Document:

FS Energy and Power Fund 8-K

 

Exhibit 10.4

 

CONTROL AGREEMENT

This Control Agreement
(this “Agreement”), dated May 18, 2016, is by and among Bryn Mawr Funding LLC (the “Borrower”),
each subsidiary of the Borrower that becomes a party hereto by executing a joinder to this Agreement (together with the Borrower,
each a “Company” and, collectively, the “Companies”), Barclays Bank PLC, as collateral agent
for the Lenders (as defined below) and certain other secured parties (in such capacity, including any successor in such capacity,
the “Agent”), and State Street Bank and Trust Company, a Massachusetts trust company (the “Custodian”).

WHEREAS, Borrower,
certain affiliates of Borrower and the Custodian are parties to that certain Custodian Agreement, dated as of December 10, 2013
(as amended, restated, modified, or supplemented from time to time, the “Custodian Agreement”);

WHEREAS, pursuant
to Section 19.14 of the Custodian Agreement, FS Energy and Power Fund, a Delaware statutory trust and direct parent of the Borrower,
(i) has notified Custodian in writing of its desire for Custodian to perform services under the Custodian Agreement with respect
to the Borrower, and Custodian has consented to treat the Borrower as a “Company” as defined in the Custodian Agreement,
including to act as custodian for the Borrower’s securities and other assets; and (ii) may hereafter notify Custodian in
writing from time to time of its desire for Custodian to perform services under the Custodian Agreement with respect to additional
Companies, and upon such notice and the consent of the Custodian, the Custodian shall treat each such Company as a “Company”
as defined in the Custodian Agreement, including to act as custodian for such Company’s securities and other assets;

WHEREAS, the Borrower
has entered into the Senior Secured Revolving Credit Agreement dated as of the date hereof, among the Borrower, the lenders party
thereto (the “Lenders”) and the Agent, as administrative agent for the Lenders (as amended, restated, supplemented,
modified and otherwise in effect from time to time, the “Loan Agreement”), pursuant to which such Lenders have
agreed, subject to the terms and conditions therein specified, to extend credit to the Borrower. In addition, each Company and
the Agent, among others, has entered into a Guarantee, Pledge and Security Agreement dated as of the date hereof (the “Security
Agreement”) pursuant to which each Company, among other things, has agreed to pledge and grant a security interest in
all right, title and interest of such Company in, to and under certain of its property, including the Collateral Account (as defined
below) and any cash, securities or other assets therein or otherwise held by the Custodian (collectively, the “Collateral”),
in favor of the Agent for the benefit of the Agent, the Lenders, and certain other secured parties, as collateral security for
the obligations of such Company under the Loan Agreement and certain other Secured Obligations (as such term is defined in the
Security Agreement); and

WHEREAS, in connection
with the Loan Agreement and the Security Agreement, each Company intends to grant control (as defined in the Uniform Commercial
Code, as in effect from time to time in The State of New York (the “UCC”)) over the Collateral Account and possession
of other Collateral to the Agent and the Agent, each Company and the Custodian are entering into this Agreement to perfect the
security interest of the Agent in the Collateral Account and provide for the control of the Collateral Account and possession of
other Collateral.

NOW THEREFORE, for
valuable consideration, the parties hereto agree as follows:

1.

Establishment of
Collateral Account. The Custodian has established and will maintain on its books and records each Company’s (i) custodial
accounts set forth on Schedule 1 hereto, which accounts and the assets credited thereto are pledged in favor of the Agent (collectively,
the “Securities Account”), and (ii) deposit accounts set forth on Schedule 1 hereto, which accounts and
the assets credited thereto are pledged in favor of the Agent (collectively, the “Deposit Account” and together
with the Securities Account, the “Collateral Account”). The Custodian will credit to the Collateral Account
any assets delivered to it by any Company pursuant to the Custodian Agreement except that Loan Documents and Identified Securities
(as each such term is defined below) delivered to the Custodian shall be held by the Custodian upon the terms of Section 5. The
Custodian shall have no responsibility for determining the adequacy of any Collateral required hereunder or under the Loan Agreement,
nor will it assume responsibility for any calculations related to any Collateral requirements under the Loan Agreement.

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2.

Account Control

2.1

Agent Security Interest.
This Agreement is intended by each Company and the Agent to grant “control” of the Collateral Account and possession
of other Collateral to the Agent for purposes of perfection of the Agent’s security interest in the Collateral Account and
other Collateral pursuant to Article 8 and Article 9 of the UCC and the Custodian hereby acknowledges that it has been advised
of each Company’s grant to Agent of a security interest in the Collateral and Collateral Account. Notwithstanding the foregoing,
the Custodian makes no representation or warranty with respect to the creation, attachment, perfection, priority or enforceability
of any security interest in the Collateral or Collateral Account.

2.2

Company Control.
Unless and until the Custodian receives written notice from the Agent pursuant to Section 2.3(ii) below instructing the Custodian
that the Agent is exercising its right to exclusive control over the Collateral Account, which notice is substantially in the form
attached hereto as Exhibit A (a “Notice of Exclusive Control”) and the Custodian has a reasonable time to act
thereon (which shall not exceed two (2) banking days from the date the Custodian receives such notice), or if all previous Notices
of Exclusive Control have been revoked or rescinded in writing by the Agent: (i) each Company shall be entitled to exercise
all rights with respect to, and to direct the Custodian with respect to, the Collateral Account, provided that no Company may terminate
the Collateral Account without the prior written consent of the Agent, and (ii) the Custodian shall have no responsibility
or liability to the Agent or any Lender for settling trades of financial assets and cash carried in the Collateral Account at the
direction of and in accordance with the instructions of any Company given in accordance with the Custodian Agreement, or for complying
with entitlement orders from any Company concerning the Collateral Account.

2.3

Control by Agent.

(i)

Each Company
irrevocably authorizes and directs the Custodian, and the Custodian agrees, to comply with any entitlement order or instructions
(within the meaning of Sections 8-102, 9-104 and 9-106 of the UCC) received from the Agent with respect to the Collateral Account,
without further consent of such Company.

(ii)

Upon receipt
by the Custodian of a Notice of Exclusive Control and the Custodian having a reasonable time to act thereon, the Custodian shall
thereafter follow only the instruction of the Agent with respect to the Collateral Account, and shall comply only with any entitlement
order or instructions received from the Agent, without further consent of any Company, and shall be entitled to deal with the Agent
as though the Agent were the sole and absolute owner of the Collateral Account. Without limiting the Custodian’s obligations
under Section 2.3(i) and (ii), Agent agrees that it shall deliver a Notice of Exclusive Control prior to or simultaneously
with any entitlement order or instruction. For the avoidance of doubt, from and after delivery of a Notice of Exclusive Control
and the Custodian having a reasonable time to act thereon (which shall not exceed two (2) banking days from the date the Custodian
receives such notice), no Company (whether directly or through its investment manager) shall have any right or ability to access
or receive or withdraw or transfer financial assets from, or to give other instructions concerning the Collateral Account until
such time as the Agent shall have notified the Custodian in writing of the withdrawal of the Notice of Exclusive Control and instructed
the Custodian to resume honoring instructions which the Companies are entitled to give under the Custodian Agreement.

 

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(iii)

As between
each Company and the Agent, the Agent agrees with each Company that it shall not issue a Notice of Exclusive Control or any entitlement
order or instructions with respect to the Collateral Account pursuant to Section 2.3(i) or (ii) unless an Event of Default
(as defined in the Security Agreement) shall have occurred and be continuing.

(iv)

The Custodian
shall have no responsibility or liability to any Company for complying with a Notice of Exclusive Control or complying with entitlement
orders or other instructions originated by the Agent concerning any Collateral or the Collateral Account. The Custodian shall have
no duty to investigate or make any determination as to whether an event of default or other like event exists under the Loan Agreement,
and the Custodian shall be fully protected in complying with a Notice of Exclusive Control whether or not any Company may allege
that no such event of default or other like event exists. Delivery of a Notice of Exclusive Control by the Agent to the Custodian
shall be effective whether or not a copy of the same is delivered to any Company.

(v)

As between
the Agent and the Custodian, notwithstanding any provision contained herein or in any other document or instrument to the contrary,
the Custodian shall not be liable for any action taken or omitted to be taken at the instruction of the Agent, or any action taken
or omitted to be taken under or in connection with this Agreement, except for the Custodian’s own bad faith, gross negligence
or willful misconduct in carrying out such instructions.

3.

Distributions.
The Custodian shall, without further action by Companies or Agent, credit to the Collateral Account all interest, dividends and
other income received by the Custodian on the Collateral, unless and until the Custodian has received a Notice of Exclusive Control
and has been directed otherwise by the Agent, in which event all such receipts shall be credited to such account as directed by
the Agent.

4.

Duties and Services
of Custodian.

(i)

Custodian agrees
that it is acting as a “securities intermediary,” as defined in Section 8-102 of the UCC with respect to the Securities
Account, and as a “bank” as defined in Section 9-102 of the UCC with respect to the Deposit Account. The parties hereto
further agree that the securities intermediary’s jurisdiction, within the meaning of Section 8-110(e) of the UCC, and the
bank’s jurisdiction, within the meaning of Section 9-304(b) of the UCC, is the State of New York and agree that none of them
has or will enter into any agreement to the contrary except that the parties acknowledge that the Custodian Agreement is otherwise
governed by Massachusetts law.

(ii)

The Custodian
shall have no duties, obligations, responsibilities or liabilities with respect to the Collateral or the Collateral Account except
as and to the extent expressly set forth in this Agreement and the Custodian Agreement, and no implied duties of any kind shall
be read into this Agreement against the Custodian including, without limitation, the duty to preserve, exercise or enforce rights
in the Collateral and Collateral Account. The Custodian shall not be liable or responsible for anything done or omitted to be done
by it in the absence of bad faith, gross negligence or willful misconduct and may rely and shall be protected in acting upon any
notice, instruction or other communication which it reasonably believes to be genuine and authorized.

(iii)

As between
each Company and the Custodian, except for the rights of control and possession in favor of the Agent agreed to herein, nothing
herein shall be deemed to modify, limit, restrict, amend or supersede the terms of the Custodian Agreement, and the Custodian shall
be and remain entitled to all of the rights, indemnities, powers, and protections in its favor under the Custodian Agreement, which
shall apply fully to the Custodian’s actions and omissions hereunder. If a provision of this Agreement in favor of the Agent
conflicts with a provision of the Custodian Agreement, this Agreement shall control. Instructions under this Agreement from a Company’s
authorized representative given in accordance with the terms of the Custodian Agreement shall also constitute Proper Instructions
(as defined in the Custodian Agreement) under the Custodian Agreement.

 

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(iv)

The Agent agrees
to provide to Custodian, in the form of Exhibit B attached hereto, the names and signatures of authorized parties who may give
written notices, instructions or entitlement orders concerning the Collateral or the Collateral Account. Other means of notice
or instruction may be used, provided that the Agent and Custodian agree to appropriate security procedures. As between the Custodian
and Agent, the Agent shall indemnify and hold the Custodian harmless with regard to any losses or liabilities of the Custodian
(including reasonable attorneys’ fees) imposed on or incurred by the Custodian arising out of any action or omission of the
Custodian in accordance with any notice or any entitlement order or other instruction of Agent under this Agreement except to the
extent of any loss or liability arising from the Custodian’s gross negligence or willful misconduct.

(v)

The parties
hereto acknowledge that no “security entitlement” under the UCC shall exist with respect to (A) cash (which shall be
credited to the Deposit Account), (B) any Loan Document (as defined below), or any Company’s interest in a direct or participation
or subparticipation interest in or by assignment or novation of a loan or other extension of credit evidenced, governed or represented
by the Loan Document, or (C) any other asset which is registered in the name of any Company, payable to the order of the Company
or specially indorsed to such Company or any third party (each such other asset an “Identified Security”), except
to the extent such Identified Security has been specially indorsed by such Company to the Custodian or in blank.

(vi)

For avoidance
of doubt, the Agent hereby acknowledges that any Collateral issued outside the United States (“Foreign Security System
Assets”) which may be held by the Custodian, a sub-custodian within the Custodian’s network of sub-custodians (each
a “Sub-Custodian”) or a depository or book-entry system for the central handling of securities and other financial
assets in which the Custodian or the Sub-Custodian are participants may not permit the Companies to have a security entitlement
under the UCC with respect to such Foreign Security System Assets (and such property shall be deemed for purposes of this Agreement
not to be a financial asset held within the Collateral Account). The parties hereby further acknowledge that the Custodian gives
no assurance that a security entitlement is created under the UCC with respect to any Company’s assets held in Euroclear
or Clearstream or their successors. Solely as between each Company and Agent, each Company hereby acknowledges that the foregoing
shall not be deemed a waiver by the Agent of any of the obligations of the Obligors to Deliver such Collateral or any other obligations
of the Obligors under the Loan Documents or the Debt Documents (as such terms are defined in the Security Agreement).

5.

Bailment of Loan
Documents and Identified Securities; Loan Document Inspection Rights.

(i)

If any Company
delivers or causes a third party to deliver to the Custodian an instrument, document, certificate or other agreement evidencing,
governing or representing such Company’s ownership in or such Company’s interest in a direct or participation or subparticipation
interest in or by assignment or novation of a loan or other extension of credit that is not a “security” as
defined in Section 8-102 of the UCC (a “Loan Document”) or an Identified Security, the Custodian agrees to hold
the Loan Document or Identified Security as bailee for the Agent (and not, for the avoidance of doubt, as “securities
intermediary”).

 

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(ii)

Until the
Custodian receives a Notice of Exclusive Control or if all previous Notices of Exclusive Control have been revoked in writing
by the Agent, the Custodian shall comply with the instructions of the applicable Company in respect of any Loan Document or Identified
Security. The Custodian agrees that following its receipt from the Agent of a Notice of Exclusive Control and the Custodian having
a reasonable time to act thereon (which shall not exceed two (2) banking days from the date the Custodian receives such notice),
the Custodian shall thereafter follow only the instruction of the Agent with respect to all Loan Documents and Identified Securities,
without the further consent of any Company and shall be entitled to deal with the Agent as though the Agent were the sole and
absolute owner of such Collateral. For the avoidance of doubt, from and after delivery of a Notice of Exclusive Control and the
Custodian having a reasonable time to act thereon (which shall not exceed two (2) banking days from the date the Custodian receives
such notice), no Company (whether directly or through its investment manager) shall have any right or ability to give any instructions
concerning such Collateral until such time as the Agent shall have notified the Custodian in writing of the withdrawal of the
Notice of Exclusive Control and instructed the Custodian to resume honoring instructions which the Companies are entitled to give
under the Custodian Agreement.

(iii)

Upon the Agent’s
reasonable request (which shall include reasonable advance written notice), copies of the Loan Documents and Identified Securities
shall be subject to the Agent’s inspection. The Custodian reserves the right to impose reasonable restrictions on the number,
frequency, timing and scope of any such inspection so as to prevent or minimize any potential impairment or disruption of its operations,
distraction of its personnel or breaches of security or confidentiality. In addition, the Custodian shall be entitled to impose
a commercially reasonable per person hourly charge for the cooperation and assistance of its personnel reasonably requested by
the Agent in connection with any such inspection (the “Custodian Inspection Expenses”). Nothing contained in
this section shall obligate the Custodian to provide access to or otherwise disclose any documents or information that the Custodian
is obligated to maintain in confidence as a matter of law or regulation (and, to the extent that any such obligation is waivable
by the Companies, each Company hereby waives such obligation to the extent necessary to permit the Agent to have reasonable access
to such documents or information).

(iv)

The Custodian
shall have no responsibilities or duties whatsoever with respect to a Loan Document or Identified Security, except for such responsibilities
as are expressly set forth herein or the Custodian Agreement. The Custodian shall be entitled to all exculpations, indemnities
and other benefits under this Agreement when acting as bailee for the Agent.

(v)

For the avoidance
of doubt, as between each Company and the Agent, each Company agrees that the fees and expenses of representatives retained by
the Agent in connection with any inspection requested by the Agent pursuant to Section 5(iii) (each, an “Agent Inspection”)
will be covered by Section 5.06 of the Loan Agreement subject to the limitations set forth in such Section 5.06.

(vi)

Each Company
agrees to bear the cost of the Custodian Inspection Expenses for (a) the first two Agent Inspections requested in each calendar
year and (b) any Agent Inspection conducted while an Event of Default has occurred and is continuing. The Agent agrees to bear
the cost of any Custodian Inspection Expenses that are not required to be borne by the Companies in accordance with the preceding
sentence.

 

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6.

Force Majeure; Special
Damages. The Custodian shall not be liable for delays, errors or losses occurring by reason of circumstances beyond its control,
including, without limitation, acts of God, market disorder, terrorism, insurrection, war, riots, failure of transportation or
equipment, or failure of vendors, communication or power supply. In no event shall the Custodian be liable to any person or entity
for consequential or special damages, even if the Custodian has been advised of the possibility or likelihood of such damages.

7.

Compliance with
Legal Process and Judicial Orders. The Custodian shall have no responsibility or liability to the Companies or to the Agent
or to any other person or entity for acting in accordance with any judicial or arbitral process, order, writ, judgment, decree
or claim of lien relating to the Collateral or Collateral Account subject to this Agreement notwithstanding that such order or
process is subsequently modified, vacated or otherwise determined to have been without legal force or effect.

8.

Custodian Representations.

8.1

The Custodian agrees
and confirms, as of the date hereof, and at all times until the termination of this Agreement that it has not entered into, and
until the termination of this Agreement will not enter into, any agreement (other than the Custodian Agreement) with any other
person or entity relating to the Collateral or the Collateral Account under which it has agreed to comply with entitlement orders
(as defined in Section 8-102 of the UCC) or other instructions of such other person or entity.

8.2

The Collateral Account
will be maintained in the manner set forth in the Custodian Agreement subject to the provisions hereof until termination of this
Agreement, and the Custodian will not change the name or account number of the Collateral Account without prior notice to the Agent.

8.3

The Custodian has no
knowledge of any claim to or interest in the Collateral Account, other than the interests therein of the Custodian, the Agent and
the Companies. If the Custodian is notified by any person or entity that such person or entity asserts any lien, encumbrance or
adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Collateral
Account, the Custodian will notify the Agent and the Companies promptly thereof.

9.

Access To Reports.
Upon any pledge, release or substitution of Collateral in the Collateral Account, and upon any release of other Collateral otherwise
in the possession of the Custodian, Custodian shall notify Agent within one business day of such change. The Custodian will provide
to the Agent a copy of a statement of the Collateral Account and other Collateral in the possession of the Custodian within thirty
(30) days of the end of the calendar month (or more frequently as the Agent may reasonably request); provided, however, that the
Custodian’s failure to forward a copy of such statement to the Agent shall not give rise to any liability hereunder. Upon
the Agent’s request, each Company hereby authorizes the Custodian to, and based on such authorization the Custodian hereby
agrees to use commercially reasonable efforts to, provide to the Agent such other information concerning the Collateral Account
and/or the Collateral as the Agent may reasonably request, provided that nothing contained herein shall obligate the Custodian
to provide the Agent such information if it is not obligated to provide such information to the Companies under the Custodian Agreement,
and provided, further, that the Custodian’s failure to forward such information to the Agent shall not give rise to any liability
hereunder

10.

Fees and Expenses,
Etc. of Custodian.

10.1

Reimbursement For
Costs; Indemnity. In addition to the terms of the Custodian Agreement, each Company hereby agrees (a) to pay and reimburse
the Custodian for any advances, costs, expenses (including, without limitation, reasonable attorney’s fees and costs) and
disbursements that may be paid or incurred by the Custodian in connection with this Agreement or the arrangement contemplated hereby,
including any that may be incurred in performing its duties or responsibilities pursuant to the terms of this Agreement and (b)
to indemnify and hold the Custodian harmless from and against any other loss, cost or expense sustained or incurred by the Custodian
in connection with this Agreement or the arrangement contemplated hereby, including any that may be incurred in performing its
duties or responsibilities pursuant to the terms of this Agreement.

 

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10.2

Liens. Any fees,
expenses or other amounts that may be owing to the Custodian from time to time pursuant to the terms hereof or of the Custodian
Agreement shall be secured by any lien, encumbrance and other rights that the Custodian may have under the Custodian Agreement
or applicable law; and (subject to Section 10.4) the Custodian shall be entitled to exercise such rights and interests against
the Collateral and Collateral Account in accordance with the terms of the Custodian Agreement.

10.3

Advances. It
is hereby expressly acknowledged and agreed by the parties that the Custodian (including its affiliates, subsidiaries and agents)
shall not be obligated to advance cash or investments to, for or on behalf of the Companies in the Collateral Account; provided,
however, that if the Custodian does advance cash or investments to the Collateral Account for any purpose (including but not limited
to securities settlements, foreign exchange contracts, assumed settlement or account overdraft) for the benefit of any Company,
any property at any time held pursuant to this Agreement and the Custodian Agreement shall be security therefor and, should such
Company fail to repay the Custodian promptly, the Custodian shall (subject to Section 10.4) be entitled to utilize available cash
and to dispose of Collateral to the extent necessary to obtain reimbursement.

10.4

Subordination.
The Custodian subordinates any security interest or right of recoupment or setoff that it may have in or against the Collateral
or the Collateral Account to the security interest in favor of the Agent. However, the subordination will not apply to the extent
that the Custodian’s security interest or right of recoupment or setoff secures or may reduce obligations of any Company
to pay, reimburse or indemnify the Custodian for (i) the Custodian’s losses, fees, costs, or expenses incurred under
Section 10.1 of this Agreement or Section 14 or 15 of the Custodian Agreement as in effect on the date of this Agreement solely
to the extent such losses, fees, costs or expenses relate to the Collateral Account or the Collateral (other than any advances
or investments except to the extent provided in clause (iv) of this Section 10.4), (ii) returned or charged-back items, (iii) reversals
or cancellations of payment orders and other electronic fund transfers, or (iv) payments owed to the Custodian for advances or
investments made by the Custodian for the purposes of clearing and settling purchases and sales of securities or other financial
assets credited to the Securities Account, provided that the Custodian’s rights with respect to this clause (iv) arising
from any security or financial asset shall be limited to such security or financial asset.

11.

Notices. Any
notice, instruction or other instrument required to be given hereunder, or any requests and demands to or upon the respective
parties hereto shall be in writing and may be sent by hand, or by facsimile transmission, telex, or overnight delivery by any
recognized delivery service, prepaid or, for termination of this Agreement only, by certified or registered mail, and addressed
as follows, or to such other address as any party may hereafter notify the other respective parties hereto in writing: 

	(a)	If to the Custodian,	 
	 	then:	State Street Bank and Trust Company
	 	 	John Hancock Tower
	 	 	200 Clarendon Street
	 	 	Boston, Massachusetts 02116
	 	 	Attention: Paul Woods,
	 	 	Senior Vice President
	 	 	Telephone: (617) 662-9289
	 	 	Telecopy: (617)

 

 

 

 

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	(b)	If to the Agent,	 
	 	then:	Barclays Bank PLC
	 	 	1301 Sixth Avenue
	 	 	New York, NY 10019
	 	 	Attention: Anand Vignesh
	 	 	Telephone Number:
	 	 	Fax Number: (972) 535-5728
	 	 	Email: wipronyagency@barclays.com
	 	 	 
	(c)	If to any Company,	Bryn Mawr Funding LLC
	 	then:	c/o FS Energy and Power Fund
	 	 	201 Rouse Boulevard
	 	 	Philadelphia, PA 19112
	 	 	Attention: Gerald F. Stahlecker
	 	 	Telephone: (215) 495-1169
	 	 	Telecopy: (215) 222-4649

 

12.

Amendment. No
amendment or modification of this Agreement will be effective unless it is in writing and signed by each of the parties hereto;
provided, however, that Schedule 1 hereto may be amended from time to time to reflect the accounts of the Companies by (a) the
Custodian and / or the Borrower providing (i) notice thereof and (ii) a copy of such amended Schedule 1 to each other party hereto,
and (b) each other party hereto providing acknowledgement thereof. This Agreement may be executed in two or more counterparts,
each of which shall constitute an original, but such counterparts together shall constitute one and the same instrument.

13.

Joinder. Each
subsidiary of the Borrower that becomes a party hereto shall execute a joinder to this Agreement in the form attached hereto as
Exhibit C.

14.

Termination.
This Agreement shall continue in effect until the Agent has notified the Custodian in writing that this Agreement is to be terminated.
Upon receipt of such notice, the Agent shall have no further right to originate instructions with respect to the Collateral or
Collateral Account. This Agreement may not be terminated by any Company without the prior written consent of the Agent (which consent
shall be given pursuant to Section 9.11 of the Security Agreement). This Agreement may be terminated by the Custodian, and shall
terminate in the event of termination of the Custodian Agreement, in each case following not less than thirty (30) days’
prior written notice to each of the other parties hereto. Upon termination of this Agreement by any party, any Collateral that
has not been released by the Agent at or prior to the time of termination shall be transferred to a successor custodian or bank
designated by the applicable Company and reasonably acceptable to the Agent (or, from and after receipt by the Custodian of a Notice
of Exclusive Control, designated by the Agent). In the event no successor is agreed upon, the Custodian shall be entitled to petition
a court of competent jurisdiction to appoint a successor custodian and shall be indemnified by each Company for any costs and expenses
(including, without limitation, attorney’s fees) relating thereto.

15.

Severability.
In the event any provision of this Agreement is held illegal, void or unenforceable, the remainder of this Agreement shall remain
in effect.

16.

Successors; Assignment.
This Agreement shall be binding upon the parties hereto and their respective successors and assigns. No party may assign or transfer
any of its rights or obligations hereunder without the prior written consent of the other parties hereto; provided that this agreement
shall be binding on any successor Agent under the Security Agreement so long as such successor Agent agrees in writing to be bound
as “Agent” in accordance with the terms hereof.

 

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17.

Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to
the conflict of law provisions thereof.

18.

Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but such counterparts together
shall constitute one and the same instrument.

19.

Headings. Any
headings appearing on this Agreement are for convenience only and shall not affect the interpretation of any of the terms of this
Agreement.

20.

Confidentiality.
Each of the Custodian, each Company and the Agent agrees that it shall use commercially reasonable efforts to maintain, and to
cause its agents, attorneys and accountants to maintain, the confidentiality of the specific terms of this Agreement, and to not
discuss or disclose, nor authorize such agents, attorneys or accountants to discuss or disclose, such terms, directly or indirectly,
to any person, other than: (1) to such agents, attorneys or accountants, subject to the terms hereof; (2) as may be legally required
by applicable law or regulation or by any subpoena or similar legal process, or as may be requested by a regulator having jurisdiction
over such party; (3) in connection with litigation to which such party is a party; (4) to the extent such terms become publicly
available other than as a result of a breach of this Agreement; or (5) in the case of the Agent any other person to whom the Agent
is permitted to disclose confidential information of any Company in accordance with Section 9.12 of the Security Agreement.

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IN WITNESS WHEREOF,
the undersigned have executed this Agreement under their respective seals as of the date first written above.

	 	STATE STREET BANK AND TRUST COMPANY
	 	 
	 	 
	 	By: 	/s/ George
Sullivan
	 	Name:

        Title:
	George
Sullivan
Executive Vice President

 

    

    	 

    

 

	 	BARCLAYS BANK PLC, as Collateral
Agent
	 	 
	 	 
	 	By: 	/s/ Luke
Syme
	 	Name:

        Title:
	Luke
Syme
 Assistant Vice President

 

    

    	 

    

 

 

	 	BRYN MAWR FUNDING LLC
	 	 
	 	 
	 	By: 	/s/ Gerald
F. Stahlecker
	 	Name:

        Title:
	Gerald
F. Stahlecker
Executive Vice PresidentFS Energy and Power Fund 8-K

 

Exhibit 10.5

 

  

GUARANTY

This GUARANTY, dated
as of May 18, 2016 (this “Guaranty”), is made and entered into by and between FS ENERGY AND POWER FUND, a Delaware
statutory trust (“Guarantor”), and BARCLAYS BANK PLC (“Barclays”), in its capacity as Collateral
Agent (in such capacity, “Collateral Agent”) for itself and as representative of Secured Parties under the Guarantee
and Security Agreement (each as defined below).

W I T N E S S E T H:

WHEREAS, reference
is hereby made to that certain Senior Secured Revolving Credit Agreement, dated as of the date hereof (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among BRYN MAWR
FUNDING LLC, a Delaware limited liability company (“Company”), the other Obligors party thereto from time to
time, the Lenders party thereto from time to time and Administrative Agent; and

WHEREAS, reference
is hereby made to that certain Guarantee, Pledge and Security Agreement, dated as of the date hereof (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Guarantee and Security Agreement”), by and among
Company, the Subsidiary Guarantors (as defined therein) party thereto from time to time and Collateral Agent;

WHEREAS, pursuant
to the Credit Agreement, the Lenders have agreed to make financial accommodations to Company; and

WHEREAS, Guarantor
owns 100% of the outstanding Capital Stock of Company, and as such, will derive direct and indirect economic benefits from the
Lenders making the financial accommodations to Company pursuant to the Credit Agreement; and

WHEREAS, in order
to induce Administrative Agent and Lenders to enter into the Credit Agreement and the other Loan Documents and to induce Lenders
to make the financial accommodations to Company as provided for in the Credit Agreement, Guarantor has agreed to guarantee payment
of the Obligations on the terms set forth herein.

NOW, THEREFORE, in
consideration of the agreements set forth herein, and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, Guarantor and Collateral Agent agree as follows:

1.

Definitions.
Unless otherwise defined herein, terms defined in the Guarantee and Security Agreement, or, to the extent not defined in the Guarantee
and Security Agreement, the Credit Agreement, are used herein as therein defined, and the following shall have (unless otherwise
provided elsewhere in this Guaranty) the following respective meanings (such meanings being equally applicable to both the singular
and plural form of the terms defined):

“Excluded
Swap Obligation” means, with respect to the Guarantor, any Swap Agreement Obligation if, and to the extent that, all
or a portion of the Guarantee of the Guarantor of, or the grant by the Guarantor of a security interest to secure, such Swap Agreement
Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of
the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of the Guarantor’s
failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at
the time the Guarantee of the Guarantor becomes effective with respect to such specific Swap Agreement Obligation. If a Swap Agreement
Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such
Swap Agreement Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

    	 	1	 

    	 

    

 

“Qualified
ECP Guarantor” shall mean, in respect of any Swap Agreement Obligation, the Guarantor so long as it has total assets
exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect
to such Swap Agreement Obligation or such other person as constitutes an “eligible contract participant” under the
Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible
contract participant” by entering into a keepwell under section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

2.

Guaranty of the
Obligations. Guarantor hereby irrevocably and unconditionally guarantees to Collateral Agent, for the ratable benefit of the
Secured Parties, the due and punctual payment in full, in Cash, of all Guaranteed Obligations (as defined in the Guarantee and
Security Agreement) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration,
demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”); provided
that Guaranteed Obligations shall not include any Excluded Swap Obligation.

3.

Payment by Guarantor.
Guarantor hereby agrees, in furtherance of the foregoing and not in limitation of any other right which Collateral Agent or any
Secured Party may have at law, in equity or otherwise against Company or any other Obligor, that upon the failure of Company or
any other such Obligor to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity,
by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation
of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantor will, upon demand, pay,
or cause to be paid, in Cash, to Collateral Agent, for the ratable benefit of Secured Parties, an amount equal to the sum of the
unpaid Guaranteed Obligations then due and owing.

4.

Liability of Guarantor
is Absolute. Guarantor agrees that Guarantor’s obligations hereunder are irrevocable, absolute, independent and unconditional
and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than
payment in full, in Cash, of the Guaranteed Obligations (other than contingent and unasserted indemnification and expense reimbursement
claims). In furtherance of the foregoing and without limiting the generality thereof, Guarantor agrees as follows:

(a)

this Guaranty is a
guaranty of payment when due and not of collectability; and

 

    	 	2	 

    	 

    

 

(b)

this Guaranty is a
primary obligation of Guarantor and not merely a contract of surety; and

(c)

the obligations of
Guarantor hereunder are independent of the obligations of Company or any other Obligor, and a separate action or actions may be
brought and prosecuted against Guarantor whether or not any action is brought against Company or any other Obligor and whether
or not any of them are joined in any such action or actions; and

(d)

payment by Guarantor
of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge Guarantor’s liability
for any portion of the Guaranteed Obligations which has not been paid. Without limiting the generality of the foregoing, if Collateral
Agent is awarded a judgment in any suit brought to enforce Guarantor’s covenant to pay a portion of the Guaranteed Obligations,
except as otherwise provided in the applicable judgment, such judgment shall not be deemed to release Guarantor from Guarantor’s
covenant to pay the portion of the Guaranteed Obligations that is not the subject of such suit, and such judgment shall not, except
to the extent actually satisfied by Guarantor, limit, affect, modify or abridge Guarantor’s liability hereunder in respect
of the Guaranteed Obligations; and

(e)

Collateral Agent and
the Secured Parties may, without notice to Guarantor and without affecting the validity or enforceability hereof or giving rise
to any reduction, limitation, impairment, discharge or termination of Guarantor’s liability hereunder, from time to time
(i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of
payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer of settlement
with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto; (iii) request and accept
other guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed Obligations;
(iv) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or
without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations,
or any other obligation of any Person with respect to the Guaranteed Obligations; (v) enforce and apply any security now
or hereafter held by or for the benefit of Collateral Agent or such Secured Party in respect hereof or the Guaranteed Obligations
in accordance with any applicable security agreement; and (vi) exercise any other rights available to it under the Loan Documents;
and

    	 	3	 

    	 

    

 

(f)

this Guaranty and the
obligations of Guarantor hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment,
discharge or termination for any reason (other than the payment in full, in Cash, of the Guaranteed Obligations (other than contingent
and unasserted indemnification and expense reimbursement claims)), including the occurrence of any of the following, whether or
not Guarantor shall have had notice or knowledge of any of them: (i) any failure or omission to assert or enforce or agreement
or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise
or enforcement of, any claim or demand or any right, power or remedy (whether arising under the Loan Documents, at law, in equity
or otherwise) with respect to the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty
of or security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or
any consent to departure from, any of the terms or provisions (including provisions relating to Defaults or Events of Default)
of the Credit Agreement, any other Loan Document or any agreement or instrument executed pursuant thereto, or of any other guaranty
or security for the Guaranteed Obligations; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time
being found to be illegal, invalid or unenforceable in any respect; (iv) the application of payments received from any source
(other than payments received pursuant to the other Loan Documents or from the proceeds of any security for the Guaranteed Obligations,
except to the extent such security also serves as collateral for indebtedness other than the Guaranteed Obligations) to the payment
of indebtedness other than the Guaranteed Obligations, even though Collateral Agent or any Secured Party might have elected to
apply such payment to any part or all of the Guaranteed Obligations; (v)  Collateral Agent’s or any Secured Party’s
consent to the change, reorganization or termination of the corporate structure or existence of Company, any other Obligor or any
of their respective Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (vi) any failure to
perfect or continue perfection of a security interest in any collateral which secures any of the Guaranteed Obligations; (vii) any
defenses, set-offs or counterclaims which Company or any other Obligor may allege or assert against Collateral Agent or any
Secured Party in respect of the Guaranteed Obligations, including failure of consideration, breach of warranty, payment, statute
of frauds, statute of limitations, accord and satisfaction and usury, but excluding defenses that the Guaranteed Obligations are
not then due and owing or that no Event of Default shall have occurred and then be continuing; and (viii) any other act or
thing or omission, or delay to do any other act or thing, which may or might in any manner or to any extent vary the risk of Guarantor
as an obligor in respect of the Guaranteed Obligations.

5.

Waivers by Guarantor.
Guarantor hereby waives, for the benefit of Collateral Agent and Secured Parties: (a) any right to require Collateral Agent
and/or any Secured Party, as a condition of payment or performance by Guarantor, to (i) proceed against Company or any other
Obligor or any other Person, (ii) proceed against or exhaust any security held from Company, any such other Obligor or any
other Person, (iii) proceed against or have resort to any balance of any Deposit Account or credit on the books of Collateral
Agent and/or any Secured Party in favor of Company, any such other Obligor or any other Person, or (iv) pursue any other
remedy in the power of Collateral Agent or any Secured Party whatsoever; (b) any defense arising by reason of the incapacity,
lack of authority or any disability or other defense of Company or any such other Obligor, including any defense based on or arising
out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto
or by reason of the cessation of the liability of Company or any such other Obligor from any cause other than (i) the payment
in full, in Cash, of the Guaranteed Obligations (other than contingent and unasserted indemnification and expense reimbursement
claims) and (ii) that no Event of Default shall have occurred and then be continuing; (c) any defense based upon any statute
or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome
than that of the principal; (d) any defense based upon Collateral Agent’s or any Secured Party’s errors or omissions
in the administration of the Guaranteed Obligations, except such defenses as are available to any Obligor under the Guarantee
and Security Agreement; (e) (i) any principles or provisions of Law, statutory or otherwise, which are or might be in
conflict with the terms hereof and any legal or equitable discharge of Guarantor’s obligations hereunder, (ii) the
benefit of any statute of limitations affecting Guarantor’s liability hereunder or the enforcement hereof, (iii) any
rights to set-offs, recoupments and counterclaims, and (iv) promptness, diligence and any requirement that Collateral
Agent or any Secured Party protect, secure, perfect or insure any security interest or Lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance
hereof, notices of default hereunder or any agreement or instrument related thereto, notices of any renewal, extension or modification
of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to Company and notices
of any of the matters referred to in Section 4 above and any right to consent to any thereof; and (g) any defenses or
benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which
may conflict with the terms hereof.

 

    	 	4	 

    	 

    

 

6.

Guarantor’s
Rights. Until the Guaranteed Obligations (other than contingent and unasserted indemnification and expense reimbursement claims)
shall have been paid in full, in Cash, Guarantor hereby waives any claim, right or remedy, direct or indirect, that Guarantor now
has or may hereafter have against Company or any other Obligor or any of their respective assets in connection with this Guaranty
or the performance by such other Obligor of its obligations under the Loan Documents, as the case may be, in each case whether
such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including without limitation
(a) any right of subrogation, reimbursement or indemnification that Guarantor or any other Obligor now has or may hereafter
have against Company with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim,
right or remedy that Collateral Agent now has or may hereafter have against Company or any other Obligor under the Loan Documents,
and (c) any benefit of, and any right to participate in, any Collateral or security now or hereafter held by Collateral Agent
under the Loan Documents. In addition, until the Guaranteed Obligations (other than contingent and unasserted indemnification and
expense reimbursement claims) shall have been paid in full, in Cash, Guarantor shall withhold from exercising any right of contribution
that Guarantor may have against any other Obligor. Guarantor further agrees that, to the extent the waiver or agreement to withhold
from exercising Guarantor’s rights set forth herein is found by a court of competent jurisdiction to be void or voidable
for any reason, any such rights that Guarantor may have against Company, any Collateral or security or any other Obligor, in each
case pursuant to the Loan Documents, shall be junior and subordinate to any rights Collateral Agent may have against Company, to
all right, title and interest Collateral Agent may have in any such Collateral or security, and to any right Collateral Agent may
have against such other Obligor, in each case pursuant to the Loan Documents. If any amount shall be paid to Guarantor on account
of any such rights at any time when all Guaranteed Obligations (other than contingent and unasserted indemnification and expense
reimbursement claims) shall not have been paid in full, in Cash, such amount shall be held in trust for Collateral Agent on behalf
of Secured Parties and shall forthwith be paid over to Collateral Agent for the benefit of Secured Parties to be credited and applied
against the Guaranteed Obligations in accordance with the terms hereof.

7.

Subordination of
Other Obligations. Any Indebtedness of Company or any other Obligor now or hereafter held by Guarantor is hereby subordinated
in right of payment to the Guaranteed Obligations, and any such Indebtedness collected or received by Guarantor after an Event
of Default has occurred and is continuing shall be held in trust for Collateral Agent on behalf of Secured Parties and shall forthwith
be paid over to Collateral Agent for the benefit of Secured Parties to be credited and applied against the Guaranteed Obligations
then due and owing but without affecting, impairing or limiting in any manner the liability of Guarantor under any other provision
hereof.

 

    	 	5	 

    	 

    

 

8.

Continuing Guaranty.
This Guaranty is a continuing guaranty and shall remain in effect until all of the Guaranteed Obligations (other than contingent
and unasserted indemnification and expense reimbursement claims) shall have been paid in full, in Cash.

9.

Authority of Guarantor
or Company. No Secured Party shall be required to inquire into the capacity or powers of Guarantor or Company or the officers,
directors or any agents acting or purporting to act on behalf of any of them.

10.

Keepwell. The
Qualified ECP Guarantor hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as
may be needed from time to time by each other Obligor to honor all of its obligations under the Guarantee and Security Agreement
in respect of Swap Agreement Obligations (provided, however that the Qualified ECP Guarantor shall only be liable under this Section
10 for the maximum amount of such liability that can be incurred without rendering its obligations under this Section 10, or otherwise
under this Guaranty, as it relates to such Obligor, voidable under applicable law relating to fraudulent conveyance or fraudulent
transfer, and not for any greater amount). The obligations of the Qualified ECP Guarantor under this Section shall remain in full
force and effect until payment in full of all the Guaranteed Obligations in Cash (other than in respect of indemnities and contingent
Obligations not then due and payable). The Qualified ECP Guarantor intends that this Section 10 constitute, and this Section 10
shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Obligor for
all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

11.

Representations
and Warranties. The Guarantor represents and warrants to the Collateral Agent and the Secured Parties that:

(a)

The Guarantor is duly
organized or incorporated, validly existing and in good standing under the laws of the jurisdiction of its organization or incorporation.

(b)

The execution, delivery
and performance of this Guaranty are within the Guarantor’s corporate, limited liability company or other powers and have
been duly authorized by all necessary corporate, limited liability company or other action, including by all necessary shareholder,
trustee or member action. This Guaranty has been duly executed and delivered by the Guarantor and constitutes a legal, valid and
binding obligation of the Guarantor, enforceable in accordance with its terms, except as such enforceability may be limited by
(a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement
of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

    	 	6	 

    	 

    

 

(c)

The execution, delivery
and performance of this Guaranty (a) do not require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except for such as have been or will be obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, by-laws, certificate of formation, limited liability
company agreement or other organizational documents of the Guarantor or any order of any Governmental Authority, (c) will
not violate or result in a default in any material respect under any indenture, agreement or other instrument binding upon the
Guarantor or any of its assets, or give rise to a right thereunder to require any payment to be made by any such Person, and (d) 
will not result in the creation or imposition of any Lien on any asset of the Guarantor (other than Permitted Liens (as defined
in the FSEP Pledge Agreement)).

12.

Financial Condition
of Company. Any Loan may be made to Company or continued from time to time without notice to or authorization from Guarantor
regardless of the financial or other condition of Company at the time of any such making or continuation. Neither Collateral Agent
nor any Secured Party shall have any obligation to disclose or discuss with Guarantor Collateral Agent’s or such Secured
Party’s assessment of the financial condition of Company. Guarantor has adequate means to obtain information from Company
on a continuing basis concerning the financial condition of Company and its ability to perform its obligations under the Loan Documents.
Guarantor assumes the responsibility for being and keeping informed of the financial condition of Company and of all circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations. Guarantor hereby waives and relinquishes any duty on the part
of Collateral Agent or any Secured Party to disclose any matter, fact or thing relating to the business, operations or conditions
of Company now known or hereafter known by Collateral Agent or such Secured Party.

13.

Further Assurances.
Guarantor agrees, upon the reasonable prior written request of Collateral Agent, to execute and deliver to Collateral Agent, from
time to time, any additional instruments or documents or to take any further actions, from time to time, considered reasonably
necessary by Collateral Agent to cause this Guaranty to be, become or remain valid and effective in accordance with its terms.

14.

Reinstatement.
This Guaranty shall remain in full force and effect and continue to be effective should any petition be filed by or against Guarantor,
Company or any other Obligor for liquidation or reorganization, should Guarantor, Company or any other Obligor become insolvent
or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part
of Guarantor’s, Company’s or any other Obligor’s assets, and shall continue to be effective or be reinstated,
as the case may be, if at any time payment and performance of the Guaranteed Obligations, or any part thereof, is, pursuant to
applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Guaranteed Obligations,
whether as a “voidable preference”, “fraudulent conveyance”, or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned,
the Guaranteed Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

 

    	 	7	 

    	 

    

 

15.

Entire Agreement.
This Guaranty, together with the other Loan Documents, constitutes the entire agreement between the parties hereto and thereto
with respect to the subject matter hereof and thereof, respectively.

16.

Headings. The headings
in this Guaranty are for convenience of reference only and shall not affect the meaning or interpretation of this Guaranty.

17.

Severability.
Whenever possible, each provision of this Guaranty shall be interpreted in a manner so as to be valid and enforceable under applicable
Law, but if any provision of this Guaranty shall be determined by a court of competent jurisdiction to be invalid or unenforceable
under applicable Law, such provision shall be ineffective to the extent so determined, without affecting the remainder of such
provision or the remaining provisions of this Guaranty.

18.

Successors and Assigns.
This Guaranty and all obligations of Guarantor hereunder shall be binding upon the successors and assigns of Guarantor (including
a debtor-in-possession on behalf of Guarantor) and shall, together with the rights and remedies of Collateral Agent, for itself
and for the benefit of Secured Parties, hereunder, inure to the benefit of Collateral Agent and Secured Parties, all future holders
of any instrument evidencing any of the Credit Agreement Obligations, Swap Agreement Obligations or Guaranteed Obligations and
their respective successors and assigns. No sales of participations, other sales, assignments, transfers or other dispositions
of any agreement governing or instrument evidencing the Credit Agreement Obligations, Swap Agreement Obligations or Guaranteed
Obligations or any portion thereof or interest therein shall in any manner affect the rights of Collateral Agent and Secured Parties
hereunder. Guarantor may not assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Guaranty
without the prior written consent of Collateral Agent. This Guaranty shall not be assignable by Collateral Agent except in connection
with an assignment of its rights and obligations as Collateral Agent pursuant to the Guaranty, Pledge and Security Agreement in
accordance with the terms thereof.

19.

No Waiver; Cumulative
Remedies; Amendments. Neither Collateral Agent nor any Secured Party shall by any act, delay, omission or otherwise be deemed
to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in a writing signed by Collateral
Agent and then only to the extent therein set forth. A waiver by Collateral Agent, for itself and the ratable benefit of Secured
Parties, of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Collateral
Agent would otherwise have had on any future occasion. No failure to exercise nor any delay in exercising, on the part of Collateral
Agent or any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies hereunder are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by Law. None of the terms or provisions of this Guaranty may be waived,
altered, modified, supplemented or amended except by an instrument in writing, duly executed by Collateral Agent and Guarantor.

 

    	 	8	 

    	 

    

 

20.

Expenses. Guarantor
shall pay all reasonable, documented and out-of-pocket expenses incurred by Collateral Agent in connection with the administration
and enforcement of this Guaranty; provided, that Guarantor shall not have any obligation to pay fees or expenses of Collateral
Agent or any Secured Party except to the extent required under Section 9.03 of the Credit Agreement.

21.

Governing Law; Jurisdiction;
Etc.

(a)

Governing Law.
This Guaranty shall be construed in accordance with and governed by the law of the State of New York.

(b)

Submission to Jurisdiction.
Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the courts
of the State of New York or the United States located in the Borough of Manhattan in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this Guaranty, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty
shall affect any right that the Collateral Agent or any Secured Party may otherwise have to bring any action or proceeding relating
to this Guaranty against Guarantor or its properties in the courts of any jurisdiction.

(c)

Waiver of Venue.
Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Guaranty in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
any such court.

(d)

Service of Process.
Each party to this Guaranty irrevocably consents to service of process in the manner provided for notices in Section 9.01
of the Credit Agreement. Nothing in this Guaranty will affect the right of any party to this Guaranty to serve process in any other
manner permitted by law.

22.

WAIVER OF JURY TRIAL.
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    	 	9	 

    	 

    

 

23.

Termination.
Upon the payment in full in Cash of all Guaranteed Obligations (other than contingent and un-asserted indemnification and expense
reimbursement claims), the Liens and security interests granted hereunder shall automatically terminate without the necessity
of further action by any party and, except as otherwise provided herein, all of Guarantor’s obligations hereunder shall
at such time terminate.

 

[Remainder of Page Intentionally Blank]

    	 	10	 

    	 

    

IN WITNESS WHEREOF,
Guarantor and Collateral Agent have caused this Guaranty to be executed and delivered by their respective duly authorized representatives
as of the date first above written.

 

	 	GUARANTOR:
	 	 
	 	FS ENERGY AND POWER FUND
	 	 
	 	 
	 	By: 	/s/ Gerald F. Stahlecker
	 	Name:

        Title:
	Gerald F. Stahlecker
Executive Vice President
	 	 	 
	 	Address:
	 	 
	 	FS Energy and Power Fund
	 	201 Rouse Boulevard
	 	Philadelphia, PA 19112
	 	Attention: Gerald F. Stahlecker
	 	Facsimile: (215) 222-4649

 

 

    	 

    	 

    

 

	 	COLLATERAL AGENT:
	 	 
	 	BARCLAYS BANK PLC
	 	 
	 	 
	 	By: 	/s/ Luke Syme
	 	Name:

        Title:
	Luke Syme
Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]