Document:

Form of Note for the Company's 3.700% Notes due January 12, 2026.

 Exhibit 4.01 

This Note is one of a duly authorized issue of Securities of the Company (the “Notes”), issued and to be issued in one or more
series under the Indenture, dated as of November 13, 2013 (as amended and supplemented from time to time, the “Indenture”), between the Company and The Bank of New York Mellon, as Trustee (the “Trustee”, which term includes
any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, initially limited in aggregate principal to $2,000,000,000.

 If an event of default (as defined in the Indenture) with respect to Notes of this series shall occur and be continuing, the principal of
the Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 Sections 12.02 and
12.03 of the Indenture containing provisions for defeasance apply to this Note. At any time the entire indebtedness of this Note may be defeased upon compliance by the Company with certain conditions set forth in Section 12.04 of the Indenture.

 The Indenture contains provisions permitting the Company and the Trustee, without the consent of the holders of the Securities, to
establish, among other things, the form and terms of any series of Securities issuable thereunder by one or more supplemental indentures, and, with the consent of the holders of a majority in aggregate principal amount of Securities at the time
outstanding which are affected thereby, to modify the Indenture or any supplemental indenture or the rights of the holders of Securities of such series to be affected, provided that no such modification will (i) extend the fixed maturity of any
Securities, reduce the rate or extend the time of payment of interest thereon, reduce the principal amount thereof or the premium, if any, thereon, reduce the amount of the principal of Original Issue Discount Securities payable on any date, change
the currency in which Securities are payable, or impair the right to institute suit for the enforcement of any such payment on or after the maturity thereof, without the consent of the holder of each Security so affected, or (ii) reduce the
aforesaid percentage of Securities of any series the consent of the holders of which is required for any such modification without the consent of the holders of all Securities of such series then outstanding, or (iii) modify the rights, duties
or immunities of the Trustee unless the Trustee agrees to such modification. 
 No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 This Note is a Global Security registered in the name of a nominee of the Depository. This Note is exchangeable for Notes registered in
the name of a person other than the Depository or its nominee only in the limited circumstances hereinafter described. Unless and until it is exchanged in whole or in part for definitive Notes in certificated form, this Note may not be transferred
except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository. 

 The Notes represented by this Global Security are exchangeable for definitive Notes in
certificated form of like tenor as such Notes in denominations of $1,000 and whole multiples of $1,000 in excess thereof only if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for the Notes and
the Company is unable to appoint a successor depository or (ii) the Depository ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion decides to allow
the Notes to be exchanged for definitive Notes in registered form. Any Notes that are exchangeable pursuant to the preceding sentence are exchangeable for certificated Notes issuable in authorized denominations and registered in such names as the
Depository shall direct. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of definitive Notes in certificated form is registrable in the register maintained by the Company in The City of New York for
such purpose, upon surrender of the definitive Note for registration of transfer at the office or agency of the registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the registrar
duly executed by, the holder thereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. Subject to the foregoing, this Note is not exchangeable, except for a Global Security or Global Securities of this issue of the same principal amount to be registered in the name of the Depository or its
nominee. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 The Company will pay additional amounts
(“Additional Amounts”) to the beneficial owner of any Note that is a non-United States person in order to ensure that every net payment on such Note will not be less, due to payment of U.S.
withholding tax, than the amount then due and payable. For this purpose, a “net payment” on a Note means a payment by the Company or a paying agent, including payment of principal and interest, after deduction for any present or future
tax, assessment or other governmental charge of the United States. These Additional Amounts will constitute additional interest on the Note. 

The Company will not be required to pay Additional Amounts, however, in any of the circumstances described in items (1) through
(14) below. 
  

	 	(1)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	having a relationship with the United States as a citizen, resident or otherwise; 

  

	 	(b)	having had such a relationship in the past or 

  

	 	(c)	being considered as having had such a relationship. 

	 	(2)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	being treated as present in or engaged in a trade or business in the United States; 

  

	 	(b)	being treated as having been present in or engaged in a trade or business in the United States in the past or 

  

	 	(c)	having or having had a permanent establishment in the United States. 

  

	 	(3)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld in whole or in part by reason of the beneficial owner
being or having been any of the following (as such terms are defined in the Internal Revenue Code of 1986, as amended): 

  

	 	(a)	personal holding company; 

  

	 	(b)	foreign private foundation or other foreign tax-exempt organization; 

  

	 	(c)	passive foreign investment company; 

  

	 	(d)	controlled foreign corporation or 

  

	 	(e)	corporation which has accumulated earnings to avoid United States federal income tax. 

  

	 	(4)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner owning or
having owned, actually or constructively, 10 percent or more of the total combined voting power of all classes of stock of the Company entitled to vote or by reason of the beneficial owner being a bank that has invested in a Note as an extension of
credit in the ordinary course of its trade or business. 

 For purposes of items (1) through (4) above, “beneficial owner”
means a fiduciary, settlor, beneficiary, member or shareholder of the holder if the holder is an estate, trust, partnership, limited liability company, corporation or other entity, or a person holding a power over an estate or trust administered by
a fiduciary holder. 
  

	 	(5)	Additional Amounts will not be payable to any beneficial owner of a Note that is a: 

  

	 	(a)	fiduciary; 

  

	 	(b)	partnership; 

  

	 	(c)	limited liability company or 

  

	 	(d)	other fiscally transparent entity 

 or that is not the sole beneficial owner of the Note, or any
portion of the Note. However, this exception to the obligation to pay Additional Amounts will only apply to the extent that a beneficiary or settlor in relation to the fiduciary, or a beneficial owner or member of the partnership, limited liability
company or other fiscally transparent entity, would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment. 

	 	(6)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the failure of the beneficial
owner or any other person to comply with applicable certification, identification, documentation or other information reporting requirements. This exception to the obligation to pay Additional Amounts will only apply if compliance with such
reporting requirements is required by statute or regulation of the United States or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge.

  

	 	(7)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is collected or imposed by any method other than by withholding from a
payment on a Note by the Company or a paying agent. 

  

	 	(8)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of a change in law, regulation, or
administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(9)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of the presentation by the beneficial owner
of a Note for payment more than 30 days after the date on which such payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(10)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any: 

  

	 	(a)	estate tax; 

  

	 	(b)	inheritance tax; 

  

	 	(c)	gift tax; 

  

	 	(d)	sales tax; 

  

	 	(e)	excise tax; 

  

	 	(f)	transfer tax; 

  

	 	(g)	wealth tax; 

  

	 	(h)	personal property tax or 

  

	 	(i)	any similar tax, assessment, withholding, deduction or other governmental charge. 

  

	 	(11)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment, or other governmental charge required to be withheld by any paying agent from a payment of principal or
interest on a Note if such payment can be made without such withholding by any other paying agent. 

	 	(12)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is required to be made pursuant to any European Union directive on the
taxation of savings income or any law implementing or complying with, or introduced to conform to, any such directive. 

  

	 	(13)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any withholding, deduction, tax, duty assessment or other governmental charge that would not have been imposed but for a failure by
the holder or beneficial owner of a Note (or any financial institution through which the holder or beneficial owner holds the Note or through which payment on the Note is made) to take any action (including entering into an agreement with the
Internal Revenue Service, or a governmental authority of another jurisdiction if the holder is entitled to the benefits of an intergovernmental agreement between that jurisdiction and the United States) or to comply with any applicable
certification, documentation, information or other reporting requirement or agreement concerning accounts maintained by the holder or beneficial owner (or any such financial institution), or concerning ownership of the holder or beneficial owner, or
any substantially similar requirement or agreement. 

  

	 	(14)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any combination of items (1) through (13) above. 

Except as specifically provided herein, the Company will not be required to make any payment of any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of such government. 
 As used in this Note, “United
States person” means: 
  

	 	(a)	any individual who is a citizen or resident of the United States; 

  

	 	(b)	any corporation, partnership or other entity created or organized in or under the laws of the United States; 

  

	 	(c)	any estate if the income of such estate falls within the federal income tax jurisdiction of the United States regardless of the source of such income and 

 

	 	(d)	any trust if (i) a United States court is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all of the substantial decisions of the
trust; or (ii) it has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. 

Additionally, “non-United States person” means a person who is not a United States person,
and “United States” means the states of the United States of America and the District of Columbia, but excluding its territories and its possessions. 

Except as provided below, the Notes may not be redeemed prior to maturity. 

 

	 	(1)	The Company may, at its option, redeem the Notes if: 

	 	(a)	the Company becomes or will become obligated to pay Additional Amounts as described above; 

  

	 	(b)	the obligation to pay Additional Amounts arises as a result of any change in the laws, regulations or rulings of the United States, or an official position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on or after January 5, 2016; and 

  

	 	(c)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company. 

  

	 	(2)	The Company may also redeem the Notes, at its option, if: 

  

	 	(a)	any act is taken by a taxing authority of the United States on or after January 5, 2016, whether or not such act is taken in relation to the Company or any affiliate, that results in a substantial probability that
the Company will or may be required to pay Additional Amounts as described above; 

  

	 	(b)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company and 

  

	 	(c)	the Company receives an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States results in a substantial probability that the Company will or may be required to pay the
Additional Amounts described above, and delivers to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem the Notes pursuant to their terms. 

Any redemption of the Notes as set forth in clauses (1) or (2) above shall be in whole, and not in part, and will be made at a redemption price
equal to 100% of the principal amount of the Notes Outstanding plus accrued interest thereon to the date of redemption. Holders shall be given not less than 30 days nor more than 60 days prior notice by the Trustee of the date fixed for such
redemption. 
 All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. The
Notes are governed by the laws of the State of New York. 

 Schedule 1 

Redemptions and Amount of Securities 
  

							
	 Date of
partial
redemption
	  	Aggregate
principal amount
of Securities then
redeemed	  	Remaining
principal amount
of this Global
Security	  	Authorized SignatureEXHIBIT 10.1

 

FIFTH STREET SENIOR FLOATING RATE CORP.

EAST WEST BANK

LOAN AND SECURITY AGREEMENT

 

 

 

 

 

    	 	 	 

     

    

 

This LOAN AND SECURITY
AGREEMENT dated as of January 6, 2016 is entered into by and between EAST WEST BANK (“Bank”) and FIFTH STREET
SENIOR FLOATING RATE CORP., a Delaware corporation (“Borrower”).

 

RECITALS

 

Borrower wishes to
obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on
which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank.

 

AGREEMENT

 

 The parties agree as follows:

 

		1.	DEFINITIONS AND CONSTRUCTION.

 

1.1Definitions.
As used in this Agreement, the following terms shall have the following respective definitions:

 

“Advance” or “Advances”
means a cash advance or cash advances under the Revolving Facility.

 

“Advance
Request Date” means the date on which Borrower delivers to Bank a Loan Advance/Paydown Request Form in substantially
the form of Exhibit B in connection with Borrower’s request for an Advance in accordance with Section 2.1(a).

 

“Affiliate”
means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that
controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers,
directors, and partners, and members; provided that, for the avoidance of doubt, Fifth Street Management LLC does not control
the Borrower.

 

“Applicable
Law” means, with respect to any Person or property of such Person, all existing and future laws, rules, regulations
(including temporary and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses
of and interpretations by any Governmental Authority applicable to such Person (including, without limitation, predatory lending
laws, usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit
Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal
Reserve Board’s Regulations “B” and “Z”, the Servicemembers Civil Relief Act of 2003 and state adaptations
of the National Consumer Act and of the Uniform Consumer Credit Code and all other consumer credit laws and equal credit opportunity
and disclosure laws) and applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other
administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

 

“Asset
Coverage” means, as of any date of determination “asset coverage” (as understood under the Investment
Company Act of 1940), as determined in accordance with the terms and requirements of the Investment Company Act of 1940, including
Sections 6(f), 18 and 61(a)(1) thereof, and otherwise in accordance with GAAP.

 

    	 	1	 

     

    

 

“Bank Expenses”
means all: reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in connection
with the preparation, negotiation, administration, and enforcement of the Loan Documents; and Bank’s reasonable attorneys’
fees and expenses incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred
before, during and after an Insolvency Proceeding, whether or not suit is brought.

 

“Borrowing
Base” means an amount equal to (i) seventy percent (70%) of the aggregate value of the Eligible Loans provided by
the Borrower in accordance with Section 6.3(d) that are First Lien Loans, plus (ii) fifty-five percent (55%) of the aggregate
value of the Eligible Loans provided by the Borrower in accordance with Section 6.3(d) that are Second Lien Loans, plus
(iii) the lesser of (a) forty percent (40%) of the aggregate value of the Eligible Loans provided by the Borrower in accordance
with Section 6.3(d) that (1) are Unsecured Loans and (2) with respect to which the Obligor on such Eligible Loan has a trailing
twelve (12) month EBITDA greater than Fifteen Million Dollars ($15,000,000) (the “Obligor EBITDA Requirement”)
as of the date such Eligible Loan is included in the Borrowing Base and (3) no one customer of an Obligor is the source of revenue
in excess of fifteen percent (15%) of the Obligor EBITDA Requirement, and (b) an amount equal to fifteen percent (15%) of the Revolving
Line (as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrower), plus (iv) the
total amount of Collections on deposit in the Collections DDA and the Lockbox.

 

“Borrowing Base
Certificate” is a borrowing base certificate in form attached hereto as Exhibit C.

 

“Borrower’s
Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets
or liabilities, business operations or financial condition; and all computer programs, tape files, and the equipment containing
such information.

 

“Business
Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized
or required to close; provided, however, when used in connection with a LIBOR Rate, LIBOR Amount or LIBOR Interest Period,
such term shall also exclude any day on which dealings in U.S. dollar deposits are not carried on in the London interbank market.

 

“Change
in Control” shall mean a transaction in which any “person” or “group” (within the meaning
of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) shall have acquired “beneficial ownership” (as
defined under Rule 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group acting in concert shall
be deemed to have “beneficial ownership” of all securities that such person or persons have the right to acquire, whether
such right is exercisable immediately or only after the passage of time, directly or indirectly, of stock or other equity interests
or any interest convertible into any such interest in the Borrower), directly or indirectly, of, or shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon consummation, will result in its or their acquisition
of, or control over the Borrower or of over 50% or more of the voting power for the election of directors of the Borrower, who
did not have such power before such transaction.

 

“Charter
Documents” means the Certificate of Incorporation with respect to Borrower any other governing charter document of
a Person, and any other organizational, formation, or operational documents of a Person.

 

    	 	2	 

     

    

 

“Closing Date” means
the date of this Agreement. “Code” means the New York Uniform Commercial Code. “Collateral” means
the property described on Exhibit A. “Collections” is defined in Section 6.6(a).

 

“Collections DDA” is defined
in Section 6.6(a).

 

“Compliance
Certificate” means a certificate in substantially the form attached as Exhibit D.

 

“Contingent
Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person
with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation,
any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or
in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters
of credit, corporate credit cards, or merchant services issued or provided for the account of that Person; and (iii) all obligations
arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement,
or other agreement or arrangement designed to protect such Person against fluctuation in interest rates, currency exchange rates
or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection
or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to
the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated
or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided,
however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support
arrangement.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of a Person, whether through the ability to exercise voting power, by contract or otherwise.

 

“Credit
Extension” means each Advance or any other extension of credit by Bank for the benefit of Borrower hereunder.

 

“Custodian” means
U.S. Bank National Association.

 

“Custody
Agreement” means that certain Custody Agreement by and between Borrower and Bank, dated as of the Closing Date.

 

“Daily
Balance” means the amount of the Obligations owed at the end of a given day.

 

“Dollars” means, and the
conventional “$” signifies, the lawful currency of the United States.

 

“EBITDA”
has the meaning set forth in the applicable Obligor’s loan or credit agreement relating to its Loan.

 

    	 	3	 

     

    

 

“Eligible
Loans” means Loans, (i) that comply with all of Borrower’s representations and warranties to Bank set forth
in Section 5.3, (ii) that are either First Lien Loans, Second Lien Loans or Unsecured Loans and (iii) unless otherwise agreed to
by Bank in writing, that satisfy each of the following conditions as of the date the corresponding Loan is added to the Borrowing
Base; provided, that satisfaction of the conditions set forth in clauses (q) and (r), below, shall be measured at all times:

 

(a)such Loan has
been originated, purchased or otherwise acquired by Borrower in the ordinary course of business;

 

(b)such Loan is
denominated and payable in Dollars;

 

(c)such Loan is
evidenced by a credit agreement or other loan agreement containing an express promise to pay;

 

(d)such Loan contains
(a) a Senior Debt to EBITDA ratio less than 4.50 to 1.00, and (b) a Total Debt to EBITDA ratio less than 5.00 to 1.00, provided
that up to fifty percent (50%) of the Borrowing Base may consist of Loans with a Senior Debt to EBITDA ratio up to 4.75 to 1.00,
and a Total Debt to EBITDA ratio up to 5.90 to 1.00;

 

(e)such
Loan does not constitute a purpose credit advanced for the acquisition of margin stock;

 

(f)such Loan has
been pledged to Bank as Collateral and Bank has a perfected security interest in such Loan;

 

(g)such Loan is
not more than five (5) Business Days delinquent in payment (subject to any applicable grace period);

 

(h)such Loan is
not a Loan that, on or after the date such Loan was added to the Borrowing Base, has been modified by Borrower in any of the following
ways without Bank’s consent: (i) increasing in the principal amount of the commitment, (ii) reducing in the rate of interest
by more than 25.0%, (iii) extending any scheduled payment date or final maturity date by more than one (1) year, (iv) waiving,
deferring or extending of any payment of interest for a period greater than five (5) Business Days beyond any applicable grace
period related thereto, or (v) releasing of any collateral securing such Loan;

 

(i)such Loan does
not provide the related Obligor with any right of rescission, set-off, counterclaim or defense, including the defense of usury;

 

(j)such Loan does
not contain confidentiality restrictions that would prohibit Bank from accessing all necessary information with regards to such
Loan so long as Bank has agreed to maintain the confidentiality of such information and to comply with customary and market confidentiality
obligations;

 

(k)the Obligor
with respect to such Loan is an Eligible Obligor;

 

(l)such Loan does
not contravene in any material respect any Applicable Law except to the extent that non-compliance with any Applicable Law would
not reasonably be expected, in the Bank’s commercially reasonable judgment, to result in a Material

 

    	 	4	 

     

    

 

Adverse Effect on such Loan;

 

(m)all original
Required Loan Documents have been delivered to the Custodian;

 

(n)such Loan is
eligible to be sold to Borrower and to have a security interest therein granted to Bank;

 

(o)all consents,
licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority required to be obtained,
effected or given in connection with the making, acquisition, transfer or performance of such Loan by Borrower have been duly obtained,
effected or given and are in full force and effect;

 

(p)such Loan is
not a charged-off loan and has not been placed on “non-accrual status” by the Borrower in accordance with the internal
accounting and valuation policies of the Borrower in effect as of the Closing Date;

 

(q)the maximum
term to maturity of such Loan shall not exceed six (6) years from any Advance Request Date; provided that Advances made with respect
to First Lien Loans and Second Lien Loans for which the maximum term to maturity of such Loan does not exceed seven (7) years from
any Advance Request Date are eligible to the extent such Advances made with respect to such Loans do not account for more than
fifty percent (50%) of the Revolving Line;

 

(r)no event of
default (after giving effect to any applicable cure period) has occurred and is continuing with respect to the required principal
or interest payments or financial covenants of any credit facility for which Bank is the lender and the borrower of such credit
facility is also an Obligor under a Loan;

 

(s)such Loan (i)
is not an equity security and (ii) does not provide for the conversion or exchange into an equity security at any time on or after
the date it is included as part of the Collateral; and

 

(t)such Loan shall
have a risk rating of 2 or better according to the Borrower's four-stage matrix.

 

“Eligible
Obligor” means, as of the date the Loan related to such Obligor is added to the Borrowing Base, any Obligor under
a Loan that:

 

(a)is a business
organization (and not a natural person) duly organized and validly existing under the laws of its jurisdiction of organization;

 

(b)is either a
legal operating entity or holding company;

 

(c)has not entered
into its respective Loan primarily for personal, family or household purposes;

 

(d)is not a Governmental
Authority;

 

    	 	5	 

     

    

 

(e)is not an Affiliate
of Borrower or its officers, employees or agents (provided, that no person shall be deemed to be an Affiliate of Borrower solely
by reason of control by a common financial sponsor);

 

(f)such Obligor
is domiciled in the United States; provided that up to ten percent (10%) of the aggregate outstanding balance of all Eligible Loans
may have Obligors that reside in Australia, France, Germany New Zealand or the Netherlands; provided further that up to twenty-five
percent (25%) of the aggregate outstanding balance of all Eligible Loans may have Obligors that reside in Canada or the United
Kingdom, subject to review by Bank’s counsel; and

 

(g)is not a federal,
state or local government entity or any department, agency, or instrumentality.

 

“Equipment”
means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and
attachments in which Borrower has any interest.

 

“Event of Default” means
any one or more of the events specified in Article 8.

 

“Excess
Collections” means any Collections or any other amounts maintained in the Collections DDA in excess of the Collections
included in the Borrowing Base and with respect to which Bank has made Advances to Borrower.

 

“Excluded
Taxes” means any of the following taxes imposed on or with respect to Bank or required to be withheld or deducted
from a payment to Bank, (a) taxes imposed on or measured by net income (however denominated), franchise taxes, and branch profits
taxes, (b) withholding taxes imposed on amounts payable under this Agreement pursuant to a law in effect (i) on the date of this
Agreement, or (ii) on the date Bank acquired an interest in the Loan Documents, (c) taxes attributable to Bank’s failure
to comply with Section 2.8(e) and (d) any U.S. federal withholding taxes imposed under FATCA.

 

“FATCA” means
Sections 1471 through 1474 of the IRC.

 

“Financed
Loans” means Eligible Loans that are included in the Borrowing Base and with respect to which Bank has made Advances
to Borrower.

 

“First
Lien Loan” means any Loan that is recorded as a “first lien loan” on the Borrower’s Books.

 

“GAAP”
means generally accepted accounting principles as in effect from time to time.

 

“General DDA” is defined
in Section 6.6(a).

 

“Governmental
Authority” means, with respect to any Person, any nation or government, any state or other political subdivision
thereof, any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative,
judicial, taxing, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction
over such Person.

 

 

    	 	6	 

     

    

 

“Indebtedness”
means (a) all indebtedness for borrowed money or the deferred purchase price of property or services (excluding current
accounts payable in the ordinary course of business), including without limitation reimbursement and other obligations with respect
to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all
capital lease obligations and (d) all Contingent Obligations.

 

“Indemnified
Taxes” means (a) taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States
Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors,
formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement,
or other relief.

 

“Intangible
Assets” means assets that are considered to be intangible assets under GAAP, including customer lists, goodwill,
computer software, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized
debt discount and capitalized research and development costs.

 

“Investment”
means any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan,
advance or capital contribution to any Person.

 

“IRC”
means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

“IRS” means the U.S. Internal
Revenue Service.

 

“LIBOR
Amount” means each principal amount for which Borrower chooses to have the LIBOR-Based Rate apply for any specified
LIBOR Interest Period.

 

“LIBOR-Based
Advance” means an Advance that bears interest at the LIBOR- Based Rate.

 

“LIBOR-Based
Rate” shall mean, for any LIBOR Interest Period with respect to a LIBOR-Based Advance, a rate per annum (rounded
upwards, if necessary, to the nearest one-sixteenth of one percent (1/16 of 1%) equal to the sum of (a) (i) the LIBOR Rate for
such LIBOR Interest Period divided by (ii) 1 minus the Reserve Requirement for such LIBOR Interest Period plus (b) (i) if the Funding
Date of the LIBOR-Based Advance is prior to the first anniversary of the Closing Date, three and three quarters of one percent
(3.75%), (ii) if the Funding Date of the LIBOR-Based Advance is on or after the first anniversary of the Closing Date but prior
to the second anniversary of the Closing Date, three and one half of one percent (3.50%), (iii) if the Funding Date of the LIBOR-Based
Advance is on or after the second anniversary of the Closing Date but prior to the fourth anniversary of the Closing Date, three
and one quarter of one percent (3.25%) and (iv) if the Funding Date of the LIBOR-Based Advance is on or after the fourth anniversary
of the Closing Date, three percent (3.00%).

 

“LIBOR
Interest Period” means, with respect to any LIBOR Amount, a period of thirty
(30) days, sixty (60) days or ninety (90) days commencing on the date the LIBOR-Based Rate

 

    	 	7	 

     

    

 

becomes applicable thereto; provided,
however, that: (i) the first day of each LIBOR Interest Period must be a Business Day; (ii) no LIBOR Interest Period shall
be selected which would extend beyond the Revolving Maturity Date; (iii) any LIBOR Interest Period which would otherwise expire
on a day which is not a Business Day, shall be extended to the next succeeding Business Day, unless the result of such extension
would be to extend such LIBOR Interest Period into another calendar month, in which event the LIBOR Interest Period shall end on
the immediately preceding Business Day; and (iv) any LIBOR Interest Period that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at the end of such LIBOR Interest Period)
shall end on the last Business Day of a calendar month.

 

“LIBOR
Rate” means the offered rate for deposits in Dollars (rounded upwards, if necessary, to the nearest one-sixteenth
of one percent (1/16 of 1%)), for delivery of such deposits on the first day of a LIBOR Interest Period for a LIBOR-Based Advance
for the number of days in such LIBOR Interest Period, which appears on Bloomberg Page BBAM1.

 

“Lien”
means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

“Loans” means
loan assets in Borrower’s loan portfolio.

 

“Loan Documents”
means, collectively, this Agreement, any note or notes executed by Borrower and any other agreement entered into in connection
with this Agreement, all as amended or extended from time to time.

 

“Loan Supplement”
is the form attached hereto as Schedule 1.

 

“Material
Adverse Effect” means a material adverse effect on (i) the business, operations or financial condition of Borrower,
(ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents or (iii) the
value or priority of Bank’s security interests in the Collateral.

 

“Negotiable
Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts,
instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating
to any of the foregoing.

 

“Net Assets”
has the meaning set forth in Borrower’s consolidated balance sheet reflected in Borrower’s most recent Quarterly
Report on Form 10-Q and Annual Report on Form 10-K filings as filed with the SEC.

 

“Obligations”
means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement
or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any
interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise.

 

“Other
Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt
or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such taxes that are imposed
with respect to an assignment.

 

    	 	8	 

     

    

 

“Periodic
Payments” means all installments or similar recurring payments that Borrower may now or hereafter become obligated
to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower
and Bank.

 

“Permitted Indebtedness” means:

 

(a)Indebtedness
of Borrower in favor of Bank arising under this Agreement or any other Loan Document;

 

(b)trade
payables incurred in the ordinary course of Borrower’s business; and

 

(c)Indebtedness
existing on the Closing Date and disclosed in the Schedule and the extension, renewal or refinancing of such Indebtedness, provided
that the principal amount of any such Indebtedness being extended, renewed or refinanced does not increase.

 

“Permitted Investment” means:

 

(a)Investments existing on
the Closing Date disclosed in the Schedule;

 

(b)(i)
direct registered obligations of, and registered obligations the timely payment of principal and interest on which is fully and
expressly guaranteed by, the United States of America or any agency or instrumentality of the United States of America whose obligations
are expressly backed by the full faith and credit of the United States of America;

 

(c)demand
and time deposits in, certificates of deposit of, trust accounts with, bankers’ acceptances issued by, or federal funds sold
by any depository institution or trust company incorporated under the laws of the United States of America (including the Bank)
or any state thereof and subject to supervision and examination by federal and/or state banking authorities, in each case payable
within 183 days after issuance;

 

(d)commercial
paper maturing no more than one (1) year from the date of creation thereof and currently having rating of at least A-3 or P-3 from
either Standard & Poor’s Corporation or Moody’s Investors Service, respectively;

 

(e)certificates
of deposit maturing no more than one (1) year from the date of investment therein issued by Bank;

 

(f)money
market accounts; and

 

(g)Investments
made in accordance with the Charter Documents.

 

“Permitted Liens” means
the following:

 

(a)Liens
existing on the date hereof and listed on the Schedule;

 

(b)Liens
granted in favor of Bank; and

 

 

    	 	9	 

     

    

 

(c)(i)
materialmen’s, warehousemen’s, mechanics’ and other Liens arising by operation of law in the ordinary course
of business for sums not due or sums that are being contested in good faith, (ii) purchase money security interests in certain
items of equipment, (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or
being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves (to the extent required
by GAAP), (iv) other customary Liens permitted with respect thereto consistent with the Borrower’s internal accounting and
valuation policies of the Borrower in effect as of the Closing Date, and (v) with respect to any property or other assets of an
Obligor designated as collateral to secure repayment of any Loan, Liens permitted by the applicable loan agreement or credit agreement
of such Loan.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental
agency.

 

“Prime-Based
Advance” means an Advance that bears interest at the Prime- Based Rate.

 

“Prime-Based
Rate” means a rate per annum equal to, at all times (i) prior to the first anniversary of the Closing Date, three
quarters of one percent (0.75%), (ii) on or after the first anniversary of the Closing Date but prior to the second anniversary
of the Closing Date, one half of one percent (0.50%), (iii) on or after the second anniversary of the Closing Date but prior to
the fourth anniversary of the Closing Date, one quarter of one percent (0.25%) and (iv) on or after the fourth anniversary of the
Closing Date, zero percent (0.00%), above the Prime Rate.

 

“Prime
Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,”
whether or not such announced rate is the lowest rate available from Bank.

 

“Required Loan Documents”
means the following:

 

(a)a
copy of each transfer document or instrument relating to such Loan evidencing the assignment of such Loan to Borrower, if any;

 

(b)an
undated transfer or assignment document or instrument relating to such Loan, signed by Borrower, as assignor, but not dated and
not specifying an assignee;

 

(c)a
copy of the promissory note and loan or credit agreement relating to such Loan; and

 

(d)such
other documents in connection with such Loan as Bank reasonably requests and that is available to the Borrower without undue hardship.

 

“Reserve
Requirement” means, for any LIBOR Interest Period, the average maximum rate at which reserves (including any marginal,
supplemental or emergency reserves) are required to be maintained during such LIBOR Interest Period under Regulation D against
“Eurocurrency liabilities” (as such term is used in Regulation D) by member banks of the Federal Reserve System. Without
limiting the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by Bank
by reason of any regulatory change against (i) any category of liabilities which includes deposits by reference to which the LIBOR
Rate is to be determined as provided

 

    	 	10	 

     

    

 

in the definition of “LIBOR
Rate” or (ii) any category of extensions of credit or other assets which include Advances.

 

“Responsible
Officer” means (i) any of the President, who is Todd G. Owens as of the Closing Date, the Chief Executive Officer,
who is Ivelin M. Dimitrov as of the Closing Date, and the Chief Financial Officer who is Steven M. Noreika as of the Closing Date,
or (ii) such other Person as designated in a certificate in form and substance acceptable to Bank delivered from time to time to
Bank.

 

“Revolving
Facility” means the facility hereunder pursuant to which Borrower may request Bank to issue Advances, as specified
in Section 2.1(a) hereof.

 

“Revolving
Line” means aggregate Credit Extensions of up to Twenty Five Million Dollars ($25,000,000).

 

“Revolving Maturity Date” means
the date five (5) years after the Closing Date.

 

“Schedule”
means the schedule of exceptions attached hereto and approved by Bank, if any.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Second
Lien Loan” means any Loan that is valued as a “second lien loan” on the Borrower’s Books in
accordance with the internal accounting and valuation policies of the Borrower in effect as of the Closing Date.

 

“Senior
Debt” has the meaning set forth in the applicable Obligor’s loan or credit agreement relating to its
Loan.

 

“Subordinated
Debt” means any debt incurred by Borrower that is subordinated to the debt owing by Borrower to Bank on terms acceptable
to Bank in Bank’s reasonable discretion (and identified as being such by Borrower and Bank).

 

“Subsidiary”
means any corporation, partnership or limited liability company or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such ownership interests having such power only by reason of the happening
of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity
are at the time owned, or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries,
or both, by Borrower.

 

“Total
Debt” has the meaning set forth in the applicable Obligor’s loan or credit agreement relating to its Loan.

 

1.2Rules
of Construction.

 

(a)All
accounting terms not specifically defined herein shall be construed in accordance with GAAP and all calculations made hereunder
shall be made in accordance with GAAP. When used herein, the terms “financial statements” shall include the notes and
schedules thereto, if applicable.

 

    	 	11	 

     

    

 

(b)Defined
terms may be used in the singular or the plural, as the context requires.

 

(c)All reference
to any time means New York, New York time (unless expressly specified otherwise).

 

(d)References
herein to Sections, Exhibits, Schedules and like references are to Sections, Exhibits, Schedules and the like in and to this Agreement
unless otherwise expressly provided.

 

(e)References
herein to any document, instrument, or agreement (i) shall include all exhibits, schedules, and other attachments thereto, (ii)
shall include all documents, instruments, or agreements issued or executed in replacement thereof, to the extent permitted hereby
or thereby, and (iii) shall mean such document, instrument, or agreement, or replacement thereof, as amended, supplemented, restated,
or otherwise modified from time to time to the extent permitted hereby or thereby and in effect at any given time.

 

(f)The words
“include,” “includes” and “including” are deemed to be followed by the phrase “without
limitation.”

 

(g)Unless
the context in which it is used otherwise clearly requires, the word “or” has the inclusive meaning represented by
the phrase “and/or.”

 

(h)All capitalized
terms used herein with reference to the Collateral and defined in the Uniform Commercial Code (“UCC”) as adopted in
the applicable jurisdiction from time to time shall have the meaning given therein unless otherwise defined herein. To the extent
the definition of any category or type of Collateral is expanded by any amendment, modification or revision to the UCC, such expanded
definition will apply automatically as of the effective date of such amendment, modification or revision.

 

(i)With respect
to any Person, the terms “knowledge” or “actual knowledge” shall mean such knowledge as such Person has
or should have after conducting commercially reasonable due inquiry.

 

(j)References
to any Person include that Person’s heirs, personal representatives, successors, trustees, receivers, and permitted assigns.

 

(k)Unless
the context in which it is used otherwise clearly requires, all references to days, weeks and months mean calendar days, weeks
and months.

 

		2.	LOAN AND TERMS OF PAYMENT.

 

2.1Credit
Extensions

 

(a)Revolving
Line. Subject to and upon the terms and conditions of this Agreement, Borrower may request Advances in an aggregate outstanding
amount not to exceed the lesser of (A) the Revolving Line or (B) the Borrowing Base. Amounts borrowed pursuant to this Section
may be repaid and reborrowed at any time prior to the Revolving Maturity Date. Whenever Borrower desires an Advance, Borrower will,
(1) by no later than 2:00 on the Business Day that the Advance is to be made, (a) notify Bank by electronic mail, facsimile transmission
or telephone, (b) with respect to LIBOR-Rate

 

 

    	 	12	 

     

    

 

Advances, further notify Bank
in the manner required by Section 2.5(a) and (c) deliver to Bank a Loan Advance/Paydown Request Form in substantially the form
of Exhibit B and (2) by no later than two (2) Business Days prior to the Business Day on which the Advance is to be made,
deliver to Bank a Loan Supplement and Borrowing Base Certificate. Bank is authorized to make Advances under this Agreement, based
upon written instructions received from a Responsible Officer or a designee of a Responsible Officer, or without instructions if
in Bank’s reasonable discretion such Advances are necessary to meet Obligations which have become due and remain unpaid.
Bank shall be entitled to rely on any telephonic notice given by a person listed herein as a Responsible Officer or a designee
thereof, and Borrower shall indemnify and hold Bank harmless for any damages or loss suffered by Bank as a result of such reliance.
Bank will credit the amount of Advances made under this Section 2.1(a) to the General DDA. Borrower shall use the proceeds of each
Advance to finance the working capital of Borrower.

 

2.1.2
Overadvances. If the aggregate amount of the outstanding Advances exceeds the lesser of the Revolving Line or the Borrowing
Base at any time, Borrower shall pay to Bank, in cash, the amount of such excess within seven (7) Business Days after a Responsible
Officer obtains knowledge of such occurrence.

 

2.2Interest
Rates, Payments, and Calculations.

 

(a)Interest
Rate. Except as set forth in Section 2.2(b), (i) Prime-Based Advances shall bear interest, on the outstanding daily
balance thereof, at a floating rate of interest equal to the Prime-Based Rate and (ii) LIBOR-Based Advances shall bear interest,
on the outstanding daily balance thereof, at a rate of interest equal to the LIBOR-Based Rate.

 

(b)Late
Fee; Default Rate. If any payment is not made within ten (10) Business Days after the date such payment is due, Bank
shall notify Borrower. If Borrower has not made such payment within one Business Day after receiving notice, Borrower shall pay
Bank a late fee equal to the lesser of (i) five percent (5.00%) of the amount of such unpaid amount or (ii) the maximum amount
permitted to be charged under Applicable Law. All Obligations shall bear interest, from and after the occurrence and during the
continuance of an Event of Default, at a rate equal to five (5) percentage points above the interest rate applicable immediately
prior to the occurrence of the Event of Default.

 

(c)Payments.
Borrower promises to pay to the order of Bank, in lawful money of the United States of America, the aggregate unpaid
principal amount of all Credit Extensions made by Bank to Borrower hereunder in accordance with the terms herein. Borrower shall
also pay interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. Interest
hereunder shall be due and payable on the last calendar day of each month during the term hereof. Bank may, at its option, charge
such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts and Bank shall provide
Borrower prompt notice of any such charge. Only if Borrower’s deposit accounts lack sufficient funds to pay such amounts
when due, Bank shall charge such amounts against the Revolving Line, in which case those amounts shall thereafter accrue interest
at the rate then applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations,
and such interest shall thereafter accrue interest at the rate then applicable hereunder. Failure of Bank to draw interest, Bank
Expenses, and Periodic Payments from Borrower’s deposit accounts in a timely manner shall not cause additional interest or
penalties to accrue. Notwithstanding anything to the contrary in this Agreement, on the Revolving Maturity Date, all Advances under
this Section shall be immediately due and payable. Borrower may prepay any Advances without penalty or premium; provided, however,
the prepayment of LIBOR-based Advances shall be

 

 

    	 	13	 

     

    

 

subject to Section 2.5(e). All
payments shall be free and clear of any taxes, withholdings, duties, impositions or other charges, except as required by Applicable
Law.

 

(d)Intentionally Omitted.

 

(e)Computation.
In the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder shall be increased
or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All interest
chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360) day year for the actual number
of days elapsed.

 

2.3Crediting
Payments. Prior to the occurrence and continuance of an Event of Default, Bank shall credit a wire transfer of funds, check
or other item of payment to such deposit account or Obligation as Borrower specifies. After the occurrence of an Event of Default,
the receipt by Bank of any wire transfer of funds, check, or other item of payment shall be immediately applied to conditionally
reduce Obligations, but shall not be considered a payment on account unless such payment is of immediately available federal funds
or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the
contrary contained herein, any wire transfer or payment received by Bank after 3:00 p.m. shall be deemed to have been received
by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents
would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due
on the next Business Day, and additional fees or interest, as the case may be, shall
accrue and be payable for the period of such extension.

 

2.4Fees.
Borrower shall pay to Bank the following:

 

(a)Revolving
Facility Fee. A fully earned and non-refundable facility fee equal to Three Hundred Seventy Five Thousand Dollars ($375,000),
payable in installments of (i) One Hundred Thousand Dollars ($100,000), on the Closing Date and (ii) Two Hundred Seventy Five Thousand
Dollars ($275,000), on January 29, 2016;

 

(b)Unused
Fee. A fee payable in arrears to the Bank within five (5) days after receipt of an invoice therefor sent after the last day
of each such quarter, with respect to any such quarter equal to the sum of the products for each day during such quarter of (i)
one divided by 360, (ii) the applicable Unused Fee Rate (as defined below), and (iii) the Revolving Line minus the
outstanding Advances on such day. The “Unused Fee Rate” shall be equal to 0.375%. Payments made pursuant to this Section
2.4(b) shall be nonrefundable.

 

(c)Bank
Expenses. On the Closing Date, an amount equal to all Bank Expenses reasonably incurred and documented through the Closing
Date. After the Closing Date, Borrower shall pay Bank all reasonably incurred and documented Bank Expenses, including reasonable
attorneys’ fees and expenses, as and when they become due.

 

2.5Additional
Provisions Regarding LIBOR-Based Advances.

 

(a)Borrower
may obtain LIBOR Rate quotes from Bank between 12:00 p.m. and 2:00 p.m. on any Business Day. If Borrower elects to use the LIBOR-Based
Rate interest option, Borrower shall give Bank irrevocable notice (either in writing or orally) between 12:00 p.m. and 2:00 p.m.
on the desired effective date of such LIBOR-Based Rate. Any oral notice shall be given by, and any

 

 

    	 	14	 

     

    

 

written notice shall be signed by,
a Responsible Officer on behalf of Borrower, and shall specify the requested effective date of the LIBOR-Based Rate, the LIBOR
Interest Period and the LIBOR Amount, and whether Borrower is requesting a new LIBOR-Based Advance, the conversion of all or any
portion of a Prime-Based Advance to a LIBOR Amount, or a new LIBOR Interest Period for an outstanding LIBOR Amount. Borrower may
select a separate LIBOR Interest Period for up to five (5) different LIBOR Amounts (each of which LIBOR Amounts must be in the
minimum amount of One Hundred Thousand Dollars ($100,000)), provided that such selection is otherwise made in strict compliance
with the terms of this Agreement.

 

(b)If at any
time the LIBOR Rate is unascertainable or unavailable to Bank or if LIBOR-Based Advances become unlawful, the option to select
the LIBOR-Based Rate shall terminate immediately. If the LIBOR-Based Rate is then in effect, (i) it shall terminate automatically
with respect to all LIBOR Amounts (A) on the last day of the respective LIBOR Interest Periods for such LIBOR Amounts if Bank may
lawfully continue to maintain such LIBOR-Based Advances through such day, or (B) immediately if Bank may not lawfully continue
to maintain such LIBOR-Based Advances through such day, and (ii) the Prime-Based Rate automatically shall become effective as to
such LIBOR Amounts upon such termination.

 

(c)If at any
time after the date hereof (i) any revision in or adoption of any Applicable Law, rule, or regulation or in the interpretation
or administration thereof (A) shall subject Bank to any tax, duty, or other charge, or change the basis of taxation of payments
to Bank with respect to any LIBOR-Based Advances, or (B) shall impose or modify any reserve, insurance, special deposit, or similar
requirements against assets of, deposits with or for the account of, or credit extended by Bank, or impose on Bank any other condition
affecting any such LIBOR-Based Advances, and (ii) the result of any of the foregoing is (A) to increase the cost to Bank of making
or maintaining any such LIBOR-Based Advances or (B) to reduce the amount of any sum receivable under this Agreement by Bank, Borrower
shall pay Bank within fifteen (15) days after demand by Bank such additional amount as will compensate Bank for such increased
cost or reduction. The determination hereunder by Bank of such additional amount shall be conclusive in the absence of manifest
error. If Bank demands compensation, Borrower may upon three (3) Business Days’ prior notice to Bank pay the accrued interest
on all LIBOR Amounts, together with any additional amounts payable. Upon Borrower’s payment of such accrued interest and
additional costs, the Prime-Based Rate immediately shall be effective with respect to the unpaid principal balance of such LIBOR
Amounts.

 

(d)Borrower
shall pay to Bank, on demand, such amount as Bank reasonably determines (determined as though 100% of the applicable LIBOR Amount
had been funded in the London interbank market) is necessary to compensate Bank for any direct or indirect losses, expenses, liabilities,
costs, expenses or reductions in yield to Bank, whether incurred in connection with liquidation or re-employment of funds or otherwise,
incurred or sustained by Bank as a result of: (i) any payment or prepayment of a LIBOR Amount, termination of the LIBOR-Based Rate
or conversion of a LIBOR Amount to a Prime-Based Advance on a day other than the last day of the applicable LIBOR Interest Period
(including as a result of acceleration); or (ii) any failure of Borrower to borrow, continue or prepay any LIBOR Amount or to convert
any portion of a Prime-Based Advance to a LIBOR Amount after Borrower has given a notice thereof to Bank.

 

(e)If Borrower
chooses the LIBOR-Based Rate, Borrower shall pay interest based on such rate, plus any other applicable taxes or charges hereunder,
even though Bank may have obtained the funds loaned to Borrower from sources other than the London interbank market. Bank’s

 

    	 	15	 

     

    

 

determination of the LIBOR-Based
Rate and any such taxes or charges shall be conclusive in the absence of manifest error.

 

Notwithstanding
any other term of this Agreement, Borrower may not select the LIBOR-Based Rate if an Event of Default has occurred and is continuing.

 

2.6Additional
Costs. In case any law, regulation, treaty or official directive or the interpretation or application thereof by any court
or any governmental authority charged with the administration thereof or the compliance with any guideline or request of any central
bank or other governmental authority:

 

(a)subjects
Bank to any tax with respect to payments of principal or interest or any other amounts payable hereunder by Borrower or otherwise
with respect to the transactions contemplated hereby (except for (A) Indemnified Taxes and (B) Excluded Taxes); or

 

(b)imposes,
modifies or deems applicable any deposit insurance, reserve, special deposit or similar requirement against assets held by, or
deposits in or for the account of, or loans by, Bank; or

 

(c)imposes
upon Bank any other material condition with respect to its performance under this Agreement, and the result of any of the foregoing
is to increase the cost to Bank, reduce the income receivable by Bank or impose any expense upon Bank with respect to the Obligations,
Bank shall notify Borrower thereof. Borrower agrees to pay to Bank the amount of such increase in cost, reduction in income or
additional expense as and when such cost, reduction or expense is incurred or determined, upon presentation by Bank of a statement
of the amount and setting forth Bank’s calculation thereof, all in reasonable detail in a manner reasonably satisfactory
to the Borrower; provided that Borrower shall not be required to compensate Bank for any increased costs or expenses or any income
reductions incurred more than one hundred eighty (180) days following the application or interpretation of the applicable law,
regulation, treaty, official directive, guideline or request giving rise to such increased costs or reductions; provided, that
Bank shall not be entitled to receive payment of any amounts contemplated under this Section 2.6 unless Bank makes such requests
for payment from Bank’s similarly situated customers under provision of the type described in this Section 2.6.

 

2.7Term.
This Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect
for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding
the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately
and without notice upon the occurrence and during the continuance of an Event of Default.

 

2.8Taxes.

 

(a)Any
and all payments by or on account of any obligation of Borrower under any Loan Document shall be made without deduction or withholding
for any taxes, except as required by applicable law. If any Applicable Law (as determined in the good faith discretion of an applicable
withholding agent) requires the deduction or withholding of any tax from any such payment by a withholding agent, then the applicable
withholding agent shall be entitled to make such deduction or

 

    	 	16	 

     

    

 

withholding and shall timely pay the
full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such tax is an
Indemnified Tax, then the sum payable by Borrower shall be increased as necessary so that after such deduction or withholding has
been made (including such deductions and withholdings applicable to additional sums payable under this Section) Bank receives an
amount equal to the sum it would have received had no such deduction or withholding been made.

 

(b)Borrower
shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of Bank timely reimburse
it for the payment of, any Other Taxes.

 

(c)Borrower
shall indemnify Bank, within 10 business days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified
Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by Bank or required to be withheld
or deducted from a payment to Bank, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by Bank
shall be conclusive absent manifest error.

 

(d)Bank shall
deliver to Borrower, upon execution of this Agreement and at the time or times reasonably requested by Borrower, such properly
completed and executed documentation reasonably requested by Borrower as will permit payments under the Loan Documents to be made
without withholding or at a reduced rate of withholding (including, without limitation, an IRS Form W-9 or applicable IRS Form
W-8). In addition, Bank, if reasonably requested by Borrower, shall deliver such other documentation prescribed by Applicable Law
or reasonably requested by Borrower as will enable Borrower to determine whether Bank is subject to backup withholding or information
reporting requirements. Bank agrees that, if any form or certification it previously delivered expires or becomes obsolete or inaccurate
in any respect, it shall update such form or certification or promptly notify Borrower of its legal inability to do so.

 

(e)If Bank determines,
in its sole discretion exercised in good faith, that it has received a refund of any taxes as to which it has been indemnified
pursuant to this Section 2.8 (including by the payment of additional amounts pursuant to this Section 2.8), it shall pay to the
indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect
to the taxes giving rise to such refund), net of all out-of-pocket expenses (including taxes) of such indemnified party and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party,
upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph
(e) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified
party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph
(e), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (e)
the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would
have been in if the tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise
imposed and the indemnification payments or additional amounts with respect to such tax had never been paid. This paragraph shall
not be construed to require any indemnified party to make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the indemnifying party or any other Person.

 

    	 	17	 

     

    

 

(f)Each party’s
obligations under this Section 2.8 shall survive any assignment of rights by, or the replacement of, Bank, and the repayment, satisfaction
or discharge of all obligations under any Loan Document.

 

(g)As soon as
practicable after any payment of Other Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.8, Borrower
shall deliver to Bank the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment,
a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Bank.

 

		3.	CONDITIONS OF LOANS.

 

3.1Conditions
Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to the condition
precedent that Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)this Agreement;

 

(b)a certificate
with respect to incumbency and resolutions of Borrower, authorizing the execution and delivery of this Agreement;

 

(c)a UCC-1
Financing Statement reflecting Borrower as debtor and Bank as secured party;

 

(d)the Charter
Documents of Borrower;

 

(e)the custody
control agreement in favor of Bank, duly executed by Custodian and Borrower;

 

(f)current
Secretary of State Reports indicating that except for Permitted Liens, there are no other security interests or Liens of record
in the Collateral; and

 

(g)payment
of the fees and Bank Expenses then due specified in Section 2.5 hereof.

 

3.2Conditions
Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension,
is further subject to the following conditions:

 

(a)receipt
by Bank of (i) a Loan Advance/Paydown Request Form and Loan Supplement in accordance with Section 2.1(a) and (ii) a Borrowing Base
Certificate signed by a Responsible Officer;

 

(b)the representations
and warranties contained in Section 5 shall be true and correct in all material respects on and as of the date of such Loan Advance/Paydown
Request Form and Loan Supplement and on the effective date of each Credit Extension as though made at and as of each such date,
and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension. The
making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension
as to the accuracy of the facts referred to in this Section 3.2(b).

 

    	 	18	 

     

    

 

		4.	CREATION OF SECURITY INTEREST.

 

4.1Grant
of Security Interest. Borrower grants and pledges to Bank a continuing security
interest in all presently existing and hereafter acquired or arising Collateral in order to secure prompt repayment of any and
all Obligations and in order to secure prompt performance by Borrower of its covenants and duties under the Loan Documents. Except
as set forth in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing
Collateral, and will constitute a valid, first priority security interest in Collateral acquired after the date hereof.

 

4.2Perfection
of Security Interest. Borrower authorizes Bank to file at any time financing statements, continuation statements, and amendments
thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged
hereunder, and (ii) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing
statement, continuation statement, or amendment, including whether Borrower is an organization, the type of organization and any
organizational identification number issued to Borrower, if applicable. Any such financing statements may be filed by Bank at any
time in any jurisdiction whether or not Revised Article 9 of the Code is then in effect in that jurisdiction. Borrower shall from
time to time endorse and deliver to Bank, at the reasonable request of Bank, all Negotiable Collateral and other documents that
Bank may reasonably request, in form satisfactory to Bank, to perfect and continue perfection of Bank’s security interests
in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents. Borrower shall
have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect
its security interest by possession in addition to the filing of a financing statement. Borrower from time to time may deposit
with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances in pledge
and to decline to honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part
of such balances for so long as the specific Obligations are outstanding.

 

4.3Delivery
of Additional Documentation Required. Borrower shall from time to time execute and deliver
to Bank, at the reasonable request of Bank, all Negotiable Collateral and all other documents that Bank may reasonably request,
in form reasonably satisfactory to Bank, to perfect and continue the perfection of Bank’s security interests in the Collateral
and in order to fully consummate all of the transactions contemplated under the Loan Documents.

 

4.4Right
to Inspect. Bank (through any of its officers, employees, or agents) shall have
the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than once a
year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof
and to check, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition
of, or any other matter relating to, the Collateral, in each case, at Borrower’s expense (not to exceed Five Thousand Dollars
($5,000) per year), as long as an Event of Default has not occurred; provided that none of the foregoing actions shall unduly interfere
with the business of Borrower.

 

		5.	REPRESENTATIONS AND WARRANTIES. 

 

Borrower represents and warrants as follows:

 

5.1Due
Organization and Qualification. Borrower and each Subsidiary is an entity, duly
existing under the laws of the jurisdiction in which it is organized and qualified and licensed

 

    	 	19	 

     

    

 

to do business in any state
in which the conduct of its business or its ownership of property requires that it be so qualified.

 

5.2Due
Authorization; No Conflict. The execution, delivery, and performance of
the Loan Documents and the request for each Advance hereunder are within Borrower’s powers, have been duly authorized, and
are not in conflict with nor constitute a breach of any provision contained in Borrower’s Charter Documents, nor will they
constitute an event of default under any material agreement to which Borrower is a party or by which Borrower is bound. Borrower
is not in default under any material agreement to which it is a party or by which it is bound.

 

5.3Collateral.
Borrower has rights in or the power to transfer the Collateral, and its title to the
Collateral is free and clear of Liens, except for Permitted Liens, adverse claims, and restrictions on transfer or pledge. All
Collateral is located solely with Borrower or the Custodian.

 

5.4No
Prior Encumbrances. Borrower has good and marketable title to its property, free and clear of Liens, except for Permitted
Liens.

 

5.5Charter
Documents. The Charter Documents are in full force and effect in the form
presented to Bank as of the Closing Date.

 

5.6Name;
Location of Chief Executive Office. Borrower has not done business under any name other than that specified on the signature
page hereof. The chief executive office of Borrower is located at the address indicated in Section 10 hereof.

 

5.7Litigation.
There are no actions or proceedings pending by or against Borrower before
any court or administrative agency in which an adverse decision could have a Material Adverse Effect.

 

5.8No
Material Adverse Change in Financial Statements. All financial statements related to Borrower that Bank has received
from Borrower fairly present in all material respects Borrower’s financial condition as of the date thereof and Borrower’s
results of operations for the period then ended. There has not been a material adverse change in the financial condition of Borrower
since the date of the most recent of such financial statements or any other interim financial information submitted to Bank.

 

5.9Solvency,
Payment of Debts. Borrower is solvent and able to pay its debts (including trade debts) as they mature.

 

5.10Regulatory
Compliance. Borrower is not required to register as an “investment company” under the Investment Company
Act of 1940. Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the
Federal Reserve System). Borrower has not violated any statutes, laws, ordinances or rules applicable to it except as would not
have a Material Adverse Effect on Borrower.

 

5.11Taxes.
Borrower has filed or caused to be filed all tax returns required to be filed, and have paid, or have made adequate
provision for the payment of, all taxes reflected therein.

 

5.12Subsidiaries.
Borrower owns no stock, partnership interest or other equity securities of any Person, except for Permitted Investments.

 

    	 	20	 

     

    

 

5.13Government
Consents. Borrower has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given
all notices to, all Governmental Authorities that are necessary for the continued operation of Borrower’s business as currently
conducted, the failure to obtain which could have a Material Adverse Effect.

 

5.14Full
Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement furnished
to Bank contains any materially untrue statement of a material fact or omits to state a material fact necessary in order to make
the statements contained in such certificates or statements not misleading.

 

		6.	AFFIRMATIVE COVENANTS. 

 

Borrower shall do all of the following:

 

6.1Good
Standing. Borrower shall maintain its and each of its Subsidiaries’ existence in its jurisdiction of organization and
maintain qualification and good standing in each jurisdiction in which it is required to do so. Borrower shall maintain in force
all licenses, approvals and agreements necessary for the conduct of its and each of its Subsidiaries’ business as currently
conducted.

 

6.2Government
Compliance. Borrower and each of its Subsidiaries shall comply with all statutes, laws, ordinances and government rules and
regulations to which it is subject, noncompliance with which could have a Material Adverse Effect. Notwithstanding the foregoing,
Borrower shall comply with all SEC reporting requirements.

 

6.3Financial
Statements, Reports, Certificates. Borrower shall deliver to Bank:

 

(a)as soon
as available, but in any case within forty-five (45) days after the end of each month and with each request for an Advance in accordance
with Section 2.1(a), a Borrowing Base Certificate signed by a Responsible Officer;

 

(b)as soon
as available, but in any case within forty-five (45) days after the end of each month, a borrower servicer report, in form and
substance satisfactory to Bank, signed by a Responsible Officer;

 

(c)as soon
as available, but in any case within forty-five (45) days after the end of each month, a Compliance Certificate signed by a Responsible
Officer;

 

(d)as soon
as available, but in any case (i) within sixty (60) days after the end of each fiscal quarter, other than the quarter ending September
30 and (ii) within one hundred twenty (120) days after the end of the quarter ending September 30, an internally prepared quarterly
portfolio review package with respect to Financed Loans, in form and substance satisfactory to Bank, reflecting, among other things,
the valuation of Borrower’s Loans in accordance with internal accounting and valuation policies in effect as of the Closing
Date, signed by a Responsible Officer;

 

(e)Immediately
upon the occurrence thereof, notice to Bank of any material changes to Borrower’s credit policy or risk rating system, or
of any risk rating changes within Borrower’s portfolio as reflected in the borrower servicer reports of Borrower;

 

(f)As soon
as available, but in any case within one hundred twenty (120) days after the last day of each fiscal year, the Quarterly Report
on Form 10-Q and Annual Report on Form

 

 

    	 	21	 

     

    

 

10-K filings as filed with the SEC;
provided that, any such Form publicly available on EDGAR shall be deemed delivered to the Bank without any further action
taken by the Borrower provided that Borrower provides Bank notice of the availability of such Forms on EDGAR;

 

(g)if applicable,
copies of all statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders
of Subordinated Debt, provided that, any such statement, report or notice publicly available on EDGAR shall be deemed delivered
to the Bank without any further action taken by the Borrower provided that Borrower provides Bank notice of the availability of
such statement, report or notice on EDGAR;

 

(h)promptly
upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower that is reasonably likely
to result in damages or costs to Borrower of Two Million Dollars ($2,000,000) or more; and

 

(i)such other
financial information as Bank may reasonably request from time to time.

 

6.4Charter
Documents. Borrower shall cause its Charter Documents to remain in full force and
effect in the form presented to Bank on the Closing Date, except for amendments that do not adversely affect the right or ability
to satisfy Borrower’s obligations under this Agreement.

 

6.5Taxes.
Borrower shall make due and timely payment or deposit of all material federal,
state, and local taxes, assessments, or contributions required of it by law, and will execute and deliver to Bank, on demand, appropriate
certificates attesting to the payment or deposit thereof; and Borrower will make timely payment or deposit of all material tax
payments and withholding taxes required of it by Applicable Laws, and will, upon request, furnish Bank with proof satisfactory
to Bank indicating that Borrower has made such payments or deposits; provided that Borrower need not make any payment if
the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent
required by GAAP) by Borrower.

 

6.6Bank
Accounts.

 

(a)Depository
Requirement. Borrower shall at all times maintain (i) a demand deposit account at Bank, into which all principal, interest
and fees with respect to Financed Loans (the “Collections”) will be deposited in accordance with clause
(b), below (the “Collections DDA”), and (ii) an additional demand deposit account at Bank (the “General
DDA”, into which Bank shall (a) credit Advances in accordance with Section 2.1 and (b) transfer Excess Collections
from the Collections DDA on the Business Day that Borrower delivers to Bank a written request for such transfer and an updated
Borrowing Base Certificate (provided that Bank receives such written request and Borrowing Base Certificate by 2:00 on the applicable
Business Day). Each of the Collections DDA and the General DDA shall be subject to the Custody Agreement and Bank shall restrict
Borrower’s access to and use of any amounts maintained in the Collections DDA other than with respect to Excess Collections,
subject to and in accordance with the terms and conditions of this Section 6.6(a).

 

(b)Lockbox;
Account Collection Services.

 

(i) Borrower shall
direct each Obligor under the Financed Loans (and each depository institution where payments with respect to Financed Loans are
on deposit) to remit payments with respect to the Financed Loans to a lockbox account established with Bank or to wire

 

 

    	 	22	 

     

    

 

transfer payments to a cash
collateral account that Bank controls (collectively, the “Lockbox”). It
will be considered an Event of Default if the Lockbox is not established and operational on the Closing Date.

 

(ii) Provided
no Event of Default exists or an event that with notice or lapse of time will be an Event of Default, within one (1) Business Day
of receipt of any amounts by Bank with respect to Financed Loans (whether directly from Borrower or into the Lockbox), Bank will
turn over to the Collections DDA such amounts received in respect of Financed Loans other than any amounts which are then due and
owing to Bank hereunder. In the event the Borrower receives any payment on account of any Financed Loan directly from any Obligor,
Borrower shall, within one (1) Business Day after receipt of such payment, remit such payments directly to the Lockbox.

 

6.7Financial
Covenants. Borrower shall at all times maintain the following financial covenants and ratios:

 

(a)Minimum
Net Assets. Net Assets of not less than Two Hundred Seventy Five Million Dollars ($275,000,000),
increasing by ninety percent (90%) of any increase of Net Assets as of the end of each fiscal year (with no adjustment for any
decreases of Net Assets), tested as of the end of each fiscal quarter of Borrower, commencing with the fiscal quarter ended September
30, 2015.

 

(b)Minimum
Asset Coverage. Asset Coverage equal to or greater than two hundred percent (200%), tested as of the end of each fiscal quarter
of Borrower.

 

6.8Further
Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take such
further action as may reasonably be requested by Bank to effect the purposes of this Agreement.

 

		7.	NEGATIVE COVENANTS.

 

Borrower will not do any of the following:

 

7.1Dispositions.
Convey, sell, lease, transfer or otherwise dispose of (collectively, a “Transfer”)
all or any part of its business, other than Transfers of securities, assets, cash and Equipment (including the Collateral provided
that any such Transfer would not result in an Overadvance) in the ordinary course of Borrower’s business.

 

7.2Change
in Business; Change in Control or Executive Office. Engage in any business other than the business currently engaged
in by Borrower and any business substantially similar or related thereto (or incidental thereto); or cease to conduct business
materially in the manner conducted by Borrower as of the Closing Date; or suffer or permit a Change in Control; or without twenty
(20) days prior written notification to Bank, relocate its chief executive office or state of formation; or without Bank’s
prior written consent, change the date on which its fiscal year ends.

 

7.3Mergers
or Acquisitions. Merge or consolidate with or into any other business organization, or acquire all or substantially
all of the capital stock or property of another Person, other than Permitted Investments.

 

7.4Indebtedness.
Create, incur, assume or be or remain liable with respect to any Indebtedness other than Permitted Indebtedness.

 

    	 	23	 

     

    

 

7.5Encumbrances.
Except to the extent permitted in Section 7.1: create, incur, assume or suffer to exist any Lien with respect to the
Collateral other than Liens in favor of Bank; or assign or otherwise convey any right to receive income other than Permitted Liens;
or agree with any Person other than Bank not to grant a security interest in, or otherwise encumber, any of the Collateral.

 

7.6Investments.
Directly or indirectly acquire or own, or make any Investment in or to any Person other than Permitted Investments.

 

7.7Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of
Borrower except for transactions that are in the ordinary course of Borrower’s business (including entering into any investment
advisory agreements or administration agreements with such Affiliates), upon fair and reasonable terms that are no less favorable
to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.

 

7.8Subordinated
Debt. Make any payment in respect of any Subordinated Debt in contravention of the terms of the subordination provisions
applicable to such Subordinated Debt, whether such subordination provisions are contained in the promissory note or other agreement,
document or instrument evidencing such Subordinated Debt or in a separate subordination agreement between Bank and the holder of
such Subordinated Debt, or amend any subordination provision contained in any documentation relating to any Subordinated Debt which
amendment purports to increase the priority of such instrument, change the payment schedule under such instrument or otherwise
contradict any provision of a subordination agreement between Bank and the holder of such Subordinated Debt, without Bank’s
prior written consent.

 

7.9Collateral.
Deliver, pledge, or assign or otherwise convey any right to, the Collateral to any Person other than Bank.

 

7.10
Compliance. Be required to register as an “investment company” under the Investment Company Act of 1940,
or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose
of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose, or fail to comply in any
material respect with, or violate any, material law or regulation applicable to Borrower that could reasonably be expected to result
in a Material Adverse Effect.

 

		8.	EVENTS OF DEFAULT.

 

Any one or
more of the following events shall constitute an Event of Default under this Agreement:

 

8.1Payment
Default. If a Borrower fails to (a) make any payment of principal on its due date, (b) make any payment of interest
on any Credit Extension within three (3) Business Days after such interest is due and payable (which three (3) Business Day cure
period shall not apply to payments due on the Revolving Maturity Date) or (c) pay any other Obligations within ten (10) days after
such Obligations are due and payable (which ten (10) day cure period shall not apply to payments due on the Revolving Maturity
Date). During any cure period, the failure to make or pay any payment specified under clause (b) or (c) hereunder is not an Event
of Default (but no Credit Extension will be made during the cure period);

 

    	 	24	 

     

    

 

8.2Covenant
Default. If Borrower fails to perform any obligation under Article 6 or violates any of the covenants contained in Article
7 of this Agreement, or fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant,
or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower
and Bank and as to any default under such other term, provision, condition, covenant or agreement that can be cured, has failed
to cure such default within ten (10) Business Days after Borrower receives notice thereof or any officer of Borrower has knowledge
thereof;

 

8.3Existence.
If Borrower is dissolved or Borrower’s existence is otherwise terminated or any action is taken to effect such
termination or Borrower’s dissolution, or if Borrower fails to comply with any term of its Charter Documents beyond any applicable
time for cure, or such that would have a Material Adverse Effect on Borrower;

 

8.4Material
Adverse Change. If there occurs any circumstance or circumstances that could reasonably be expected to have a Material
Adverse Effect and that has not been cured by Borrower within five (5) Business Days of Borrower obtaining actual knowledge of
such circumstances;

 

8.5Attachment.
If any material portion of assets directly owned by Borrower (other than, for the avoidance of doubt, assets held at
special purpose vehicles with respect to which Borrower holds equity investments) is attached, seized, subjected to a writ or distress
warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such
attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) Business Days,
or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part
of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of assets directly
owned by Borrower (other than, for the avoidance of doubt, assets held at special purpose vehicles with respect to which Borrower
holds equity investments), or if a notice of lien, levy, or assessment is filed of record with respect to a material portion of
assets directly owned by Borrower (other than, for the avoidance of doubt, assets held at special purpose vehicles with respect
to which Borrower holds equity investments) by the United States Government, or any department, agency, or instrumentality thereof,
or by any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives
notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or
an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be required
to be made during such cure period);

 

8.6Insolvency
or Bankruptcy. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency
Proceeding is commenced against Borrower and is not dismissed or stayed within forty-five (45) days (provided that no Credit Extensions
will be made prior to the dismissal of such Insolvency Proceeding);

 

8.7Other
Agreements. If there is a default or other failure to perform beyond any applicable cure period in any agreement to
which Borrower is a party or by which it is bound resulting in a right by a third party or parties, whether or not exercised, to
accelerate the maturity of any Indebtedness owed by the Borrower thereunder in an amount in excess of Two Million Five Hundred
Thousand Dollars ($2,500,000) or which could have a Material Adverse Effect;

 

8.8Judgments.
If a final, non-appealable judgment or judgments rendered by a court of competent jurisdiction for the payment of money
in an amount, individually or in the aggregate, of at least Two Million Five Hundred Thousand Dollars ($2,500,000) (not covered
by independent third- 

 

    	 	25	 

     

    

 

party insurance as to which
liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied and unstayed
for a period of ten (10) Business Days (provided that no Credit Extensions will be made prior to the satisfaction or stay of such
judgment);

 

8.9Misrepresentations.
If any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth
herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter
into this Agreement or any other Loan Document, taken together with all such statements and certificates given to Bank and in light
of the circumstances under which such statements and certificate were provided (it being recognized that the projections and forecasts
provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during
the period or periods covered by such projections and forecasts may differ from the projected or forecasted results) and such material
misrepresentation or material misstatement has not been cured by Borrower within two (2) Business Days of Borrower obtaining actual
knowledge of such material misrepresentation or material misstatement. Notwithstanding the foregoing, no cure period (including,
without limitation, the cure period set forth in Section 8.4) shall apply to this Section 8.9 if such material misrepresentation
or material misstatement could reasonably be expected to have a Material Adverse Effect.

 

		9.	BANK’S RIGHTS AND REMEDIES.

 

9.1Rights
and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice
of its election and without demand, do any one or more of the following, all of which are authorized by Borrower:

 

(a)Declare
all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable
(provided that upon the occurrence of an Event of Default described in Section 8.6, all Obligations shall become immediately due
and payable without any action by Bank);

 

(b)Cease advancing
money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower
and Bank

 

(c)Settle
or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably
considers advisable

 

(d)Make such
payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral. Borrower
agrees to assemble the Collateral and/or any documents relating to the Collateral, and to make such documents and/or the Collateral
available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is located, to take
and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge,
or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses incurred
in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter
into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies
provided herein, at law, in equity, or otherwise;

 

(e)Enforce
all of the rights of Borrower to receive the proceeds of the Collateral and apply the proceeds thereof to the Obligations;

 

    	 	26	 

     

    

 

(f)Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein)
the Collateral. Bank is hereby granted a limited license or other right, solely pursuant to the provisions of this Section, to
use, without charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks,
service marks, and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production
of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section,
Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit;

 

(g)Dispose
of the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on
terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and
apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate; and

 

(h)Bank
may credit bid and purchase at any public sale.

 

9.2Right
of Setoff; Deposit Accounts. Upon and after the occurrence of an Event of Default, Bank is hereby authorized by Borrower,
at any time and from time to time, (a) to set off against, and to appropriate and apply to the payment of, the obligations and
liabilities of Borrower under the Loan Documents (whether matured or unmatured, fixed or contingent or liquidated or unliquidated)
any and all amounts owing by Bank to Borrower (whether payable in U.S. Dollars or any other currency, whether matured or unmatured,
and, in the case of deposits of Borrower, whether general or special, time or demand and however evidenced) and (b) pending any
such action, to the extent necessary, to hold such amounts to secure such obligations and liabilities and to return as unpaid for
insufficient funds any and all checks and other items drawn against any deposits of Borrower so held as Bank in its sole discretion
may elect.

 

9.3Remedies
Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall
be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in
equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on
Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election, or acquiescence
by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective
only in the specific instance and for the specific purpose for which it was given.

 

9.4Demand;
Protest. In the case of an Event of Default, Borrower waives demand, protest, notice of protest, notice of default or
dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension,
or renewal of accounts, documents, instruments, chattel paper, and guarantees at any time held by Bank on which Borrower may in
any way be liable.

 

		10.	NOTICES.

 

Unless otherwise
provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into
in connection herewith shall be in writing and (except for financial statements and other informational documents which may be
sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery service,

 

 

    	 	27	 

     

    

 

certified mail, postage prepaid,
return receipt requested, or by email to Borrower or to Bank, as the case may be, at its addresses set forth below:

 

If to Borrower:                     FIFTH
STREET SENIOR FLOATING RATE CORP. 

777 West Putnam Avenue, 3rd Floor

Greenwich, CT 06830

Attn: Chief Executive Officer

Email: ivelin@fifthstreetfinance.com

 

If to Bank:                             EAST
WEST BANK 

2223 Washington Street

Newton, MA 02462

Attn: Michael Sinclair, Managing Director - Private
Equity East

Email: michael.sinclair@eastwestbank.com

 

The parties
hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given
to the other.

 

		11.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

 

New York law
governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in the City of New York, Borough of Manhattan. NOTWITHSTANDING THE FOREGOING, BANK SHALL HAVE THE
RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH BANK (IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 9.1) DEEM NECESSARY OR APPROPRIATE TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE
BANK’S RIGHTS AGAINST BORROWER OR ITS PROPERTY. Borrower expressly submits and consents in advance to such jurisdiction in
any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal
jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as
is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued
in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified
mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of
this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt
thereof or three (3) days after deposit in the U.S. mails, first class, registered or certified mail return receipt requested,
proper postage prepaid.

 

TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING
OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY
AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.

 

 

    	 	28	 

     

    

 

		12.	GENERAL PROVISIONS.

 

12.1Successors
and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of
each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without
Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank may not assign,
transfer, negotiate or grant participation in all or any part of Bank’s interest, rights, obligations or benefits hereunder,
without Borrower’s prior written consent (unless an Event of Default has occurred and is continuing, in which case, the consent
of or notice to Borrower is not required), which shall not be unreasonably withheld. Notwithstanding the foregoing, the Bank shall
have the right without the consent of or prior notice to Borrower to sell, transfer, negotiate or grant participation in all or
any part of, or any interest in, Bank’s obligations, rights and benefits hereunder to any of Bank’s Affiliates; provided
that such sale, transfer or participation shall not be effective until written notice has been provided to Borrower. Borrower shall
maintain a written record of the Persons to which Bank assigned or participated its obligations, rights and benefits hereunder,
and shall treat such Persons as the beneficial owners of such obligations, rights and benefits for all U.S. federal tax purposes.

 

12.2Indemnification.
Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents against: (i) all obligations,
demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this
Agreement; and (ii) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank as a result of or in any way arising
out of, following, or consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise (including
without limitation reasonable attorneys' fees and expenses), except for losses caused by Bank’s bad faith, gross negligence,
willful misconduct or breach of this Agreement. Borrower shall not be liable for any special, indirect, consequential or punitive
damages in respect to any claim for breach of contract or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement, or any act, omission or event occurring in connection therewith. This Section 12.2 shall not apply
with respect to taxes other than any taxes that represent losses, claims, damages, etc. arising from any non-tax claim.

 

12.3Time
of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement.

 

12.4Severability
of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for
the purpose of determining the legal enforceability of any specific provision.

 

12.5
Amendments in Writing, Integration. Neither this Agreement nor the Loan Documents can be amended or terminated orally.
All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to
the subject matter of this Agreement and the Loan Documents, if any, are merged into this Agreement and the Loan Documents.

 

12.6
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement.

 

12.7Survival.
All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long
as any Obligations remain outstanding or Bank has any

 

 

    	 	29	 

     

    

 

obligation to make Credit Extensions
to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities
described in Section 12.2 shall survive until all applicable statute of limitations periods with respect to actions that may be
brought against Bank have run.

 

12.8
Prepayment of Loans; Termination of Security; Release of Guarantees. Borrower may terminate this Agreement at any time
in its sole discretion upon at least three (3) Business Days prior notice to Bank, provided that, prior to such time, all Advances
have been repaid and any and all other charges and costs to be paid hereunder have been paid in full as due to the date of termination
and Borrower has complied with all other obligations hereunder to the date of termination, in each case as determined by the Bank
in its reasonable discretion. Upon such termination, Bank shall release any security that it may have to the Collateral and shall
terminate any guarantees hereunder, and the parties shall execute such other documents as may reasonably be required to fully terminate
this Agreement and the parties’ rights and obligations hereunder following such termination.

 

 

 

[SIGNATURE PAGE FOLLOWS.]

 

 

    	 	30	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date first above written.

 

FIFTH STREET SENIOR FLOATING RATE CORP.

 

By: /s/ Ivelin M. Dimitrov

Name: Ivelin M. Dimitrov

Title: Chief Executive Officer

 

 

EAST WEST BANK

 

By: /s/ Michael D. Sinclair

Name: Michael D. Sinclair

Title: Managing Director

 

 

 

 

 

    	[Signature Page to Loan and Security Agreement] 

     

    

 

EXHIBIT A

 

The Collateral
consists of all right, title and interest of Borrower in and to the following personal property:

 

(a) The following Loans:

 

	Borrower Name	Borrower	Original Principal	Outstanding	Borrower’s
	 	Loan #	Amount	Principal Amount	Rating*
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

*according to Borrower’s internal rating system

 

(b)
all goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money,
leases, license agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including
any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights
(whether or not the letter of credit is evidenced by a writing), securities, and all other investment property (excluding, for
the avoidance of doubt, any interest of Borrower in any special purpose vehicle, Subsidiary or joint ventures), supporting obligations,
and financial assets, whether now owned or hereafter acquired, wherever located; to the extent the foregoing in this clause (b),
only, is unencumbered; and

 

(c)
all accounts maintained at Bank;

 

(d)
all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and
all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds
and insurance proceeds of any or all of the foregoing

 

    	Exhibit A

     

    

 

 

EXHIBIT B 

 

LOAN ADVANCE/PAYDOWN REQUEST
FORM

 

DEADLINE FOR SAME BUSINESS-DAY PROCESSING IS 2:00
P.M)

 

To:Michael Sinclair (michael.sinclair@eastwestbank.com)
Date:

Copy: Kailey Dolan ( kailey.dolan@eastwestbank.com)

FAX #:

 

FROM

	
        Borrower’s Name:Fifth Street Senior
        Floating Rate Corp.

          Authorized Signer’s Name:________________

          Authorized Signature:____________________

         

 

All representations and warranties
of Borrower stated in the Loan and Security Agreement are true and correct in all material respects as of the date of the telephone
request for and advance confirmed by this Borrowing Certificate; provided, however, that those representations and warranties
expressly referring to another date shall be true and correct in all material respects as of such date.

 

	DRAWDOWN	PAYDOWN
	FROM LOAN #:  349001077 	FROM ACCOUNT #:
	TO ACCOUNT # 	TO LOAN#:  349001077  
	AMOUNT: 	PRINCIPAL AMOUNT:
	 	A.	LIBOR DRAWING	Y	N	INTEREST AMOUNT:
	 	B.	CONVERSION TO LIBOR	Y	N	 	 	 
	 	C.	CONVERSION TO PRIME	Y	N	 	 	 
	If yes to A or B, LIBOR advance is for ___ days 	 	 	 

   

*IS THERE A WIRE REQUEST
TIED TO THIS LOAN ADVANCE? (PLEASE CIRCLE ONE)       YES         NO

 

If YES, the Outgoing Wire Transfer Instructions must be completed
below.

 

	
        OUTGOING WIRE TRANSFER INSTRUCTIONS

        The items marked with an asterisk
        (*) are required to be completed.

         
	Fed Reference Number	Bank Transfer Number
	 
	*Beneficiary Name	 
	*Beneficiary Account Number	 
	*Beneficiary Address	 
	Amount	[SAME AS AMOUNT OF DRAWDOWN ABOVE]
	*Routing Number (ABA/SWIFT/IBAN)	 
	*Receiving Institution Name	 
	*Receiving Institution Address	 
	Other Instructions	 
	 	 	 	 

  

    	Exhibit B

     

    

 

 

EXHIBIT C 

 

BORROWING BASE CERTIFICATE

 

[Attached]

 

 

    	Exhibit C

     

    

 

EXHIBIT D

 

COMPLIANCE CERTIFICATE

 

		TO:	EAST WEST BANK

 

		FROM:	FIFTH STREET SENIOR FLOATING RATE CORP.

 

The undersigned authorized
officer of FIFTH STREET SENIOR FLOATING RATE CORP. hereby certifies that in accordance with the terms and conditions of the Loan
and Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the
period ending with all required covenants except as noted below, (ii) all representations and warranties of Borrower stated in
the Agreement are true and correct in all material respects as of the date hereof and (iii) all Financed Loans continue to comply
with clauses (q) and (r) of the defined term “Eligible Loans” as set forth in the Agreement. Attached herewith are
the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance
with the internal accounting and valuation policies in effect as of the Closing Date except as explained in an accompanying letter
or footnotes.

 

Please indicate compliance status by
circling Yes/No under “Complies” column.

 

	Reporting Covenant	Required	Complies
	Borrowing Base Certificate	With each request for an Advance, and monthly within 45 days	Yes	No
	Compliance Certificate	Monthly within 45 days	Yes	No
	Borrower Servicer Report	Monthly within 45 days	Yes	No
	Quarterly internal portfolio review package	Quarterly within 60 days (other than with respect to Q4), within 120 days of Q4	Yes	No
	Notice of material changes to credit policy or risk rating system, or any risk rating changes within Borrower’s portfolio as reflected in the borrower service reports	Immediately upon the occurrence thereof	Yes	No
	10-K and 10-Q reports	FYE within 120 days	Yes	No
	Borrower’s Financial Covenants (tested quarterly)	Required	Actual	Complies
	Minimum Net Assets	$275,000,000*	$	Yes	No
	Minimum Asset Coverage	200%	Yes	No

 

 

 

	
        * increasing by ninety percent (90%) of any
increase of net assets as of the end of each fiscal year (with no adjustment for any decreases in net assets), tested as of the
end of each fiscal quarter of Borrower, commencing with the fiscal quarter ended September 30, 2015

          

        Comments Regarding Exceptions: See Attached.

        

         

        Sincerely,

         
	
        BANK USE ONLY

         

         

        Received by:

         

         

        AUTHORIZED SIGNER

         

         

        Date:

        

         

 

 

 

    	Exhibit D

     

    

  

	 	Verified:	 	 
	SIGNATURE	Date:	AUTHORIZED SIGNER	 
	TITLE	Compliance Status	Yes	No
	DATE

 

    	Exhibit D

     

    

 

 

Schedule 1 

 

SCHEDULE 1 - FORM OF LOAN AGREEMENT SUPPLEMENT

 

LOAN AGREEMENT SUPPLEMENT No. [ ]

 

LOAN AGREEMENT SUPPLEMENT No. [ ], dated ____________________,
20____ (“Loan Supplement”), to the Loan and Security Agreement dated as of March __, 2015 (as amended,
restated, or otherwise modified from time to time, the “Loan Agreement”) by and between the undersigned FIFTH
STREET SENIOR FLOATING RATE CORP. (“Borrower”) and EAST WEST BANK (“Bank”). Capitalized
terms used herein but not otherwise defined herein are used with the respective meanings given to such terms in the Loan Agreement.

 

To secure the prompt
payment by Borrower of all amounts from time to time outstanding under the Loan Agreement, and the performance by Borrower of all
the terms contained in the Loan Agreement, Borrower grants Bank, a first priority security interest in each Loan described in Annex
A hereto, which Loans shall be deemed to be additional Collateral. The Loan Agreement is hereby incorporated by reference herein
and is hereby ratified, approved and confirmed. Annex A (Loan Schedule) is attached hereto. The proceeds of the Loans should be
transferred to Borrower’s account with Bank set forth below:

 

Bank Name:East West Bank

Account No.: ______________

 

Borrower
hereby certifies that (a) the foregoing information is true and correct and authorizes Bank to endorse in its respective books
and records, the interest rate applicable on the funding date (the “Funding Date”) of the Advance contemplated in connection
with this Supplement and the Advance Request and the principal amount set forth below; (b) the representations and warranties made
by Borrower in the Loan Agreement are true and correct on the date hereof and shall be true and correct on such Funding Date. No
Event of Default has occurred and is continuing under the Loan Agreement. This Supplement may be executed by Borrower and Bank
in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

 

Advance Funding Date: ___________, 20____

 

Advance Amount: $__________

 

Interest Rate: ______%

 

This Supplement is delivered as of this day and year
first above written.

  

	EAST WEST BANK	 	FIFTH STREET SENIOR FLOATING RATE CORP. 
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	 	Name:	 
	 	Title:	 	 	 	Title:	 

 

 

    	 	1	 

     

    

 

Annex A -- Description of Loans

 

    	 	2	 

     

    

 

Annex A to Supplement

 

Upon the
funding of the Advance referenced in the Loan Supplement, this schedule and the Loans described below automatically shall be deemed
to be a part of the Collateral.

 

	Borrower Name	Borrower	Original Principal Amount	Outstanding	Borrower’s
	 	Loan #	 	Principal Amount	Rating*
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

and all Borrower’s
Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or
all of the foregoing.

 

    	 	3	 

     

    

 

EAST WEST BANK 

Member FDIC

 

ITEMIZATION OF AMOUNT FINANCED 

DISBURSEMENT INSTRUCTIONS 

(Line of Credit)

 

Name: FIFTH STREET SENIOR FLOATING RATE CORP.

 

Date: January 6, 2016

 

		$25,000,000	credited to deposit account No._________when Advances
are requested or disbursed to Borrower by cashier’s check or wire transfer

 

Amounts paid to others on your behalf:

 

		$375,000	to Bank, in payment of the facility fee payable pursuant to Section 2.4(a) of the Loan Agreement

 

		$	to Bank counsel fees and expenses

 

		$	to_______________________

 

		$	TOTAL (AMOUNT FINANCED)

 

Upon consummation of this transaction,
this document will also serve as the authorization for EAST WEST BANK to disburse the loan proceeds as stated above.

 

 

 

	Signature	 	Signature

 

 

    	 	 	 

     

    

 

EAST WEST BANK

AUTOMATIC DEBIT AUTHORIZATION

(Line of Credit)

 

	
        To:
        EAST WEST BANK 

        Re: Loan #  349001077 

        You are hereby
        authorized and instructed to charge account No._______________________in the name of FIFTH STREET SENIOR FLOATING
        RATE CORP.

        for principal, interest, and other payments due on
        above referenced loan as set forth below and credit the loan referenced above.

         

	II	
        Debit each interest payment as it becomes due according to the
        terms of the Loan and Security Agreement and any renewals or amendments thereof.

         

	II	
        Debit each principal payment as it becomes due according to
        the terms of the Loan and Security Agreement and any renewals or amendments thereof.

         

	II	
        Debit each payment of fees (including unused fees, if any) and
        Bank Expenses according to the terms of the Loan and Security Agreement and any renewals or amendments thereof.

         

	This Authorization is to remain in full force and
effect until revoked in writing.

 

January
6, 2016

 

 

FIFTH STREET SENIOR FLOATING RATE
CORP.

By:_______________________________

Name:_____________________________

Title:______________________________

 

 

    	 	 	 

     

    

 

Schedule of Exceptions

 

 

 

None.

 

 

    	 	 	 

     

    

 

 

 

CORPORATE BORROWING CERTIFICATE

 

BORROWER: FIFTH STREET SENIOR FLOATING RATE CORP.             DATE:
January 6, 2016

 

BANK:         EAST WEST BANK

 

I hereby certify as follows, as of the date set forth above:

 

1.    
I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below.

 

2.    
Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of
Delaware.

 

3.    
Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments),
as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above. Such Articles/Certificate
of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of
the date hereof.

 

4.    
The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of
such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full
force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank
may rely on them until Bank receives written notice of revocation from Borrower.

 

	 	 	 	Authorized to Add or Remove
	Name	Title	Signature	Signatories
     
	 	 	 	□
	 	 	 	□
	 	 	 	□
	 	 	 	□

 

 

RESOLVED, that any one of the following
officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

 

RESOLVED FURTHER, that
any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove
any individuals to and from the above list of persons authorized to act on behalf of Borrower.

 

RESOLVED FURTHER, that such individuals may,
on behalf of Borrower:

 

Borrow Money. Borrow money from East West
Bank (“Bank”).

 

Execute Loan Documents. Execute any loan documents
Bank requires.

 

Grant Security. Grant Bank a security interest
in any of Borrower’s assets.

 

Negotiate Items. Negotiate or discount
all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise
use the proceeds.

 

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents
or agreements (including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate
such resolutions.

 

Resolutions to Borrow

 

    	 	1	 

     

    

 

RESOLVED FURTHER, that all acts authorized by
the above resolutions and any prior acts relating thereto are ratified.

 

5. The persons listed above
are Borrower’s officers or employees with their titles and signatures shown next to their names.

 

By: __________________________

Name: _______________________

Title: ________________________

 

*** If the Secretary, Assistant
Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized
signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

 

I, the_________________________of Borrower,
hereby certify as to paragraphs 1 through 5 above, as of the date set forth above.

                        [print
title]

 

By: __________________________

Name: _______________________

Title: ________________________

 

 

Resolutions to Borrow

 

    	 	2

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