Net Sales of Licensed Products. Such royalties shall be paid at the
following rates, determined on a Licensed Product-by-Licensed Product basis as set forth below: 
  
 6.3.1 [***] of the first [***] in aggregate [***] of the [***] in [***]; 
  
 6.3.2 [***] of the portion of aggregate
[***] of the [***] between [***]; and 
  

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 6.3.3 [***] of the portion of aggregate [***] of the [***] in
excess of [***]. 
  
 In establishing the royalty structure
of this Section 6.3, the Parties recognize, and Licensee acknowledges, the substantial value of the various actions and investments undertaken by SGI prior to the Effective Date. Such value is significant and in addition to the value of SGI’s
grant to Licensee of the Exclusive License pursuant to Section 3.1, as it enables the rapid and effective development and commercialization of the Licensed Products in the Territory. Therefore, the Parties agree that the royalty payments calculated
as a percentage of [***] (plus the license fee, milestone payments and other payment provided for elsewhere herein) provide fair compensation to SGI for these additional benefits. 
  
 6.4 Royalty Reductions. During the Royalty Term, the royalties otherwise payable under Section 6.3
shall be [***]: 
  
 6.4.1
With respect to any country in which royalties are payable in accordance with Section 6.3 above, during any period in which there is [***], the royalty rate otherwise in effect under Section 6.3 shall be [***] in such country
during such period. 
  
 6.4.2 With respect
to any country in which royalties are payable in accordance with Section 6.3 above, during any period in which [***], the royalties otherwise payable in accordance with Section 6.3 shall be [***] in such country during such period.

  
 6.4.3 Licensee shall be solely
responsible for paying all royalties owed to Third Parties by either Licensee or by SGI under SGI In-Licenses on account of sales of Licensed Products, including royalties owed due to use of the SGI Technology; [***]. SGI represents and
warrants that all Third Party royalties owed pursuant to the SGI In-Licenses existing as of the Effective Date are described in Schedule B (“Existing Third Party Royalties”). 
  
 6.4.4 If the sum of (a) the royalties payable by
Licensee, its Affiliates or Sublicensees to SGI under [***] (taking into account Sections 6.4.1 and 6.4.2) and (b) the Existing Third Party Royalties payable by Licensee, its Affiliates or Sublicensees pursuant to Section 6.4.3 [***],
then the royalties otherwise due and payable by Licensee under Section 6.3 shall be [***] of any royalties due by Licensee with respect to [***] of a [***] in such year that [***] of such Net Sales; provided,
however, that in no event shall the royalty payments due and payable to SGI pursuant to Section 6.3 with respect to a Licensed Product in any calendar year be [***] of the amount that would otherwise be owed to SGI under [***].

  
 6.5 Milestone Payments. As additional
consideration for the licenses, rights and privileges granted to it hereunder, Licensee shall pay to SGI the following milestone payments within [***] of the first occurrence of each event set forth below with respect to the first
[***], whether such events are achieved by Licensee, its Affiliates or Sublicensees, as follows: 
  
 6.5.1 Upon [***]; 
  
 6.5.2 Upon [***]; 
  
 6.5.3 Upon [***]; 
  

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 6.5.4 Upon [***]; 
  
 6.5.5 Upon [***]; 
  
 6.5.6 Upon [***]; and 
  
 6.5.7 Upon [***]. 
  
 If any of the milestone events set forth in Sections 6.5.1 through 6.5.6
above is achieved before a preceding milestone, then such payment shall be deemed to become due within [***] of the achievement of the subsequent milestone. [***]. 
  
 6.6 Payment Terms. Royalties shown to have accrued by each Report provided for under Article 7 of this
Agreement shall be due on the date such Report is due pursuant to Section 7.1.3. 
  
 6.7 Payment Method. All payments by Licensee to SGI under this Agreement shall be paid in U.S. dollars, and all such payments shall be made by bank wire transfer in immediately available funds to
the bank account designated by SGI in writing. 
  
 6.8
Exchange Control. If at any time legal restrictions prevent the prompt remittance of part or all royalties with respect to any country in the Territory where Licensed Product is sold, payment shall be made through such lawful means
or method as the Parties reasonably shall determine. 
  
 6.9
Withholding Taxes. Licensee shall be entitled to deduct the amount of any withholding taxes payable or required to be withheld by Licensee, its Affiliates or Sublicensees, to the extent Licensee, its Affiliates or Sublicensees pay
such withheld amounts to the appropriate governmental authority on behalf of SGI. Licensee shall use Commercially Reasonable Efforts to minimize any such taxes, levies or charges required to be withheld on behalf of SGI by Licensee, its Affiliates
or Sublicensees. Licensee promptly shall deliver to SGI proof of payment of all such taxes, levies and other charges, together with copies of all communications from or with such governmental authority with respect thereto, and shall cooperate with
SGI in seeking any related tax credits that may be available to SGI with respect thereto. 
  
 ARTICLE 7 
  
 ROYALTY REPORTS AND ACCOUNTING 
  
 7.1
Reports, Exchange Rates. 
  
 7.1.1
During the Royalty Term, Licensee shall furnish to SGI, within [***] of the end of each [***], a written report showing, on a consolidated basis in reasonably specific detail and on a country-by-country basis, with respect to such
[***], (a) the gross sales of Licensed Products sold by Licensee, its Affiliates and its Sublicensees in the Territory during such [***] and the calculation of Net Sales from such gross sales; (b) the royalties payable in U.S. dollars,
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Products; (c) the withholding taxes, if any, required by law to be deducted in respect of such royalties; (d) the dates of the First Commercial Sale of each
Licensed Product in each country in the Territory, if it has occurred during such [***]; and (e) the exchange rates (as determined pursuant to Section 7.1.4 herein) used in determining the royalty amount expressed in U.S. dollars
(collectively, “Reports”). 
  
 7.1.2 Licensee shall include in each permitted sublicense granted by it pursuant to this Agreement a provision requiring its Affiliates and Sublicensees to make Reports to Licensee sufficiently in advance of Licensee’s reporting
deadline under Section 7.1.1 so as to enable Licensee to meet such deadlines and to keep and maintain records of sales made pursuant to each sublicense as if such sales were by Licensee for the purpose of Section 7.1.1. 
  
 7.1.3 Licensee shall keep complete and accurate
records in sufficient detail to properly reflect all gross sales and Net Sales and to enable the royalties payable hereunder to be determined. 
  
 7.1.4 With respect to Net Sales invoiced in U.S. dollars, the Net Sales and the amounts due to SGI hereunder shall be expressed in
U.S. dollars. With respect to Net Sales invoiced or expenses incurred in a currency other than U.S. dollars, the Net Sales or expenses shall be expressed in the domestic currency of the entity making the sale, together with the U.S. dollar
equivalent, calculated using the [***].  
  
 7.2
Audits. 
  
 7.2.1 Upon the
written request of SGI and with at least [***] prior written notice, but not more than [***] in any [***], Licensee shall permit an independent certified public accounting firm of internationally recognized standing, selected by
SGI and reasonably acceptable to Licensee, at SGI’s expense, to have access during normal business hours to such of the records of Licensee as required to be maintained under this Agreement to verify the accuracy of the Reports due hereunder.
Such accountants may audit records relating to Reports made for any year [***]. The accounting firm shall disclose to SGI only whether the Reports were correct or not, and the specific details concerning any discrepancies. No other
information obtained by such accountants shall be shared with SGI. The accounting firm shall provide a copy of its report to Licensee at the same time that such report is provided to SGI. 
  
 7.2.2 If such accounting firm concludes that any
royalties were owed but not paid to SGI, Licensee shall pay the additional royalties within [***] after the date of such determination. The fees charged by such accounting firm shall be paid by [***]; provided, however,
if the audit discloses that the royalties payable by Licensee for the audited period are more than [***] of the royalties actually paid for such period, then [***] shall pay the reasonable fees and expenses charged by such accounting
firm. If such accounting firm concludes that the royalties paid were more than what was owed during such period, SGI shall refund the overpayments within [***] of the date SGI receives such accounting firm’s written report so concluding.

  
 7.3 Confidential Financial Information.
SGI shall treat all financial information subject to review under this Article 7 or under any sublicense agreement as Confidential 

  

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Information of Licensee as set forth in Article 8, and shall cause its accounting firm to retain all such financial information in confidence under terms
substantially similar to those set forth in Article 8. 
  
 ARTICLE 8 
  
 CONFIDENTIALITY

  
 8.1 Non-Disclosure Obligations.
Except as otherwise provided in this Article 8, during the Term and for a period of [***] thereafter, each Party shall maintain in confidence, and use only for purposes as expressly authorized and contemplated by, or in the exercise of
its rights and performance of its obligations under, this Agreement, all Confidential Information, of the other Party. “Confidential Information” means all confidential or proprietary information or data, whether provided in
written, oral, graphic, video, computer or other form, provided by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) pursuant to this Agreement or generated pursuant to this Agreement or
the Research Collaboration Agreement, including but not limited to, information relating to the Disclosing Party’s existing or proposed research, development efforts, patent applications, business or products and any other materials that have
not been made available by the Disclosing Party to the general public. Confidential Information of SGI shall include SGI Know-How, Drug Conjugation Materials and SGI’s interest in any Inventions and New Technologies. Confidential Information of
Licensee shall include Licensee Know-How, Licensee ADC Know-How and Licensee’s interests in all Inventions. Each Party shall use at least the same standard of care as it uses to protect its own Confidential Information to ensure that its and
its Affiliates’ employees, agents, consultants and clinical investigators only make use of the other Party’s Confidential Information for purposes as expressly authorized and contemplated by this Agreement and do not disclose or make any
unauthorized use of such Confidential Information. 
  
 8.2
Permitted Disclosures. Notwithstanding the foregoing, but subject to the last sentence of this Section 8.2, information, documents and materials will not be considered as “Confidential Information” and the provisions of
Section 8.1 shall not apply to information, documents or materials that the Receiving Party can conclusively establish: 
  
 8.2.1 have become published or otherwise entered the public domain other than by breach of this Agreement by the Receiving Party or
its Affiliates; 
  
 8.2.2 have become
known to the Receiving Party by disclosure from a Third Party, provided such Confidential Information was not obtained by such Third Party directly or indirectly from the Disclosing Party on a confidential basis; 
  
 8.2.3 prior to disclosure under the Agreement, was
already in the possession of the Receiving Party, its Affiliates or Sublicensees, provided such Confidential Information was not obtained directly or indirectly from the Disclosing Party; 
  
 8.2.4 are required to be disclosed by the Receiving
Party to comply with any applicable law, regulation or court order, provided that the Receiving Party shall provide prior 

  

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notice of such disclosure to the Disclosing Party and take reasonable and lawful actions to avoid or minimize the degree of disclosure; and 
  
 8.2.5 is independently developed by or for the
Receiving Party or its Affiliates without reference to or reliance upon the Confidential Information. 
  
 8.3 Terms of the Agreement. Except as otherwise provided in this Article 8, Licensee and SGI shall not disclose any terms or
conditions of this Agreement to any Third Party without the prior consent of the other Party, except as required by applicable laws, regulations or a court order or to comply with rules of a securities exchange, in which case the disclosing Party
shall provide notice to the other Party and take reasonable and lawful actions to avoid or minimize the degree of such disclosures. 
  
 8.4 Press Releases and Other Disclosures to Third Parties. Except as otherwise provided in this Article 8, neither SGI nor Licensee
will, without the prior written consent of the other which consent will not be unreasonably withheld, conditioned or delayed, issue any press release or make any other public announcement or furnish any statement to any person or entity (other than
either Parties’ respective Affiliates) concerning the existence of this Agreement, its terms and the transactions contemplated hereby, except for (i) an initial press release mutually agreed upon by the Parties, (ii) disclosures made in
compliance with Sections 8.2, 8.3 and 8.5, (iii) disclosures made to attorneys, consultants, accountants and other service providers retained by SGI or Licensee; provided, that such service providers are under obligations of confidentiality at least
as restrictive as those contained herein. Notwithstanding anything contained in this Article 8 to the contrary, Licensee and its Affiliates shall be entitled to disclose the terms of this Agreement and information and results arising hereunder
(including clinical trial results) to governmental agencies, including but not limited to the Securities and Exchange Commission and the FDA, if in the reasonable opinion of their respective counsel such disclosure is necessary to comply with law;
provided, however, that such disclosure shall be sent to SGI for review no later than [***] prior to sending to such governmental agencies and Licensee and its Affiliates shall redact those portions of such disclosure as reasonably requested
by SGI in accordance with applicable laws or regulations in order to protect SGI’s Confidential Information to the extent that such redaction would not, in the good faith belief of Licensee or its Affiliates, as applicable, result in violation
of applicable law. 
  
 8.5 Publications Regarding
Results of the Research Program. Neither Party may publish, present or announce results of the Research Program either orally or in writing (a “Publication”) without complying with the provisions of this Section 8.5. The
other Party shall have [***] from receipt of a proposed Publication to provide comments and/or proposed changes to the publishing Party. The publishing Party shall reasonably take into account the comments and/or proposed changes made by the
other Party on any Publication and shall agree to designate employees or others acting on behalf of the other Party as co-authors on any Publication describing results to which such persons have contributed in accordance with standards applicable to
authorship of scientific publications. If the other Party reasonably determines that the Publication would entail the public disclosure of such Party’s Confidential Information and/or of a patentable invention upon which a patent application
should be filed prior to any such disclosure, submission of the concerned Publication to Third Parties shall be delayed for [***] any such Confidential Information of the other Party (if the other Party has requested deletion 

  

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thereof from the proposed Publication), and/or the drafting and filing of a patent application covering such invention, provided such additional period shall
not exceed [***] from the date the publishing Party first provided the proposed Publication to the other Party; provided, however, that such [***] period shall be extended for an additional reasonable period of time if the
non-publishing Party is diligently pursuing appropriate means to protect its intellectual property. 
  
 ARTICLE 9 
  
 INVENTIONS AND PATENTS 
  
 9.1 Ownership of Inventions. 
  
 9.1.1 Disclosure of Inventions. Each Party shall promptly disclose to the other Party Inventions made by such Party during the Term. 
  
 9.1.2 Ownership of Inventions. All right, title and interest in all Inventions shall be
owned as follows: 
  
 (a) Licensee shall own and
have the sole right in accordance with Section 9.2.2 to file patent applications on all Inventions that (i) are made solely by one or more employees, agents or consultants of [***] or (ii) are made solely by [***] (“Licensee
Inventions”). To the extent that any Licensee Inventions shall have been made solely by [***]. For the avoidance of doubt, Licensee shall [***], including without limitation patents or patent applications claiming compositions
of matter or methods of use of Licensed Products. 
  
 (b) SGI shall own and shall have the sole right in accordance with Section 9.2.2 to file patent applications on all Inventions that (i) are made solely by one or more employees, agents or consultants of [***] or (ii) are made solely
by [***] (“SGI Inventions”). To the extent that any SGI Inventions shall have been made solely by [***]. 
  
 (c) Except as set forth in Sections 9.1.2 (a) and 9.1.2 (b), Licensee and SGI shall jointly own all other Inventions (“Joint
Inventions”). 
  
 (d) Inventorship, for
the purposes of this Agreement, shall be determined in accordance with U.S. patent law. 
  
 9.2 Patent Prosecution and Maintenance. 
  
 9.2.1 SGI shall be responsible for and shall control the preparation, filing, prosecution, grant and maintenance of all SGI
Patents. SGI shall, at its sole expense, prepare, file, prosecute and maintain such SGI Patents in good faith consistent with its customary patent policy and its reasonable business judgment, and shall consider in good faith the interests of
Licensee in so doing. SGI shall promptly provide Licensee a copy of all material, publicly available filings related to the SGI Patents to the extent such SGI Patents are related to a Licensed Product. 
  
 9.2.2 Each Party shall be responsible for and shall
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Inventions owned [***] by it in accordance with [***] and shall, [***] in good faith consistent with [***]. Patents and patent
applications claiming Inventions owned [***] shall be controlled, prepared, filed, prosecuted and maintained by [***]. The Party responsible for filing and controlling patent prosecution and maintenance for Inventions shall provide to
the other Party copies of any response, document or communication with patent authorities that could materially affect the scope of any patent or patent application covering Inventions or detrimentally effect the rights of the Parties in such
inventions in any way, at least [***] prior to the planned submission or communication. Such other Party shall have the opportunity to comment on the response or document within such [***] period, which comments shall be reasonably
considered by the Party primarily responsible for the prosecution. 
  
 9.2.3 If either Party decides not to continue prosecuting patent applications or not to maintain a patent claiming an Invention assigned to such Party pursuant to Section 9.1 in whole or in part, then such
Party shall promptly so notify the other Party (which notice shall be at least [***] before any relevant deadline for such patent application or patent). Thereafter, the other Party shall have the right to prosecute or maintain such patent
application or patent, at such Party’s sole expense. The Party responsible for filing and controlling patent prosecution and maintenance for Inventions shall provide to the other Party copies of any response, document or communication with
patent authorities that could materially affect the scope of any patent or patent application covering Inventions or detrimentally effect the rights of the Parties in such Inventions in any way, at least [***] prior to the planned submission
or communication. Such other Party shall have the opportunity to comment on the response or document within such [***] period, which comments shall be reasonably considered by the Party primarily responsible for the prosecution. 

 
 9.2.4 The Parties shall at all times fully
cooperate in order to reasonably implement the foregoing provisions, such cooperation may include the execution of necessary legal documents, coordinating prosecution to avoid issues during prosecution including enablement, estoppel and double
patenting, and the provision of the assistance of its relevant personnel. Further, notwithstanding anything to the contrary herein, neither Party shall disclose in any patent application, patent or publication of such party the Confidential
Information of the other Party without prior written consent. 
  
 9.3 Enforcement of SGI Patents. 
  
 9.3.1 SGI shall have the first right, [***], but not the obligation, to determine the appropriate course of action to enforce the [***] or otherwise abate the infringement thereof, to take (or refrain from taking)
appropriate action to enforce the [***], to control any litigation or other enforcement action and to enter into, or permit, the settlement of any such litigation or other enforcement action with respect to the [***]; provided, that
SGI shall not settle any such action in a manner that would materially negatively affect the rights or obligations of Licensee hereunder without Licensee’s prior consent, which consent shall not be unreasonably withheld. SGI shall in good faith
consider the interests of Licensee in conducting the foregoing activities. All monies recovered upon the final judgment or settlement of any such suit to enforce any [***] with respect to the manufacture, use or sale by Third Parties of
products competitive with Licensed Products or technologies competitive with technologies related to the manufacture or use of Drug Conjugation Materials or ADCs shall be [***]. In the event Third Parties have 

  

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rights in the SGI Patents under other license agreements between SGI and such Third Parties, such recoveries shall be [***]. Licensee shall reasonably
cooperate with SGI in any such action at SGI’s expense, to enforce the SGI Patents, including being joined as a party to such action if necessary. 
  
 9.3.2 If [***] fails to take any action to enforce the [***] or control any litigation with respect to the [***]
with respect to the manufacture, use or sale by Third Parties of products competitive with Licensed Products or technologies competitive with technologies related to the manufacture or use of Drug Conjugation Materials or ADCs within a period of
ninety (90) days after the Parties receive reasonable notice of the infringement of the [***], then [***]. In such case, all monies recovered upon the final judgment or settlement of any such suit to enforce any [***] shall be
retained by [***]. In the event Third Parties have rights in the SGI Patents under other license agreements between SGI and such Third Parties, such recoveries shall be [***]. In such a case, SGI shall reasonably cooperate with
Licensee, [***], in its efforts to enforce the [***], including being joined as a party to such action if necessary. In no event may Licensee assert an argument or settle a suit in a manner which would render a claim in the [***]
invalid or unenforceable without SGI’s prior written consent. 
  
 9.3.3 [***] shall have the right, at its sole expense, to determine the appropriate course of action to enforce patents claiming [***], or otherwise to abate the infringement thereof, to take (or
refrain from taking) appropriate action to enforce the [***], to control any litigation or other enforcement action and to enter into, or permit, the settlement of any such litigation or other enforcement action with respect to the
[***]. All monies recovered upon the final judgment or settlement of any such suit to enforce any [***]. SGI shall reasonably cooperate with Licensee, at Licensee’s expense, in any action to enforce the [***]. 

 
 9.3.4 In the event either Party becomes aware of
an infringement by a Third Party of a Joint Patent, it shall promptly notify the other Party and the Parties shall determine a mutually agreeable course of action; provided, however, that if such infringement relates to a [***], or otherwise
to abate the infringement thereof, to take (or refrain from taking) appropriate action to enforce the Joint Patents, to control any litigation or other enforcement action and to enter into or permit the settlement of any such litigation or
enforcement action with respect to such Joint Patent; provided, however, that in no event shall any Party make an argument or settle a dispute which would render a claim in a Joint Patent to be invalid or unenforceable or that would materially
negatively affect the rights of the other Party with respect to such Joint Patent without the other Party’s prior written consent. All monies recovered upon the final judgment or settlement of any such suit to enforce any Joint Patent shall be
[***]. 
  
 9.4 Prior Patent Rights.
Notwithstanding anything to the contrary in this Agreement, with respect to any SGI Patents that are subject to the SGI In-Licenses, the rights and obligations of the Parties under Section 9.2 and 9.3 shall be subject to SGI’s licensors’
rights to participate in and control prosecution, maintenance and enforcement of such SGI Patents, and to receive a share of damages recovered in such action, in accordance with the terms and conditions of the applicable SGI In-License. 

 

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 ARTICLE 10 
  
 INFRINGEMENT ACTIONS BROUGHT BY THIRD PARTIES 
  
 If Licensee, SGI or any of their respective Affiliates or Sublicensees, is sued by a Third Party for infringement of a Third Party’s
patent because of the research, development, manufacture, use or sale of Licensed Products, the Party that has been sued shall promptly notify the other Party in writing within ten (10) days of its receipt of written notice of such suit. The notice
shall set forth the material facts to the extent available to the relevant Party, including the nature of the claims made and the patents with respect to which infringement is claimed. Licensee shall have the first right, but not the obligation, to
defend against such suit at its sole cost and expense, with counsel chosen by Licensee; provided, that if such suit relates primarily to the [***] specifically, then [***] shall have the first right, but not the obligation, to defend
against such suit at its sole cost and expense. Each Party agrees to be joined as a party if necessary to defend the action or proceeding and shall provide all reasonable cooperation, including any necessary use of its name, required to defend
against such suit. The Party controlling the defense of such suit shall have sole control of any such suit and all negotiations for its settlement or compromise, provided that such Party shall not settle or compromise any such suit or enter into any
consent order for the settlement or compromise thereof without the prior written consent of the other Party, such consent not to be unreasonably withheld, delayed or conditioned. If, prior to the expiration of [***] from such claim being
brought, or such sooner period as may be necessary to appropriately respond to said claim, the responsible Party has not elected to defend such action or proceeding, or if the responsible Party shall notify the other Party at any time prior thereto
of its intention not to defend such action or proceeding, then, and in those events only, the other Party shall have the right, but not be obligated, to defend and control any action or proceeding. Each Party agrees to be joined as a party if
necessary to defend the action or proceeding and shall provide all reasonable cooperation, including any necessary use of its name, required to defend against such suit. 
  
 ARTICLE 11 
  
 REGULATORY ASSISTANCE 
  
 All Regulatory Approvals with respect to Licensed Products in the Field in the Territory shall be in the name of Licensee or its Sublicensee. Licensee
shall have exclusive control and authority over, and responsibility for, the regulatory strategies relating to the development and commercialization of all Licensed Products in the Field in the Territory, including, without limitation: (a) the
preparation of all documents submitted to Regulatory Authorities and the filing of all submissions relating to Regulatory Approval of Licensed Products in the Field in the Territory (including each IND); and (b) all regulatory actions,
communications and meetings with any governmental authority with respect to any Licensed Product in the Field in the Territory. Upon the request of Licensee, SGI shall use Commercially Reasonable Efforts to provide to Licensee on a timely basis such
information as may be required or useful for the foregoing regulatory activities, and otherwise provide reasonable assistance to Licensee in complying with all regulatory obligations, including certifications and product approvals. Licensee shall be
responsible for interfacing, corresponding and meeting with all Regulatory Authorities with respect to any Licensed Product in the Field in the Territory. Except as required 

  

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by applicable law or in response to a request of Licensee, SGI shall not communicate directly with the FDA or any other governmental authority relating to
any Licensed Product without the prior written consent of Licensee. In furtherance thereof, SGI shall refer all FDA communications relating to any Licensed Product to Licensee. SGI shall cooperate with Licensee to provide all reasonable assistance
and take all actions reasonably requested by Licensee that are necessary to comply with any law in the Territory applicable to any Licensed Product in the Field. SGI hereby [***] required to support the filing of all submissions relating to
Regulatory Approval of a Licensed Product in the Field in the Territory, solely for purposes of allowing Licensee to obtain and maintain submissions relating to Regulatory Approvals for Licensed Products in the Field in the Territory. In furtherance
of the foregoing, SGI shall, promptly upon request of Licensee, deliver a letter to the FDA, in form and substance reasonably acceptable to Licensee, authorizing Licensee to reference the drug master files of SGI. SGI will inform Licensee of all
changes to drug master files that will or might be reasonably likely to affect the regulatory filings of Licensee. Licensee shall reimburse SGI for any out of pocket costs incurred by SGI in providing any such information plus an amount equal to
SGI’s then current Personnel Fee for SGI’s personnel engaged in such activities, as set forth in Section 6.1.2. 
  
 ARTICLE 12 
  
 REPRESENTATIONS AND WARRANTIES 
  
 12.1 Representations and Warranties. 
  
 12.1.1 This Agreement has been duly executed and delivered by each Party and constitutes the valid and binding obligation of each
Party, enforceable against such Party in accordance with its terms, except as enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or other laws relating to or affecting creditors’ rights
generally and by general equitable principals. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of each Party. 
  
 12.1.2 The execution, delivery and performance of the Agreement by each Party does not conflict with
any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 

 
 12.1.3 SGI represents and warrants that it has the
right to grant the licenses and sublicenses granted herein and that as of the Effective Date it has [***] in connection with activities to be conducted hereunder. Licensee represents and warrants that it has the right to grant the licenses
granted to SGI herein and that as of the Effective Date it has [***]. 
  
 12.1.4 Licensee and SGI shall comply in all material respects with all applicable laws, rules and regulations in the development and commercialization of Licensed Products and each shall cause its Affiliates
and Sublicensees to do the same. 
  

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 12.2 Additional SGI Representations, Warranties and Covenants. SGI represents,
warrants and covenants to Licensee that: 
  
 12.2.1 all Third Party royalties owed pursuant to the existing SGI In-Licenses are listed in Schedule B. 
  
 12.2.2 all patents and patent applications included within the SGI Patents listed on Schedule B are existing and,
[***], in whole or in part; 
  
 12.2.3
all inventors of any inventions included within the SGI Patents listed on Schedule B have [***] and (ii) to [***]; 
  
 12.2.4 each of the SGI In-Licenses are in [***] of each of the parties thereto and are in the form previously furnished to
Licensee; 
  
 12.2.5 SGI (i) has the right
to grant the licenses granted herein; (ii) Controls the patents and patent applications listed on Schedule B and (iii) that as of the Effective Date it has [***]; 
  
 12.2.6 the [***]; 
  
 12.2.7 the [***]; 
  
 12.2.8 neither [***];  
  
 12.2.9 there are no claims, judgments or settlements against SGI pending or, [***];

  
 12.2.10 it has obtained the
[***]; and 
  
 12.2.11
[***]. 
  
 12.3 Performance by
Affiliates. The Parties recognize that each may perform some or all of its obligations under this Agreement through Affiliates, provided, however, that each Party shall remain responsible and be a guarantor of the performance by its
Affiliates and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance. 
  

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 ARTICLE 13 
  
 TERM AND TERMINATION 
  
 13.1 Term. Unless earlier terminated pursuant to this Article 13, the term of this Agreement (the “Term”) shall
commence on the Effective Date and shall remain in full force and effect until the expiration of the last to expire Royalty Term. 
  
 13.2 Termination by Licensee. Licensee shall have the right to terminate this Agreement in its entirety by providing not less than
[***] prior written notice to SGI of such termination. 
  
 13.3 Termination for Cause. Either Party may terminate this Agreement for material breach by the other Party (the “Breaching Party”) of any material provision of the Agreement, if the Breaching Party
has not cured such breach within [***] after notice thereof. In addition, all rights and obligations under an SGI In-License sublicensed under this Agreement shall terminate upon [***] prior written notice by SGI if Licensee performs
any action that would constitute a breach of any material provision of such SGI In-License Agreement [***] and fails to cure such breach within such sixty (60) day period; provided, however, such cure period may be extended by mutual written
consent of the Parties. All rights and obligations under the [***]. 
  
 13.4 Termination Upon Insolvency. Either Party may terminate this Agreement if, at any time, (a) the other Party shall file in any court or agency pursuant to any statute or regulation of any
state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that Party or of its assets, (b) such other Party shall be served with an
involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within [***] after the filing thereof, (c) such other Party shall propose or be a party to any dissolution or liquidation, or (d)
such other Party shall make an assignment for the benefit of its creditors. 
  
 13.5 Effect of Expiration and Termination. 
  
 13.5.1 Except where explicitly provided within this Agreement, termination of this Agreement for any reason, or expiration of this
Agreement, will not affect any: (a) obligations, including payment of any royalties or other sums which have accrued as of the date of termination or expiration, and (b) rights and obligations which, from the context thereof, are intended to survive
termination or expiration of this Agreement, including provisions of Articles 1, 8, 9, 10, 13, 14, 18 and 19, Sections 6.1.2, 7.2 and 7.3 and any payment obligations pursuant to Section 6 incurred prior to termination.  
  
 13.5.2 Subject to Section 13.5.3, all licenses
granted by SGI to Licensee hereunder, including the Exclusive License, and all sublicenses granted by Licensee hereunder, will immediately terminate upon termination of this Agreement pursuant to Sections 13.2, 13.3 (if SGI is terminating party) or
13.4 (if SGI is terminating party).  
  
 13.5.3 Upon termination of this Agreement for any reason, any Sublicensee hereunder who has not breached its sublicense in any material respect shall be entitled to receive a license directly from SGI granting rights substantially
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granted in such sublicense and containing obligations as a licensee identical to those set forth in this Agreement; provided, however, that (a) each such
Sublicensee shall expressly agree in writing to be bound by the terms and conditions of such direct license, and (b) the obligations of SGI under any such direct license shall be no greater than the obligations of SGI hereunder. 
  
 13.5.4 Upon the expiration of the Royalty Term, SGI
shall grant, and shall by this provision be deemed to have granted, to Licensee a royalty-free, perpetual, worldwide, nonexclusive license to use the SGI Technology to make, have made, import, have imported and use Drug Conjugation Materials and
Licensed Products, for the offer for sale and sale of Licensed Products, with no further obligation to SGI. 
  
 13.5.5 Upon any termination of the Exclusive License, except by Licensee in accordance with [***], Licensee shall be
automatically deemed to grant to [***]. 
  
 13.6
[***]. Notwithstanding the foregoing, such election shall not preclude the exercise by Licensee of any other remedies available to it under the terms of this Agreement, in law or in equity. 
  
 ARTICLE 14 
  
 INDEMNITY 
  
 14.1 Licensee. Licensee shall defend SGI and its Affiliates at Licensee’s cost and expense, and
will indemnify and hold SGI and its Affiliates and their respective directors, officers, employees and agents (the “SGI Indemnified Parties”) harmless from and against any and all losses, costs, damages, fees or expenses (including
reasonable attorney’s fees and expenses) (“Losses”) incurred in connection with or arising out of any Third Party claim (a “Third Party Claim”) relating to (i) any material breach by Licensee of this Agreement,
(ii) any gross negligence or willful misconduct of Licensee in the exercise of any of its rights or the performance of any of its obligations under this Agreement, or (iii) any liability or other claims arising from the manufacture, handling,
packaging, storage, sale or other disposition of any Licensed Product by Licensee or any of its Affiliates or Sublicensees; provided, however, that the obligations set forth in this Section 14.1 shall not apply to the extent that such Losses were
incurred in connection with, or have arisen out of, any act or omission of gross negligence or willful misconduct on the part of SGI for which SGI would otherwise be required to indemnify the Licensee Indemnified Parties pursuant to Section 14.2.

  
 14.2 SGI. SGI shall defend Licensee and
its Affiliates at SGI’s cost and expense, and will indemnify and hold Licensee and its Affiliates and their respective directors, officers, employees and agents (the “Licensee Indemnified Parties”) harmless from and against any
and all Losses incurred in connection with or arising out of any Third Party Claim relating to (i) any material breach by SGI of this Agreement, (ii) any gross negligence or willful misconduct of SGI in the exercise of any of its rights or the
performance of any of its obligations under this Agreement, (iii) any product liability, clinical trial liability or other claims arising from the manufacture, handling, packaging, storage, sale or other disposition of any Drug Conjugation Materials
or ADCs by SGI or its Affiliates, or (iv) an SGI In-License Agreement for which SGI would be entitled to indemnification thereunder; provided, however, that the obligations set forth 

  

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in this Section 14.2 shall not apply to the extent that such Losses were incurred in connection with, or have arisen out of, any act or omission of gross
negligence or willful misconduct on the part of Licensee for which Licensee would otherwise be required to indemnify the SGI Indemnified Parties pursuant to Section 14.1. 
  
 14.3 Indemnification Procedures. 
  
 14.3.1 In the case of a Third Party Claim made by any Person who is not a Party to this Agreement (or
an Affiliate thereof) as to which a Party (the “Indemnitor”) may be obligated to provide indemnification pursuant to this Agreement, such Party seeking indemnification hereunder (“Indemnitee”) will notify the
Indemnitor in writing of the Third Party Claim (and specifying in reasonable detail the factual basis for the Third Party Claim and to the extent known, the amount of the Third Party Claim) reasonably promptly after becoming aware of such Third
Party Claim; provided, however, that failure to give such notification will not affect the indemnification provided for hereunder except to the extent the Indemnitor shall have been actually prejudiced as a result of such failure. 
  
 14.3.2 If a Third Party Claim is made against an
Indemnitee and the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee therefor, the Indemnitor will be entitled, within one hundred twenty (120) days after receipt of written notice from the Indemnitee of the commencement
or assertion of any such Third Party Claim, to assume the defense thereof (at the expense of the Indemnitor) with counsel selected by the Indemnitor and reasonably satisfactory to the Indemnitee, for so long as the Indemnitor is conducting a good
faith and diligent defense. Should the Indemnitor so elect to assume the defense of a Third Party Claim, the Indemnitor will not be liable to the Indemnitee for any legal or other expenses subsequently incurred by the Indemnitee in connection with
the defense thereof; provided, that if under applicable standards of professional conduct a conflict of interest exists between the Indemnitor and the Indemnitee in respect of such claim, such Indemnitee shall have the right to employ separate
counsel (which shall be reasonably satisfactory to the Indemnitor) to represent such Indemnitee with respect to the matters as to which a conflict of interest exists and in that event the reasonable fees and expenses of such separate counsel shall
be paid by such Indemnitor; provided, further, that the Indemnitor shall only be responsible for the reasonable fees and expenses of one separate counsel for such Indemnitee. If the Indemnitor assumes the defense of any Third Party Claim, the
Indemnitee shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the Indemnitor. If the Indemnitor assumes the defense of any Third Party Claim, the Indemnitor
will promptly supply to the Indemnitee copies of all correspondence and documents relating to or in connection with such Third Party Claim and keep the Indemnitee informed of developments relating to or in connection with such Third Party Claim, as
may be reasonably requested by the Indemnitee (including, without limitation, providing to the Indemnitee on reasonable request updates and summaries as to the status thereof). If the Indemnitor chooses to defend a Third Party Claim, all Indemnitees
shall reasonably cooperate with the Indemnitor in the defense thereof (such cooperation to be at the expense, including reasonable legal fees and expenses, of the Indemnitor). If the Indemnitor does not elect to assume control of the defense of any
Third Party Claim within the one hundred twenty (120) day period set forth above, or if such good faith and diligent defense is not being or ceases to be conducted by the Indemnitor, the Indemnitee shall have the right, at the expense of the
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notice to the Indemnitor of its intent to do so, to undertake the defense of the Third Party Claim for the account of the Indemnitor (with counsel selected
by the Indemnitee), and to compromise or settle such Third Party Claim, exercising reasonable business judgment and with the written consent of the non-electing Indemnitor, which consent shall not be unreasonably withheld. 
  
 14.3.3 If the Indemnitor acknowledges in writing its
obligation to indemnify the Indemnitee for a Third Party Claim, the Indemnitee will agree to any settlement, compromise or discharge of such Third Party Claim that the Indemnitor may recommend that by its terms obligates the Indemnitor to pay the
full amount of Losses (whether through settlement or otherwise) in connection with such Third Party Claim and unconditionally and irrevocably releases the Indemnitee completely from all liability in connection with such Third Party Claim; provided,
however, that, without the Indemnitee’s prior written consent, the Indemnitor shall not consent to any settlement, compromise or discharge (including the consent to entry of any judgment), and the Indemnitee may refuse in good faith to agree to
any such settlement, compromise or discharge, that provides for injunctive or other nonmonetary relief affecting the Indemnitee or that otherwise negatively effects the Indemnitee. If the Indemnitor acknowledges in writing its obligation to
indemnify the Indemnitee for a Third Party Claim, the Indemnitee shall not (unless required by law) admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnitor’s prior written consent
(which consent shall not be unreasonably withheld). 
  
 14.4
Insurance Proceeds. Any indemnification hereunder shall be made [***]; provided, however, that if, following the payment to the Indemnitee of any amount under this Article 14, such Indemnitee [***]. 
  
 ARTICLE 15 
  
 FORCE MAJEURE 
  
 No Party (or any of its Affiliates) shall be held liable or responsible to the other Party
(or any of its Affiliates), or be deemed to have defaulted under or breached the Agreement, for failure or delay by such Party in fulfilling or performing any term of the Agreement when such failure or delay is caused by or results from causes
beyond the reasonable control of the affected Party (or any of its Affiliates), including fire, floods, embargoes, war, acts of war (whether war be declared or not), insurrections, riots, civil commotions, acts of God or acts, earthquakes, or
omissions or delays in acting by any governmental authority (collectively, “Events of Force Majeure”); provided, however, that the affected Party shall exert all reasonable efforts to eliminate, cure or overcome any
such Event of Force Majeure and to resume performance of its covenants promptly. Notwithstanding the foregoing, to the extent that an Event of Force Majeure continues for a period in excess of [***], the affected Party shall promptly notify
in writing the other Party of such Event of Force Majeure and within [***] of the other Party’s receipt of such notice, the Parties shall negotiate in good faith either (a) a resolution of the Event of Force Majeure, if possible, (b) an
extension by mutual agreement of the time period to resolve, eliminate, cure or overcome such Event of Force Majeure, (c) an amendment of this Agreement to the extent reasonably possible, or (d) an early termination of this Agreement. All payments
accruing prior to, or during, the Events of Force Majeure shall be made in accordance with the terms of this Agreement; however, the foregoing notwithstanding, no Exclusive License 

  

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Renewal Fee shall be paid during any period where the provisions of this Article 15 have been invoked by SGI and continue in force. 
  
 ARTICLE 16 
  
 ASSIGNMENT 
  
 This Agreement may not be assigned or otherwise transferred, nor, except as expressly
provided hereunder, may any right or obligation hereunder be assigned or transferred to any Third Party by either Party without the consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed; provided,
however, that either Party may, without such consent but with notification, assign this Agreement and its rights and obligations hereunder to any of its Affiliates or in connection with the transfer or sale of all or substantially all of its
business, or in the event of its merger or consolidation of such Party. Any permitted assignee shall assume all rights and obligations of its assignor under this Agreement; provided, however, that [***]. Any attempted assignment of this
Agreement not in accordance with this Article 16 shall be void and of no effect. 
  
 ARTICLE 17 
  
 SEVERABILITY 
  
 Each Party hereby agrees that it does not intend
to violate any public policy, statutory or common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries. Should one or more provisions of this
Agreement be or become invalid, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid provisions, in their economic effect, are sufficiently similar to the invalid provisions that it can be reasonably assumed that
the Parties would have entered into this Agreement based on such valid provisions. In case such alternative provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall not affect the validity of this
Agreement as a whole, unless the invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid provisions. 
  
 ARTICLE 18 
  
 INSURANCE 
  
 During the Term and thereafter for the period of time required below, each Party shall maintain an ongoing basis comprehensive general
liability insurance in the minimum amount of [***] for bodily injury and property damage liability; and commencing not later than [***], Licensee shall obtain and maintain on an ongoing basis products liability insurance (including
contractual liability coverage on Licensee’s indemnification obligations under this Agreement) in the amount of at least [***] for bodily injury and property damage liability; provided, however, to the extent that Licensee has not
[***], Licensee shall maintain product liability insurance in the amount of [***]. All of such insurance coverage shall be maintained with an insurance company or companies having an A.M. Best rating of “A-” or better and an
aggregate deductible not to exceed [***]. Not later than the Effective Date, and not later than [***] prior to the first use in humans of the first Licensed Product, Licensee shall provide to SGI a certificate(s) evidencing 

  

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all required coverage hereunder. Thereafter, Licensee shall maintain such insurance coverage without interruption during the Term and for a period of at
least [***] thereafter, and shall provide certificates evidencing such insurance coverage without interruption on an annual basis during the period of time for which such coverage must be maintained. Licensee’s insurance shall name SGI
and (to the extent that Licensee has [***] as additional insureds on the products liability insurance required hereunder and shall state that SGI shall be provided at least [***] prior written notice of any cancellation or material
change in the insurance policy.  
  
 ARTICLE 19

  
 MISCELLANEOUS 
  
 19.1 Notices. Any consent, notice or report required or
permitted to be given or made under this Agreement by one of the Parties hereto to the other shall be in writing, delivered personally or by facsimile (and promptly confirmed by personal delivery, first class air mail or courier), first class air
mail or courier, postage prepaid (where applicable), addressed to such other Party at its address indicated below, or to such other address as the addressee shall have last furnished in writing to the address or in accordance with this Section 19.1
and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee. 
  
 If to SGI: 
 Seattle Genetics, Inc.

 21823 30th Drive S.E. 
 Bothell, WA 98021 
 Attention: General Counsel 
 Telephone: (425) 527-4000 
 Facsimile: (425) 527-4109 
  
 If to Licensee: 
 PSMA Development Company LLC 
 777 Old Saw
Mill River Road 
 Tarrytown, NY 10591 
 Attention: President 
 Telephone: (914) 789-2800 
 Facsimile: (914) 789-2817 
  
 With a copy to: 
 Cytogen Corporation 
 650 College Road East 
 Suite 650 
 Princeton, NJ 09540 
 Attention: General
Counsel 
 Telephone: (609) 750-8200 
 Facsimile: (609) 452-2476 
  
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 Progenics Pharmaceuticals, Inc. 
 777 Old Saw Mill River Road 
 Tarrytown, NY
10591 
 Attention: General Counsel 
 Telephone: (914) 789-2800 
 Facsimile: (914) 789-2817 
  
 19.2 Applicable Law. The Agreement shall be governed by and construed in accordance with the laws of
the State of Delaware, without regard to the conflict of law principles thereof that may dictate application of the laws of any other state. 
  
 19.3 Dispute Resolution. The Parties agree that if any dispute or disagreement arises between Licensee on the one hand and SGI on the
other in respect of this Agreement, they shall follow the following procedure in an attempt to resolve the dispute or disagreement. 
  
 19.3.1 The Party claiming that such a dispute exists shall give notice in writing (“Notice of Dispute”) to the
other Party of the nature of the dispute; 
  
 19.3.2 Within [***] of receipt of a Notice of Dispute, a nominee or nominees of Licensee and a nominee or nominees of SGI shall meet in person and exchange written summaries reflecting, in reasonable detail, the nature and
extent of the dispute, and at this meeting they shall use their reasonable endeavors to resolve the dispute; 
  
 19.3.3 If, within a further period of [***], the dispute has not been resolved, the President of SGI and the President of
Licensee, or their designees, shall meet at a mutually agreed upon time and location for the purpose of resolving such dispute; 
  
 19.3.4 If, within a further period of [***], the dispute has not been resolved or if, for any reason, the required meeting
has not been held, then the same shall be submitted by the Parties for resolution by an arbitral body in Wilmington, Delaware in accordance with the then-current commercial arbitration rules of the American Arbitration Association
(“AAA”) except as otherwise provided herein. The Parties shall choose, by mutual agreement, [***] of receipt of notice of the intent to arbitrate. If no [***] is appointed within the times herein provided or any
extension of time that is mutually agreed upon, the AAA shall make such appointment within [***] of such failure. The judgment rendered by the [***] shall include costs of arbitration, reasonable attorneys’ fees and reasonable
costs for expert and other witnesses. Nothing in this Agreement shall be deemed as preventing either Party from seeking injunctive relief (or any other equitable or provisional remedy). If the issues in dispute involve scientific, technical or
commercial matters, any arbitrator chosen hereunder shall have educational training and/or industry experience sufficient to demonstrate a reasonable level of relevant scientific, medical and industry knowledge. 
  
 19.3.5 In the event of a dispute regarding any
payments owing under this Agreement, all undisputed amounts shall be paid promptly when due and the balance, if any, promptly after resolution of the dispute. 
  

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omitted portions. 

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 19.3.6 Notwithstanding the foregoing, any disputes relating to inventorship or the
validity, enforceability or scope of any patent or trademark rights shall be submitted for resolution by a court of competent jurisdiction. 
  
 19.4 Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to the specific subject matter
hereof. All express or implied agreements and understandings, either oral or written, heretofore made are expressly superseded by this Agreement, including, without limitation, the terms of the Research Collaboration Agreement. In the event of
conflict of terms included herein with terms of the Research Collaboration Agreement, the terms of this Agreement will dominate. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties
hereto. 
  
 19.5 Independent Contractors. SGI
and Licensee each acknowledge that they shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture, agency or any type of fiduciary relationship. Neither SGI nor Licensee
shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior consent of the other Party to do so. 
  
 19.6 Affiliates. Each Party shall cause its respective
Affiliates to comply fully with the provisions of this Agreement to the extent such provisions specifically relate to, or are intended to specifically relate to, such Affiliates, as though such Affiliates were expressly named as joint obligors
hereunder. 
  
 19.7 Waiver. The waiver by
either Party hereto of any right hereunder or the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a similar nature or
otherwise. 
  
 19.8 Counterparts. This
Agreement may be executed in two counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 19.9 Headings. Headings in this Agreement are included herein for ease of reference only and shall have
no legal effect. 
  

	[***]    	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 -33- 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 
  

			
	SEATTLE GENETICS, INC.
		
	 By:
	 	/s/ Clay B. Siegall
		
	 Name:
	 	Clay B. Siegall
		
	 Title:
	 	President and CEO
	
	PSMA DEVELOPMENT COMPANY LLC
		
	 By:
	 	/s/ Michael D. Becker
		
	 Name:
	 	Michael D. Becker
		
	 Title:
	 	Vice President of PSMA LLC

  

	[***]    	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 -34- 

 SCHEDULE A 
  
 RESEARCH PLAN 
  
 Assistance will be provided in the form of technical summaries and teleconferences as needed. Requested data, reports, methods and materials will be provided on an as
available basis and as information is updated. On-site meetings and technical transfer will be provided as needed to advance development efforts. SGI will provide a primary point of contact for development support. 
  
 ARTICLE 1 - RESEARCH SUPPORT 
  
 SGI will provide the following research support: 
  
 [***] 
  
 ARTICLE 2 - PRECLINICAL DEVELOPMENT SUPPORT 
  
 SGI will provide the following preclinical support: 
  

[***] 
  

	[***]    	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 SCHEDULE B 
  
 SGI PATENTS* 
  
 Existing SGI Technology 
  
 [***] 
  

	[***]    	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 SCHEDULE C 
  
 SGI IN-LICENSES 
  
 [***] 
  

	[***]    	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.Exhibit 10.1

 Exhibit 10.1 
  
 EXECUTION COPY 

  
  
 AMERICAN CAPITAL STRATEGIES, LTD. 
  

  
 $126,000,000 6.14% Senior Notes, Series 2005-A, due August 1, 2010 

 

  
 NOTE PURCHASE AGREEMENT 
  

  
 Dated as of August 1, 2005 
  
  

 TABLE OF CONTENTS 
  
 (Not a part of the Agreement) 
  

							
	 SECTION

	  	 HEADING

	  	PAGE

	 SECTION 1.             AUTHORIZATION OF NOTES
	  	1
		
	 SECTION 2.             SALE AND PURCHASE OF NOTES
	  	1
		
	 SECTION 3.             CLOSING
	  	1
		
	 SECTION 4.             CONDITIONS TO CLOSING
	  	2
				
	 	 	 Section 4.1
	  	Representations and Warranties	  	2
				
	 	 	 Section 4.2
	  	Performance; No Default	  	2
				
	 	 	 Section 4.3
	  	Compliance Certificates	  	2
				
	 	 	 Section 4.4
	  	Opinions of Counsel	  	2
				
	 	 	 Section 4.5
	  	Purchase Permitted by Applicable Law, Etc	  	2
				
	 	 	 Section 4.6
	  	Related Transactions	  	3
				
	 	 	 Section 4.7
	  	Payment of Special Counsel Fees	  	3
				
	 	 	 Section 4.8
	  	Private Placement Number	  	3
				
	 	 	 Section 4.9
	  	Changes in Corporate Structure	  	3
				
	 	 	 Section 4.10
	  	Funding Instructions	  	3
				
	 	 	 Section 4.11
	  	Proceedings and Documents	  	3
		
	 SECTION 5.             REPRESENTATIONS AND WARRANTIES OF THE
COMPANY
	  	4
				
	 	 	 Section 5.1
	  	Organization; Power and Authority	  	4
				
	 	 	 Section 5.2
	  	Authorization, Etc	  	4
				
	 	 	 Section 5.3
	  	Disclosure	  	4
				
	 	 	 Section 5.4
	  	Organization and Ownership of Shares of Subsidiaries; Affiliates	  	5
				
	 	 	 Section 5.5
	  	Financial Statements	  	5
				
	 	 	 Section 5.6
	  	Compliance with Laws, Other Instruments, Etc	  	5
				
	 	 	 Section 5.7
	  	Governmental Authorizations, Etc	  	6
				
	 	 	 Section 5.8
	  	Litigation; Observance of Agreements, Statutes and Orders	  	6
				
	 	 	 Section 5.9
	  	Taxes	  	6
				
	 	 	 Section 5.10
	  	Title to Property; Leases	  	7
				
	 	 	 Section 5.11
	  	Licenses, Permits, Etc	  	7
				
	 	 	 Section 5.12
	  	Compliance with ERISA	  	7

  

 -i- 

 TABLE OF CONTENTS 
 (Continued) 
  

							
				
	 	 	 Section 5.13
	  	Private Offering by the Company	  	8
				
	 	 	 Section 5.14
	  	Use of Proceeds; Margin Regulations	  	8
				
	 	 	 Section 5.15
	  	Existing Debt; Future Liens	  	9
				
	 	 	 Section 5.16
	  	Foreign Assets Control Regulations, Etc	  	9
				
	 	 	 Section 5.17
	  	Status under Certain Statutes	  	10
				
	 	 	 Section 5.18
	  	Investment Company Act	  	10
				
	 	 	 Section 5.19
	  	Environmental Matters	  	10
				
	 	 	 Section 5.20
	  	Notes Rank Pari Passu	  	11
				
	 	 	 Section 5.21
	  	Credit and Collection Policy	  	11
		
	 SECTION 6.      REPRESENTATIONS OF THE PURCHASERS
	  	11
				
	 	 	 Section 6.1
	  	Purchase for Investment	  	11
				
	 	 	 Section 6.2
	  	Source of Funds	  	11
				
	 	 	 Section 6.3
	  	Accredited Investor	  	12
		
	 SECTION 7.      INFORMATION AS TO COMPANY
	  	12
				
	 	 	 Section 7.1
	  	Financial and Business Information	  	12
				
	 	 	 Section 7.2
	  	Officer’s Certificate	  	15
				
	 	 	 Section 7.3
	  	Inspection	  	15
		
	 SECTION 8.      PREPAYMENT OF THE NOTES
	  	16
				
	 	 	 Section 8.1
	  	Required Prepayments	  	16
				
	 	 	 Section 8.2
	  	Optional Prepayments with Make-Whole Amount	  	16
				
	 	 	 Section 8.3
	  	Allocation of Partial Prepayments	  	16
				
	 	 	 Section 8.4
	  	Maturity; Surrender, Etc	  	16
				
	 	 	 Section 8.5
	  	Purchase of Notes	  	16
				
	 	 	 Section 8.6
	  	Make-Whole Amount	  	17
		
	 SECTION 9.      AFFIRMATIVE COVENANTS
	  	18
				
	 	 	 Section 9.1
	  	Compliance with Law	  	18
				
	 	 	 Section 9.2
	  	Insurance	  	18
				
	 	 	 Section 9.3
	  	Maintenance of Properties	  	19
				
	 	 	 Section 9.4
	  	Payment of Taxes and Claims	  	19
				
	 	 	 Section 9.5
	  	Corporate Existence, Etc	  	19
				
	 	 	 Section 9.6
	  	Credit and Collection Policy	  	19
		
	 SECTION 10.      NEGATIVE COVENANTS
	  	20
				
	 	 	 Section 10.1
	  	Minimum Consolidated Tangible Net Worth	  	20

  

 -ii- 

 TABLE OF CONTENTS 
 (Continued) 
  

							
	 	 	 Section 10.2
	  	Interest Charges Coverage Ratio	  	20
				
	 	 	 Section 10.3
	  	Limitation on Debt	  	20
				
	 	 	 Section 10.4
	  	Available Asset Coverage	  	20
				
	 	 	 Section 10.5
	  	Merger, Consolidation and Sale of Assets, Etc	  	20
				
	 	 	 Section 10.6
	  	Nature of Business	  	22
				
	 	 	 Section 10.7
	  	Transactions with Affiliates	  	23
		
	 SECTION 11.      EVENTS OF DEFAULT
	  	23
		
	 SECTION 12.      REMEDIES ON DEFAULT, ETC
	  	25
				
	 	 	 Section 12.1
	  	Acceleration	  	25
				
	 	 	 Section 12.2
	  	Other Remedies	  	25
				
	 	 	 Section 12.3
	  	Rescission	  	26
				
	 	 	 Section 12.4
	  	No Waivers or Election of Remedies, Expenses, Etc	  	26
		
	 SECTION 13.      REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	  	26
				
	 	 	 Section 13.1
	  	Registration of Notes	  	26
				
	 	 	 Section 13.2
	  	Transfer and Exchange of Notes	  	26
				
	 	 	 Section 13.3
	  	Replacement of Notes	  	27
		
	 SECTION 14.      PAYMENTS ON NOTES
	  	27
				
	 	 	 Section 14.1
	  	Place of Payment	  	27
				
	 	 	 Section 14.2
	  	Home Office Payment	  	27
		
	 SECTION 15.      EXPENSES, ETC
	  	28
				
	 	 	 Section 15.1
	  	Transaction Expenses	  	28
				
	 	 	 Section 15.2
	  	Survival	  	28
		
	 SECTION 16.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	  	28
		
	 SECTION 17.      AMENDMENT AND WAIVER
	  	29
				
	 	 	 Section 17.1
	  	Requirements	  	29
				
	 	 	 Section 17.2
	  	Solicitation of Holders of Notes	  	29
				
	 	 	 Section 17.3
	  	Binding Effect, Etc	  	29
				
	 	 	 Section 17.4
	  	Notes Held by Company, Etc	  	30
		
	 SECTION 18.      NOTICES
	  	30
		
	 SECTION 19.      REPRODUCTION OF DOCUMENTS
	  	30
		
	 SECTION 20.      CONFIDENTIAL INFORMATION
	  	31
		
	 SECTION 21.      SUBSTITUTION OF PURCHASER
	  	32

  

 -iii- 

 TABLE OF CONTENTS 
 (Continued) 
  

							
	 SECTION 22.      MISCELLANEOUS
	  	32
				
	 	 	 Section 22.1
	  	Successors and Assigns	  	32
				
	 	 	 Section 22.2
	  	Payments Due on Non-Business Days	  	32
				
	 	 	 Section 22.3
	  	Severability	  	32
				
	 	 	 Section 22.4
	  	Construction	  	32
				
	 	 	 Section 22.5
	  	Counterparts	  	33
				
	 	 	 Section 22.6
	  	Governing Law	  	33

  
 ATTACHMENTS
TO NOTE PURCHASE AGREEMENT: 
  

					
	 SCHEDULE A
	 	—	    	Information Relating to Purchasers
			
	 SCHEDULE B
	 	—	    	Defined Terms
			
	 SCHEDULE 4.9
	 	—	    	Changes in Corporate Structure
			
	 SCHEDULE 5.3
	 	—	    	Disclosure Materials
			
	 SCHEDULE 5.4
	 	—	    	Subsidiaries of the Company and Ownership of Subsidiary Stock
			
	 SCHEDULE 5.5
	 	—	    	Financial Statements
			
	 SCHEDULE 5.11
	 	—	    	Patents, Etc.
			
	 SCHEDULE 5.14
	 	—	    	Use of Proceeds
			
	 SCHEDULE 5.15
	 	—	    	Existing Debt; Future Liens
			
	 EXHIBIT 1
	 	—	    	Form of 6.14% Senior Note, Series 2005-A, due August 1, 2010
			
	 EXHIBIT 4.4(a)
	 	—	    	Form of Opinion of Special Counsel for the Company
			
	 EXHIBIT 4.4(b)
	 	—	    	Form of Opinion of Special Counsel for the Purchasers
			
	 EXHIBIT 5.21
	 	—	    	Credit and Collection Policy

  

 -iv- 

 AMERICAN CAPITAL STRATEGIES, LTD.

 2 Bethesda Metro Center, 14th Floor 
 Bethesda, Maryland 20814 
  
 6.14% Senior Notes, Series
2005-A, due August 1, 2010 
  
 Dated as of August 1, 2005

  
 TO THE PURCHASERS
LISTED IN 
   THE ATTACHED SCHEDULE A: 
  
 Ladies and Gentlemen: 
  
 AMERICAN CAPITAL STRATEGIES, LTD., a Delaware corporation (the
“Company”), agrees with the purchasers listed in the attached Schedule A (the “Purchasers”) as follows: 
  
 SECTION 1. AUTHORIZATION OF NOTES. 
  
 The Company will authorize the issue and sale of $126,000,000 aggregate principal amount of its 6.14% Senior Notes, Series
2005-A, due August 1, 2010 (the “Notes”). As used herein, the term “Notes” shall mean all notes originally delivered pursuant to this Agreement and any such notes issued in substitution therefor pursuant to Section 13 of
this Agreement. The Notes shall be substantially in the form set out in Exhibit 1 with such changes therefrom, if any, as may be approved by the Purchasers and the Company. Certain capitalized and other terms used in this Agreement are defined in
Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. 
  
 SECTION 2. SALE AND PURCHASE OF NOTES. 
  
 Subject to the terms and conditions of this Agreement, the Company will
issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of
the principal amount thereof. Each Purchaser’s obligations hereunder are several and not joint and no Purchaser shall have any obligation or liability to any Person for the performance or nonperformance by any other Purchaser hereunder.

  
 SECTION 3. CLOSING. 
  
 The sale and purchase of the Notes to be purchased by the Purchasers shall
occur at the offices of Schiff Hardin LLP, 623 Fifth Avenue, 28th Floor, New York, New York 10022, at 11:00 a.m., New York, New York time, at a closing (the “Closing”) on August 3, 2005 or on such other Business Day thereafter on or
prior to August 3, 2005 as may be agreed upon by the Company and the Purchasers. At the Closing, the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in
denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of
immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the 

 Company. If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this Section
3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any
rights such Purchaser may have by reason of such failure or such nonfulfillment. 
  
 SECTION 4. CONDITIONS TO CLOSING. 
  
 Each Purchaser’s obligation to purchase and pay for the Notes to be
sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions: 
  
 Section 4.1 Representations and Warranties. The representations and warranties of the Company in this Agreement shall
be correct when made and at the time of the Closing. 
  
 Section 4.2 Performance; No Default. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing, and after
giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Schedule 5.14), no Default or Event of Default shall have occurred and be continuing. Neither the Company nor any Consolidated
Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by Section 10 had such Section applied since such date. 
  
 Section 4.3 Compliance Certificates. 
  
 (a) Officer’s Certificate. The Company shall have delivered to such Purchaser an Officer’s
Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled. 
  
 (b) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate of its Secretary, dated the date
of the Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement. 
  
 Section 4.4 Opinions of Counsel. Such Purchaser shall have received opinions in form and substance satisfactory to
such Purchaser, dated the date of the Closing (a) from Arnold & Porter LLP, special counsel for the Company, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as
such Purchaser or special counsel to the Purchasers may reasonably request (and the Company hereby instructs its special counsel to deliver such opinion to such Purchaser) and (b) from Schiff Hardin LLP, special counsel to the Purchasers in
connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request. 
  
 Section 4.5 Purchase Permitted by Applicable Law, Etc. On the date of
the Closing, such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as Section 
  

 -2- 

 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to
the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax,
penalty or liability under or pursuant to any applicable law or regulation. If requested by any Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably
specify to enable it to determine whether such purchase is so permitted. 
  
 Section 4.6 Related Transactions. The Company shall have consummated the sale of the entire principal amount of the Notes scheduled to be sold on the date of the Closing pursuant to this Agreement. 

 
 Section 4.7 Payment of Special Counsel Fees. Without limiting the
provisions of Section 15.1, the Company shall have paid on or before the Closing the reasonable fees, charges and disbursements of special counsel to the Purchasers referred to in Section 4.4(b) to the extent reflected in a statement of such counsel
rendered to the Company at least one Business Day prior to the Closing. 
  
 Section 4.8 Private Placement Number. A private placement number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners)
shall have been obtained for the Notes. 
  
 Section 4.9 Changes
in Corporate Structure. Except as specified in Schedule 4.9, the Company shall not have changed its jurisdiction of incorporation or been a party to any merger or consolidation and shall not have succeeded to all or any substantial part of the
liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5. 
  
 Section 4.10 Funding Instructions. At least three Business Days prior to the date of the Closing, such Purchaser shall have received written
instructions executed by an authorized financial or accounting officer of the Company on letterhead of the Company directing the manner of the payment of funds and setting forth (a) the name of the transferee bank, (b) such transferee bank’s
ABA number, (c) the account name and number into which the purchase price for the Notes is to be deposited and (d) the name and telephone number of the account representative responsible for verifying receipt of such funds. 
  
 Section 4.11 Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and special counsel to the Purchasers, and such Purchaser and
special counsel to the Purchasers shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or special counsel to the Purchasers may reasonably request. 
  

 -3- 

 SECTION 5. REPRESENTATIONS AND WARRANTIES
OF THE COMPANY. 
  
 The Company represents and warrants to each Purchaser that: 
  
 Section 5.1 Organization; Power and Authority. The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and
is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to
execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof. 
  
 Section 5.2 Authorization, Etc. This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the
Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). 
  
 Section 5.3 Disclosure. The Company, through its agents, J.P. Morgan Securities, Inc. and Banc of America Securities LLC, has delivered to each Purchaser a copy of a Private Placement Memorandum, dated June 2005 (the
“Memorandum”), relating to the transactions contemplated hereby. The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries. Except as
disclosed in Schedule 5.3, this Agreement, the Memorandum, the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and the financial statements
listed in Schedule 5.5, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.
Except as disclosed in the Memorandum or as expressly described in Schedule 5.3, or in one of the documents, certificates or other writings identified therein, or in the financial statements listed in Schedule 5.5, since December 31, 2004, there has
been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Memorandum or in the other documents, certificates and other writings delivered to the Purchasers
by or on behalf of the Company specifically for use in connection with the transactions contemplated hereby. 
  

 -4- 

 Section 5.4 Organization and Ownership of Shares of Subsidiaries; Affiliates. 

 
 (a) Schedule 5.4 contains (except as noted therein)
complete and correct lists (1) of the Company’s Consolidated Subsidiaries, showing, as to each Consolidated Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital
stock or similar equity interests outstanding owned by the Company and each other Consolidated Subsidiary, (2) of the Company’s Affiliates, other than Consolidated Subsidiaries and (3) of the Company’s directors and senior officers.

  
 (b) All of the outstanding shares of capital
stock or similar equity interests of each Consolidated Subsidiary shown in Schedule 5.4 as being owned by the Company and its Consolidated Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or
another Consolidated Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4). 
  
 (c) Each Consolidated Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Consolidated Subsidiary has the corporate or other power
and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 
  
 (d) No Consolidated Subsidiary is a party to, or otherwise subject to any legal restriction or any agreement
(other than this Agreement, the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law statutes) restricting the ability of such Consolidated Subsidiary to pay dividends out of profits or make any other similar
distributions of profits to the Company or any of its Consolidated Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Consolidated Subsidiary. 
  
 Section 5.5 Financial Statements. The Company has delivered to each Purchaser copies of the financial statements of
the Company and its Consolidated Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the
Company and its Consolidated Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP
consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). 
  
 Section 5.6 Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by the Company of
this Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of 
  

 -5- 

 any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit
agreement, lease, corporate charter or by-laws or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b)
conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c) violate any provision of
any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 
  
 Section 5.7 Governmental Authorizations, Etc. No consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes. 
  
 Section 5.8 Litigation; Observance of Agreements, Statutes and Orders. 
  
 (a) There are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened
against or affecting the Company or any Consolidated Subsidiary or any property of the Company or any Consolidated Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 (b) Neither the Company nor any Consolidated Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any
court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including, without limitation, Environmental Laws) of any Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 Section 5.9 Taxes. The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and
all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a)
the amount of which is not, individually or in the aggregate, Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary,
as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on
the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all fiscal periods are adequate. The Federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of
completed audits or the statute of limitations having run) for all tax years, up to and including, the tax year ended September 30, 2001 except to the extent of net operating losses in any such year which are applied against any net operating income
in any subsequent tax year. 
  

 -6- 

 Section 5.10 Title to Property; Leases. The Company and its Consolidated Subsidiaries have good
and sufficient title to their respective properties that, individually or in the aggregate, are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired
by the Company or any Consolidated Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases that, individually or in the
aggregate, are Material are valid and subsisting and are in full force and effect in all material respects. 
  
 Section 5.11 Licenses, Permits, Etc. Except as disclosed in Schedule 5.11, 
  
 (a) the Company and its Consolidated Subsidiaries own or possess all licenses, permits, franchises,
authorizations, patents, copyrights, service marks, trademarks, trade names and domain names or rights thereto, that, individually or in the aggregate, are Material, without known conflict with the rights of others; 
  
 (b) to the best knowledge of the Company, no product of the
Company or any of its Consolidated Subsidiaries infringes in any material respect any license, permit, franchise, authorization, patent, copyright, service mark, trademark, trade name, domain name or other right owned by any other Person; and

  
 (c) to the best knowledge of the Company,
there is no Material violation by any Person of any right of the Company or any of its Consolidated Subsidiaries with respect to any patent, copyright, service mark, trademark, trade name, domain name or other right owned or used by the Company or
any of its Consolidated Subsidiaries. 
  
 Section 5.12
Compliance with ERISA. 
  
 (a) The Company
and each ERISA Affiliate have operated and administered each Plan (other than Multiemployer Plans) in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to
result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in
Section 3 of ERISA), and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of
the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other than such liabilities or Liens
as would not be, individually or in the aggregate, Material. 
  
 (b) (1) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans) established or maintained by the Company or any Consolidated Subsidiary, determined as of the end
of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such 
  

 -7- 

 Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the
assets of such Plan allocable to such benefit liabilities. 
  
 (2) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans) established or maintained by ERISA Affiliates of the Company (other than Consolidated Subsidiaries),
determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not, to the best knowledge of the
Company, exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by an amount that is, individually or in the aggregate, Material. 
  
 (3) The term “benefit liabilities” has the meaning specified in Section 4001 of ERISA and the
terms “current value” and “present value” have the meanings specified in Section 3 of ERISA. 
  
 (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal
liabilities) under Section 4201 or 4204 of ERISA in respect of Multiemployer Plans that, individually or in the aggregate, are Material. 
  
 (d) The expected post-retirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year
in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by Section 4980B of the Code) of the Company and its Consolidated Subsidiaries is not Material.

  
 (e) The execution and delivery of this
Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975(c)(1)(A)-(D) of the
Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used
to pay the purchase price of the Notes to be purchased by such Purchaser. 
  
 Section 5.13 Private Offering by the Company. Neither the Company nor anyone acting on its behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from,
or otherwise approached or negotiated in respect thereof with, any Person other than 55 Institutional Investors of the type described in clause (c) of the definition thereof (including the Purchasers), each of which has been offered the Notes at a
private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act.

  
 Section 5.14 Use of Proceeds; Margin Regulations. The
Company will apply the proceeds of the sale of the Notes as set forth in Schedule 5.14. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within
the meaning of Regulation U of the Board of Governors of the 
  

 -8- 

 Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such
circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the
value of the consolidated assets of the Company and its Consolidated Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 25% of the value of such assets. As used in this Section, the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 
  
 Section 5.15 Existing Debt; Future Liens. 
  
 (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Debt of the Company and its
Consolidated Subsidiaries as of [August 1], 2005, since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the Company or its Consolidated Subsidiaries.
Neither the Company nor any Consolidated Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of the Company or such Consolidated Subsidiary and no event or condition
exists with respect to any Debt of the Company or any Consolidated Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated
maturity or before its regularly scheduled dates of payment. 
  
 (b) Except as disclosed in Schedule 5.15, neither the Company nor any Consolidated Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its
property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.4. 
  
 Section 5.16 Foreign Assets Control Regulations, Etc. 
  
 (a) Neither the sale of the Notes by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy
Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. 
  
 (b) Neither the Company nor any Subsidiary (1) is a Person
described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or Section 1 of the Anti-Terrorism Order or (2) engages in any dealings or transactions, or is otherwise associated, with
any such Person. The Company and its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act. 
  
 (c) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any payments to any government
official or employee, political party, official of a political party, candidate for political office or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper 
  

 -9- 

 advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming
in all cases that such Act applies to the Company. 
  
 Section
5.17 Status under Certain Statutes. Neither the Company nor any Subsidiary is subject to regulation under the Public Utility Holding Company Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as
amended. 
  
 Section 5.18 Investment Company Act.

  
 (a) The Company is an “investment
company” that has elected to be regulated as a “business development company” within the meaning of the Investment Company Act and qualifies as a RIC. 
  
 (b) The Company conducts its business and other activities in compliance with the applicable provisions of
the Investment Company Act and any applicable rules, regulations or orders issued by the Securities and Exchange Commission thereunder. 
  
 (c) The business and other activities of the Company, including, but not limited to, the issuance and sale of the Notes hereunder, the
application of the proceeds and the repayment thereof by the Company and the consummation of the transactions contemplated by this Agreement and the Notes do not now and will not at any time result in any violations, with respect to the Company, of
the provisions of the Investment Company Act or any rules, regulations or orders issued by the Securities and Exchange Commission thereunder. 
  
 (d) Immediately after giving effect to the issuance and sale of the Notes hereunder, the ratio of Total Available Assets to Unsecured Debt
shall not be less than 2.0 to 1.0. 
  
 Section 5.19
Environmental Matters. Neither the Company nor any Consolidated Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its Consolidated
Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect. Except as otherwise disclosed to the Purchasers in writing: 
  
 (a) neither the Company nor any Consolidated Subsidiary has knowledge of any facts which would give rise to any claim, public or private,
of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case,
such as could not reasonably be expected to result in a Material Adverse Effect; 
  
 (b) neither the Company nor any of its Consolidated Subsidiaries has stored any Hazardous Materials on real properties now or formerly
owned, leased or operated by any of them or has disposed of any Hazardous Materials in a manner contrary to any 
  

 -10- 

 
Environmental Laws in each case in any manner that could reasonably be expected to result in a Material Adverse Effect; and 
  
 (c) to the knowledge of the Company and its Consolidated
Subsidiaries, all buildings on all real properties now owned, leased or operated by the Company or any of its Consolidated Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be
expected to result in a Material Adverse Effect. 
  
 Section
5.20 Notes Rank Pari Passu. The obligations of the Company under this Agreement and the Notes rank at least pari passu in right of payment with all other unsecured Senior Debt (actual or contingent) of the Company, including, without
limitation, all unsecured Senior Debt of the Company described in Schedule 5.15. 
  
 Section 5.21 Credit and Collection Policy. Attached hereto as Exhibit 5.21 is a complete and correct copy of the Credit and Collection Policy as of the date of the Closing. 
  
 SECTION 6. REPRESENTATIONS OF
THE PURCHASERS. 
  
 Section 6.1 Purchase for Investment. Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension
or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or such pension or trust fund’s property shall at all times be within such Purchaser’s or such pension or trust
fund’s control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available,
except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 
  

Section 6.2 Source of Funds. Each Purchaser severally represents that at least one of the following statements is an accurate representation as
to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder: 
  
 (a) the Source is an “insurance company general account” within the meaning of Department of Labor
Prohibited Transaction Exemption (“PTE”) 95-60 (issued July 12, 1995) and there is no employee benefit plan, treating as a single plan, all plans maintained by the same employer and its affiliates or employee organization, with
respect to which the amount of the general account reserves and liabilities for all contracts held by or on behalf of such plan, exceeds 10% of the total reserves and liabilities of such general account (exclusive of separate account liabilities)
plus surplus, as set forth in the National Association of Insurance Commissioners Annual Statement filed with such Purchaser’s state of domicile; or 
  
 (b) the Source is either (1) an insurance company pooled separate account, within the meaning of PTE 90-1
(issued January 29, 1990) or (2) a bank collective investment fund, within the meaning of the PTE 91-38 (issued July 12, 1991) and, except 
  

 -11- 

 
as such Purchaser has disclosed to the Company in writing pursuant to this paragraph (b), no employee benefit plan or group of plans maintained by the same
employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 
  
 (c) the Source constitutes assets of an “investment fund” (within the meaning of Part V of the QPAM Exemption) managed by a
“qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the
total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a Person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of
the QPAM Exemption) owns a 5% or more interest in the Company and (1) the identity of such QPAM and (2) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant
to this paragraph (c); or 
  
 (d) the Source is a
governmental plan; or 
  
 (e) the Source is one
or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this paragraph (e); or 
  
 (f) the Source does not include assets of any employee
benefit plan, other than a plan exempt from the coverage of ERISA. 
  
 As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” “party in interest” and “separate account” shall have the respective meanings assigned to such terms in Section 3
of ERISA. 
  
 Section 6.3 Accredited Investor. Each
Purchaser represents that it is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act). 
  
 SECTION 7. INFORMATION AS TO COMPANY. 
  
 Section 7.1 Financial and Business Information. The Company shall
deliver to each holder of Notes that is an Institutional Investor: 
  
 (a) Quarterly Statements — within 45 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate
copies of, 
  
 (1) a consolidated balance sheet
of the Company and its Consolidated Subsidiaries as at the end of such quarter, and 
  

 -12- 

 (2) consolidated statements of income, changes in shareholders’ equity and cash
flows of the Company and its Consolidated Subsidiaries for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
  
 setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable
detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on
and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Company’s Quarterly Report on Form 10-Q prepared in
compliance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(a); 
  
 (b) Annual Statements — within 90 days after the end of each fiscal year of the Company,
duplicate copies of, 
  
 (1) a consolidated
balance sheet of the Company and its Consolidated Subsidiaries, as at the end of such year, and 
  
 (2) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Consolidated
Subsidiaries, for such year, 
  
 setting forth in each case in comparative form
the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that
such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination
of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the
delivery within the time period specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act)
prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(b); 
  
 (c) SEC and Other Reports — promptly upon their becoming available, one copy of (1) each
financial statement, report, notice or proxy statement sent by the Company or any Consolidated Subsidiary to public securities holders generally and (2) each regular or periodic report, each registration statement (without exhibits except as
expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Consolidated Subsidiary with the Securities and Exchange Commission and of all press releases and other statements made available
generally by 
  

 -13- 

 the Company or any Consolidated Subsidiary to the public concerning developments that are Material;

  
 (d) Notice of Default or Event of
Default — promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed
default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the
Company is taking or proposes to take with respect thereto; 
  
 (e) ERISA Matters — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any,
that the Company or an ERISA Affiliate proposes to take with respect thereto: 
  
 (1) with respect to any Plan, any reportable event, as defined in Section 4043(b) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the
date of the Closing; or 
  
 (2) the taking by the
PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA
Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or 
  
 (3) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate
pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to
Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect; 
  
 (f) Notices from Governmental Authority —
promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Consolidated Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that
could reasonably be expected to have a Material Adverse Effect; and 
  
 (g) Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its
Consolidated Subsidiaries or relating to the 
  

 -14- 

 ability of the Company to perform its obligations hereunder and under the Notes as from time to time may
be reasonably requested by any such holder of Notes. 
  
 Section 7.2 Officer’s Certificate. Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth:

  
 (a) Covenant Compliance — the
information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 10.1 through Section 10.5, inclusive, during the quarterly or annual period covered by the statements
then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the
amount, ratio or percentage then in existence); and 
  
 (b) Event of Default — a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its
Consolidated Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any
condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Consolidated
Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 
  
 Section 7.3 Inspection. The Company shall permit the representatives
of each holder of Notes that is an Institutional Investor: 
  
 (a) No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, but no more than one time in any fiscal quarter, to visit the
principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Consolidated Subsidiaries with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably
withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Consolidated Subsidiary, all at such reasonable
times and as requested in writing; and 
  
 (b)
Default — if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Consolidated Subsidiary, to examine all their respective books of account,
records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes
said accountants to 
  

 -15- 

 discuss the affairs, finances and accounts of the Company and its Consolidated Subsidiaries), all at such
times and as often as may be requested. 
  
 SECTION 8. PREPAYMENT OF THE NOTES. 
  
 Section 8.1 Required Prepayments. The Notes shall not be subject to any required prepayment and the entire unpaid principal amount of the Notes
shall be due and payable on the stated maturity thereof. 
  
 Section 8.2 Optional Prepayments with Make-Whole Amount. The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than $5,000,000 in
aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus the Make-Whole Amount, if any, determined for the prepayment date with respect to such principal
amount. The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such
date, the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with
respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the
date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such
Make-Whole Amount as of the specified prepayment date. 
  
 Section 8.3 Allocation of Partial Prepayments. In the case of each partial prepayment of the Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as
nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. 
  
 Section 8.4 Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company
shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered
to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
  
 Section 8.5 Purchase of Notes. The Company will not, and will not permit any Affiliate to, purchase, redeem, prepay or otherwise acquire, directly
or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any
payment, prepayment or purchase of Notes pursuant to any 
  

 -16- 

 provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 
  
 Section 8.6 Make-Whole Amount. The term “Make-Whole
Amount” shall mean, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal,
provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 
  
 “Called Principal” shall mean, with respect to any Note, the principal of such Note that is
to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 
  
 “Discounted Value” shall mean, with respect to the Called Principal of any Note, the amount obtained by discounting all
Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor
(applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 
  

“Reinvestment Yield” shall mean, with respect to the Called Principal of any Note, 0.50% over the yield to maturity
implied by (a) the yields reported, as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” on the Bloomberg
Financial Services Screen (or such other display as may replace Page PX1 on the Bloomberg Financial Services Screen) for actively traded U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of
such Settlement Date, or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable, the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so
reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities
having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (1) converting U.S. Treasury bill quotations to bond-equivalent yields in
accordance with accepted financial practice and (2) interpolating linearly between (i) the actively traded U.S. Treasury security with the maturity closest to and greater than the Remaining Average Life and (ii) the actively traded U.S. Treasury
security with the maturity closest to and less than the Remaining Average Life. 
  
 “Remaining Average Life” shall mean, with respect to any Called Principal, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (a) such Called Principal into (b) the sum of the products obtained by multiplying (1) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (2) the number of
years (calculated to the nearest one-twelfth year) that will elapse 
  

 -17- 

 between the Settlement Date with respect to such Called Principal and the scheduled due date of such
Remaining Scheduled Payment. 
  
 “Remaining Scheduled Payments” shall mean, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called
Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the
next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1. 
  
 “Settlement Date” shall mean, with respect
to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 
  
 SECTION 9. AFFIRMATIVE COVENANTS. 
  
 The Company covenants that so long as any of the Notes are outstanding:

  
 Section 9.1 Compliance with Law. 
  
 (a) The Company will, and will cause each of its
Consolidated Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance
with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. 
  
 (b) The Company will at all times maintain its stature as a RIC and as a “business development company” under the Investment Company Act and will conduct its business and other activities in compliance with
the applicable provisions of the Investment Company Act and any applicable rules, regulations or orders issued by the Securities and Exchange Commission thereunder. 
  
 Section 9.2 Insurance. The Company will, and will cause each of its Consolidated Subsidiaries to, maintain, with
financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and
self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated. 
  

 -18- 

 Section 9.3 Maintenance of Properties. The Company will, and will cause each of its Consolidated
Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be
properly conducted at all times, provided that this Section shall not prevent the Company or any Consolidated Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the
conduct of its business and the Company has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 Section 9.4 Payment of Taxes and Claims. The Company will, and will cause each of its Consolidated Subsidiaries to,
file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges or levies imposed on them or any of their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or
assets of the Company or any Consolidated Subsidiary, provided that neither the Company nor any Consolidated Subsidiary need pay any such tax or assessment or claims if (1) the amount, applicability or validity thereof is contested by the
Company or such Consolidated Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Consolidated Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or
such Consolidated Subsidiary or (2) the nonpayment of all such taxes and assessments in the aggregate could not reasonably be expected to have a Material Adverse Effect. 
  
 Section 9.5 Corporate Existence, Etc. The Company will at all times preserve and keep in full force and effect its
corporate existence. Subject to Section 10.5, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Consolidated Subsidiaries (unless merged into the Company or a Wholly-Owned Consolidated
Subsidiary) and all rights and franchises of the Company and its Consolidated Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right
or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 
  
 Section 9.6 Credit and Collection Policy. The Company will (a) comply in all material respects with the Credit and Collection Policy and (b) furnish to each holder of a Note, prior to its effective date, prompt
notice of any changes in the Credit and Collection Policy; provided that the Company will not modify the Credit and Collection Policy in any manner that would have a material adverse effect on the holders of the Notes or their investment
therein, without the prior written consent of the Required Holders (in their sole discretion). 
  

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 SECTION 10. NEGATIVE COVENANTS. 
  
 The Company covenants that so long as any of the Notes are outstanding:

  
 Section 10.1 Minimum Consolidated Tangible Net Worth.
The Company will not, at any time, permit Consolidated Tangible Net Worth to be less than (a) $1,124,592,393 plus (b) 75% of the cumulative Net Proceeds of Capital Stock/Conversion of Debt received at any time after the date of the Closing
(excluding the Net Proceeds of Capital Stock/Conversion of Debt by a Consolidated Subsidiary to another Consolidated Subsidiary or to the Company). 
  
 Section 10.2 Interest Charges Coverage Ratio. The Company will not, at any time, permit the ratio of EBIT to Interest Expense of the Company and
its Consolidated Subsidiaries, determined on a consolidated basis as of the last day of each fiscal quarter for the period of four consecutive fiscal quarters ended on such day, to be less than 2.0 to 1.0. 
  
 Section 10.3 Limitation on Debt. 
  
 (a) The Company will not, on the last day of any fiscal
quarter, permit the ratio of Consolidated Debt to Consolidated Shareholder’s Equity to exceed 1.5 to 1.0. 
  
 (b) The Company will not, at any time, permit the Asset Coverage Ratio to be less than 2.0 to 1.0. 
  
 Section 10.4 Available Asset Coverage. 
  
 (a) The Company will not, on the last day of any fiscal
quarter, permit the ratio of Total Available Assets to Unsecured Debt to be less than 2.0 to 1.0. 
  
 (b) The Company will not, on the last day of any fiscal quarter, permit the ratio of (1) the sum of Cash and Available Non-Pledged Debt
Assets to (2) Unsecured Debt to be less than 1.0 to 1.0. 
  
 Section 10.5 Merger, Consolidation and Sale of Assets, Etc. 
  
 (a) The Company will not, and will not permit any of its Consolidated Subsidiaries to, consolidate with or merge with any other corporation or convey, transfer or lease all or substantially all of its assets in a
single transaction or series of transactions to any Person; provided that 
  
 (1) any Consolidated Subsidiary of the Company may consolidate with or merge with, or convey, transfer or lease all or substantially all
of its assets in a single transaction or series of transactions to, the Company or a Wholly-Owned Consolidated Subsidiary of the Company so long as (i)(A) in any merger or consolidation involving the Company, the Company shall be the surviving or
continuing entity and (B) in any merger or consolidation involving a Wholly-Owned Consolidated Subsidiary (and not the Company), a Wholly-Owned Consolidated Subsidiary shall be the surviving or continuing entity and (ii) at the 
  

 -20- 

 time of such consolidation or merger and immediately after giving effect to such transaction, no Default
or Event of Default would exist; 
  
 (2) the
Company may consolidate or merge with or into, or convey, transfer or lease all or substantially all of the assets of the Company in a single transaction or series of transactions to, any Person so long as: (i) if the successor formed by such
consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be (the “Successor Corporation”), shall
be a solvent corporation organized and existing under the laws of the United States or any State thereof (including the District of Columbia), (ii) if the Company is not the Successor Corporation, (A) the Successor Corporation shall have executed
and delivered to each holder of the Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes (pursuant to such agreements and instruments as shall be reasonably
satisfactory to the Required Holders) and (B) the Successor Corporation shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to
the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof, (iii) at the time of such consolidation or merger and immediately after
giving effect thereto and to the incurrence of any Debt assumed or incurred in connection therewith (A) the aggregate amount of outstanding Consolidated Debt of the surviving entity would be permitted by the terms of Sections 10.3 and 10.4 as of the
last day of the fiscal quarter immediately preceding the date of such consolidation or merger and (iv) immediately after giving effect to such transaction, no Default or Event of Default would exist; and 
  
 (3) the Company and any Consolidated Subsidiary may sell,
transfer, pledge or otherwise dispose of all or any part of its Investments in the ordinary course of business including, without limitation, in securitization transactions. 
  
 (b) The Company will not permit any Consolidated Subsidiary to issue any voting stock of such Consolidated
Subsidiary except to satisfy the rights of minority shareholders to receive issuances of stock that are non-dilutive to the Company and/or any Consolidated Subsidiary; provided that the foregoing restrictions do not apply to issuances to the
Company or any Wholly-Owned Consolidated Subsidiary or the issuance of directors’ or similar qualifying shares. 
  
 (c) The Company will not sell, transfer or otherwise dispose of stock or Debt of any Consolidated Subsidiary (except the issuance of
directors’ or similar qualifying shares and sales, transfers and dispositions of all of the stock of a special purpose Consolidated Subsidiary for consideration if (x) substantially all the assets of such Consolidated Subsidiary constitute
Investments and (y) such sale, transfer or other disposition of all of such Investments is for substantially the same consideration as would be permitted by paragraph (a)(3) of this Section 10.5) and shall not permit any 
  

 -21- 

 Consolidated Subsidiary to sell, transfer or otherwise dispose of stock (other than by purchase or
redemption of preferred stock) of a Consolidated Subsidiary or Debt of any other Consolidated Subsidiary (except issuances to the Company or to a Wholly-Owned Consolidated Subsidiary or issuance of directors’ or similar qualifying shares);
provided that the foregoing restrictions do not apply (I) subject to Section 10.4, to a pledge of stock or Debt of a Consolidated Subsidiary or (II) if the foregoing conditions are met: 
  
 (1) all shares of stock and all Debt of such Consolidated
Subsidiary held by the Company and its Subsidiaries shall be sold simultaneously; 
  
 (2) in the opinion of the Company’s Board of Directors (i) such sale or stock or Debt is in the best interest of the Company and (ii)
the consideration paid for such stock or Debt is deemed adequate and satisfactory; 
  
 (3) the Consolidated Subsidiary being disposed of shall not have any continuing Investment in the Company or any other Consolidated
Subsidiary that is not being disposed of simultaneously; and 
  
 (4) such sale or other disposition does not involve a substantial part of the assets of the Company and its Consolidated Subsidiaries. 
  
 As used herein, a sale of assets will be deemed a “substantial part” of the assets of the Company and its
Consolidated Subsidiaries if (A) the book value of such assets sold in a given fiscal year (except those sold in the ordinary course of business) exceeds 15% of Consolidated Total Assets determined at the close of the immediately preceding fiscal
year or (B) the operations of such assets sold (except those sold in the ordinary course of business) generated 15% or more of the consolidated operating profits of the Company and its Consolidated Subsidiaries during the immediately preceding
fiscal year; provided, however, that for purposes of the foregoing calculation, there shall not be included any sale of assets if a portion of the proceeds of such asset sale equal to the aggregate book value thereof immediately prior to such
sale was or is applied within 365 days of the date of such sale of such assets to either (1) the acquisition of assets useful and intended to be used in the operation of the business of the Company and its Consolidated Subsidiaries and having a fair
market value (as determined in good faith by the Board of Directors of the Company) at least equal to the book value of the assets so disposed of or (2) the prepayment at any applicable prepayment premium, on a pro rata basis, of Senior Debt of the
Company. Any prepayment of the Notes pursuant to this Section 10.5(c) shall be in accordance with Section 8.2, but without regard to the minimum prepayment requirements of Section 8.2 if the allocable amount to be prepaid on the Notes is less than
such minimum. 
  
 Section 10.6 Nature of Business. The
Company will not, and will not permit any Consolidated Subsidiary to, engage in any business, if as a result, the general nature of the business engaged in by the Company and its Consolidated Subsidiaries, taken as a whole, would be substantially
changed from the general nature of the business the Company and its Consolidated Subsidiaries are engaged in on the date of the Closing. 
  

 -22- 

 Section 10.7 Transactions with Affiliates. The Company will not, and will not permit any
Consolidated Subsidiary to, enter into or be a party to any transaction or arrangement with any Affiliate (other than the Company or a Consolidated Subsidiary) (including, without limitation, the purchase from, sale to or exchange of property with,
or the rendering of any service by or for, any Affiliate), except transactions in the ordinary course of and pursuant to the reasonable requirements of the Company’s or such Consolidated Subsidiary’s business and upon fair and reasonable
terms no less favorable to the Company or such Consolidated Subsidiary than would be obtained in a comparable arms-length transaction with a Person other than an Affiliate. 
  
 SECTION 11. EVENTS OF DEFAULT. 
  
 An “Event of Default” shall exist if any of the following
conditions or events shall occur and be continuing: 
  
 (a) the Company defaults in the payment of any principal or Make-Whole Amount on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 
  
 (b) the Company defaults in the payment of any interest on
any Note for more than five Business Days after the same becomes due and payable; or 
  
 (c) the Company defaults in the performance of or compliance with any term contained in Sections 10.1 through 10.5, inclusive; or

  
 (d) the Company defaults in the performance
of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (1) a Responsible Officer obtaining actual
knowledge of such default and (2) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section
11); or 
  
 (e) any representation or warranty
made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on
the date as of which made; or 
  
 (f) (1) the
Company or any Consolidated Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Debt that is outstanding in an aggregate principal amount of at
least $15,000,000 beyond any period of grace provided with respect thereto, (2) the Company or any Consolidated Subsidiary is in default in the performance of or compliance with any term of any evidence of any Debt in an aggregate outstanding
principal amount of at least $15,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared (or one or more
Persons are entitled to declare such Debt to be), due and payable before its stated maturity or before its regularly scheduled dates of payment or (3) as a consequence of the occurrence 
  

 -23- 

 or continuation of any event or condition (other than the passage of time or the right of the holder of
Debt to convert such Debt into equity interests or as a result of an Accelerated Amortization Event or an Additional Principal Amount), (i) the Company or any Consolidated Subsidiary has become obligated to purchase or repay Debt before its regular
maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $15,000,000, or (ii) one or more Persons have the right to require the Company or any Consolidated Subsidiary so to purchase or
repay such Debt; or 
  
 (g) the Company or any
Consolidated Subsidiary (1) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (2) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (3) makes an assignment for the benefit of its creditors, (4)
consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (5) is adjudicated as insolvent or to be liquidated or (6) takes corporate
action for the purpose of any of the foregoing; or 
  
 (h) a court or governmental authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Consolidated Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with
respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Consolidated Subsidiaries, or any such petition shall be filed against the Company or any of its Consolidated
Subsidiaries and such petition shall not be dismissed within 60 days; or 
  
 (i) a final judgment or judgments for the payment of money aggregating in excess of $15,000,000 are rendered against one or more of the Company and its Consolidated Subsidiaries and which judgments are not, within 30
days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 30 days after the expiration of such stay; or 
  
 (j) if (1) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver
of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (2) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have
instituted proceedings under ERISA Section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (3) the aggregate
“amount of unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $15,000,000, (4) the Company or any ERISA 
  

 -24- 

 Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV
of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (5) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan or (6) the Company or any ERISA Affiliate establishes or amends any
employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any ERISA Affiliate thereunder; and any such event or events described in clauses (1) through (6) above,
either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect. 
  
 As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such
terms in Section 3 of ERISA. 
  
 SECTION 12. REMEDIES
ON DEFAULT, ETC. 
  
 Section 12.1 Acceleration. 
  
 (a) If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 11 (other than an Event of Default described in clause (1) of paragraph (g) or described in clause (6) of paragraph (g) by virtue of the
fact that such clause encompasses clause (1) of paragraph (g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 
  
 (b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at
its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 
  
 (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing, any holder or holders of Notes
at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 
  
 Upon any Note becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note, plus (1) all accrued and unpaid interest thereon and (2) the Make-Whole Amount, if any, determined in respect of such
principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and
the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for), and that the provision for payment of the Make-Whole Amount,
if any, by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. 
  
 Section 12.2 Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding 
  

 -25- 

 may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by
law or otherwise. 
  
 Section 12.3 Rescission. At any time
after any Notes have been declared due and payable pursuant to paragraph (b) or (c) of Section 12.1, the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid
all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if
any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17 and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend
to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 
  
 Section 12.4 No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay to the
holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees,
expenses and disbursements. 
  
 SECTION 13. REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES. 
  
 Section 13.1 Registration of Notes. The Company shall keep at its principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of
transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall
give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 
  
 Section 13.2 Transfer and Exchange of Notes. Upon surrender of any Note at the principal executive office of the
Company for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or its attorney duly
authorized in writing and accompanied by the address for notices of each transferee of such Note 
  

 -26- 

 or part thereof), the Company shall execute and deliver, at the Company’s expense (except as provided below), one or
more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request
and shall be substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have
been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided
that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its
nominee), shall be deemed to have made the representation set forth in Section 6.2. 
  
 Section 13.3 Replacement of Notes. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be,
in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 
  
 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note
is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 
  
 (b) in the case of mutilation, upon surrender and
cancellation thereof, 
  
 the Company at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon. 
  
 SECTION 14. PAYMENTS
ON NOTES. 
  
 Section
14.1 Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of JPMorgan Chase Bank, NA in such
jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office
of a bank or trust company in such jurisdiction. 
  
 Section
14.2 Home Office Payment. So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note
for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from
time to time specified to the Company in writing for such 
  

 -27- 

 purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon
written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at
its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by any Purchaser or its nominee such Purchaser will, at its election,
either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the
benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by any Purchaser under this Agreement and that has made the same agreement relating to such Note as such Purchaser has made
in this Section 14.2. 
  
 SECTION 15. EXPENSES,
ETC. 
  
 Section 15.1 Transaction
Expenses. Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required, local or other counsel)
incurred by the Purchasers or any other holder of a Note in connection with such transactions, in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or
consent becomes effective) and in connection with the receipt and review of any agreements, instruments and opinions contemplated by Section 10.5(a)(2), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or
determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by
reason of being a holder of any Note and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or
restructuring of the transactions contemplated hereby and by the Notes. The Company will pay, and will save the Purchasers and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and
finders (other than those retained by such Person). 
  
 Section
15.2 Survival. The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes and the termination of this Agreement.

  
 SECTION 16. SURVIVAL OF
REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 
  
 All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by
any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any other
holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject to the

  

 -28- 

 preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between the Purchasers and
the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 
  
 SECTION 17. AMENDMENT AND WAIVER. 
  
 Section 17.1 Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21, or any defined term (as it is used
therein), will be effective as to any holder of a Note unless consented to by such holder in writing and (b) no such amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (1)
subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the
Make-Whole Amount on, the Notes, (2) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver or (3) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20. 
  
 Section 17.2 Solicitation of Holders of Notes. 
  
 (a) Solicitation. The Company will provide each
holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this
Section 17 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
  
 (b) Payment. The Company will not, directly or
indirectly, pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by any holder
of Notes or any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes then outstanding even if such holder
did not consent to such waiver or amendment. 
  
 Section 17.3
Binding Effect, Etc. Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such
Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.
No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note 
  

 -29- 

 shall operate as a waiver of any rights of any holder of such Note. As used herein, the term “this Agreement”
and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 
  
 Section 17.4 Notes Held by Company, Etc. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the
direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding. 
  
 SECTION 18. NOTICES. 
  
 All notices and communications provided for hereunder shall be in writing
and sent (a) by facsimile if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (b) by registered or certified mail with return receipt requested (postage prepaid) or (c)
by a courier or recognized overnight delivery service (charges prepaid). Any such notice must be sent: 
  
 (1) if to any Purchaser or its nominee, to such Purchaser or its nominee at the address specified for such communications in Schedule A,
or at such other address as such Purchaser or its nominee shall have specified to the Company in writing; 
  
 (2) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in
writing; or 
  
 (3) if to the Company, to the
Company at its address set forth at the beginning hereof to the attention of the Compliance Officer, or at such other address as the Company shall have specified to the holder of each Note in writing. 
  
 All such notices and other communications shall, except as otherwise expressly herein
provided, be effective: (i) upon delivery if delivered by courier or a recognized overnight delivery service; (ii) in the case of registered or certified mail, three Business Days after the date sent; or (iii) in the case of facsimile, when such
facsimile is transmitted to the facsimile number specified in accordance with this Agreement, the facsimile machine used by the sender provides a written confirmation that such facsimile has been so transmitted or receipt of such facsimile
transmission is otherwise confirmed and the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service. 
  
 SECTION 19. REPRODUCTION OF DOCUMENTS. 
  
 This Agreement and all documents relating hereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves) and (c) financial statements, certificates and other information previously or
hereafter furnished to any holder of the Notes, may be reproduced by such holder by any photographic, photostatic, microfilm, microcard, 
  

 -30- 

 miniature photographic or other similar process and such holder may destroy any original document so reproduced. The
Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and
whether or not such reproduction was made by any holder of the Notes in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not
prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 
  
 SECTION 20. CONFIDENTIAL
INFORMATION. 
  
 For the purposes of this
Section 20, “Confidential Information” shall mean information delivered to any Purchaser by or on behalf of the Company or any Consolidated Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Consolidated Subsidiary, provided that
such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting
on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Consolidated Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are
otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to
such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (1) its directors, officers, trustees, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the
administration of the investment represented by its Notes), (2) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (3) any
other holder of any Note, (4) any Institutional Investor to which such Purchaser sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 20), (5) any Person from which such Purchaser offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 20), (6) any Federal or state regulatory authority having jurisdiction over such Purchaser, (7) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized
rating agency that requires access to information about such Purchaser’s investment portfolio or (8) any other Person to which such delivery or disclosure may be necessary or appropriate (i) to effect compliance with any law, rule, regulation
or order applicable to such Purchaser, (ii) in response to any subpoena or other legal process, (iii) in connection with any litigation to which such Purchaser is a party or (iv) if an Event of Default has occurred and is continuing, to the extent
such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement. Each holder of a Note, by
its acceptance of a Note, will be deemed to have agreed to be bound by and to be 
  

 -31- 

 entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the
Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such
holder will enter into an agreement with the Company embodying the provisions of this Section 20. 
  
 SECTION 21. SUBSTITUTION OF PURCHASER. 
  
 Each Purchaser shall have the right to substitute any one of its Affiliates
as the purchaser of the Notes that such Purchaser has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound
by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, wherever the word “Purchaser” is used in this Agreement
(other than in this Section 21), such word shall be deemed to refer to such Affiliate in lieu of such Purchaser. In the event that such Affiliate is so substituted as a purchaser hereunder and such Affiliate thereafter transfers to such Purchaser
all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever the word “Purchaser” is used in this Agreement (other than in this Section 21), such word shall no longer be deemed to refer to
such Affiliate, but shall refer to such Purchaser, and such Purchaser shall have all the rights of an original holder of the Notes under this Agreement. 
  
 SECTION 22. MISCELLANEOUS. 
  
 Section 22.1 Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf
of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not. 
  
 Section 22.2 Payments Due on Non-Business Days. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal of or Make-Whole Amount, if any, or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 
  
 Section 22.3 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction. 
  
 Section 22.4 Construction. 
  
 (a) Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express
contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is 
  

 -32- 

 prohibited from taking, such provision shall be applicable whether such action is taken directly or
indirectly by such Person. 
  
 (b) Where the
character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made by the Company for the purposes of this Agreement, the same shall be
done by the Company in accordance with GAAP, to the extent applicable, except where such principles are inconsistent with the requirements of this Agreement. 
  
 Section 22.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which
together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 
  
 Section 22.6 Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State. 
  
 *    *    *    *    * 
  

 -33- 

 The execution hereof by the Purchasers shall constitute a contract among the Company and the Purchasers
for the uses and purposes hereinabove set forth. 
  

					
	 	 	Very truly yours,
		
	 	 	 AMERICAN CAPITAL STRATEGIES, LTD.

			
	 	 	 By
	 	 /s/ Malon Wilkus

	 	 	 	 	 Malon Wilkus

	 	 	 Its
	 	 Chairman, President and Chief Executive Officer

											
	 The foregoing is hereby agreed
 to as of the date thereof.
	 	 MELLON BANK, N.A., SOLELY IN ITS
CAPACITY AS CUSTODIAN FOR AVIVA LIFE-PRINCIPAL GLOB PRIV EIA FIXED INCOME
(AS DIRECTED BY THE PRINCIPAL GLOBAL INVESTORS, LLC), AND NOT IN ITS
INDIVIDUAL CAPACITY (MAC &CO) — NOMINEE NAME

				
	 	 	By	 	 	 	 /s/ Bernadette T. Rist

	 	 	 	 	 	 	 Its Authorized Signatory

		
	 	 	 PRINCIPAL LIFE INSURANCE COMPANY

				
	 	 	 By:
	 	 	 	 Principal Global Investors, LLC
 a Delaware limited liability company,
 its authorized signatory

						
	 	 	 	 	 	 	 By
	 	 	 	 /s/ Colin Pennycooke

	 	 	 	 	 	 	 	 	 	 	 Its Counsel

						
	 	 	 	 	 	 	 By
	 	 	 	 /s/ Stephen G. Skrivanek

	 	 	 	 	 	 	 	 	 	 	 Its Counsel

		
	 	 	 CALHOUN & CO., AS NOMINEE FOR
COMERICA BANK & TRUST, NATIONAL ASSOCIATION, TRUSTEE TO THE Trust CREATED BY
TRUST AGREEMENT DATED OCTOBER 1, 2002

				
	 	 	 By
	 	 	 	 /s/ Michele A. Hamilton

	 	 	 	 	 	 	 Its Attorney-In-Fact and Agent

									
	 	 	 TEACHERS INSURANCE AND ANNUITY ASSOCIATION
OF AMERICA
	 	 
				
	 	 	By	 	 /s/ John Goodreds

	 	 
	 	 	 	 	 Name:
	 	 John Goodreds
	 	 
	 	 	 	 	 Title:
	 	 Director
	 	 
			
	 	 	 ALLSTATE LIFE INSURANCE COMPANY
	 	 
				
	 	 	By	 	 /s/ Jeffrey J. Cannon

	 	 
	 	 	 	 	 Name
	 	 Jeffrey J. Cannon
	 	 
				
	 	 	By	 	 /s/ Jerry D. Zinkula

	 	 
	 	 	 	 	 Name
	 	 Jerry D. Zinkula
	 	 
	 	 	 	 	 Authorized Signatories
	 	 
			
	 	 	 PACIFIC LIFE INSURANCE COMPANY
(NOMINEE:
MAC & Co)
	 	 
				
	 	 	By	 	 /s/ David C. Patch

	 	 
	 	 	 	 	 Its Assistant Vice President
	 	 
				
	 	 	By	 	 /s/ Peter S. Fisk

	 	 
	 	 	 	 	 Its Assistant Secretary
	 	 
			
	 	 	 NATIONWIDE LIFE INSURANCE COMPANY
	 	 
				
	 	 	By	 	 /s/ Mark. W. Poeppelman

	 	 
	 	 	 	 	 Its Authorized Signatory
	 	 

									
	 	 	 NATIONWIDE LIFE AND ANNUITY INSURANCE
COMPANY
	 	 
				
	 	 	By	 	 Mark W. Poeppelman

	 	 
	 	 	 	 	 Its Authorized Signatory
	 	 
			
	 	 	 AMERICAN EQUITY INVESTMENT LIFE INSURANCE
COMPANY
	 	 
				
	 	 	 By
	 	 /s/ Rachel Stauffer

	 	 
	 	 	 	 	 Its Portfolio Manager – Private Placements
	 	 
			
	 	 	 OHIO NATIONAL LIFE ASSURANCE
CORPORATION
	 	 
				
	 	 	 By
	 	 /s/ Jed R. Martin

	 	 
	 	 	 	 	 Its Vice President Private Placements
	 	 
			
	 	 	 THE OHIO NATIONAL LIFE INSURANCE
COMPANY
	 	 
				
	 	 	 By
	 	 /s/ Jed R. Martin

	 	 
	 	 	 	 	 Its Vice President Private Placements
	 	 
			
	 	 	 BENEFICIAL LIFE INSURANCE COMPANY 
	 	 
				
	 	 	 By
	 	 /s/ Robert R. Dalley

	 	 
	 	 	 	 	 Its Senior VP – CFO
	 	 

  
  

									
	 	 	 SECURITY FINANCIAL LIFE INSURANCE CO. 
	 	 
				
	 	 	 By
	 	 /s/ Kevin W. Hammond

	 	 
	 	 	 	 	 Its Senior Director – Investments
	 	 

 INFORMATION RELATING TO PURCHASERS

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 PRINCIPAL LIFE INSURANCE COMPANY
	  	$9,000,000
	 c/o Principal Global Investors, LLC
	  	$2,500,000
	 Attn: Fixed Income Private Placements
	  	$1,000,000
	 711 High Street, G-26
	  	$750,000
	 Des Moines, Iowa 50392-0800
	  	$500,000
	 	  	$325,000
	 	  	$300,000
	 	  	$250,000
	 	  	$175,000
	 	  	$100,000
	 	  	$100,000

  
 Payments 
  
 All payments on or in respect of the Notes to be made by 12:00 noon (New York City time) by
wire transfer of immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to: 
  
 ABA No.:
[                    ] 
 Wells Fargo Bank, N.A. 
 San Francisco, California 
 For credit to Principal Life Insurance Company 
 Account No.:
[                    ] 
 OBI PFGSE (S) B0068104() 
 Attn: (cusip number 024937 A# 1 — American Capital Strategies, Ltd.) 
  
 Notices 
  
 All notices and communications to be addressed as first provided above and via Email: Privateplacements2@exchange.principal.com, with
copies of any notices with respect to payments, prepayments and rate reset notices to be addressed: 
  
 Principal Global Investors, LLC 
 Attn: Investment Accounting Fixed Income Securities 
 711 High Street 
 Des Moines, Iowa 50392-0960 
  
 Name of Nominee in which Notes are to be issued: NONE 
  
 SCHEDULE A 
 (to Note Purchase
Agreement) 
  
 Taxpayer I.D. Number:
[                    ] 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 AVIVA LIFE INSURANCE COMPANY
	  	$4,000,000
	 c/o Principal Global Investors, LLC
	  	 
	 Attn: Fixed Income Private Placements
	  	 
	 711 High Street, G-26
	  	 
	 Des Moines, Iowa 50392-0800
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes to be made by 12:00 noon (New York City time) by
wire transfer of immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to: 
  
 Mellon Bank (Boston Safe Deposit) 
 [                    ]

 [                    ] 
 Cost Center [                    ] 
 For Acct: Aviva Life-EIA CORE BOND PGP 
 Account: [                    ] 
 Attn: (cusip number 024937 A# 1 — American Capital Strategies, Ltd.) 
  
 Notices 
  
 All notices and communications to be addressed as first provided above and via Email: Privateplacements2@exchange.principal.com, with copies of any notices with
respect to payments, prepayments and rate reset notices to be addressed: 
  
 Aviva Life Insurance Company 
 c/o Principal Global Investors, LLC 
 Attn: Investment Accounting Fixed Income Securities 
 711 High Street 
 Des Moines, Iowa 50392-0960 
  
 Name of Nominee in which Notes are to be
issued: MAC & CO. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-2 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 SCOTTISH RE (US) / NATIONWIDE LIFE
	  	$1,000,000
	 INSURANCE CO 1 YR TRUST
	  	 
	 c/o Principal Global Investors, LLC
	  	 
	 711 High Street, G-26
	  	 
	 Des Moines, Iowa 50392-0800
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes to be made by 12:00 noon (New York City time) by
wire transfer of immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to: 
  
 Comerica Bank / Trust Operations 
 AC: [                    ]

 BNF: Scottish Annuity & Life Holdings, Ltd. 
 AC: [                    ]

 BBI: Trade Settlement (313) 222-3111 
 Bank Routing Number:
[                    ] 
 [                    ] 
 Attn: (cusip number 024937 A# 1 — American Capital Strategies, Ltd.) 
  
 Notices 
  
 All notices shall be delivered to:

  
 Scottish – 1 YR 
 Principal Global Investors, LLC 
 Attn: Fixed Income Private Placements 
 711 High Street, G-26 
 Des Moines, Iowa 50392-0960 
  
 And via Email: Privateplacements2@exchange.principal.com 
  
 With a copy of notices with respect to payments, prepayments and rate reset notices to: 
  
 Scottish – 1 YR 
 Principal Global Investors, LLC 
 Attn: Investment Accounting Fixed Income Securities 
 711 High Street 
 Des Moines, Iowa 50392-0960 
  
 Name of Nominee in which Notes are to be issued: CALHOUN & CO. 
  
 Taxpayer I.D. Number: [                    ] 
  

 A-3 

			
	 NAME AND ADDRESS OF PURCHASER
	  	 PRINCIPAL AMOUNT OF
 NOTES TO BE PURCHASED

		
	 SCOTTISH RE (US) / NATIONWIDE
LIFE
 INSURANCE Co 5 YR
TRUST
 c/o Principal Global Investors, LLC
 711 High Street, G-26
 Des Moines, Iowa 50392-0800
	  	$1,000,000

  
 Payments 
  
 All payments on or in respect of the Notes to be made by
12:00 noon (New York City time) by wire transfer of immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to:

  
 Comerica Bank / Trust Operations 

AC: [                    ]

 BNF: Scottish Annuity & Life Holdings, Ltd. 
 AC: [                    ]

 BBI: Trade Settlement (313) 222-3111 
 Bank Routing Number:
[                    ] 
 [                    ] 
 Attn: (cusip number 024937 A# 1 — American Capital Strategies, Ltd.) 
  
 Notices 
  
 All notices shall be delivered to: 
  
 Scottish – 5 YR 
 Principal Global Investors, LLC 
 Attn: Fixed Income Private Placements 
 711 High Street, G-26 
 Des Moines, Iowa 50392-0800 
  
 And via
Email: Privateplacements2@exchange.principal.com 
  
 With a copy of notices with respect to payments, prepayments and rate reset notices to: 
  
 Scottish – 5 YR 
 Principal Global Investors, LLC 
 Attn: Investment Accounting Fixed Income Securities 
 711 High Street 
 Des Moines, Iowa 50392-0960 
  
 Name of Nominee in which Notes are to be
issued: CALHOUN & CO. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-4 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 SCOTTISH RE (US) / LINCOLN NATIONAL,
LTD.
 c/o Principal Global Investors, LLC
 711 High Street, G-26
 Des Moines, Iowa 50392-0800
	  	$2,000,000

  
 Payments 
  
 All payments on or in respect of the Notes to be made by
12:00 noon (New York City time) by wire transfer of immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to:

  
 Comerica Bank / Trust Operations 

AC: [                    ]

 BNF: Scottish Annuity & Life Holdings, Ltd. 
 AC: [                    ]

 BBI: Trade Settlement (313) 222-3111 
 Bank Routing Number:
[                    ] 
 [                    ] 
 Attn: (cusip number 024937 A# 1 — American Capital Strategies, Ltd.) 
  
 Notices 
  
 All notices shall be delivered to: 
  
 Scottish – Lincoln 
 Principal Global Investors, LLC 
 Attn: Fixed Income Private Placements 
 711 High Street, G-26 
 Des Moines, Iowa 50392-0800 
  
 And via
Email: Privateplacements2@exchange.principal.com 
  
 With a copy of notices with respect to payments, prepayments and rate reset notices to: 
  
 Scottish – Lincoln 
 Principal Global Investors, LLC 
 Attn: Investment Accounting Fixed Income Securities

 711 High Street 
 Des Moines, Iowa 50392-0960 
  
 Name of Nominee in
which Notes are to be issued: CALHOUN & CO. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-5 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 TEACHERS INSURANCE AND
ANNUITY
 ASSOCIATION OF
AMERICA
	  	$22,000,000
	 730 Third Avenue
	  	 
	 New York, New York 10017-3206
	  	 
	 Attention: Investment Management Division
	  	 
	 Telecopy No. (212) 490-9000
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes shall be made in immediately available funds at
the opening of business on the due date by electronic funds transfer through the Automated Clearing House System to: 
  
 Chase ManhattanBank 
 ABA# [                    ] 
 New York, New York 
 For deposit to the account of : TIAA 
 Account No.:
[                    ] 
 For Further Credit to the TIAA Account Number: [                    ] 
 Reference: PPN 024937 A# 1/Issuer/Mat. Date/Coupon Rate/P&I Breakdown 
  
 Notices 
  
 Contemporaneous with the above electronic funds transfer, advice setting forth (1) the full name, private placement number and interest rate of the Note, (2) allocation
of payment between principal, interest, premium and any special payment; and (3) name and address of Bank (or Trustee) from which wire transfer was sent, shall be delivered, mailed or faxed to: 
  

	
	 Teachers Insurance and Annuity Association of America

	 730 Third Avenue

	 New York, New York 10017-3206

	 Attention: Securities Accounting Division

	 Telephone:        (212) 916-6004

	 Telecopy:          (212) 916-6955

	
	 With a copy to:

	
	 Teachers Insurance and Annuity Association of America

	 730 Third Avenue

	 New York, New York 10017

	 Attention:    John Goodreds

	                     Fixed Income and Real
Estate – Investment

	                     Management
Division

  

 A-6 

			
	 Telephone:        (212) 916-6578
	  	 
	 Telecopy:          (212) 916-6582
	  	 
	 E-mail:                john.goodreds@tiaa-cref.org
	  	 

  
 All other communications shall be
delivered or mailed as first provided above. 
  
 Name of Nominee in which Notes
are to be issued: None 
  
 Taxpayer I.D. Number:
[                    ] 
  
  

 A-7 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 ALLSTATE LIFE INSURANCE COMPANY
	  	$10,000,000
	 c/o Allstate Investments LLC
	  	$10,000,000
	 Private Placements Department
	  	 
	 3075 Sanders Road, STE G5D
	  	 
	 Northbrook, Illinois 60062-7127
	  	 
	 Telephone: (847) 402-7117
	  	 
	 Telecopy: (847) 402-3092
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes to be by electronic funds transfer of Federal or
other immediately available funds through the Automated Clearing House System (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to:

  

			
		
	 Bank:
	 	 Citibank

	 ABA #:
	 	 [                    ]

	 Account Name:
	 	 Allstate Life Insurance Company Collection Account - PP

	 Account #:
	 	 [.                    ]

	 Reference:
	 	 [                    ], Credit
Name, Coupon, Maturity here], Payment Due Date (MM/DD/YY) and the type and amount of payment being made.

  
 For
example: 
 P            (Enter “P” and amount of
principal being remitted, 
 for example, P5000000.00) – 
 I            (Enter “I” and amount of principal being
remitted, 
 for example, I225000.00) – 
  
 Notices 
  
 All notices of payments and written confirmations of such wire transfers shall be delivered to: 
  
 Allstate Investments LLC 
 Investment Operations – Private Placements 
 3075 Sanders Road, STE G4A 
 Northbrook, Illinois 60062-7127 
 Telephone: (847) 402-6672 Private Placements 
 Telecopy: (847) 326-7032 
 E-Mail: PrivateIOD@allstate.com 
  

 A-8 

 All financial reports, compliance certificates and all other written communications, including notice of prepayments,
shall be delivered by email (PrivateCompliance@allstate.com) or by hard copy as first provided above. 
  
 Name of Nominee in which Notes are to be issued: None. 
  
 Taxpayer I.D. Number: [                    ] 
  

 A-9 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 PACIFIC LIFE INSURANCE COMPANY
	  	$10,000,000
	 700 Newport Center Drive
	  	$5,000,000
	 Newport Beach, California 92660-6397
	  	$1,000,000
	 Attention: Securities Department
	  	$1,000,000
	 Facsimile: (949) 219-5406
	  	$1,000,000
	 	  	$1,000,000
	 	  	$1,000,000

  
 Payments 
  
 All payments on or in respect of the Notes to be by electronic funds transfer of Federal or
other immediately available funds through the Automated Clearing House System (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to:

  
 Mellon Trust of New England 
 ABA # [                    ]

 DDA:
[                    ] 
 Attn: MBS Income CC: 1253 
 A/C Name:
[                    ] 
 Regarding: Security Description and PPN 
  
 Notices 
  
 All notices of payments and written confirmations of such wire transfers shall be delivered
to: 
  
 Mellon Trust 
 Attn: Pacific Life Accounting Team 
 Three Mellon Bank Center 
 AIM #
[                    ] 
 Pittsburgh, Pennsylvania 15259 
 Facsimile: (412) 236-7529 
  
 And 
  
 Pacific Life Insurance Company 
 Attn: Securities Administration – Cash Team 
 700 Newport Center Drive 
 Newport Beach, California 92660-6397 
 Facsimile: (949) 640-4013 
  
 All other communications shall be delivered as first provided above. 
  
 Name of Nominee in which Notes are to be issued: MAC & CO. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-10 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 NATIONWIDE LIFE INSURANCE
COMPANY
 One Nationwide Plaza
 Columbus, Ohio 43215-2220
	  	$8,000,000

  
 Payments 
  
 All payments on or in respect of the Notes shall be made in
immediately available funds to: 
  
 The Bank of
New York 
 ABA
[                    ] 
 BNF: [                    ] 
 F/A/O Nationwide Life Insurance Co./Acct#[                    ] 
 Attn: P & I Department 
 [                    ] 
 Security Description “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010” 
  
 Notices 
  
 Notices of payment on or in respect to the security: 
  
 Nationwide Life Insurance Company 
 c/o The Bank of New York 
 P O Box 19266 
 Attn: P & I Department 
 Newark, NJ 07195 
  
 With a copy to: 
  
 Nationwide Life Insurance Company 
 Attn: Investment Accounting 
 One Nationwide Plaza (1-32-05) 
 Columbus, Ohio 43215-2220 
  
 All other communications shall be delivered or mailed to: 
  
 Nationwide Life Insurance Company 
 One Nationwide Plaza (1-33-07) 
 Columbus, Ohio 43215-2220 
 Attention: Corporate Fixed-Income Securities 
  
 Name of Nominee in which Notes are to be issued: None 
  
 Taxpayer I.D. Number: [                    ] 
  

 A-11 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 NATIONWIDE LIFE AND ANNUITY
INSURANCE COMPANY
 One Nationwide Plaza
 Columbus, Ohio 43215-2220
	  	$7,000,000

  
 Payments 
  
 All payments on or in respect of the Notes shall be made in
immediately available funds to: 
  
 The Bank of
New York 
 ABA
#[                    ] 
 BNF: IOC566 
 F/A/O Nationwide Life and Annuity Insurance Company 
 Attn: P & I Department 
 PPN# [                    ] 
 Security Description “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010” 
  
 Notices 
  

	Notices	of payment on or in respect to the security: 

  
 Nationwide Life and Annuity Insurance Company 
 c/o The Bank of New York 
 P O Box 19266 
 Attn: P & I Department 
 Newark, NJ 07195 
  
 With a copy to: 
  
 Nationwide Life and Annuity Insurance Company 
 Attn: Investment Accounting 
 One Nationwide Plaza (1-32-05) 
 Columbus, Ohio 43215-2220 
  
 All other communications shall be delivered or mailed to: 
  
 Nationwide Life Insurance Company 
 One Nationwide Plaza (1-33-07) 
 Columbus, Ohio 43215-2220 
 Attention: Corporate Fixed-Income Securities 
  
 Name of Nominee in which Notes are to be issued: None 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-12 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 AMERICAN EQUITY INVESTMENT LIFE
INSURANCE COMPANY
 5000 Westown Parkway, Suite 440
 West Des Moines, Iowa 50266
	  	$12,000,000

  
 Payments 
  
 All payments on or in respect of the Notes shall be made in
immediately available funds to: 
  
 State Street
Bank & Trust Company 
 Boston, Massachusetts 02110 
 ABA # [                    ]

 BNF –
[                    ] 
 AC – BEV3 
 CUSIP/PPN#
[                    ] 
 Security Description “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010” 
  
 Notices 
  
 All notices shall be delivered to: 
  
 American Equity Investment Life Insurance Co. 
 Attn: Asset Administration 
 5000 Westown Parkway, Suite 440 
 West Des Moines, Iowa 50266 
 Fax: (515) 221-0329 
  
 With a copy to: 
  
 American Equity Investment Life Insurance Co. 
 Attn: Investment Department – Private Placements 
 5000 Westown Parkway, Suite 440 
 West Des Moines, Iowa 50266 
 Fax: (515) 221-0329 
  
 Name of Nominee in which Notes are to be issued: None. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-13 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 OHIO NATIONAL LIFE ASSURANCE
CORPORATION
 Post Office Box 237
 Cincinnati, Ohio 45201
 Attention: Investment Department
 Fax Number: (513) 794-4506
	  	$4,500,000

  
 Payments 
  
 All payments on or in respect of the Notes to be by bank
wire transfer of Federal or other immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal or interest”) to: 
  
 U.S. Bank N.A. (ABA
#[                    ]) 
 5th and Walnut Streets 
 Cincinnati, Ohio 45202 
  
 For credit to Ohio National Life 
 Assurance Corporation’s Account Number
[                    ] 
  
 Notices 
  
 All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

  
 Name of Nominee in which Notes are to be issued: None 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-14 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 THE OHIO NATIONAL LIFE
INSURANCE COMPANY
 Post Office Box 237
 Cincinnati, Ohio 45201
 Attention: Investment Department
 Fax Number: (513) 794-4506
	  	$4,500,000

  
 Payments 
  
 All payments on or in respect of the Notes to be by bank
wire transfer of Federal or other immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal or interest”) to: 
  
 U.S. Bank N.A. (ABA
#[                    ]) 
 5th and Walnut Streets 
 Cincinnati, Ohio 45202 
  
 For credit to The Ohio National Life 
 Insurance Company’s Account Number
[                    ] 
  
 Notices 
  
 All notices and communications, including notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above.

  
 Name of Nominee in which Notes are to be issued: None 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-15 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 BENEFICIAL LIFE INSURANCE CO.
	  	$3,000,000
	 36 South State, 25th Floor
	  	 
	 Salt Lake City, Utah 84136
	  	 
	 Attn: Sterling Russell
	  	 
	 Fax: (801) 531-3339
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes to be by bank wire transfer of Federal or other
immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, interest or premium”) to: 
  
 JPMorgan Chase 
 ABA #[                    ]

 Account #
[                    ] 
 Account Name: [                    ] 
 Reference: Private Placement Number 
  
 Notices

  
 Address for Notices Related to Payments: 
  
 Zions First National Bank 
 100 South Main Street, 17th Floor 
 Salt Lake City, Utah 84111 
 Attention: Linda Fairless 
 Fax: (801) 524-4664 
  
 With a copy to: 
  
 Beneficial Life
Insurance Co. 
 36 South State, 25th Floor 
 Salt Lake City, Utah 84136 
 Attn: Susan Denton 
 Fax: (801) 531-3314 
  
 All other communications and notices shall be delivered as first provided above. 

 
 Name of Nominee in which Notes are to be issued: TFINN & CO. 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-16 

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
		
	 SECURITY FINANCIAL LIFE INSURANCE CO.
	  	$2,000,000
	 4000 Pine Lake Road
	  	 
	 P.O. Box 82248
	  	 
	 Lincoln, Nebraska 68501-2248
	  	 

  
 Payments 
  
 All payments on or in respect of the Notes to be by bank wire transfer of Federal or other
immediately available funds (identifying each payment as “American Capital Strategies, Ltd., 6.14% Senior Notes due August 1, 2010, PPN 024937 A# 1, principal, premium or interest”) to: 
  
 Union Bank & Trust company 
 4732 Calvert Street 
 Lincoln, Nebraska 
 ABA No.
[                    ] 
  
 Account of: Security Financial Life Insurance Co. 
 Account Number:
[                    ] 
  
 Notices 
  
 All notices and communications to be addressed as first provided above, except notices with respect to payments and written confirmation of each such payment to be addressed: 
  
 Security Financial Life Insurance Co. 
 4000 Pine Lake Road 
 Lincoln, Nebraska 68516 
 Attention: Investment Department 
 Fax: (402) 458-2170 
 Phone: (402) 434-9600 
  
 Name of Nominee in which Notes are to be
issued: None 
  
 Taxpayer I.D. Number:
[                    ] 
  

 A-17 

 DEFINED TERMS 
  
 As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term: 
  
 “Accelerated Amortization Event” shall have the meaning set forth in the BBT Credit Agreement as in effect on the date of Closing. 
  
 “Additional Principal Amount” shall have the meaning set forth in the BBT Credit Agreement as in effect on the date of Closing.

  
 “Affiliate” shall mean, at any time, and with
respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or
holding, directly or indirectly, 10% or more of any class of voting or equity interests of such first Person or any Person of which such first Person and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or
more of any class of voting or equity interests; provided that in the case of the Company or any Subsidiary, “Affiliate” shall not include any Person that is a Portfolio Investment. As used in this definition, “Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise
clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 
  
 “Anti-Terrorism Order” shall mean Executive Order No. 13,224 66 Fed Reg. 49,079 (2001) issued by the President of the United States of
America (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism). 
  
 “Asset Coverage Ratio” shall mean, on a consolidated basis for the Company and its Consolidated Subsidiaries, the ratio which the value
of total assets, less all liabilities and indebtedness not represented by senior securities (all as determined in accordance with the Investment Company Act and any orders of the United States Securities and Exchange Commission issued to the Company
thereunder), bears to the aggregate amount of senior securities representing indebtedness of the Company and its Consolidated Subsidiaries. 
  
 “Available Non-Pledged Assets” shall mean, as of any date of determination thereof, an amount equal to the sum of (a) 50% of each
Eligible Investment issued by a Grade 2 Obligor and (b) 100% of each Eligible Investment issued by a Grade 3 Obligor or a Grade 4 Obligor. For purposes of determining “Available Non-Pledged Assets,” Investments shall be valued at their
Fair Market Value as of any date of determination. 
  
 “Available Non-Pledged Debt Assets” shall mean, as of any date of determination thereof, an amount equal to the value of Available Non-Pledged Assets that are Eligible Debt Investments. 
  
 SCHEDUEL B 
 (to Note Purchase Agreement) 

 “Available Pledged Assets” shall mean, as of any date of determination, 50% of the
aggregate amount of Eligible Pledged Assets in respect of all Secured Debt Obligations in existence as of such date. 
  
 “BBT Credit Agreement” shall mean that certain Amended and Restated Credit Agreement dated as of February 17, 2005 among the Company, as
borrower and servicer, the banks listed therein, Wells Fargo Bank, National Association, as back-up servicer and as the collateral custodian, and Branch Banking and Trust Company, as administrative agent. 
  
 “Business Day” shall mean (a) for the purposes of Section
8.6 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a
Sunday or a day on which commercial banks in Bethesda, Maryland or New York, New York are required or authorized to be closed. 
  
 “Capital Lease” shall mean, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition
of an asset and the incurrence of a liability in accordance with GAAP. 
  
 “Cash” shall mean, at any time, the total amount of “cash and cash equivalents” of the Company and its Consolidated Subsidiaries as set forth in or reflected on the most recent consolidated balance sheet of the
Company and its Consolidated Subsidiaries prepared in accordance with GAAP. 
  
 “Closing” is defined in Section 3. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time. 
  
 “Company” shall mean American Capital Strategies, Ltd., a
Delaware corporation, or any Successor Corporation. 
  
 “Confidential Information” is defined in Section 20. 
  
 “Consolidated Debt” shall mean, as of any date of determination thereof, the aggregate unpaid amount of all Debt of the Company and its Consolidated Subsidiaries determined on a consolidated basis in
accordance with GAAP. 
  
 “Consolidated Shareholders’
Equity” shall mean, at any time, the shareholders’ equity of the Company and its Consolidated Subsidiaries, as set forth in or reflected on the most recent consolidated balance sheet of the Company and its Consolidated Subsidiaries
prepared in accordance with GAAP, but excluding any redeemable preferred stock of the Company or any of its Consolidated Subsidiaries. Consolidated Shareholders’ Equity would generally include, but not be limited to, (a) the par or stated value
of all outstanding capital stock, (b) capital surplus, (c) retained earnings and (d) various deductions such as (1) purchases of treasury stock, (2) valuation allowances, (3) receivables due from an employee stock ownership plan, (4) employee stock
ownership plan debt guarantees and (5) translation adjustments for foreign currency translations. 
  

 B-2 

 “Consolidated Subsidiary” shall mean any Subsidiary or other entity the accounts of
which, in accordance with GAAP, would be consolidated with those of the Company in its consolidated and consolidating financial statements as of such date. 
  
 “Consolidated Tangible Net Worth” shall mean, at any time, the Consolidated Shareholders’ Equity, less the sum of the value, as set
forth or reflected on the most recent consolidated balance sheet of the Company and its Consolidated Subsidiaries, prepared in accordance with GAAP or the Investment Company Act, of (a) any surplus resulting from any write-up of any assets
subsequent to December 31, 2004, provided that Consolidated Tangible Net Worth shall include any write-ups of Portfolio Investments subsequent to December 31, 2004 to the extent such write-ups are required under GAAP, (b) all assets that
would be treated as “intangible assets” for balance sheet presentation purposes under GAAP including, without limitation, goodwill (whether representing the excess of cost over book value of assets acquired, or otherwise), trademarks,
tradenames, copyrights, patents and technologies and unamortized debt discount and expense, (c) to the extent not included in clause (b) above, any amount at which shares of capital stock of the Company appear as an asset on the balance sheet of the
Company and its Consolidated Subsidiaries, (d) loans or advances to stockholders, directors, officers or employees and (e) to the extent not included in clause (b) above, deferred expenses. 
  
 “Consolidated Total Assets” shall mean, at any time, the
total assets of the Company and its Consolidated Subsidiaries determined on a consolidated basis in accordance with GAAP. 
  
 “Credit and Collection Policy” shall mean those credit, collection, customer relation and service policies set forth as Exhibit 5.21
hereto, as the same may be modified by the Company from time to time in accordance with the terms hereof. 
  
 “Debt” of any Person shall mean at any date, without duplication, (a) all obligations of such Person for borrowed money, (b) all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (c) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary
course of business; (d) all obligations of such Person as lessee under Capital Leases; (e) all obligations of such Person to reimburse any bank or other Person in respect of amounts payable under a banker’s acceptance; (f) all redeemable
preferred stock of such Person (in the event such Person is a corporation); (g) all obligations (absolute or contingent) of such Person to reimburse any bank or other Person in respect of amounts which are available to be drawn or have been drawn
under a letter of credit or similar instrument; (h) all Debt of others secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person; (i) all Debt of others Guaranteed by such Person; (j) all principal amounts
outstanding and owed to Persons other than such first Person or its Subsidiaries in respect of notes, trust certificates, undivided interests partnership interests or other interests representing the right to be paid a specified principal amount
from assets transferred by such first Person or its Subsidiaries in connection with securitization transactions; (k) all obligations, direct or indirect (absolute or contingent) of such Person to repurchase property or assets sold or otherwise
transferred by such Persons and (l) the principal portion of all obligations of such Person under any synthetic lease, tax retention operating lease, off balance sheet loan or similar off balance sheet financing product where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an operating lease under GAAP. 
  

 B-3 

 “Default” shall mean an event or condition the occurrence or existence of which would,
with the lapse of time or the giving of notice or both, become an Event of Default. 
  
 “Default Rate” shall mean, with respect to the Notes, that rate of interest that is the greater of (a) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of the
Notes or (b) 2.00% over the rate of interest publicly announced by JPMorgan Chase Bank, NA in New York, New York as its “base” or “prime” rate. 
  
 “Defaulted Investment” shall mean any Investment (a) that is 60 days (or such shorter number of days as may
be applied for determining when an Investment is to be considered as a defaulted Investment under any Secured Debt Obligation) or more past due with respect to any interest or principal payments or (b) that is or otherwise should be considered a
defaulted loan by the Company in connection with its Credit and Collection Policy. 
  
 “EBIT” shall mean, for any period and with respect to the Company and its Consolidated Subsidiaries, on a consolidated basis, operating income after deduction of all operating expenses and other
proper charges other than taxes and Interest Expense, all as determined in accordance with GAAP. 
  
 “Eligible Debt Investments” shall mean Investments in Senior Debt, Investments in Subordinated Debt and Investments in Junior
Subordinated Debt that have been purchased or otherwise acquired by the Company or a Consolidated Subsidiary in the ordinary course of business; provided that no such Investment shall be an Eligible Investment unless (a) such Investment is
evidenced by an instrument or agreement that has been duly authorized, executed and delivered and is enforceable against the obligor thereof, (b) such Investment, if applicable, is denominated and payable either in (1) United States dollars or (2)
the currency of a jurisdiction other than the United States of America, provided that the aggregate amount of Investments permitted under this subclause (2) and clause (b)(2) of the definition of Eligible Equity Investments shall not exceed
$100,000,000 at any one time, (c) such Investment is not subject to any Lien and, if such Investment is owned by a Consolidated Subsidiary, the Company shall not have pledged or otherwise encumbered the stock of such Consolidated Subsidiary or any
direct or indirect parent thereof, (d) no right of rescission, set-off, counterclaim, defense or other material dispute has been asserted with respect to such Investment and (e) the obligor in respect of such Investment is not (1) an individual, (2)
organized or incorporated under the laws of a jurisdiction other than a Permitted Country, (3) the subject of an Insolvency Event or (4) a party to a Defaulted Investment. 
  
 “Eligible Equity Investments” shall mean Investments in Common Stock, Investments in Preferred Stock,
Investments in Redeemable Preferred Stock, and Investments in Warrants that have been purchased or otherwise acquired by the Company or a Consolidated Subsidiary in the ordinary course of business; provided that no such Investment shall be an
Eligible Investment unless (a) such Investment is evidenced by an instrument or agreement that has been duly authorized, executed and delivered and is enforceable against the issuer thereof, (b) such Investment, if applicable, is denominated and
payable either in (1) United States dollars or (2) the currency of a jurisdiction other than the United States of America, provided that the aggregate amount of Investments permitted under this subclause (2) and clause (b)(2) of the
definition of Eligible Debt Investments shall not exceed $100,000,000 at any one time, (c) such 

  

 B-4 

 
Investment is not subject to any Lien and, if such Investment is owned by a Consolidated Subsidiary, the Company shall not have pledged or otherwise
encumbered the stock of such Consolidated Subsidiary or any direct or indirect parent thereof, (d) no right of rescission, set-off, counterclaim, defense or other material dispute has been asserted with respect to such Investment and (e) the issuer
in respect of such Investment is not (1) an individual, (2) organized or incorporated under the laws of a jurisdiction other than a Permitted Country, (3) the subject of an Insolvency Event or (4) in default beyond any period of grace with respect
to such Investment or any term of any agreement or instrument evidencing such Investment. 
  
 “Eligible Investments” shall mean Eligible Debt Investments and Eligible Equity Investments. 
  
 “Eligible Pledged Assets” in respect of each Secured Debt Obligation, shall mean, as of any date of determination, an amount equal to the
difference between (a) the value of all Pledged Investments in respect of such Secured Debt Obligation and (b) the principal amount of such Secured Debt Obligation. For purposes of determining “Eligible Pledged Assets,” Pledged Investments
shall be valued at their Fair Market Value as of any date of determination. 
  
 “Environmental Laws” shall mean any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,
licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to hazardous substances or wastes, air
emissions and discharges to waste or public systems. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
  
 “ERISA Affiliate” shall mean any trade or business (whether
or not incorporated) that is treated as a single employer together with the Company under Section 414 of the Code. 
  
 “Event of Default” is defined in Section 11. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” shall mean with, respect to any Investment, including without limitation, Pledged
Investments, the fair market value of such Investment as required by, and in accordance with, the Investment Company Act and any orders of the Securities and Exchange Commission issued to the Company, all as determined by the Board of Directors of
the Company and its independent auditors. 
  
 “GAAP” shall mean generally accepted accounting principles as in effect from time to time in the United States of America. 
  
 “Governmental Authority” shall mean 
  
 (a) the government of 
  

 B-5 

 (1) the United States of America or any State or other political subdivision thereof, or

  
 (2) any other jurisdiction in which the
Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or 
  
 (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such
government. 
  
 “Grade 2 Obligor” shall mean, as
of any date, any issuer or obligor in respect of Eligible Investments that are classified, in accordance with the Credit and Collection Policy, as “Grade 2” on such date. 
  
 “Grade 3 Obligor” shall mean, as of any date, any issuer or obligor in respect of Eligible Investments that
are classified, in accordance with the Credit and Collection Policy, as “Grade 3” on such date. 
  
 “Grade 4 Obligor” shall mean, as of any date, any issuer or obligor in respect of Eligible Investments that are classified, in accordance
with the Credit and Collection Policy, as “Grade 4” on such date. 
  
 “Guaranty” shall mean, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including, without limitation, obligations incurred through an agreement, contingent or otherwise, by
such Person: 
  
 (a) to purchase such Debt or
obligation or any property constituting security therefor; 
  
 (b) to advance or supply funds (1) for the purchase or payment of such Debt or obligation or (2) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person
or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation; 
  
 (c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or obligation
of the ability of any other Person to make payment of the Debt or obligation; or 
  
 (d) otherwise to assure the owner of such Debt or obligation against loss in respect thereof. 
  
 In any computation of the Debt or other liabilities of the obligor under any Guaranty, the
Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor. 
  

 B-6 

 “Hazardous Material” shall mean any and all pollutants, toxic or hazardous wastes or any
other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release,
discharge, spillage, seepage, or filtration of which is or shall be restricted, prohibited or penalized by any applicable law (including, without limitation, asbestos, urea formaldehyde foam insulation and polychlorinated biphenyls). 
  
 “holder” shall mean, with respect to any Note, the Person in
whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1. 
  
 “Insolvency Event” shall mean with respect to any Person, (a) the filing of a decree or order for relief by a court having jurisdiction
in the premises in respect of such Person or any substantial part of its property in an involuntary case under applicable Insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for such Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person’s affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days;
or (b) the commencement by such Person of a voluntary case under any applicable Insolvency Law now or hereinafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, or the consent
by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property or the making by such Person of any
general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in further of the foregoing. 
  
 “Insolvency Laws” shall mean the Bankruptcy Code and all
other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, or similar debtor relief laws from time to time in effect after the rights of creditors
generally. 
  
 “Institutional Investor”
shall mean (a) any original purchaser of a Note, (b) any holder of a Note holding more than $2,000,000 of the aggregate principal amount of the Notes then outstanding or (c) any bank, trust company, savings and loan association or other financial
institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form. 
  
 “Interest Expense” shall mean, with respect to a Person and for any period, the total consolidated interest
expense (including, without limitation, capitalized interest expense and interest expense attributable to obligations in respect of Capital Leases, interest rate protection agreements and other hedging agreements) of such Person and in any event
shall include all interest expense with respect to any Debt in respect of which such Person is wholly or partially liable. 
  
 “Investment” shall mean any investment in any Person, whether by means of purchase or acquisition of obligations or securities of such
Person, capital contributions to such Person, loan or advance to such Person, making of a time deposit with such Person, Guaranty or assumption of any obligation of such Person or otherwise. 
  

 B-7 

 “Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and
all rules and regulations promulgated thereunder. 
  
 “Investments in Common Stock” shall mean each Investment owned by the Company or any Consolidated Subsidiary in common stock, partnership interests or membership interests of any Person and that is classified as
“Common Stock,” “Partnership Units” or “Membership Units” on the consolidated schedule of investments of the Company for the then most recently ended fiscal quarter. 
  
 “Investments in Junior Subordinated Debt” shall mean each
Investment owned by the Company or any Consolidated Subsidiary in debt of any Person that is subordinated in any manner to other subordinated debt of such Person and that is classified as “Junior Subordinated Debt” on the consolidated
schedule of investments of the Company for the then most recently ended fiscal quarter. 
  
 “Investments in Preferred Stock” shall mean each Investment owned by the Company or any Consolidated Subsidiary in preferred stock (other than redeemable preferred stock) of any Person and that is
classified as “Preferred Stock” on the consolidated schedule of investments of the Company for the then most recently ended fiscal quarter. 
  
 “Investments in Redeemable Preferred Stock” shall mean each Investment owned by the Company or any Consolidated Subsidiary in redeemable
preferred stock of any Person and that is classified as “Redeemable Preferred Stock” on the consolidated schedule of investments of the Company for the then most recently ended fiscal quarter. 
  
 “Investments in Senior Debt” shall mean each Investment by
the Company or any Consolidated Subsidiary in debt of any Person that is not subordinated in any manner to any other debt of such Person and that is classified as “Senior Debt” on the consolidated schedule of investments of the Company for
the then most recently ended fiscal quarter. 
  
 “Investments in Subordinated Debt” shall mean each Investment owned by the Company or any Consolidated Subsidiary in debt of any Person that is subordinated in any manner to other debt of such Person and that is classified
as “Subordinated Debt” on the consolidated schedule of investments of the Company for the then most recently ended fiscal quarter; provided that “Investments in Subordinated Debt” shall not include Investments in Junior
Subordinated Debt. 
  
 “Investments in Warrants”
shall mean each Investment owned by the Company or any Consolidated Subsidiary in warrants to purchase common stock, partnership interests or membership interests of any Person and that is classified as “Common Stock Warrants,”
“Partnership Unit Warrants” or “Membership Unit Warrants” on the consolidated schedule of investments of the Company for the then most recently ended fiscal quarter. 
  
 “Lien” shall mean, with respect to any asset, any mortgage,
deed to secure debt, deed of trust, lien, pledge, charge, security interest, security title, preferential arrangement which has the practical effect of constituting a security interest or encumbrance, servitude or encumbrance or any kind in respect
of such asset to secure or assure payment of a Debt or a Guaranty, whether by consensual agreement or by operation of statute or other law, or by any agreement, contingent or otherwise, to provide any of the foregoing. For the purposes of this
Agreement, a Person shall be 

  

 B-8 

 
deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,
Capital Lease or other title retention agreement relating to such asset. 
  
 “Make-Whole Amount” is defined in Section 8.6. 
  
 “Material” shall mean material in relation to the business, operations, affairs, financial condition, assets, properties or prospects of
the Company and its Consolidated Subsidiaries, taken as a whole. 
  
 “Material Adverse Effect” shall mean a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Consolidated Subsidiaries, taken as a whole, (b) the
ability of the Company to perform its obligations under this Agreement and the Notes or (c) the validity or enforceability of this Agreement or the Notes. 
  
 “Memorandum” is defined in Section 5.3. 
  
 “Multiemployer Plan” shall mean any Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of
ERISA). 
  
 “Net Proceeds of Capital Stock/Conversion of
Debt” shall mean any and all proceeds (whether cash or non-cash) or other consideration received by the Company or a Consolidated Subsidiary in respect of the issuance of capital stock (including, without limitation, the aggregate amount of
all Debt converted into capital stock), after deducting therefrom all reasonable and customary costs and expenses incurred by the Company or such Consolidated Subsidiary directly in connection with the issuance of such capital stock. 
  
 “Notes” is defined in Section 1. 
  
 “Officer’s Certificate” shall mean a certificate of a
Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate. 
  
 “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. 
  
 “Permitted Country” shall mean each of Australia, Austria,
Belgium, Canada, China, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Japan, Luxembourg, Portugal, Spain, Sweden, The Netherlands, The United Kingdom or the United States of America. 
  
 “Person” shall mean an individual, partnership, corporation,
limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. 
  
 “Plan” shall mean an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the preceding five years,
has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have
any liability. 
  

 B-9 

 “Pledged Investments” shall mean all Investments owned by the Company or any
Consolidated Subsidiary pledged or otherwise encumbered by the Company or such Consolidated Subsidiary as security for a Secured Debt Obligation; provided that if such Secured Debt Obligation shall contain any conditions precedent to such
Investments being included in any borrowing base calculation for such Secured Debt Obligation, such Investments shall satisfy such conditions. 
  
 “Portfolio Investments” shall mean Investments made by the Company in the ordinary course of business and consistent with practices
existing on December 31, 2004 in a Person that is accounted for under GAAP as a portfolio investment of the Company. 
  
 “property” or “properties” shall mean, unless otherwise specifically limited, real or personal property of any kind,
tangible or intangible, choate or inchoate. 
  
 “PTE” is defined in Section 6.2(a). 
  
 “QPAM Exemption” shall mean Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor. 
  
 “Required Holders” shall mean, at any time, the holders of more than 50% in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates). 
  
 “Responsible Officer” shall mean any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement. 
  
 “RIC” shall mean a Person qualifying as a regulated
investment company under the Code. 
  
 “Secured Debt
Obligations” shall mean that certain (a) Second Amended and Restated Loan Funding and Servicing Agreement dated as of August 10, 2004 among ACS Funding Trust I, as borrower, the Company, as servicer, the Lenders and Lender Agents (as
defined therein), Wachovia Capital Markets, LLC, as deal agent, JPMorgan Chase Bank, NA, as the swing line lender, Wells Fargo Bank, National Association (as successor by merger to Wells Fargo Bank, Minnesota, National Association), as the back-up
servicer and as the collateral custodian, (b) asset securitization evidenced by the 2002-1 Transaction Documents, (c) asset securitization evidenced by the 2002-2 Transaction Documents, (d) asset securitization evidenced by the 2003-1 Transaction
Documents, (e) asset securitization evidenced by the 2003-2 Transaction Documents, (f) asset securitization evidenced by the 2004-1 Transaction Documents, (g) Loan Funding and Servicing Agreement dated as of June 30, 2004 among ACS Funding Trust II,
as the borrower, the Company, as the servicer, Fairway Finance Company, LLC, as the conduit lender, Harris Nesbitt Corp., as the agent, and Wells Fargo Bank, National Association, as the back-up servicer and as the collateral custodian and (h) any
other financing transaction undertaken by the Company or an Affiliate that is secured, directly or indirectly, by assets of the Company or an Affiliate, including any lease, asset securitization, repurchase transaction, 

  

 B-10 

 
secured loan or other transfer, in each case, as the same may be amended, supplemented, restated, increased, refinanced, replaced or otherwise modified from
time to time or any successor thereto. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended from time to time. 
  
 “Senior Debt” shall mean any Debt that is not in any manner subordinated in right of payment or security in any respect to the Debt
evidenced by the Notes. 
  
 “Senior Financial
Officer” shall mean the chief financial officer, principal accounting officer, treasurer, comptroller, Vice President, Accounting and Financial Reporting or Vice President, Finance of the Company. 
  
 “Source” is defined in Section 6.2. 
  
 “Subsidiary” shall mean, as to any Person, any corporation,
association, or other business entity in which at least a majority of the outstanding voting securities shall be beneficially owned, directly or indirectly, by such Person; provided that, in the case of the Company or any Subsidiary,
“Subsidiary” shall not include any Person that is a Portfolio Investment. Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
  
 “Successor Corporation” is defined in Section 10.5(a)(2).

  
 “Total Available Assets” shall mean, as of
any date of determination, the sum of (a) Cash, (b) Available Non-Pledged Assets and (c) Available Pledged Assets. 
  
 “2002-1 Transaction Documents” shall mean the “Transaction Documents” as defined in the Transfer and Servicing Agreement dated
as of March 15, 2002, among ACAS Business Loan Trust 2002-1, ACAS Business Loan LLC, 2002-1, Wells Fargo Bank, National Association and the Company.  
  
 “2002-2 Transaction Documents” shall mean the “Transaction Documents” as defined in the Transfer and Servicing Agreement dated
as of August 8, 2002, among ACAS Business Loan Trust 2002-2, ACAS Business Loan LLC, 2002-2, Wells Fargo Bank, National Association and the Company. 
  
 “2003-1 Transaction Documents” shall mean the “Transaction Documents” as defined in the Transfer and Servicing Agreement dated
as of May 21, 2003, among ACAS Business Loan Trust 2003-1, ACAS Business Loan LLC, 2003-1, Wells Fargo Bank, National Association and the Company.  
  
 “2003-2 Transaction Documents” shall mean the “Transaction Documents” as defined in the Transfer and Servicing Agreement dated
as of December 19, 2003, among ACAS Business Loan Trust 2003-2, ACAS Business Loan LLC, 2003-2, Wells Fargo Bank, National Association and the Company. 
  

 B-11 

 “2004-1 Transaction Documents” shall mean the “Transaction Documents” as
defined in the Transfer and Servicing Agreement dated as of December 2, 2004, among ACAS Business Loan Trust 2004-1, ACAS Business Loan LLC, 2004-1, Wells Fargo Bank, National Association and the Company. 
  
 “Unsecured Debt” shall mean, at any time, the aggregate
unpaid principal amount of all Debt of the Company and its Consolidated Subsidiaries other than Debt of the Company or a Consolidated Subsidiary secured by any Lien. 
  
 “USA Patriot Act” shall mean United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
  
 “Wholly-Owned Consolidated Subsidiary” shall mean, at any
time, any Consolidated Subsidiary 100% of all of the equity interests (except directors’ or similar qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned
Consolidated Subsidiaries at such time. 
  
  

 B-12 

 FORM OF SERIES 2005-A NOTE 

 
 AMERICAN CAPITAL STRATEGIES,
LTD. 
  
 6.14% Senior Note, Series 2005-A, due
August 1, 2010 
  

			
	 No. RA-        
	  	                     ,
20    
	 $                    
	  	PPN 024937 A# 1

  
 FOR
VALUE RECEIVED, the undersigned, AMERICAN CAPITAL STRATEGIES, LTD. (herein called the “Company”), a corporation organized and existing under
the laws of the State of Delaware, hereby promises to pay to                         , or registered assigns, the
principal sum of                          DOLLARS on August 1, 2010 with interest (computed on the basis of
a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at the rate of 6.14% per annum from the date hereof, payable semiannually in arrears, on the first day of February and August in each year, commencing with the February 1 or
August 1 next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note Purchase Agreement referred to below), payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (1) 8.14% or (2) 2.00% over the rate of interest publicly announced JPMorgan Chase Bank, NA in New York, New York as its “base” or “prime” rate. 
  
 Payments of principal of, interest on and any Make-Whole Amount with respect
to this Note are to be made in lawful money of the United States of America at the principal offices of JPMorgan Chase Bank, NA in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this
Note as provided in the Note Purchase Agreement referred to below. 
  
 This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to that certain Note Purchase Agreement dated as of August 1, 2005 (as from time to time amended, the “Note Purchase
Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the confidentiality provisions
set forth in Section 20 of the Note Purchase Agreement and (ii) to have made the representation set forth in Section 6.2 of the Note Purchase Agreement. 
  
 This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed,
or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not
be affected by any notice to the contrary. 
  
 EXHIBIT 1 
 (to Note Purchase Agreement) 

 This Note is subject to prepayment, in whole or from time to time in part, at the times and on the terms
specified in the Note Purchase Agreement, but not otherwise. 
  
 If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement. 
  
 This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of New York excluding the choice of law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State. 
  

			
	 AMERICAN CAPITAL STRATEGIES, LTD.

		
	 By
	 	 
	 Its
	 	 

  

 E-1-2 

 FORM OF OPINION OF SPECIAL
COUNSEL 
 TO THE COMPANY 
  
 The closing opinion of Arnold & Porter LLP, special counsel for the
Company, which is called for by Section 4.4(a) of the Agreement, shall be dated the date of the Closing and addressed to each Purchaser, shall be satisfactory in scope and form to each Purchaser, shall be subject to customary exceptions and
qualifications and shall be to the effect that: 
  
 1. The Company is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Delaware, has the corporate power and the corporate authority to execute and perform the Agreement and to issue the
Notes and has the full corporate power and the corporate authority to conduct the activities in which it is now engaged and is duly licensed or qualified and is in good standing as a foreign corporation in each jurisdiction in which the character of
the properties owned or leased by it or the nature of the business transacted by it makes such licensing or qualification necessary, other than those jurisdictions as to which the failure to be so licensed, qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 2. Each Consolidated Subsidiary is a corporation or other business entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and is duly licensed or qualified and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or the nature of the business transacted by it makes such
licensing or qualification necessary, other than those jurisdictions as to which the failure to be so licensed, qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and
all of the issued and outstanding shares of capital stock or other equity interests of each such Subsidiary have been duly issued, are fully paid and non-assessable, other than as shown on Schedule 5.4, and are owned by the Company, by one or more
Subsidiaries, or by the Company and one or more Subsidiaries. 
  
 3. The Agreement has been duly authorized by all necessary corporate action on the part of the Company, has been duly executed and delivered by the Company and constitutes the legal, valid and binding contract of the
Company enforceable in accordance with its terms. 
  
 4. The Notes have been duly authorized by all necessary corporate action on the part of the Company, have been duly executed and delivered by the Company and constitute the legal, valid and binding obligations of the Company enforceable in
accordance with their terms. 
  
 5. No approval,
consent or withholding of objection on the part of, or filing, registration or qualification with, any Governmental Authority, Federal or state, is necessary in connection with the execution and delivery by the Company of the Agreement or the Notes.

  
 EXHIBIT 4.4(a) 
 (to Note Purchase Agreement) 

 6. The issuance and sale of the Notes and the execution, delivery and performance by the
Company of the Agreement do not conflict with any law, rule or regulation or conflict with or result in any breach of any of the provisions of or constitute a default under or result in the creation or imposition of any Lien upon any of the property
of the Company pursuant to the provisions of the Certificate of Incorporation or By-laws of the Company or any agreement or other instrument known to such counsel to which the Company is a party or by which the Company may be bound. 
  
 7. The Company is an “investment company” that has
elected to be regulated as a “business development company” within the meaning of the Investment Company Act and qualifies as a RIC. 
  
 8. The issuance, sale and delivery of the Notes under the circumstances contemplated by the Agreement do not, under existing law, require
the registration of the Notes under the Securities Act or the qualification of an indenture under the Trust Indenture Act of 1939, as amended. 
  
 The opinion of Arnold & Porter LLP shall cover such other matters relating to the sale of the Notes as any Purchaser may reasonably request. With
respect to matters of fact on which such opinion is based, such counsel shall be entitled to rely on appropriate certificates of public officials and officers of the Company and shall provide that (i) subsequent holders of the Notes may rely upon
such opinion and (ii) such opinion may be provided to Governmental Authorities, including, without limitation, the National Association of Insurance Commissioners. 
  

 E-4.4(a)-2 

 FORM OF OPINION OF SPECIAL
COUNSEL 
 TO THE PURCHASERS 
  
 The closing opinion of Schiff Hardin LLP, special counsel to the Purchasers,
called for by Section 4.4(b) of the Agreement, shall be dated the date of the Closing and addressed to the Purchasers, shall be satisfactory in form and substance to the Purchasers and shall be to the effect that: 
  
 1. The Company is a corporation validly existing and in good
standing under the laws of the State of Delaware. 
  
 2. The Company has the corporate power and authority to execute and deliver the Agreement and the Notes being delivered on the date hereof, and the execution and delivery hereof and thereof by the Company have been duly authorized by all
necessary corporate action on the part of the Company. 
  
 3. The Agreement and the Notes being delivered on the date hereof have been duly executed and delivered by the Company and constitute the legal, valid and binding contracts of the Company, enforceable against the Company in accordance with
its terms. 
  
 4. The issuance, sale and delivery
of the Notes being delivered on the date hereof under the circumstances contemplated by this Agreement do not, under existing law, require the registration of such Notes under the Securities Act or the qualification of an indenture under the Trust
Indenture Act of 1939, as amended. 
  
 The opinion of Schiff
Hardin LLP shall also state that the opinion of Arnold & Porter LLP is satisfactory in scope and form to Schiff Hardin LLP and that, in their opinion, the Purchasers are justified in relying thereon. 
  
 In rendering the opinion set forth in paragraph 1 above, Schiff Hardin LLP
may rely, as to matters referred to in paragraph 1, solely upon an examination of the Certificate of Incorporation certified by, and a certificate of good standing of the Company from, the Secretary of State of the State of Delaware, the By-laws of
the Company and the general business corporation law of the State of Delaware. The opinion of Schiff Hardin LLP is limited to the laws of the State of New York, the general business corporation law of the State of Delaware and the Federal laws of
the United States. 
  
 With respect to matters of fact upon which
such opinion is based, Schiff Hardin LLP may rely on appropriate certificates of public officials and officers of the Company and upon representations of the Company and the Purchasers delivered in connection with the issuance and sale of the Notes.

  
 EXHIBIT 4.4(b) 
 (to Note Purchase Agreement)

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