Document:

Exhibit
10.9

 

 

 

KCAP FUNDING
I, LLC,

 

as Borrower

 

KCAP FINANCIAL,
INC., as Servicer

 

 

 

LOAN AND
SECURITY AGREEMENT

 

Dated as
of March 1, 2018

 

$50,000,000

 

 

 

CERTAIN
FINANCIAL INSTITUTIONS,

 

as Lenders

 

STATE
BANK AND TRUST COMPANY,

 

as Administrative
Agent, Lead Arranger, and Bookrunner

 

and

 

CIBC BANK
USA, as Documentation Agent

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	SECTION  1.	DEFINITIONS; RULES OF CONSTRUCTION	1
	 	 	 
	1.1	Definitions	1
	1.2	Accounting Terms	23
	1.3	Uniform Commercial Code	23
	1.4	Certain Matters of Construction	23
	 	 	 
	SECTION  2.	CREDIT FACILITIES	24
	 	 	 
	2.1	Revolver Commitment	24
	 	 	 
	SECTION  3.	INTEREST, FEES AND CHARGES	25
	 	 	 
	3.1	Interest	25
	3.2	Fees	26
	3.3	Computation of Interest, Fees, Yield Protection	27
	3.4	Reimbursement Obligations	27
	3.5	Illegality	27
	3.6	Inability to Determine Rates	27
	3.7	Increased Costs; Capital Adequacy	28
	3.8	Mitigation	29
	3.9	Reserved	29
	3.10	Maximum Interest	29
	 	 	 
	SECTION  4.	LOAN ADMINISTRATION	29
	 	 	 
	4.1	Manner of Borrowing and Funding Revolver Loans	29
	4.2	Defaulting Lender	31
	4.3	One Obligation	31
	4.4	Effect of Termination	31
	 	 	 
	SECTION  5.	PAYMENTS	32
	 	 	 
	5.1	General Payment Provisions	32
	5.2	Repayment of Revolver Loans	32
	5.3	Reserved.	32
	5.4	Payment of Other Obligations	32
	5.5	Dominion Account	32
	5.6	Marshaling; Payments Set Aside	33
	5.7	Allocation of Payments	33
	5.8	Application of Payments	35
	5.9	Loan Account; Account Stated	35
	5.10	Taxes	35
	5.11	Lender Tax Information	36
	 	 	 
	SECTION  6.	CONDITIONS PRECEDENT	38
	 	 	 
	6.1	Conditions Precedent to Initial Loans	38
	6.2	Conditions Precedent to All Credit Extensions	38
	 	 	 
	SECTION  7.	COLLATERAL	39

 

    	-i-

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	7.1	Grant of Security Interest	39
	7.2	Lien on Other Collateral	39
	7.3	Reserved.	40
	7.4	Other Collateral	40
	7.5	No Assumption of Liability	40
	7.6	Further Assurances	40
	7.7	Continuation of Security Interest	40
	 	 	 
	SECTION  8.	REPRESENTATIONS AND WARRANTIES	41
	 	 	 
	8.1	General Representations and Warranties	41
	8.2	Complete Disclosure	48
	8.3	Updated Representations and Warranties.	48
	 	 	 
	SECTION  9.	COVENANTS AND CONTINUING AGREEMENTS	49
	 	 	 
	9.1	Affirmative Covenants	49
	9.2	Negative Covenants	57
	9.3	Financial Covenants	59
	 	 	 
	SECTION  10.	EVENTS OF DEFAULT; REMEDIES ON DEFAULT	59
	 	 	 
	10.1	Events of Default	59
	10.2	Remedies upon Default	61
	10.3	License	62
	10.4	Setoff	63
	10.5	Remedies Cumulative; No Waiver.	63
	 	 	 
	SECTION  11.	AGENT	63
	 	 	 
	SECTION  12.	BENEFIT OF AGREEMENT; ASSIGNMENTS	64
	 	 	 
	12.1	Successors and Assigns	64
	12.2	Participations	64
	12.3	Assignments.	64
	12.4	Replacement of Certain Lenders	65
	 	 	 
	SECTION  13.	MISCELLANEOUS	66
	 	 	 
	13.1	Consents, Amendments and Waivers.	66
	13.2	Indemnity	67
	13.3	Notices and Communications.	67
	13.4	Performance of Borrower’s Obligations	68
	13.5	Credit Inquiries	68
	13.6	Severability	68
	13.7	Cumulative Effect; Conflict of Terms	68
	13.8	Counterparts	69
	13.9	Entire Agreement	69
	13.10	Relationship with Lenders	69
	13.11	No Advisory or Fiduciary Responsibility	69
	13.12	Confidentiality	70
	13.13	GOVERNING LAW	70
	13.14	Consent to Forum	70

 

    	-ii-

     

    

 

TABLE
OF CONTENTS

 

		 	Page
	 	 	 
	13.15	Waivers by BORROWER AND SERVICER	71
	13.16	Power of Attorney	71
	13.17	PATRIOT Act Notice	71
	 	 	 
	SECTION  14.	CUSTODIAN AND BACKUP SERVICER	72
	 	 	 
	14.1	Designation of Custodian	72
	14.2	Duties of Custodian.	72
	14.3	Custodian Removal	72
	14.4	Access to Certain Documentation and Information Regarding the Collateral; Audits	72
	14.5	Designation of Backup Servicer	72
	14.6	Duties of Backup Servicer	72
	14.7	Backup Servicer Removal	72

 

    	-iii-

     

    

 

LIST
OF EXHIBITS AND SCHEDULES

 

	Exhibit A	Assignment and Acceptance
	Exhibit B	Compliance Certificate
	Exhibit C	Conditions Precedent
	Exhibit D	Agency Provisions
	Exhibit E	Borrowing Base Certificate
	 	 
	Schedule 1	Commitments of Lenders
	Schedule 2	Deposit and Other Accounts
	Schedule 3	Business Locations
	Schedule 4	Names and Capital Structure
	Schedule 5	Patents, Trademarks, Copyrights and Licenses
	Schedule 6	Restrictive Agreements
	Schedule 7	Litigation
	Schedule 8	Plans
	Schedule 9	Intentionally Omitted
	Schedule 10	Existing Affiliate Transactions
	Schedule 11	Approved Dealers and Approved Pricing Services
	Schedule 12	Eligible Portfolio Investment Criteria
	Schedule 13	Industry Classification Groups

 

     

     

    

 

LOAN
AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY
AGREEMENT is dated as of March 1, 2018, among KCAP FUNDING I, LLC, a Delaware limited liability company (“Borrower”),
KCAP FINANCIAL, INC., a Delaware corporation (“Servicer”), the financial institutions party to this Agreement
from time to time as lenders (collectively, “Lenders”), and STATE BANK AND TRUST COMPANY, a state banking
institution incorporated or otherwise organized under the laws of the State of Georgia, as agent for the Lenders (in such capacity,
“Agent”).

 

RECITALS:

 

Borrower has requested
that Lenders make available a revolving credit facility to Borrower, which shall be used by Borrower to finance its general working
capital and corporate needs. Lenders will make loans to Borrower under the revolving credit facility in accordance with the provisions
hereinafter set forth.

 

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

 

SECTION
1.         DEFINITIONS; RULES OF CONSTRUCTION

 

1.1          Definitions.
As used herein, the following terms have the meanings set forth below:

 

“Adjusted
Interest Expense” means the sum of (x) cash interest paid in respect of the stated rate of interest (including any
Default Rate, if applicable) applicable to any Indebtedness plus (y) the net amount paid in cash (or minus the net
amount received in cash) under Hedging Agreements permitted hereunder relating to interest during such period and to the extent
not already taken into account under clause (x).

 

“Administrative
Expenses” means (a) fees and expenses (including indemnities) and other amounts owed by the Borrower or any Subsidiary
paid or payable to the Custodian or the Backup Servicer, and (b) expenses incurred by the Servicer in connection with the Services
provided under the Servicing Agreement.

 

“Advance Rate”
means, as to any Eligible Portfolio Investment and subject to adjustment as provided above, the following percentages with respect
to such Eligible Portfolio Investment:

 

	Eligible Portfolio Investment	 	Unquoted 
 Investments	 	 	Quoted 
 Investments	 
	Cash and Cash Equivalents (including Short-Term U.S. Government Securities)	 	 	n/a	 	 	 	100	%
	Long-Term U.S. Government Securities	 	 	n/a	 	 	 	85	%
	Performing First Lien Bank Loans	 	 	65	%	 	 	75	%
	Performing Last Out Loans	 	 	55	%	 	 	65	%
	Performing Second Lien Bank Loans	 	 	50	%	 	 	60	%
	Performing High Yield Securities	 	 	45	%	 	 	55	%
	Performing Mezzanine Investments	 	 	40	%	 	 	50	%

 

     

     

    

 

“Affiliate”
means a Person: (a) which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, another Person; (b) which beneficially owns or holds 10% or more of any class of the Equity Interests of a
Person; or (c) 10% or more of the Equity Interests with power to vote of which is beneficially owned or held by another Person
or a Subsidiary of another Person. For purposes hereof, “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of any Equity
Interest, by contract or otherwise.

 

“Agent Indemnitees”
means Agent and all of Agent’s officers, directors, employees, Affiliates, agents and attorneys.

 

“Anti-Corruption
Laws” means all laws, rules and regulations of any jurisdiction applicable to Borrower or any of its Subsidiaries from
time to time concerning or relating to bribery or corruption.

 

“AloStar”
means State Bank and Trust Company, a state banking institution incorporated or otherwise organized under the laws of the State
of Georgia, and its successors and assigns.

 

“Anti-Terrorism
Law” means any law relating to terrorism or money laundering, including the PATRIOT Act.

 

“Applicable
Law” means all laws, rules, regulations and governmental guidelines applicable to the Person, conduct, transaction, agreement
or matter in question, including all applicable statutory law ordinances, common law and equitable principles, and all provisions
of constitutions, treaties, statutes, rules, regulations, orders and decrees of all governmental authorities, including all Environmental
Laws, the Occupational Safety and Hazard Act of 1970, ERISA, the Fair Labor Standards Act of 1938, and any other laws regarding
the collection, payment and deposit of Taxes.

 

“Applicable
Margin” means 3.25% per annum.

 

“Approved
Dealer” means (a) in the case of any Eligible Portfolio Investment that is not a U.S. Government Security, a bank or
a broker-dealer registered under the Securities Exchange Act of 1934 of nationally recognized standing or an Affiliate thereof
and (b) in the case of a U.S. Government Security, any primary dealer in U.S. Government Securities, in the case of each of clauses
(a) and (b) above, as set forth on Schedule 11, or (c) any other bank or broker-dealer acceptable to the Agent in its Permitted
Discretion

 

“Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender (c) an entity or an
Affiliate of an entity that administers or manages a Lender, or (d) the same investment advisor or an advisor under common control
with such Lender, Affiliate or advisor, as applicable.

 

“Approved
Pricing Service” means (a) a pricing or quotation service as set forth in Schedule 11 or (b) any other pricing or quotation
service (i) approved by the Borrower, (ii) designated in writing by Borrower to the Agent, and (iii) acceptable to the Agent in
its Permitted Discretion.

 

    	 	-2-	 

     

    

 

“Approved
Third-Party Appraiser” means any Independent nationally recognized third-party appraisal firm engaged by the Borrower,
at its own expense, as part of its valuation procedures or any other third-party appraisal firm selected by the Borrower and acceptable
to the Agent; provided that, if any proposed appraiser requests or requires a non-reliance letter, confidentiality agreement or
similar agreement prior to allowing the Agent to review any written valuation report, such Person shall only be deemed an Approved
Third-Party Appraiser if the Agent and such Approved Third-Party Appraiser shall have entered into such a letter or agreement.
Subject to the foregoing, it is understood and agreed that each of Duff & Phelps LLC, Murray, Devine and Company, Lincoln Partners
Advisors, LLC, Houlihan Lokey, Stout Risius Ross, Inc., Valuation Research Corporation and Alvarez & Marsal are acceptable
to the Agent solely to the extent they are not serving as the Independent Valuation Provider.

 

“Asset Coverage
Ratio” means the ratio, determined on a consolidated basis, without duplication, in accordance with GAAP, of (a) the
value of total assets of Borrower (excluding any Investment constituting the Equity Interest in any other Person to the extent
such Equity Interest (x) is not pledged as Collateral or (y) is not subject to a first priority perfected lien in favor of the
Agent), less all liabilities not constituting Indebtedness of Borrower to (b) the aggregate amount of Indebtedness of Borrower.

 

“Assignment
and Acceptance” means an assignment agreement between a Lender and Eligible Assignee, and accepted by Agent, in the form
of Exhibit A.

 

“Availability”
means an amount equal to the Borrowing Base minus the principal balance of all Revolver Loans, provided, that on and after the
Commitment Termination Date, Availability shall be zero.

 

“Backup Servicer”
means a backup servicer appointed by Borrower after the Closing Date and acceptable to Agent, its successor in interest pursuant
to Section 14.5 or such Person as shall have been appointed as Backup Servicer pursuant to Section 14.7.

 

“Backup Servicer
Termination Notice” has the meaning specified in Section 14.7.

 

“Bank Loans”
means commercial loans (including term loans, revolving loans, debtor-in-possession financings, the funded portion of revolving
credit lines and letter of credit facilities and other similar loans and investments including interim loans, bridge loans and
senior subordinated loans and Participation Interests in any of the foregoing) that are generally provided under a syndicated loan
or credit facility or pursuant to any loan agreement or other similar credit facility, whether or not syndicated.

 

“Bank Product”
means any of the following products, services or facilities extended to Borrower by a Lender or any of its Affiliates: (a) Cash
Management Services; (b) products under Hedging Agreements; (c) commercial credit card and merchant card services; and (d) leases
and other banking products or services as may be requested by Borrower.

 

“Bank Product
Reserve” means the aggregate amount of reserves established by Agent from time to time in its discretion in respect of
Secured Bank Product Obligations.

 

“Bankruptcy
Code” means Title 11 of the United States Code.

 

“Base Rate”
means, on any day, a per annum rate equal to the U.S. prime rate as shown in The Wall Street Journal on such day, or, if such day
is not a Business Day, on the immediately preceding Business Day. If The Wall Street Journal for any reason ceases to publish a
U.S. prime rate, then the Base Rate shall be such prime rate as published from time to time in any other publication or reference
source designated by Agent in its discretion. The prime rate is a reference rate and does not necessarily represent the best or
lowest rate charged by any Lender.

 

    	 	-3-	 

     

    

 

“Base Rate
Loan” means a Loan, or portion thereof, during any period in which it bears interest at a rate based upon the Base Rate.

 

“Base Rate
Revolver Loan” means a Revolver Loan, or portion thereof, during any period in which it bears interest at a rate based
upon the Base Rate.

 

“Board of
Governors” means the Board of Governors of the Federal Reserve System.

 

“Borrowed
Money” means with respect to any Person, without duplication, its (a) Debt that (i) arises from the lending of money
by any other Person to such Person, (ii) is evidenced by notes, drafts, bonds, debentures, credit documents or similar instruments,
(iii) accrues interest or is a type upon which interest charges are customarily paid (excluding trade payables owing in the Ordinary
Course of Business), or (iv) was issued or assumed as full or partial payment for Property; (b) Capitalized Lease Obligations and
Debt for the deferred payment by one year or more of any purchase money obligation; (c) reimbursement obligations with respect
to letters of credit; and (d) guaranties of any Debt of the foregoing types owing by another Person: and (e) any Debt payable by
such Person which is subordinate in right of payment to the Obligations or with respect to which the Liens securing such Debt are
subordinated to Agent’s Liens.

 

“Borrower
Expenses” means (a) taxes, registration, registered office and filing fees, if any, of the Borrower or any Subsidiary,
(b) indemnification obligations paid or payable by Borrower or any Subsidiary to Borrower’s or any Subsidiary’s directors
or managers under its Organic Documents, and (c) any other fees or expenses (including indemnities) paid or payable by Borrower
or any Subsidiary to any other Person and not prohibited under, or incurred pursuant to or in connection with, the Transaction
Documents.

 

“Borrowing”
means a borrowing consisting of Loans made on the same day by Lenders (or by Agent in the case of a Borrowing funded by Swingline
Loans).

 

“Borrowing
Base” has the meaning set forth in Section 9.1.10 hereto.

 

“Borrowing
Base Certificate” means a certificate, in the form of Exhibit E attached hereto, by which Borrower certifies calculation
of the Borrowing Base, with appropriate insertions, and which is submitted to Agent by Borrower pursuant to this Agreement and
certified as true and correct by a Senior Officer (which certificate may be submitted electronically subject to the limitations
set forth in Section 13.2.2).

 

“Business
Day” means any day other than a Saturday, Sunday, each day on which Agent is otherwise closed for transacting business
with the public or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, Georgia
or Massachusetts, and if such day relates to a LIBOR Index Loan, any such day on which dealings in Dollar deposits are conducted
between banks in the London interbank Eurodollar market.

 

“Capitalized
Lease Obligation” means any Debt represented by obligations under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

 

“Cash”
means any immediately available funds in Dollars.

 

    	 	-4-	 

     

    

 

“Cash Collateral”
means cash, and any interest or other income earned thereon, that is delivered to Agent to Cash Collateralize any Obligations and
all interest and other income earned (if any) on such cash.

 

“Cash Collateral
Account” means a demand deposit, money market or other account maintained with Agent and subject to Agent's Liens.

 

“Cash Collateralize”
means the delivery of cash to Agent, as security for the payment of Obligations, in an amount equal to Agent’s good faith
estimate of the amount that is due or could become due, including all fees and other amounts relating to such Obligations. “Cash
Collateralization” has a correlative meaning.

 

“Cash Equivalents”
means investments (other than Cash) that are one or more of the following obligations:

 

(a)         Short-Term
U.S. Government Securities;

 

(b)         investments
in commercial paper maturing within 180 days from the date of acquisition thereof and having, at such date of acquisition, a credit
rating of at least A-1 from S&P and at least P-1 from Moody’s;

 

(c)         investments
in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition
thereof (i) issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office
of any commercial bank organized under the laws of the United States of America or any State thereof; provided that such certificates
of deposit, banker’s acceptances and time deposits are held in a securities account (as defined in the Uniform Commercial
Code) through which the Agent can perfect a security interest therein and (ii) having, at such date of acquisition, a credit rating
of at least A-1 from S&P and at least P-1 from Moody’s;

 

(d)         fully
collateralized repurchase agreements with a term of not more than 30 days from the date of acquisition thereof for U.S. Government
Securities and entered into with (i) a financial institution satisfying the criteria described in clause (c) of this definition
or (ii) an Approved Dealer having (or being a member of a consolidated group having) at such date of acquisition, a credit rating
of at least A-1 from S&P and at least P-1 from Moody’s;

 

(e)         certificates
of deposit or bankers’ acceptances with a maturity of ninety (90) days or less of any Lender or any other financial institution
that is a member of the Federal Reserve System having combined capital and surplus and undivided profits of not less than $1,000,000,000;
and

 

(f)          investments
in money market funds and mutual funds, which invest substantially all of their assets in Cash or assets of the types described
in clauses (a) through (e) above;

 

provided, that (i) in no event shall Cash
Equivalents include any obligation that provides for the payment of interest alone (for example, interest-only securities or “IOs”);
(ii) if any of Moody’s or S&P changes its rating system, then any ratings included in this definition shall be deemed
to be an equivalent rating in a successor rating category of Moody’s or S&P, as the case may be; (iii) Cash Equivalents
(other than U.S. Government Securities, certificates of deposit or repurchase agreements) shall not include any such investment
representing more than 25% of total assets of Borrower in any single issuer; and (iv) in no event shall Cash Equivalents include
any obligation that is not denominated in Dollars.

 

    	 	-5-	 

     

    

 

“Cash Management
Services” means any services provided from time to time by AloStar or any of its Affiliates to Borrower in connection
with operating, collections, payroll, trust, or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information reporting, lockbox and stop
payment services.

 

“Change in
Law” means (i) the adoption of any applicable law, rule or regulation after the date of this Agreement, (ii) any change
in any applicable law, rule or regulation, or any change in the interpretation, implementation or application thereof, by any governmental
authority after the date of this Agreement, or (iii) compliance by Lender with any request, guideline or directive (whether or
not having the force of law) of any governmental authority made or issued after the date of this Agreement; provided that for purposes
of this Agreement, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements,
the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities,
in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued.

 

“Change of
Control” means (a) Parent ceases to own and control, beneficially and of record, directly or indirectly, all Equity Interests
in Borrower; (b) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within
the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) of shares
representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the
Parent; (c) a change in the majority of directors of Parent during any 24 month period, unless such new directors were either approved
or nominated by the majority of directors serving at the beginning of such period; (d) the sale or transfer of all or substantially
all of Parent’s or Borrower’s assets; or (e) Borrower ceases to own and control, beneficially and of record, directly,
all Equity Interests in all of its Subsidiaries existing as of the Closing Date or formed after the Closing Date in accordance
with the Transaction Documents..

 

“Closing Date”
is as defined in Section 6.1.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Collateral”
means all Property described in Section 7.1, all Property described in any Security Documents as security for any Obligations,
and all other Property that now or hereafter secures (or is intended to secure) any Obligations.

 

“Commitment”
means for any Lender, the aggregate amount of such Lender’s Revolver Commitment. “Commitments” means the
aggregate amount of all Revolver Commitments. The initial aggregate amount of the Commitments shall not exceed $50,000,000.

 

“Commitment
Termination Date” means the earliest to occur of (a) the Scheduled Revolving Period End Date; (b) the date on which Borrower
terminates the Revolver Commitments pursuant to Section 2.1.4; or (c) the date on which the Revolver Commitments are terminated
pursuant to Section 10.2.

 

“Commodity
Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).

 

    	 	-6-	 

     

    

 

“Compliance
Certificate” means a compliance certificate, in the form of Exhibit B attached hereto, with appropriate insertions,
to be submitted to Agent by Borrower pursuant to this Agreement and certified as true and correct by a Senior Officer.

 

“Contingent
Obligation” means with respect to any Person, any obligation of such Person arising from any guaranty, indemnity or other
assurance of payment or performance of any Debt, lease, dividend or other obligation of any other Person in any manner, whether
directly or indirectly.

 

“Covenant-Lite
Loan” means a Bank Loan that does not require the Portfolio Company thereunder to comply with at least one financial
covenant (including any covenant relating to a borrowing base, asset valuation or similar asset-based requirement) on at least
a quarterly basis, in each case, regardless of whether compliance with one or more incurrence covenants is otherwise required by
such Bank Loan.

 

“Custodian”
means U.S. Bank National Association acting in the role of custodian under the Custodian Agreement.

 

“Custodian
Agreement” means, collectively, (a) the Custody Agreement, dated as of the Closing Date, between the Custodian and Borrower,
and (b) the Custody Agreement, dated as of the Closing Date, among the Custodian, Borrower, Servicer, and Agent, each as amended,
modified, waived, supplemented, restated or replaced from time to time.

 

“Daily LIBOR
Rate” means, on any day the LIBOR Rate as shown in the Wall Street Journal on such day for United States dollar deposits
for the one month delivery of funds in amounts approximately equal to the principal amount of the Loan for which such rate is being
determined or, if such day is not a Business Day on the immediately preceding Business Day. If The Wall Street Journal for any
reason ceases to publish a LIBOR Rate, then the Daily LIBOR Rate shall be as published from time to time and any other publication
or reference source designated by Agent in its discretion. The Daily LIBOR Rate is a reference rate and does not necessarily represent
the best or lowest rate charged by Lender.

 

“Debt”
means, as applied to any Person, without duplication, (a) all items that would be included as liabilities on a balance sheet in
accordance with GAAP, including Capitalized Lease Obligations; (b) all Contingent Obligations; (c) all reimbursement obligations
in connection with letters of credit issued for the account of such Person; and (d) in the case of Borrower, the Obligations. The
Debt of a Person shall include any recourse Debt of any partnership in which such Person is a general partner or joint venturer.

 

“Default”
means an event or condition that, with the lapse of time or giving of notice, or both, would constitute an Event of Default.

 

“Default Rate”
means for any Obligation (including, to the extent permitted by law, interest not paid when due), two percent (2%)% plus the interest
rate otherwise applicable thereto.

 

“Defaulted
Obligation” means any Investment in Indebtedness (i) as to which, (x) a default as to the payment of principal and/or
interest has occurred and is continuing for a period of thirty-two (32) consecutive days with respect to such Indebtedness (without
regard to any grace period applicable thereto, or waiver thereof) or (y) a default not set forth in clause (x) has occurred and
the holders of such Indebtedness have accelerated all or a portion of the principal amount thereof as a result of such default;
(ii) as to which a default as to the payment of principal and/or interest has occurred and is continuing beyond any applicable
grace period on another material debt obligation of the Portfolio Company under such Indebtedness which is senior or pari passu
in right of payment to such Indebtedness; (iii) such Portfolio Company has filed for protection under the Bankruptcy Code or has
been adjudicated bankrupt or insolvent or placed into receivership, or an involuntary petition has been filed against such Portfolio
Company under the Bankruptcy Code and either an order for relief is entered on such petition or such petition has not been dismissed
within sixty (60) days from the date such petition was filed or; (iv) as to which Borrower has delivered written notice to the
Portfolio Company declaring such Indebtedness in default; or (v) which has (A) a rating by S&P of “CC” or below
or “SD” or (B) a Moody’s probability of default rating (as published by Moody’s) of “D” or
“LD” or, in each case, had such ratings before they were withdrawn by S&P or Moody’s, as applicable.

 

    	 	-7-	 

     

    

 

“Defaulting
Lender” means any Lender that, as determined by Agent, (a) has failed to perform any funding obligations hereunder, and
such failure is not cured within three Business Days; (b) has notified Agent or Borrower that such Lender does not intend to comply
with its funding obligations hereunder or has made a public statement to the effect that it does not intend to comply with its
funding obligations hereunder or under any other credit facility; (c) has failed, within three Business Days following request
by Agent, to confirm in a manner satisfactory to Agent that such Lender will comply with its funding obligations hereunder; or
(d) has, or has a direct or indirect parent company that has, become the subject of an Insolvency Proceeding or taken any action
in furtherance thereof; provided, however, that a Lender shall not be a Defaulting Lender solely by virtue of a governmental
authority’s ownership of an equity interest in such Lender or parent company.

 

“Delayed Draw
Loan” means a Bank Loan that requires one or more future advances to be made to the Portfolio Company by Borrower and
which does not permit the re-borrowing of any amount previously repaid by the Portfolio Company; provided that such loan shall
only be considered a Delayed Draw Loan for so long as any future funding obligations remain in effect and only with respect to
any portion which constitutes a future funding obligation.

 

“Distribution”
means any declaration or payment of a distribution, interest or dividend on any Equity Interest (other than payment-in-kind); any
distribution, advance or repayment of Debt to a holder of Equity Interests; or any purchase, redemption, or other acquisition,
surrender or retirement for value of any Equity Interest, sinking fund or similar payment.

 

“Dollars”
and the sign “$” mean lawful money of the United States.

 

“Dominion
Account” means a special account established by Borrower and maintained with the Custodian or another bank acceptable
to Agent, which account is subject to withdrawal limitations that permit only payments to Agent in accordance with Section 5.8.1.

 

“Eligible
Assignee” means a Person that is (a) a Lender or an Affiliate of a Lender; (b) an Approved Fund; (c) any Person to whom
a Lender assigns its rights and obligations under this Agreement as part of an assignment and transfer of such Lender’s rights
in and to a material portion of such Lender’s portfolio of asset based credit facilities; (d) any other financial institution
approved by Agent and, unless an Event of Default has occurred, Borrower (which approval by Borrower shall not be unreasonably
withheld or delayed, and shall be deemed given if no objection is made within five Business Days after notice of the proposed assignment);
and (e) during any Event of Default, any Person acceptable to Agent in its discretion; provided, that in no event shall
(i) Parent, Borrower or an Affiliate of Borrower or Parent, or (ii) any Defaulting Lender or any of its Subsidiaries, or any Person
who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof, be deemed to be an Eligible
Assignee.

 

    	 	-8-	 

     

    

 

“Eligible
Portfolio Investment” means any Portfolio Investment held by Borrower (and solely for purposes of determining the Borrowing
Base, Cash and Cash Equivalents held by Borrower) that, in each case, meets all of the criteria set forth on Schedule 12 hereto;
provided, that no Portfolio Investment, Cash or Cash Equivalent shall constitute an Eligible Portfolio Investment or be included
in the Borrowing Base if the Agent does not at all times maintain a first priority, perfected Lien (subject to no other Liens other
than Permitted Liens) on such Portfolio Investment, Cash or Cash Equivalent. Notwithstanding the foregoing, nothing herein shall
limit the provisions of Section 9.1.11(b)(i), which provide that, for purposes of this Agreement, all determinations of
whether an Investment is to be included as an Eligible Portfolio Investment shall be determined on a Settlement-Date Basis, provided
that no such Investment shall be included as an Eligible Portfolio Investment to the extent it has not been paid for in full.

 

“Environmental
Laws” means all Applicable Laws (including all programs, permits and guidance promulgated by regulatory agencies and
all implementing regulations), relating to public health (but excluding occupational safety and health, to the extent regulated
by the Occupational Safety and Hazard Act of 1970) or the protection or pollution of the environment, including the Clean Water
Act (33 U.S.C. §§ 1251 et seq.), the Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C.
§ 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).

 

“Equity Interest”
means the interest of any (a) shareholder in a corporation; (b) partner in a partnership (whether general, limited, limited liability
or joint venture); (c) member in a limited liability company; or (d) other Person having any other form of equity security or ownership
interest in any other type of legal entity.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and all rules and regulations from time to time promulgated thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control with Parent or Borrower within the meaning of Section
414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

“Event of
Default” is as defined in Section 10.

 

“Excluded
Tax” means any of the following Taxes imposed on or with respect to a Lender or required to be withheld or deducted from
a payment to a Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits
Taxes, in each case, (i) imposed as a result of such Lender being organized under the laws of, or having its principal office or,
in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts
payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in
effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment
request by the Borrower under Section 12.4) or (ii) such Lender changes its lending office, except in each case to the extent that,
pursuant to Section 5.10, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such
Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such
Lender’s failure to comply with Sections 5.11.1 and 5.11.2, and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

    	 	-9-	 

     

    

 

“Executive
Order No. 13224” means Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.

 

“External
Quoted Value” has the meaning assigned to such term in Section 9.1.11(b)(ii)(A).

 

“Extraordinary
Expenses” means all costs, expenses or advances that Agent or Lenders may suffer or incur during a Default or Event of
Default, or during the pendency of an Insolvency Proceeding of Parent or Borrower, including those relating to (a) any audit, inspection,
repossession, storage, repair, appraisal, insurance, manufacture, preparation or advertising for sale, sale, collection, or other
preservation of or realization upon any Collateral; (b) subject to the same limitations in respect of Borrower’s indemnification
obligations under Section 13.2, any action, arbitration or other proceeding (whether instituted by or against Agent, any
Lender, Parent, Borrower, any representative of creditors of Parent or Borrower or any other Person) in any way relating to any
Collateral (including the validity, perfection, priority or avoidability of Agent’s Liens with respect to any Collateral),
Transaction Documents, or Obligations, including any lender liability and all other claims, liabilities, costs, expenses and other
amounts of any kind in any way related to the Transaction Documents or Collateral at any time; (c) the exercise, protection or
enforcement of any rights or remedies of Agent and Lenders, in, or the monitoring of, any Insolvency Proceeding; (d) settlement
or satisfaction of any taxes, charges or Liens with respect to any Collateral; (e) any enforcement action or exercise of rights
or remedies, of any kind, in connection with the Obligations, the Collateral or the Transaction Documents; (f) negotiation and
documentation of any modification, waiver, workout, restructuring or forbearance with respect to any Transaction Documents or Obligations;
and (g) Protective Advances. Such costs, expenses and advances include transfer fees, Other Taxes, storage fees, insurance costs,
permit fees, utility reservation and standby fees, legal fees and expenses of counsel for Agent and Lenders, appraisal fees, brokers’
fees and commissions, auctioneers’ fees and commissions, accountants’ fees, environmental study fees, wages and salaries
paid to employees of Borrower or independent contractors in liquidating any Collateral, and travel expenses.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof,
any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices
adopted pursuant to any intergovernmental agreement, treaty or convention among governmental authorities and implementing such
Sections of the Code.

 

“Fee Letter”
means the Fee Letter dated as of the Closing Date between Borrower and AloStar.

 

“First Lien
Bank Loan” means a Bank Loan (a) that is entitled to the benefit of a first lien and first priority perfected security
interest on a portion of the assets of a Portfolio Company, (b) for which the Servicer determines in good faith that the value
of the collateral securing the Bank Loan on or about the time of origination equals or exceeds the outstanding principal balance
of the Bank Loan plus the aggregate outstanding balances of all other loans of equal or higher seniority secured by the same collateral,
(c) that is not (and cannot by its terms become) subordinate in right of payment to any obligation of the Portfolio Company in
any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings and (d) that is not (and cannot
by its terms become) subject to any payment blockage or standstill provisions. For the avoidance of doubt, in no event shall a
First Lien Bank Loan include a Last Out Loan.

 

    	 	-10-	 

     

    

 

“Fiscal Quarter”
means each period of three months, commencing on the first day of a Fiscal Year.

 

“Fiscal Year”
means the fiscal year of Parent, Borrower and Borrower’s Subsidiaries for accounting and tax purposes, ending on December
31 of each year.

 

“Foreign Lender”
means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a
Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for Tax
purposes.

 

“Full Payment”
means with respect to any Obligations, (a) the full and indefeasible cash payment thereof, including any interest, fees and other
charges accruing during an Insolvency Proceeding (whether or not allowed in the proceeding); (b) if such Obligations are inchoate
or contingent in nature, Cash Collateralization thereof (or delivery of a standby letter of credit acceptable to Agent in its discretion,
in the amount of required Cash Collateral); and (c) termination of the Commitments and release by Borrower (and by any representative
of creditors of Borrower in any Insolvency Proceeding of Borrower) of any claims that Borrower has or asserts to have against Agent,
Lenders or any of their Affiliates. No Loans shall be deemed to have been paid in full until all Commitments related to such Loans
have expired or been terminated.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the Ordinary Course of its Business.

 

“GAAP”
means generally accepted accounting principles in effect in the United States from time to time.

 

“Guarantors”
means each Subsidiary of Borrower who guarantees (or has pledged assets to secure) payment or performance of any Obligations.

 

“Guaranty”
means each guaranty agreement executed by a Guarantor in favor of Agent.

 

“Hedging Agreement”
means any “swap agreement” as defined in Section 101(53B)(A) of the Bankruptcy Code.

 

“High Yield
Securities” means debt Securities, in each case (a) issued by public or private issuers, (b) issued pursuant to an effective
registration statement or pursuant to Rule 144A under the Securities Act (or any successor provision thereunder) and (c) that are
not Cash Equivalents, Mezzanine Investments (described under clause (i) of the definition thereof) or Bank Loans.

 

“Indebtedness”
of any Person means at any date without duplication, (a) all indebtedness of such Person for borrowed money (whether by loan or
the issuance and sale of debt securities) or for the deferred purchase price of Property or services (other than current trade
liabilities incurred in the ordinary course of business and payable in accordance with customary practices), (b) any other indebtedness
of such Person which is evidenced by a note, bond, debenture or similar instrument, (c) all obligations of such Person in respect
of letters of credit, acceptances or similar instruments issued or created for the account of such Person, (d) all liabilities
secured by (or for which the holder of such obligations has an existing right, contingent or otherwise, to be secured by) any Lien
on any Property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof,
(e) any guaranty of payment by such Person in respect of obligations of the kind referred to in clauses (a) through (d) above.
The amount of any Indebtedness under clause (d) shall be equal to the lesser of (A) the stated amount of the relevant obligations
and (B) the fair market value of the Property subject to the relevant Lien. The amount of any Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent
such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor.

 

    	 	-11-	 

     

    

 

“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 the Borrower under any Transaction Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Indemnitees”
means (i) Agent Indemnitees and (ii) the Lenders and AloStar and each of their respective officers, directors, employees, Affiliates,
agents and attorneys.

 

“Independent”
when used with respect to any specified Person means the more restrictive of the following: (a) that such Person (i) does not have
any direct financial interest or any material indirect financial interest in Borrower or any of its Subsidiaries or Affiliates
(including its investment adviser or any Affiliate thereof) other than ownership of publicly traded stock, as applicable, of Borrower
or any such Subsidiary or Affiliate with a market value not to exceed $1,000,000 and (ii) is not an officer, employee, promoter,
underwriter, trustee, partner, director or a Person performing similar functions of Borrower or of its Subsidiaries or Affiliates
(including its investment advisor or any Affiliate thereof), (b) the definition of “disinterested” as defined in the
Investment Company Act, (c) that such Person is not an “interested person” as defined in Section 2(a)(19) of the Investment
Company Act or (d) the definition of “independent” as defined in the Exchange Act.

 

“Industry
Classification Group” means any of the classification groups set forth on Schedule 13 hereto on the Closing Date, as
such classifications may be updated at the option of the Servicer if Standard and Poors publishes revised industry classifications.

 

“Insolvency
Proceeding” means any action, case or proceeding commenced by or against a Person under any state, federal or foreign
law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other insolvency,
debtor relief or debt adjustment law, (b) any involuntary petition for relief under the Bankruptcy Code where either an order for
relief is entered or such petition is not dismissed within sixty (60) days after the date such petition is filed; (b) the appointment
of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its Property;
(c) an assignment or trust mortgage for the benefit of creditors; or (d) the liquidation, dissolution or winding up of the affairs
of such Person.

 

“Intellectual
Property” means all intellectual and similar Property of a Person, including inventions, designs, patents, copyrights,
trademarks, service marks, trade names, trade secrets, confidential or proprietary information, customer lists, know-how, software
and databases; all embodiments or fixations thereof and all related documentation, applications, registrations and franchises;
all licenses or other rights to use any of the foregoing; and all books and records relating to the foregoing.

 

“Interest
Coverage Ratio” means the ratio as of the last day of any fiscal quarter of Borrower of (a) Interest Proceeds received
by Borrower during the four fiscal quarter period then ending, to (b) Adjusted Interest Expense for such four fiscal quarter period.

 

    	 	-12-	 

     

    

 

“Interest
Proceeds” means the sum of: (a) all payments of interest and other income received by Borrower on the Portfolio Investments
(including accrued interest received in connection with a sale of any such Portfolio Investment); (b) all interest and other income
received by Borrower in respect of Investments in Cash Equivalents; (c) all amendment and waiver fees, late payment fees (including
compensation for delayed settlement or trades), and all protection fees and other fees and commissions received by Borrower in
respect of the Portfolio Investments; and (d) commitment fees, facility fees, anniversary fees, ticking fees and other similar
fees received by Borrower in respect of the Portfolio Investments.

 

“Investment”
means, for any Person: (a) Equity Interests, bonds, notes, debentures or other securities of any other Person (including convertible
securities) or any agreement to acquire any Equity Interests, bonds, notes, debentures or other securities of any other Person
(including any “short sale” or any sale of any securities at a time when such securities are not owned by the Person
entering into such sale); (b) deposits, advances, loans or other extensions of credit made to any other Person (including purchases
of property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such property to such
Person); or (c) Hedging Agreements.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended from time to time.

 

“Investment
and Valuation Policies” means Parent’s investment objectives and strategy as set forth in Parent’s (a) Credit
Policies and Procedures dated December 14, 2016, and (b) Valuation Policy, Procedure and Methodology dated December 14, 2016, and
each delivered to the Agent on or prior to the Closing Date, as amended from time to time in accordance with the terms and conditions
of this Agreement.

 

“IRS”
means the United States Internal Revenue Service.

 

“KCAP Participation
Interests” means any Participation Interests granted by Parent to the Borrower in and to a Portfolio Investment pursuant
to the Sale Agreement (to the extent constituting a Participation Interest pending completion of the assignment thereof in accordance
with Section 2.4 of the Sale Agreement) and in which a Lien is granted therein by the Borrower to the Agent pursuant to this Agreement.

 

“Last Out
Loan” shall mean any Bank Loan that would otherwise be a First Lien Bank Loan except that, in the case of an event of
default under the applicable underlying documents, any portion of such Bank Loan will be repaid after one or more tranches of other
first lien loans issued by the same Portfolio Company have been paid in accordance with a specific waterfall of payments, including
by reason of a payment blockage or a standstill period with respect to the exercise of remedies that does not, in either case,
exceed 180 days.

 

“Lenders”
is as defined in the preamble to this Agreement, including Agent in its capacity as a provider of Swingline Loans and any other
Person who hereafter becomes a “Lender” pursuant to an Assignment and Acceptance.

 

“Lending Office”
means the office designated as such by the applicable Lender at the time it becomes party to this Agreement or thereafter by notice
to Agent and Borrower.

 

    	 	-13-	 

     

    

 

“LIBOR Index
Loan” means a Loan, or portion thereof, during any period in which it bears interest at a rate based upon the Daily LIBOR
Rate.

 

“LIBOR Index
Revolver Loan” means a Revolver Loan, or portion thereof, during any period in which it bears interest at a rate based
upon the Daily LIBOR Rate.

 

“Lien”
means any Person’s interest in Property securing an obligation owed to, or a claim by, such Person, including any lien, security
interest, pledge, hypothecation, trust, reservation, encroachment, easement, right-of-way, covenant, condition, restriction, leases,
or other title exception or encumbrance.

 

“Loan”
means a Revolver Loan or a Base Rate Loan.

 

“Loan Account”
is as defined in Section 5.8.1.

 

“Loan Year”
means each 12 month period commencing on the Closing Date and on each anniversary of the Closing Date.

 

“Long-Term
U.S. Government Securities” means U.S. Government Securities maturing more than three months from the applicable date
of determination.

 

“Margin Stock”
is as defined in Regulation U of the Board of Governors.

 

“Material
Adverse Effect” means the effect of any event or circumstance that, taken alone or in conjunction with other events or
circumstances, (a) has or could be reasonably expected to have a material adverse effect on the business, operations, Properties,
assets, liabilities or financial condition of Borrower or the Servicer, both individually or taken as a whole, on the value of
any material Collateral, on the enforceability of any Transaction Documents, or on the validity or priority of Agent’s Liens
on any Collateral; (b) impairs the ability of Servicer or Borrower to perform its respective obligations under the Transaction
Documents, including repayment of any Obligations; or (c) otherwise impairs the ability of Agent or any Lender to enforce or collect
any Obligations or to realize upon any Collateral.

 

“Material
Contract” means any agreement or arrangement to which Borrower is party (other than the Transaction Documents) (a) that
is deemed to be a material contract under any securities law applicable to such Person, including the Securities Act of 1933; or
(b) for which breach, termination, nonperformance or failure to renew could reasonably be expected to have a Material Adverse Effect.

 

“Maturity
Date” means the earliest of (a) the date that is four (4) years from the Closing Date, (b) the date on which Borrower
terminates the Revolver Commitments pursuant to Section 2.1.4; or (c) the date on which the Revolver Commitments are terminated
pursuant to Section 10.2.

 

“Mezzanine
Investments” means (i) debt Securities (including convertible debt Securities (other than the “in-the-money”
equity component thereof)) (a) issued by public or private Portfolio Companies, (b) issued without registration under the Securities
Act, (c) not issued pursuant to Rule 144A under the Securities Act (or any successor provision thereunder), (d) that are not Cash
Equivalents and (e) contractually or structurally subordinated in right of payment to other debt of the same Portfolio Company
and (ii) a Bank Loan that is not a First Lien Bank Loan, a Second Lien Bank Loan, High Yield Security, or a Last Out Loan.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereto.

 

    	 	-14-	 

     

    

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Borrower or ERISA
Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

 

“Notice of
Borrowing” means a Notice of Borrowing to be provided by Borrower to request a Borrowing of Revolver Loans, in form satisfactory
to Agent.

 

“Notice of
Conversion/Continuation” means a Notice of Conversion/Continuation to be provided by Borrower to request conversion of
Loans into or from LIBOR Index Loans or Base Rate Loans, in form satisfactory to Agent.

 

“Noteless
Assigned Loan” means a Bank Loan with respect to which: (a) the underlying documentation either (i) does not require
the Portfolio Company to execute and deliver a promissory note to evidence the indebtedness created under such Bank Loan or (ii)
requires execution and delivery of such a promissory note only upon the request of any holder of the indebtedness created under
such Bank Loan, and as to which the Borrower and Parent have not requested a promissory note from the related Portfolio Company;
and (b) neither Borrower nor any of its Affiliates was an agent with respect to such Bank Loan at the time of origination.

 

“Obligations”
means all (a) principal of and premium, if any, on the Loans, (b) interest, expenses, fees, indemnification obligations, reimbursement
obligations, Extraordinary Expenses and other amounts payable by Borrower under the Transaction Documents, (c) Secured Bank Product
Obligations, and (d) all other Debts, covenants, duties, obligations and liabilities of any kind (including Contingent Obligations)
owing by Borrower pursuant to the Transaction Documents, whether now existing or hereafter arising, whether evidenced by a note
or other writing, whether allowed in any Insolvency Proceeding, whether arising from an extension of credit, issuance of a letter
of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or indirect, absolute or contingent, due
or to become due, primary or secondary, or joint or several.

 

“OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Ordinary
Course of Business” means, with respect to any transaction involving any Person, the ordinary course of such Person’s
business, as conducted by such Person in accordance with past practices and undertaken by such Person in good faith and not for
the purpose of evading any covenant or restriction in any Transaction Document.

 

“Organic Documents”
means with respect to any Person, its charter, certificate or articles of incorporation, bylaws, articles of organization, limited
liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership,
certificate of formation, voting trust agreement, or similar agreement or instrument governing the formation or operation of such
Person.

 

“Other Connection
Taxes” means, with respect to any Lender, Taxes imposed as a result of a present or former connection between such Lender
and the jurisdiction imposing such Tax (other than connections arising from such Lender having executed, delivered, become a party
to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other
transaction pursuant to or enforced any Transaction Document, or sold or assigned an interest in any Loan or Transaction Document).

 

    	 	-15-	 

     

    

 

“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 Transaction Document, except any such Taxes that are Other Connection Taxes imposed
with respect to an assignment (other than an assignment made pursuant to Section 12.4 of this Agreement).

 

“Overadvance”
is as defined in Section 2.1.5.

 

“Overadvance
Loan” means a LIBOR Index Revolver Loan made when an Overadvance exists or is caused by the funding thereof.

 

“Parent”
means KCAP Financial, Inc., a Delaware corporation.

 

“Participant”
is as defined in Section 12.2.

 

“Participation
Interest” means a participation interest in a loan that would, at the time of acquisition or Borrower’s commitment
to acquire the same, satisfy each of the following criteria: (i) such participation would constitute an Eligible Portfolio Investment
were the underlying loan acquired directly, (ii) the seller of the participation is the lender on the subject loan, (iii) the aggregate
participation in the loan does not exceed the principal amount or commitment of such loan, (iv) such participation does not grant,
in the aggregate, to the participant in such participation a greater interest than the seller holds in the loan or commitment that
is the subject of the participation, (v) the entire purchase price for such participation is paid in full at the time of its acquisition,
and (vi) the participation provides the participant all of the economic benefit and risk of the whole or part of the loan or commitment
that is the subject of the loan participation.

 

“PATRIOT Act”
means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Pub. L. No. 107-56, 115 Stat. 272 (2001).

 

“Payment Item”
means each check, draft or other item of payment payable to Borrower, including those constituting proceeds of any Collateral.

 

“Performing”
means with respect to any Eligible Portfolio Investment, such Eligible Portfolio Investment is not a Defaulted Obligation.

 

“Performing
Last Out Loans” means funded Last Out Loans that (a) are not Second Lien Bank Loans and (b) are Performing.

 

"Permitted
Discretion" means a determination made in the exercise of reasonable credit judgment, from the perspective of a secured
asset-based lender.

 

“Permitted
Liens” is as defined in Section 9.2.2.

 

“Person”
means any individual, corporation, limited liability company, partnership, limited liability partnership, joint stock company,
joint venture, association, trust, unincorporated organization, governmental authority or other entity.

 

    	 	-16-	 

     

    

 

“Plan”
means any employee benefit plan (as defined in Section 3(3) of ERISA) established by Borrower or, with respect to any such plan
that is subject to Section 412 of the Code or Title IV of ERISA, an ERISA Affiliate.

 

“Pledge Agreement”
means that certain Pledge Agreement dated the Closing Date by and between Agent and Parent.

 

“Portfolio
Company” means the issuer or obligor under any Portfolio Investment held by Borrower or any of its Subsidiaries.

 

“Portfolio
Investment” means any Investment held by Borrower in its asset portfolio.

 

“Pro Rata”
means with respect to any Lender, a percentage (rounded to the ninth decimal place) determined while (a) Revolver Commitments are
outstanding, by dividing the amount of such Lender’s Revolver Commitment by the aggregate amount of all Revolver Commitments;
and (b) at any other time, by dividing the amount of such Lender’s Loans by the aggregate amount of all outstanding Loans.

 

“Properly
Contested” means with respect to any obligation of any Person, (a) the obligation is subject to a bona fide dispute regarding
amount or such Person’s liability to pay; (b) the obligation is being properly contested in good faith by appropriate proceedings
promptly instituted and diligently pursued; (c) appropriate reserves have been established in accordance with GAAP; (d) non-payment
could not have a Material Adverse Effect, nor result in forfeiture or sale of any assets of such Person; (e) no Lien is imposed
on assets of such Person, unless bonded and stayed to the satisfaction of Agent; and (f) if the obligation results from entry of
a judgment or other order, such judgment or order is stayed pending appeal or other judicial review; and (g) if such contest is
abandoned, settled, or determined adversely (in whole or in part) to such Person, such Person forthwith pays such amounts and all
penalties, interest, and other amounts due in connection therewith. Only that portion of a Debt or Tax which is in dispute may
be deemed Properly Contested.

 

“Property”
means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

 

“Protective
Advances” is as defined in Section 2.1.6.

 

“Quoted Investments”
means an Eligible Portfolio Investment (including Cash Equivalents) which is traded in an active and orderly market for which market
quotations are readily available.

 

“Report”
is as defined in Section II(c) on Exhibit D.

 

“Required
Lenders” means Lenders (subject to Section 4.2) having (a) Revolver Commitments in excess of 50% of the aggregate
Revolver Commitments; and (b) if the Revolver Commitments have terminated, Loans in excess of 50% of all outstanding Loans; provided,
however, that the Commitments and Loans of any Defaulting Lender shall be excluded from such calculation and at any time
there is one Lender only, such Lender shall constitute the Required Lenders.

 

“Restrictive
Agreement” means an agreement (other than a Transaction Document) that conditions or restricts the right of Borrower
to incur or repay Borrowed Money, to grant Liens on any assets, to declare or make Distributions, to modify, extend or renew any
agreement evidencing Borrowed Money, or to repay any intercompany Debt.

 

    	 	-17-	 

     

    

 

“Revolver
Commitment” means, for any Lender, its obligation to make Revolver Loans up to the maximum principal amount shown on
Schedule 1, as hereafter modified pursuant to an Assignment and Acceptance to which it is a party. “Revolver Commitments”
means the aggregate amount of such commitments of all Lenders.

 

“Revolver
Loan” means a loan made pursuant to Section 2.1, and any Swingline Loan, Overadvance Loan or Protective Advance.

 

“Revolving
Loan” means any Bank Loan (other than a Delayed Draw Loan) that is a senior secured obligation (including funded and
unfunded portions of revolving credit lines, unfunded commitments under specific facilities and other similar loans and investments)
that under the underlying loan documents for such Bank Loan relating thereto may require one or more future advances to be made
to the Portfolio Company by Borrower; provided that any such Bank Loan will be a Revolving Loan only until all commitments by Borrower
to make advances to the Portfolio Company thereof expire, or are terminated, or are irrevocably reduced to zero.

 

“Royalties”
means all royalties, fees, expense reimbursement and other amounts payable by Borrower under a license.

 

“S&P”
means S&P Global Ratings, a division of S&P Global Inc., a New York corporation, or any successor thereto.

 

“Sale Agreement”
means the Sale, Contribution and Master Participation Agreement, dated as of the Closing Date, between the Parent and Borrower,
as amended, modified, waived, supplemented, restated or replaced from time to time.

 

“Sanctioned
Country” means, at any time, a country, region or territory that is, or whose government is, the subject or target of
any Sanctions.

 

“Sanctioned
Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC,
the U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person located,
organized, incorporated or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

 

“Sanctions”
means economic or financial sanctions or trade embargoes administered or enforced from time to time by (a) the U.S. government,
including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union
or Her Majesty’s Treasury of the United Kingdom.

 

“Scheduled
Revolving Period End Date” means the date that is three (3) years from the Closing Date.

 

“SEC”
means the Securities and Exchange Commission, and any successor agency thereto.

 

“Second Lien
Bank Loan” means a Bank Loan (other than a First Lien Bank Loan and a Last Out Loan) that is entitled to the benefit
of a second priority perfected security interest on all or substantially all of the Portfolio Company’s assets, and where
the value of such assets is adequate (in the commercially reasonable judgment of the Servicer) to repay such Bank Loan in accordance
with its terms and to repay all other loans of equal or higher seniority secured by a security interest in the same collateral);
provided that if such Bank Loan is also secured by a first priority perfected security interest on other specified collateral
securing the Portfolio Company obligations under such Bank Loan and otherwise satisfies the requirements of the definition of First
Lien Bank Loan, then such Bank Loan shall be deemed to be a First Lien Bank Loan for the purposes of this Agreement.

 

    	 	-18-	 

     

    

 

“Secured Bank
Product Obligations” means Debt, obligations and other liabilities with respect to Bank Products owing by Borrower to
a Secured Bank Product Provider.

 

“Secured Bank
Product Provider” means (a) AloStar or any of its Affiliates; and (b) any other Lender or Affiliate of a Lender that
is providing a Bank Product, provided such provider delivers written notice to Agent, in form and substance satisfactory to Agent,
within 10 days following the later of the Closing Date creation of the Bank Product, (i) describing the Bank Product and setting
forth the maximum amount to be secured by the Collateral and the methodology to be used in calculating such amount, and (ii) agreeing
to be bound by Section XII of Exhibit D.

 

“Secured Parties”
means Agent, Lenders and Secured Bank Product Providers.

 

“Securities”
means common and preferred stock, units and participations, member interests in limited liability companies, partnership interests
in partnerships, notes, bonds, debentures, trust receipts and other obligations, instruments or evidences of indebtedness, including
debt instruments of public and private issuers and tax-exempt securities (including warrants, rights, put and call options and
other options relating thereto, representing rights, or any combination thereof) and other property or interests commonly regarded
as securities or any form of interest or participation therein, but not including Bank Loans.

 

“Securities
Act” means the United States Securities Act of 1933, as amended.

 

“Security
Documents” means the deposit account control agreements, the Pledge Agreement, securities account control agreements,
commodity account control agreements (or, without limitation, other agreements providing Agent “control” (as contemplated
by Section 9-104 of the UCC) of a deposit account, securities account, commodity account or similar account), and all other documents,
instruments and agreements now or hereafter securing or perfecting (or given with the intent to secure or perfect) any Obligations.

 

“Senior Officer”
means a manager of Borrower or, if the context requires, a manager or the president, chief executive officer, chief financial officer,
vice president or treasurer of the Servicer.

 

“Servicer”
means Parent, in its capacity as servicer pursuant to the terms of the Servicing Agreement.

 

“Servicer
Termination Event” means the occurrence of any one of the following:

 

(a)          any
failure by the Servicer to make any payment, transfer or deposit into the Dominion Account as required by this Agreement, which
failure continues unremedied for a period of two (2) Business Days;

 

(b)          any
failure on the part of the Servicer to observe or perform in any material respect any covenants or agreements of the Servicer set
forth in any Transaction Document to which the Servicer is a party (including, without limitation, any material delegation of the
Servicer’s duties) and the same continues unremedied for a period of thirty (30) days after the earlier to occur of (i) the
date on which written notice of such failure shall have been given to the Servicer by the Agent and (ii) the date on which a Senior
Officer of the Servicer acquires knowledge thereof;

 

    	 	-19-	 

     

    

 

(c)          the
failure of the Servicer to make any payment when due (after giving effect to any related grace period) with respect to any Indebtedness,
which Indebtedness is in excess of $1,000,000 in the aggregate, or the occurrence of any event or condition that has resulted in
the acceleration of such Indebtedness, whether or not waived;

 

(d)          an
Insolvency Proceeding is commenced by or against the Servicer (subject to the grace period in the definition thereof in the case
of any involuntary proceeding commenced against the Servicer);

 

(e)          the
occurrence of an Event of Default;

 

(f)          the
occurrence of any Change of Control;

 

(g)          any
failure by the Servicer to deliver any reports required to be delivered by the Servicer pursuant to the Servicing Agreement on
or before the date occurring two (2) Business Days after the date such report is required to be made or given, as the case may
be;

 

(h)          any
representation, warranty or certification made by the Servicer in any Transaction Document or in any certificate delivered pursuant
to any Transaction Document shall prove to have been incorrect when made, which has a Material Adverse Effect and which continues
to be unremedied for a period of thirty (30) days after the earlier to occur of (i) the date on which written notice of such incorrectness
shall have been given to the Servicer by the Agent and (ii) the date on which a Senior Officer of the Servicer acquires knowledge
thereof;

 

(i)          the
rendering against the Servicer of one or more final judgments, decrees or orders for the payment of money in excess of $1,000,000
in aggregate, and the continuance of such judgment, decree or order unsatisfied and in effect for any period of more than 60 consecutive
days without a stay of execution;

 

(j)          a
finding by any court or governmental body of competent jurisdiction in a final, non-appealable judgment, or an admission by Servicer
in a settlement of any lawsuit, that Servicer has committed fraud, willful misconduct, or a material violation of applicable securities
laws, in each case which has a material adverse effect on the performance of its obligations under any of the Transaction Documents
to which it is a party; or

 

(j)          any
Senior Officer of the Servicer is indicted for a criminal offense related to the business of the Servicer and is not terminated
within ten (10) days after such indictment.

 

“Servicing
Agreement” means the Servicing Agreement, dated as of the Closing Date, between the Servicer and Borrower, as may be
amended, modified, waived, supplemented, restated or replaced from time to time, and of which the Agent shall be an express third-party
beneficiary.

 

“Settlement-Date
Basis” means that any Investment that has been purchased will not be treated as an Eligible Portfolio Investment until
such purchase has settled, and any Eligible Portfolio Investment which has been sold will not be excluded as an Eligible Portfolio
Investment until such sale has settled.

 

    	 	-20-	 

     

    

 

“Settlement
Report” means a report summarizing Revolver Loans outstanding as of a given settlement date, allocated to Lenders on
a Pro Rata basis in accordance with their Revolver Commitments.

 

“Short-Term
U.S. Government Securities” means U.S. Government Securities maturing within three months of the applicable date of determination.

 

“Single Covenant
Loan” means a Bank Loan that requires the Portfolio Company thereunder to comply with only one financial covenant (excluding
any covenant relating to a borrowing base, asset valuation or similar asset-based requirement), in each case, regardless of whether
compliance with one or more incurrence covenants is otherwise required by such Bank Loan.

 

“Solvent”
means, as to any Person, such Person (a) owns Property whose fair salable value is greater than the amount required to pay all
of its debts (including contingent, subordinated, unmatured and unliquidated liabilities); (b) owns Property whose present fair
salable value (as defined below) is greater than the probable total liabilities (including contingent, subordinated, unmatured
and unliquidated liabilities) of such Person as they become absolute and matured; (c) is able to pay all of its debts as they mature;
(d) has capital that is not unreasonably small for its business and is sufficient to carry on its business and transactions and
all business and transactions in which it is about to engage; (e) is not “insolvent” within the meaning of Section
101(32) of the Bankruptcy Code; and (f) has not incurred (by way of assumption or otherwise) any obligations or liabilities (contingent
or otherwise) under any Transaction Documents, or made any conveyance in connection therewith, with actual intent to hinder, delay
or defraud either present or future creditors of such Person or any of its Affiliates. “Fair salable value”
means the amount that could be obtained for assets within a reasonable time, either through collection or through sale under ordinary
selling conditions by a capable and diligent seller to an interested buyer who is willing (but under no compulsion) to purchase.

 

“Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity in which that Person directly
or indirectly owns or controls more than 50% of the Equity Interests or more than 50% of the voting power of such corporation,
partnership, limited liability company or other entity. Unless otherwise specified, each reference to Subsidiary in this Agreement
means a Subsidiary of the Borrower.

 

“Structured
Finance Obligation” means any obligation issued by a special purpose vehicle and secured directly by, referenced to,
or representing ownership of or investment in, a pool of receivables or other financial assets of any obligor, including collateralized
loan obligations, collateralized debt obligations and mortgaged-backed securities. For the avoidance of doubt, if an obligation
satisfies the definition of “Structured Finance Obligation”, such obligation shall not (a) qualify as any other category
of Portfolio Investment and (b) be included in the Borrowing Base.

 

“Swap Obligations”
means, with respect to any Person, its obligations under a Hedging Agreement that constitutes a “swap” within the meaning
of Section 1a(47) of the Commodity Exchange Act.

 

“Swingline
Loan” means any Borrowing of Base Rate Revolver Loans funded with Agent’s funds, until such Borrowing is settled
among Lenders or repaid by Borrower.

 

“Tangible
Net Worth” means, as of any date, the total assets of Parent, calculated in accordance with GAAP, minus the total Debt
of Parent, calculated on a consolidated basis in accordance with GAAP, minus the amount of all intangible items reflected therein,
including all unamortized debt discount and expense, unamortized research and development expense, unamortized deferred charges,
goodwill, patents, trademarks, service marks, trade names, copyrights, and all similar items that should properly be treated as
intangibles in accordance with GAAP, minus all amounts due from Parent’s Affiliates.

 

    	 	-21-	 

     

    

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto.

 

“Third Party
Finance Company” means a Person that is (i) an operating company with employees, officers and directors, (ii) in the
primary business of originating loans or factoring or financing receivables, inventory or other current assets and (iii) an unaffiliated
third party business organized under the laws of any State of the United States of America, domiciled in the United States of America,
and with its principal operations and property located in the United States of America.

 

“Transaction
Documents” means this Agreement, the Sale Agreement, the Servicing Agreement, the Custodian Agreement, each Guaranty,
the Security Documents, any fee letter to which Agent is a party (including the Fee Letter), each Borrowing Base Certificate, each
Compliance Certificate, any flow of funds agreement or disbursement letter delivered in connection with this Agreement or the transactions
contemplated hereby, promissory note or other note (including, without limitation, any notes issued pursuant to Section 2.1.2
of this Agreement), each document, instrument, certificate (including any information certificate, solvency certificate, incumbency
certificate, closing certificate, or certificate with respect to Material Contracts)) or agreement now or hereafter delivered by
Borrower, Parent or the Servicer to Agent or a Lender in connection with any transactions relating hereto, all Borrowing Base information,
reports, financial statements and other materials delivered by Borrower hereunder, as well as other Reports and information provided
by Agent to Lenders.

 

“Transferee”
means any actual or potential Eligible Assignee, Participant or other Person acquiring an interest in any Obligations.

 

“Type”
means any type of a Loan (i.e., Base Rate Loan or LIBOR Index Loan) that has the same interest option.

 

“UCC”
means the Uniform Commercial Code as in effect in the State of Georgia or, when the laws of any other jurisdiction govern the perfection
or enforcement of any Lien, the Uniform Commercial Code of such jurisdiction.

 

“Underlying
Instruments” means the loan agreement, credit agreement, indenture or other agreement pursuant to which a Bank Loan or
Portfolio Investment has been issued or created and each other agreement that governs the terms of or secures the obligations represented
by such Bank Loan or Portfolio Investment or of which the holders of such Bank Loan or Portfolio Investment are the beneficiaries.

 

“Unitranche
Loan” means each Bank Loan determined by Borrower in accordance with the Investment and Valuation Policies to be a “unitranche”
loan or otherwise underwritten as such.

 

“Unquoted
Investment” means an Eligible Portfolio Investment which is not a Quoted Investment.

 

“Unquoted
Reported Value” has the meaning assigned to such term in Section 9.1.11(b)(ii)(B).

 

    	 	-22-	 

     

    

 

“U.S. Government
Securities” means securities that are direct obligations of, and obligations the timely payment of principal and interest
on which is fully guaranteed by, the United States or any agency or instrumentality of the United States the obligations of which
are backed by the full faith and credit of the United States and in the form of conventional bills, bonds, and notes.

 

“U.S. Person”
means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

 

“Value”
means, with respect to any Eligible Portfolio Investment, the value thereof determined for purposes of this Agreement in accordance
with Section 9.1.11(b)(ii).

 

1.2          Accounting
Terms. Under the Transaction Documents (except as otherwise specified herein), all accounting terms shall be interpreted,
all accounting determinations shall be made, and all financial statements shall be prepared, in accordance with GAAP applied on
a basis consistent with the most recent audited financial statements of Borrower delivered to Agent before the Closing Date and
using the same asset valuation method as used in such financial statements, except for any change required or permitted by GAAP
if Borrower’s certified public accountants concur in such change, the change is disclosed to Agent, and Section 9.3
is amended in a manner satisfactory to Required Lenders to take into account the effects of the change.

 

1.3          Uniform
Commercial Code. All other terms contained in this Agreement shall have, when the context so indicates, the meanings provided
for by the UCC to the extent the same are used or defined therein. Without limiting the generality of the foregoing, the following
terms shall have the meaning ascribed to them in the UCC: Account, Chattel Paper, Commercial Tort Claim, Commodity Account, Deposit
Account, Document, Electronic Chattel Paper, Equipment, Fixtures, Goods, General Intangible, Instrument, Inventory, Investment
Property, Letter-of-Credit Right, Payment Intangible, Proceeds, Securities Account, Software and Supporting Obligations.

 

1.4          Certain Matters
of Construction. The terms “herein,” “hereof,” “hereunder” and other words of similar
import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall
be deemed to cover all genders. In the computation of periods of time from a specified date to a later specified date, “from”
means “from and including,” and “to” and “until” each mean “to but excluding.”
The terms “including” and “include” shall mean “including, without limitation” and, for purposes
of each Transaction Document, the parties agree that the rule of ejusdem generis shall not be applicable to limit any provision.
Section titles appear as a matter of convenience only and shall not affect the interpretation of any Transaction Document. All
references to (a) laws or statutes include all related rules, regulations, interpretations, amendments and successor provisions;
(b) any document, instrument or agreement include any amendments, waivers and other modifications, extensions or renewals (to
the extent permitted by the Transaction Documents); (c) any section mean, unless the context otherwise requires, a section of
this Agreement; (d) any exhibits or schedules mean, unless the context otherwise requires, exhibits and schedules attached hereto,
which are hereby incorporated by reference; (e) any Person include successors and assigns; (f) time of day means time of day at
Agent’s notice address under Section 13.3.1; or (g) discretion of Agent or any Lender mean the sole and absolute
discretion of such Person. The recitals and preamble hereto are incorporated by reference and shall be deemed an integral part
of this Agreement. All calculations of Value, fundings of Loans, and payments of Obligations shall be in Dollars and, unless the
context otherwise requires, all determinations (including calculations of Borrowing Base and financial covenants) made from time
to time under the Transaction Documents shall be made in light of the circumstances existing at such time. Borrowing Base calculations
shall be consistent with historical methods of valuation and calculation, and otherwise satisfactory to Agent (and not necessarily
calculated in accordance with GAAP). Borrower shall have the burden of establishing any alleged negligence, misconduct or lack
of good faith by Agent or any Lender under any Transaction Documents. No provision of any Transaction Documents shall be construed
against any party by reason of such party having, or being deemed to have, drafted the provision. Whenever the phrase “to
the best of Borrower’s knowledge” or words of similar import are used in any Transaction Documents, it means actual
knowledge of a Senior Officer, or knowledge that a Senior Officer would have obtained if he or she had engaged in good faith and
diligent performance of his or her duties, including reasonably specific inquiries of employees or agents and a good faith attempt
to ascertain the matter to which such phrase relates.

 

    	 	-23-	 

     

    

 

SECTION
2.         CREDIT FACILITIES

 

2.1          Revolver
Commitment

 

2.1.1           Revolver
Loans. Each Lender agrees, severally
on a Pro Rata basis up to its Revolver Commitment, on the terms set forth herein, to make Revolver Loans to Borrower from time
to time through the Commitment Termination Date. The Revolver Loans may be repaid and reborrowed as provided herein. In no event
shall Lenders have any obligation to honor a request for a Revolver Loan if the unpaid balance of Revolver Loans outstanding at
such time (including the requested Loan) would exceed the Borrowing Base.

 

2.1.2           Revolver
Notes. The Revolver Loans made by each
Lender and interest accruing thereon shall be evidenced by the records of Agent and such Lender. At the request of any Lender,
Borrower shall deliver a promissory note to such Lender evidencing Borrower’s obligations in respect of the Revolver Commitments
of such Lender.

 

2.1.3           Use
of Proceeds. The proceeds of Revolver
Loans shall be used by Borrower solely (a) to pay fees and transaction expenses associated with the closing of this credit facility;
(b) to pay Obligations (including interest when due) in accordance with this Agreement; (c) for working capital and other lawful
corporate purposes of Borrower; (d) to acquire Eligible Portfolio Investments pursuant to the Sale Agreement; (e) to make Eligible
Portfolio Investments; (f) to pay cash Distributions to Parent in accordance with Section 9.2.3; (g) to pay Administrative
Expenses (to the extent that funds on deposit in the Dominion Account are insufficient to pay such expenses when due), and (h)
to pay Borrower Expenses (to the extent that funds on deposit in the Dominion Account are insufficient to pay such expenses when
due). Borrower will not request any Loan, and Borrower and its Subsidiaries will not use, and its directors, officers, employees
and agents will not use, the proceeds of any Loan (a) in the furtherance of an offer, payment, promise to pay, or authorization
of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for
the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or
in any Sanctioned Country, to the extent such activities, businesses or transaction would be prohibited by Sanctions if conducted
by a corporation incorporated in the United States or in an European Union member state or (c) in any manner that would result
in the violation of any Sanctions applicable to any party hereto.

 

2.1.4           Termination
of Revolver Commitments.

 

(a) The Revolver Commitments
shall terminate on the Commitment Termination Date, unless sooner terminated in accordance with this Agreement. Upon at least 30
days prior written notice to Agent, Borrower may, at its option, terminate the Revolver Commitments and this credit facility prior
to the Scheduled Revolving Period End Date. Any notice of termination given by Borrower shall be irrevocable and on the effective
date of such termination, Borrower shall make Full Payment of all Obligations.

 

    	 	-24-	 

     

    

 

(b) Concurrently with
any termination of the Revolver Commitments and this credit facility during the first Loan Year, for whatever reason (including
an Event of Default), Borrower shall pay to Agent, for the Pro Rata benefit of Lenders and as liquidated damages for loss of bargain
(and not as a penalty), an amount equal to 1% of the Revolver Commitments. No termination charge shall be payable after the end
of the first Loan Year.

 

2.1.5           Overadvances.
If the aggregate Revolver Loans exceed the Borrowing Base (“Overadvance”) at any time, the excess amount shall be
payable by Borrower on demand by Agent, but all such Revolver Loans shall nevertheless constitute Obligations secured by
the Collateral and entitled to all benefits of the Transaction Documents. Agent may require Lenders to honor requests for Overadvance
Loans and to forbear from requiring Borrower to cure an Overadvance, (a) when no other Event of Default is known to Agent, as
long as the Overadvance does not continue for more than 30 consecutive days (and no Overadvance may exist for at least five consecutive
days thereafter before further Overadvance Loans are required); and (b) regardless of whether an Event of Default exists, if Agent
discovers an Overadvance not previously known by it to exist, as long as from the date of such discovery the Overadvance does
not continue for more than 30 consecutive days. In no event shall Overadvance Loans (x) be required that would cause the outstanding
Revolver Loans to exceed the aggregate Revolver Commitments and (y) exceed ten percent (10%) of the Borrowing Base. Any funding
of an Overadvance Loan or sufferance of an Overadvance shall not constitute a waiver by Agent or Lenders of the Event of Default
caused thereby. In no event shall Borrower be deemed a beneficiary of this Section nor authorized to enforce any of its terms.

 

2.1.6           Protective
Advances. Agent shall be authorized,
in its discretion, at any time that any conditions in Section 6 are not satisfied, and without regard to the aggregate
Commitments, to make Base Rate Revolver Loans (“Protective Advances”) (a) if Agent deems such Loans necessary
or desirable to preserve or protect Collateral, or to enhance the collectibility or repayment of Obligations; or (b) to pay any
other amounts chargeable to Borrower under any Transaction Documents, including costs, fees and expenses. Each Lender shall participate
in each Protective Advance on a Pro Rata basis. Required Lenders may at any time revoke Agent’s authority to make further
Protective Advances under clause (a) by written notice to Agent. Absent such revocation, Agent’s determination that funding
of a Protective Advance is appropriate shall be conclusive.

 

SECTION
3.        INTEREST, FEES AND CHARGES

 

3.1          Interest

 

3.1.1        Rates
and Payment of Interest.

 

(a)          The
Obligations shall bear interest (i) if a Base Rate Loan, at the Base Rate in effect from time to time, plus the Applicable Margin;
(ii) if a LIBOR Index Loan, at the Daily LIBOR Rate in effect from time to time, plus the Applicable Margin; and (iii) if any other
Obligation (including, to the extent permitted by law, interest not paid when due), at the Base Rate in effect from time to time,
plus the Applicable Margin for Base Rate Revolver Loans. Interest shall accrue from the date the Loan is advanced or the Obligation
is incurred or payable, until paid by Borrower. If a Loan is repaid on the same day made, one day’s interest shall accrue.
The Base Rate on the date hereof is 4.5% per annum and, therefore, the rate of interest in effect on the date hereof, expressed
in simple interest terms, is 7.8576% per annum for Base Rate Revolver Loans. The Daily LIBOR Rate on the date hereof is 1.67007%
per annum and, therefore, the rate of interest in effect on the date hereof, expressed in simple interest terms, is 4.98840% per
annum for LIBOR Index Revolver Loans. All Loans shall bear interest at the Daily LIBOR Rate except as otherwise provided in Section
3.6 of this Agreement.

 

    	 	-25-	 

     

    

 

(b)          During
an Insolvency Proceeding with respect to Borrower, or during any other Event of Default if Agent or Required Lenders in their discretion
so elect, Obligations shall bear interest at the Default Rate (whether before or after any judgment). Borrower acknowledges that
the cost and expense to Agent and Lenders due to an Event of Default are difficult to ascertain and that the Default Rate is a
fair and reasonable estimate to compensate Agent and Lenders for this.

 

(c)          Interest
accrued on the Loans shall be due and payable in arrears, (i) on the first day of each calendar month; (ii) on any date of prepayment,
with respect to the principal amount of Loans being prepaid; and (iii) on the Maturity Date or the date the Obligations are accelerated
pursuant to the terms of this Agreement. Interest accrued on any other Obligations shall be due and payable as provided in the
Transaction Documents and, if no payment date is specified, shall be due and payable on demand. Notwithstanding the foregoing,
interest accrued at the Default Rate shall be due and payable on demand.

 

3.1.2           Application
of LIBOR to Outstanding Loans. Borrower may on any Business Day, subject to delivery of a Notice of Conversion/Continuation,
elect to convert any portion of the Base Rate Loans to LIBOR Index Loans or LIBOR Index Loans to Base Rate Loans.

 

3.1.3           Types
of Loans. Except as otherwise provided
in this Agreement, including pursuant to Sections 3.1.2, 3.5 or 3.6, all Loans shall be made as LIBOR Index Revolver
Loans.

 

3.2          Fees

 

3.2.1           Unused
Line Fee. Borrower shall pay to Agent,
for the Pro Rata benefit of Lenders, a fee equal to (a) 0.375% per annum times the amount by which the Revolver Commitments exceed
the average daily balance of Revolver Loans during any month if the daily unused amount as of the close of business on such day
is less than 50% of the Commitments, and (b) 0.50% per annum times the amount by which the Revolver Commitments exceed the average
daily balance of Revolver Loans during any month if the daily unused amount as of the close of business on such day is greater
than or equal to 50% of the Commitments. Such fee shall be payable in arrears, on the first day of each month and on the Commitment
Termination Date.

 

3.2.2           Reserved.

 

3.2.3           Closing
Fee. On the Closing Date, Borrower
shall pay to Agent, for the Pro Rata benefit of Lenders, a closing fee equal to 1% of the amount of the Commitments.

 

3.2.4           Agent
Fees. Borrower shall pay to Agent,
for its own account, the fees described in the Fee Letter. Borrower shall also pay to Agent its standard wire fee for each outgoing
wire made by Agent at the request of Borrower.

 

    	 	-26-	 

     

    

 

3.3           Computation
of Interest, Fees, Yield Protection. All interest, as well as fees and other charges calculated on a per annum basis,
shall be computed for the actual days elapsed, based on a year of 360 days. Each determination by Agent of any interest, fees
or interest rate hereunder shall be final, conclusive and binding for all purposes, absent manifest error. All fees shall be fully
earned when due and shall not be subject to rebate, refund or proration. All fees payable under Section 3.2 are compensation
for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance or detention of
money. A certificate as to amounts payable by Borrower under Section 3.4, 3.6, 3.7, or 5.10, submitted to Borrower
by Agent or the affected Lender, as applicable, shall be final, conclusive and binding for all purposes, absent manifest error,
and Borrower shall pay such amounts to the appropriate party within 10 days following receipt of the certificate.

 

3.4           Reimbursement
Obligations. Borrower shall reimburse Agent and Lenders for all Extraordinary Expenses. Borrower shall also reimburse
Agent and, as applicable, Lenders, solely to the extent that such amounts do not constitute Extraordinary Expenses, for all (i)
legal fees and expenses of one outside counsel for Agent and Lenders, taken as a whole (and, in the case of an actual conflict
of interest, one additional counsel to the applicable Persons, taken as a whole, and to the extent reasonably necessary one local
counsel in each relevant jurisdiction to Agent and Lenders, taken as a whole), in each case prior to an Event of Default, provided
that after the occurrence and during the continuation of an Event of Default, Borrower shall reimburse Agent and Lenders for
all legal fees and expenses of outside counsel incurred after the occurrence of such Event of Default, (ii) accounting, appraisal,
consulting, and other fees, costs and expenses incurred by Agent, in connection with (a) negotiation and preparation of any Transaction
Documents, including any amendment or other modification thereof; (b) administration of and actions relating to any Collateral,
Transaction Documents and transactions contemplated thereby, including any actions taken to perfect or maintain priority of Agent’s
Liens on any Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c) subject to the limits of
Section 9.1.2(b), each inspection, audit or appraisal with respect to Borrower, Servicer or Collateral, whether prepared
by Agent’s personnel or a third party. All legal, accounting and consulting fees shall be charged to Borrower by Agent’s
and Lenders’ respective professionals at their full hourly rates, regardless of any reduced or alternative fee billing arrangements
that Agent, any Lender, or any of their Affiliates may have with such professionals with respect to this or any other transaction;
provided, that the foregoing shall in no way limit Borrower’s obligations to reimburse Agent, or Lenders as provided
for elsewhere in the Transaction Documents, including, without limitation, reimbursement of Extraordinary Expenses pursuant to
this Section 3.4 and reimbursements contemplated pursuant to Section 9.1.2. All amounts payable by Borrower under
this Section shall be due on demand.

 

3.5           Illegality.
If any Lender determines that any Applicable Law has made it unlawful, or that any governmental authority has asserted that
it is unlawful, for any Lender or its applicable Lending Office to determine or charge interest rates based upon the Daily LIBOR
Rate, or any governmental authority has imposed material restrictions on the authority of such Lender to purchase or sell, or
to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to Agent, any obligation of
such Lender to make LIBOR Index Loans or to convert Base Rate Loans to LIBOR Index Loans shall be suspended until such Lender
notifies Agent that the circumstances giving rise to such determination no longer exist. Upon delivery of such notice, Borrower
shall prepay or, if applicable, convert all LIBOR Index Loans of such Lender to Base Rate Loans immediately if such Lender may
not lawfully continue to maintain such LIBOR Index Loans. Upon any such prepayment or conversion, Borrower shall also pay accrued
interest on the amount so prepaid or converted.

 

3.6           Inability
to Determine Rates. If Required Lenders notify Agent for any reason in connection with a request for a Borrowing of, or
conversion to or continuation of, a LIBOR Index Loan that (a) Dollar deposits are not being offered to banks in the London interbank
Eurodollar market for the Daily LIBOR Rate, (b) adequate and reasonable means do not exist for determining the Daily LIBOR Rate,
or (c) the Daily LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of funding such Loan, then Agent will
promptly so notify Borrower and each Lender. Thereafter, the obligation of Lenders to make or maintain LIBOR Index Loans shall
be suspended until Agent (upon instruction by Required Lenders) revokes such notice. Upon receipt of such notice, Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of a LIBOR Index Loan or, failing that, will be deemed
to have submitted a request for a Base Rate Loan.

 

    	 	-27-	 

     

    

 

3.7          Increased
Costs; Capital Adequacy

 

3.7.1           Change
in Law. If any Change in Law shall:

 

(a)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended or participated in by, any Lender (including any reserve requirement);

 

(b)          subject
any Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of
Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations,
or its deposits, reserves, other liabilities or capital attributable thereto; or

 

(c)          impose
on any Lender or interbank market any other condition, cost or expense (other than Taxes) affecting any Loan, Transaction Document,
or Commitment;

 

and the result thereof
shall be to increase the cost to such Lender of making or maintaining any Loan or Commitment, or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such
Lender, Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

 

3.7.2           Capital
Adequacy. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such
Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the
rate of return on such Lender’s or holding company’s capital as a consequence of this Agreement, or such Lender’s
Commitments or Loans to a level below that which such Lender or holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s and holding company’s policies with respect to capital adequacy and liquidity),
then from time to time Borrower will pay to such Lender such additional amount or amounts as will compensate it or its holding
company for any such reduction suffered.

 

3.7.3           Compensation.
Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of its
right to demand such compensation, but Borrower shall not be required to compensate a Lender for any increased costs incurred
or reductions suffered more than nine months prior to the date that the Lender notifies Borrower of the Change in Law giving rise
to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall
be extended to include the period of retroactive effect thereof).

 

    	 	-28-	 

     

    

 

3.8          Mitigation.
If any Lender gives a notice under Section 3.5 or requests compensation under Section 3.7, or if Borrower is
required to pay additional amounts with respect to a Lender under Section 5.10, then, at the request of Borrower, such
Lender shall use reasonable efforts to designate a different Lending Office or to assign its rights and obligations hereunder
to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment (a) would
eliminate the need for such notice or reduce amounts payable or to be withheld in the future, as applicable; and (b) would not
subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to it or unlawful. Borrower
shall pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

3.9          Reserved.

 

3.10        Maximum
Interest. Notwithstanding anything to the contrary contained in any Transaction Document, the interest paid or agreed
to be paid under the Transaction Documents shall not exceed the maximum rate of non-usurious interest permitted by Applicable
Law (“maximum rate”). If Agent or any Lender shall receive interest in an amount that exceeds the maximum rate, the
excess interest shall be applied to the principal of the Obligations or, if it exceeds such unpaid principal, refunded to Borrower.
In determining whether the interest contracted for, charged or received by Agent or a Lender exceeds the maximum rate, such Person
may, to the extent permitted by Applicable Law, (a) characterize any payment that is not principal as an expense, fee or premium
rather than interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate and spread
in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

SECTION
4.         LOAN ADMINISTRATION

 

4.1          Manner
of Borrowing and Funding Revolver Loans

 

4.1.1       Notice
of Borrowing.

 

(a)          Whenever
Borrower desires funding of a Borrowing of Revolver Loans, Borrower shall give Agent a Notice of Borrowing signed by a Senior Officer,
which shall be in such form as may be required by Agent (and which notice may be given electronically subject to the limitations
set forth in Section 13.3.2) and which shall specify the account of Borrower into which the proceeds of such Revolver Loans
should be disbursed. Such notice must be received by Agent no later than 11:00 a.m. on the Business Day of the requested funding
date, in the case of Base Rate Loans or LIBOR Index Loans. Notices received after 11:00 a.m. shall be deemed received on the next
Business Day. Each Notice of Borrowing shall be irrevocable and shall specify (A) the amount of the Borrowing, and (B) the requested
funding date (which must be a Business Day).

 

(b)          Unless
payment is otherwise timely made by Borrower, the becoming due of any Obligations (whether principal, interest, fees or other charges,
including Extraordinary Expenses, Cash Collateral and Secured Bank Product Obligations) shall be deemed to be a request for Base
Rate Revolver Loans on the due date, in the amount of such Obligations. The proceeds of such Revolver Loans shall be disbursed
as direct payment of the relevant Obligation. In addition, Agent may, at its option, charge such Obligations against any operating,
investment or other account of Borrower maintained with Agent or any of its Affiliates.

 

    	 	-29-	 

     

    

 

(c)          If
Borrower establishes a controlled disbursement account with Agent or any Affiliate of Agent, then the presentation for payment
of any check, ACH or electronic debit, or other payment item at a time when there are insufficient funds to cover it shall be deemed
to be a request for Base Rate Revolver Loans on the date of such presentation, in the amount of such payment item. The proceeds
of such Revolver Loans may be disbursed directly to the controlled disbursement account or other appropriate account.

 

4.1.2       Fundings
by Lenders. Each Lender shall timely honor its Revolver Commitment by funding its Pro Rata share of each Borrowing of Revolver
Loans that is properly requested hereunder. Except for Borrowings to be made as Swingline Loans, Agent shall endeavor to notify
Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by 12:00 noon on the proposed funding date for Base Rate
Loans or LIBOR Index Loans. Each Lender shall fund to Agent such Lender’s Pro Rata share of the Borrowing to the account
specified by Agent in immediately available funds not later than 2:00 p.m. on the requested funding date, unless Agent’s
notice is received after the times provided above, in which case Lender shall fund its Pro Rata share by 11:00 a.m. on the next
Business Day. Subject to its receipt of such amounts from Lenders, Agent shall disburse the proceeds of the Revolver Loans as
directed by Borrower. Unless Agent shall have received (in sufficient time to act) written notice from a Lender that it does not
intend to fund its Pro Rata share of a Borrowing, Agent may assume that such Lender has deposited or promptly will deposit its
share with Agent, and Agent may disburse a corresponding amount to Borrower. If a Lender’s share of any Borrowing or of
any settlement pursuant to Section 4.1.3(b) is not received by Agent, then Borrower agrees to repay to Agent on demand
the amount of such share, together with interest thereon from the date disbursed until repaid, at the rate applicable to the
Borrowing.

 

4.1.3       Swingline
Loans; Settlement.

 

(a)          Agent
may, but shall not be obligated to, advance Swingline Loans to Borrower, up to an aggregate outstanding amount of $5,000,000. Each
Swingline Loan shall constitute a Revolver Loan for all purposes, except that payments thereon shall be made to Agent for its own
account. The obligation of Borrower to repay Swingline Loans shall be evidenced by the records of Agent and need not be evidenced
by any promissory note.

 

(b)          Settlement
of Swingline Loans and other Revolver Loans among Lenders and Agent shall take place on a date determined from time to time by
Agent (but at least weekly), in accordance with the Settlement Report delivered by Agent to Lenders. Between settlement dates,
Agent may in its discretion apply payments on Revolver Loans to Swingline Loans, regardless of any designation by Borrower or any
provision herein to the contrary. Each Lender’s obligation to make settlements with Agent is absolute and unconditional,
without offset, counterclaim or other defense, and whether or not the Commitments have terminated, an Overadvance exists or the
conditions in Section 6 are satisfied. If, due to an Insolvency Proceeding with respect to Borrower or for any other reason,
any Swingline Loan may not be settled among Lenders hereunder, then each Lender shall be deemed to have purchased from Agent a
Pro Rata participation in such Loan and shall transfer the amount of such participation to Agent, in immediately available funds,
within one Business Day after Agent’s request therefor.

 

4.1.4           Notices.
Borrower may request, convert or continue Loans, select interest rates and transfer funds based on telephonic or e-mailed instructions
to Agent (subject to the limitations set forth in Section 13.3.2). Borrower shall confirm each such request by prompt delivery
to Agent of a Notice of Borrowing or Notice of Conversion/Continuation, if applicable, but if it differs materially from the action
taken by Agent or Lenders, the records of Agent and Lenders shall govern. Neither Agent nor any Lender shall have any liability
for any loss suffered by Borrower as a result of Agent or any Lender acting upon its understanding of telephonic or e-mailed instructions
(subject to the limitations set forth in Section 13.3.2) from a person believed in good faith by Agent or any Lender to
be a person authorized to give such instructions on Borrower’s behalf.

 

    	 	-30-	 

     

    

 

4.2          Defaulting
Lender

 

4.2.1           Reallocation
of Pro Rata Share; Amendments. For purposes of determining Lenders’ obligations to fund or participate in Loans, to
share in fees or for any other determination permitted hereunder, Agent may exclude the Commitments and Loans of any Defaulting
Lender(s) from the calculation of Pro Rata shares. A Defaulting Lender shall have no right to vote on any amendment, waiver or
other modification of a Transaction Document, except as provided in Section 13.1.1(c).

 

4.2.2           Payments;
Fees. Agent may, in its discretion, receive and retain any amounts payable to a Defaulting Lender under the Transaction Documents,
and a Defaulting Lender shall be deemed to have assigned to Agent such amounts until all Obligations owing to Agent, non-Defaulting
Lenders and other Secured Parties have been paid in full. Agent may apply such amounts to the Defaulting Lender’s defaulted
obligations or readvance the amounts to Borrower hereunder. A Lender shall not be entitled to receive any fees accruing hereunder
during the period in which it is a Defaulting Lender, and the unfunded portion of its Commitment shall be disregarded for purposes
of calculating the unused line fee under Section 3.2.1.

 

4.2.3           Cure.
Agent may determine in its reasonable discretion that a Lender constitutes a Defaulting Lender and the effective date of such
status shall be conclusive and binding on all parties, absent manifest error. Borrower and Agent may agree in writing that a Lender
is no longer a Defaulting Lender. At such time, Pro Rata shares shall be reallocated without exclusion of such Lender’s
Commitments and Loans, and all outstanding Revolver Loans and other exposures under the Revolver Commitments shall be reallocated
among Lenders and settled by Agent (with appropriate payments by the reinstated Lender) in accordance with the readjusted Pro
Rata shares. Unless expressly agreed by Borrower and Agent, no reinstatement of a Defaulting Lender shall constitute a waiver
or release of claims against such Lender. The failure of any Lender to fund a Loan or otherwise to perform its obligations hereunder
shall not relieve any other Lender of its obligations, and no Lender shall be responsible for default by another Lender.

 

4.3          One
Obligation. The Loans and other Obligations constitute one general obligation of Borrower and are secured by Agent’s
Lien (for the benefit of the Secured Parties) on all Collateral; provided, however, that Agent and each Lender shall be deemed
to be a creditor of, and the holder of a separate claim against, Borrower to the extent of any Obligations jointly or severally
owed by Borrower.

 

4.4          Effect
of Termination. On the Maturity Date, all Obligations shall be immediately due and payable, and any Lender may terminate
its and its Affiliates’ Bank Products (including, only with the consent of Agent, any Cash Management Services). All undertakings
of Borrower contained in the Transaction Documents shall survive any termination, and Agent shall retain its Liens in the Collateral
for the benefit of the Secured Parties and all of its rights and remedies under the Transaction Documents until Full Payment of
the Obligations. Notwithstanding Full Payment of the Obligations, Agent shall not be required to terminate its Liens in any Collateral
unless, with respect to any damages Agent may incur as a result of the dishonor or return of Payment Items applied to Obligations,
Agent receives (a) a written agreement satisfactory to Agent, executed by Borrower and any Person whose advances are used in whole
or in part to satisfy the Obligations, indemnifying Agent and Lenders from such damages; and (b) such Cash Collateral as Agent,
in its discretion, deems appropriate to protect against such damages. Sections 3.4, 3.6, 3.7, 5.6, 5.10, 5.11, 11, 13.2
and this Section 4.4, and the obligation of Borrower and Lender with respect to each indemnity given by it in any Transaction
Document, shall survive Full Payment of the Obligations and any release relating to this credit facility.

 

    	 	-31-	 

     

    

 

SECTION
5.          PAYMENTS

 

5.1           General
Payment Provisions. All payments of Obligations shall be made in Dollars, without offset, counterclaim or defense of any
kind, free of (and without deduction for) any Taxes (except as required by Applicable Law), and in immediately available funds,
not later than 12:00 noon on the due date. Any payment after such time shall be deemed made on the next Business Day. Any prepayment
of Loans shall be applied first to Base Rate Loans, then to LIBOR Index Loans.

 

5.2           Repayment
of Revolver Loans. Revolver Loans shall be due and payable in full on the Maturity Date, unless payment is sooner required
hereunder. Subject to Section 2.1.4(b), Revolver Loans may be prepaid from time to time, without penalty or premium in accordance
with the terms of Section 5.7 of this Agreement. If any asset disposition includes the disposition of Bank Loans or other Property
outside of, in the case of such other Property, the Ordinary Course, then the net proceeds thereof shall be applied to the Revolver
Loans in an amount equal to not less than the value allocated to such Bank Loans in the Borrowing Base. Notwithstanding anything
herein to the contrary, if an Overadvance exists, Borrower shall, on the sooner of Agent’s demand or the first Business
Day after Borrower has knowledge thereof, repay the outstanding Revolver Loans in an amount sufficient to reduce the principal
balance of Revolver Loans to the Borrowing Base.

 

5.3           Reserved.

 

5.4           Payment
of Other Obligations. Obligations other than Loans, including Extraordinary Expenses, shall be paid by Borrower as provided
in the Transaction Documents or, if no payment date is specified, on demand.

 

5.5           Dominion
Account. Borrower shall maintain Dominion Accounts pursuant to lockbox or other arrangements with Custodian. Borrower
shall obtain an agreement (in form and substance satisfactory to Agent) from Custodian, establishing Agent’s control over
and Lien in (for the benefit of the Secured Parties) the lockbox or a Dominion Account, requiring immediate deposit of all remittances
received in the lockbox to a Dominion Account, and waiving offset rights of Custodian, except for customary administrative charges.
Agent and Lenders assume no responsibility to Borrower for any lockbox arrangement or a Dominion Account, including any claim
of accord and satisfaction or release with respect to any Payment Items accepted by Custodian. Agent shall have the right at any
time after the occurrence and during the continuation of an Event of Default to contact directly any or all administrative agents
with respect to Portfolio Investments (or if there is no administrative agent for such Portfolio Investment, any Portfolio Company)
to ensure that payments on the Bank Loans are directed to a Dominion Account. Borrower shall request in writing and otherwise
take all necessary steps to ensure that all payments on Bank Loans or otherwise relating to Collateral are made directly to a
Dominion Account (or a lockbox relating to a Dominion Account). If Borrower or Servicer receives cash or Payment Items with respect
to any Collateral, it shall hold the same in trust and as agent for Agent (and shall not be commingled with Borrower’s or
Servicer’s other funds) and promptly (not later than the next Business Day) deposit same into a Dominion Account. All such
cash and Payment Items shall be subject to the Lien of Agent upon the earlier of the receipt thereof by Agent, Borrower or Servicer.
Borrower hereby grants to Agent (for the benefit of the Secured Parties) a Lien upon all items and balances held in any lockbox
and the Dominion Account as security for the payment of the Obligations, in addition to and cumulative with the general security
interest in all other assets of Borrower (including all Deposit Accounts) as provided elsewhere in this Agreement or any other
Transaction Document. Agent shall be entitled to apply immediately to the Obligations any wire transfer, check or other item of
payment received by Agent. Interest shall continue accruing on the amount of any wire transfer, check or other Payment Item for
one Business Day after the date that the proceeds of such wire transfer, check or other payment item become good, collected funds
received by Agent and are applied to the Obligations. Borrower irrevocably waives the right to direct the application of any and
all payments and collections at any time or times hereafter received by Agent from or on behalf of Borrower, and Borrower does
hereby irrevocably agree that Agent shall have the continuing exclusive right to apply and reapply any and all such payments and
collections received at any time or times hereafter by Agent or its agent against the Obligations in such manner as set forth
herein.

 

    	 	-32-	 

     

    

 

5.6          Marshaling;
Payments Set Aside. None of Agent or Lenders shall be under any obligation to marshal any assets in favor of Borrower
or any of its Affiliates or against any Obligations. If any payment by or on behalf of Borrower is made to Agent or any Lender,
or Agent or any Lender exercises a right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into
by Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then to the extent of such
recovery, the Obligation originally intended to be satisfied, and all Liens, rights and remedies relating thereto, shall be revived
and continued in full force and effect as if such payment had not been made or such setoff had not occurred.

 

5.7          Allocation
of Payments

 

5.7.1           Allocation.

 

		(a)	Except as provided in clause (b) below, monies to be applied
to the Obligations, whether arising from payments by Portfolio Companies, realization on Collateral, setoff or otherwise, shall
be allocated as follows:

 

		1.	first, to all Administrative Expenses then due and
payable;

 

		2.	second, to all costs and expenses, including Extraordinary
Expenses, owing to Agent;

 

		3.	third, to all Obligations constituting fees then
due and payable (other than Secured Bank Product Obligations);

 

		4.	fourth, to all Obligations constituting interest
fees then due and payable (other than Secured Bank Product Obligations);

 

		5.	fifth, to all amounts owing to Agent on Swingline
Loans;

 

		6.	sixth, to the principal amount of the Loans; and

 

		7.	last, to all other Obligations, including all Borrower
Expenses then due and payable.

 

    	 	-33-	 

     

    

 

		(b)	Notwithstanding anything to the contrary contained in this
Agreement, upon the occurrence and during the continuation of an Event of Default, all payments when due hereunder shall be applied
by the Agent as follows:

 

		1.	first, to all Administrative Expenses then due and
payable (other than Administrative Expenses arising pursuant to clause (b) of the definition thereof);

 

		2.	second, to all costs and expenses, including Extraordinary
Expenses, owing to Agent;

 

		3.	third, to all amounts owing to Agent on Swingline
Loans;

 

		4.	fourth, to all Obligations constituting fees (other
than Secured Bank Product Obligations);

 

		5.	fifth, to all Obligations constituting interest
(other than Secured Bank Product Obligations);

 

		6.	sixth, to all Loans and Secured Bank Product Obligations,
including Cash Collateralization of Secured Bank Product Obligations; and

 

		7.	last, to all other Obligations, including all Borrower
Expenses and costs and expenses owing to Servicer.

 

Amounts shall be applied to each category
of Obligations set forth above until Full Payment thereof and then to the next category. If amounts are insufficient to satisfy
a category, they shall be applied on a pro rata basis among the Obligations in the category. Amounts distributed with respect to
any Secured Bank Product Obligations shall be the lesser of the maximum Secured Bank Product Obligations last reported to Agent
or the actual Secured Bank Product Obligations as calculated by the methodology reported to Agent for determining the amount due.
Agent shall have no obligation to calculate the amount to be distributed with respect to any Secured Bank Product Obligations,
and may request a reasonably detailed calculation of such amount from the applicable Secured Party. If a Secured Party fails to
deliver such calculation within five days following request by Agent, Agent may assume the amount to be distributed is zero. The
allocations set forth in this Section are solely to determine the rights and priorities of Agent and Secured Parties as among themselves,
and may be changed by agreement among them without the consent of Borrower. This Section is not for the benefit of or enforceable
by Borrower.

 

5.7.2           Erroneous
Application. Agent shall not be liable for any application of amounts made by it in good faith and, if any such application
is subsequently determined to have been made in error, the sole recourse of any Lender or other Person to which such amount should
have been made shall be to recover the amount from the Person that actually received it (and, if such amount was received by any
Lender, such Lender hereby agrees to return it).

 

    	 	-34-	 

     

    

 

5.8          Application
of Payments

 

5.8.1           Dominion
Account. On any Business Day on which the entire ledger balance in the Dominion
Account exceeds $150,000, an amount equal to the lesser of (a) the entire balance in the Dominion Account, or (b) the outstanding
amount of the Obligations shall be directed to Agent and applied by Agent to the Obligations on such Business Day. If, as a result
of such application, a credit balance exists, the balance shall not accrue interest in favor of Borrower and shall be made available
to Borrower as long as no Default or Event of Default exists. Borrower irrevocably waives the right to direct the application
of any payments or Collateral proceeds, and agrees that Agent shall have the continuing, exclusive right to apply and reapply
same against the Obligations in such manner as set forth herein.

 

5.8.2           Insurance
and Condemnation Proceeds. Any proceeds of insurance (other than proceeds from workers’ compensation or D&O insurance)
and any awards arising from condemnation of any Collateral shall be paid to Agent. Any such proceeds or awards shall be applied
to payment of the Revolver Loans, and then to any other Obligations outstanding.

 

5.8.3           Reinvestment.
If requested by Borrower in writing within 15 days after Agent’s receipt of any insurance proceeds or condemnation awards
relating to any loss or destruction of Equipment or real estate, Borrower may use such proceeds or awards to repair or replace
such Equipment or real estate (and until so used, the proceeds shall be held by Agent as Cash Collateral or applied to the Revolver
Loans) as long as (i) no Default or Event of Default exists; (ii) such repair or replacement is promptly undertaken and concluded,
in accordance with plans satisfactory to Agent (but in any event concluded within 180 days after the date of such loss); (iii)
replacement buildings are constructed on the sites of the original casualties and are of comparable size, quality and utility
to the destroyed buildings; (iv) the repaired or replaced Property is free of Liens (except in favor of Agent); (v) Borrower comply
with disbursement procedures for such repair or replacement as Agent may reasonably require; and (vi) the aggregate amount of
such proceeds or awards from any single casualty or condemnation does not exceed $50,000.

 

5.9          Loan
Account; Account Stated

 

5.9.1           Loan
Account. Agent shall maintain in accordance with its usual and customary practices an account or accounts (“Loan
Account”) evidencing the Debt of Borrower resulting from each Loan from time to time. Any failure of Agent to record
anything in the Loan Account, or any error in doing so, shall not limit or otherwise affect the obligation of Borrower to pay
any amount owing hereunder. Agent may maintain a single Loan Account in the name of Borrower, and Borrower confirms that such
arrangement shall have no effect on its liability for the Obligations.

 

5.9.2           Entries
Binding. Entries made in the Loan Account shall constitute presumptive evidence of the information contained therein. If any
information contained in the Loan Account is provided to or inspected by any Person, then such information shall be conclusive
and binding on such Person for all purposes absent manifest error, except to the extent such Person notifies Agent in writing
within 30 days after receipt or inspection that specific information is subject to dispute.

 

5.10        Taxes

 

5.10.1         Payments
Free of Taxes. All payments by Borrower of Obligations shall be free and clear of and without reduction for any Taxes, except
as required by Applicable Law. If Applicable Law requires Borrower or Agent to withhold or deduct any Tax (as determined in the
good faith discretion of Borrower or Agent, as applicable), the withholding or deduction shall be based on information provided
pursuant to Section 5.11 and Agent shall pay the amount withheld or deducted to the relevant governmental authority. If
the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by Borrower shall be increased
so that Agent or Lender, as applicable, receives an amount equal to the sum it would have received if no such withholding or deduction
(including deductions applicable to additional sums payable under this Section) had been made. Without limiting the foregoing,
Borrower shall timely pay all Other Taxes to the relevant governmental authorities.

 

    	 	-35-	 

     

    

 

5.10.2         Payment.
Borrower shall indemnify, hold harmless and reimburse (within 10 days after demand therefor) Agent and Lenders for any Indemnified
Taxes or Other Taxes (including those attributable to amounts payable under this Section) withheld or deducted by Borrower or
Agent, or paid by Agent or any Lender with respect to any Obligations or Transaction Documents, whether or not such Taxes were
properly asserted by the relevant governmental authority, and including all penalties, interest and reasonable expenses relating
thereto. A certificate as to the amount of any such payment or liability delivered to Borrower by Agent, or by a Lender (with
a copy to Agent), shall be conclusive, absent manifest error. As soon as practicable after any payment of Taxes by Borrower, Borrower
shall deliver to Agent a receipt from the governmental authority or other evidence of payment satisfactory to Agent.

 

5.10.3         Treatment
of Certain Refunds. If any party 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 (including by the payment of additional amounts pursuant
to this Section), 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 Section 5.10.3 (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 Section 5.10.3, in no event will the indemnified party be required to pay any amount to an indemnifying
party pursuant to this Section 5.10.3, 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.

 

5.11         Lender
Tax Information

 

5.11.1         Status
of Lenders. Each Lender shall deliver documentation and information to Agent and Borrower, at the times and in form required
by Applicable Law or reasonably requested by Agent or Borrower, sufficient to permit Agent or Borrower to determine (a) whether
or not payments made with respect to Obligations are subject to Taxes, (b) if applicable, the required rate of withholding or
deduction, and (c) such Lender’s entitlement to any available exemption from, or reduction of, applicable Taxes for such
payments or otherwise to establish such Lender’s status for withholding tax purposes in the applicable jurisdiction.

 

    	 	-36-	 

     

    

 

5.11.2         Documentation.
If Borrower is U.S. Person:

 

(a)          any
Lender that is a U.S. Person shall deliver to Agent and Borrower on or prior to the date on which such Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of Agent and Borrower) executed copies of IRS
Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding Tax to backup withholding or information reporting
requirements.;

 

(b)          any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Agent and Borrower on or prior to the date on which
such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Agent and Borrower),
whichever of the following is applicable

 

(i)          in
the case of a Foreign Lender that is claiming eligibility for benefits of an income tax treaty to which the United States is a
party, executed copies of IRS Form W-8BEN or IRS For W-8BEN-E as applicable, establishing an exemption from, or reduction of, U.S.
federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable
payments under any Transaction Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or
reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article
of such tax treaty;

 

(ii)         executed
copies of IRS Form W-8ECI;

 

(iii)        executed
copies of IRS Form W-8IMY and all required supporting documentation; or

 

(iv)        in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, IRS
Form W-8BEN or IRS Form W-8BEN-E, as applicable and a certificate showing such Foreign Lender is not (i) a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, (ii) a “10 percent shareholder” of Borrower within the meaning of
Section 881(c)(3)(B) of the Code, or (iii) a “controlled foreign corporation” described in Section 881(c)(3)(C) of
the Code; or (e) any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in withholding
tax, together with such supplementary documentation necessary to allow Agent and Borrower to determine the withholding or deduction
required to be made; and

 

(c)          any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Agent and Borrower on or prior to the date on which
such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Agent
or Borrower), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction
in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable
law to permit Agent or Borrower to determine the withholding or deduction required to be made.

 

5.11.3         Lender
Obligations. Each Lender 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 and promptly notify Borrower and Agent of any change in circumstances
that would change any claimed Tax exemption or reduction. Each Lender shall indemnify, hold harmless and reimburse (within 10
days after demand therefor) Borrower and Agent for any Taxes, losses, claims, liabilities, penalties, interest and expenses (including
reasonable attorneys’ fees) incurred by or asserted against Borrower or Agent by any governmental authority due to such
Lender’s failure to deliver, or inaccuracy or deficiency in, any documentation required to be delivered by it pursuant to
this Section. Each Lender authorizes Agent to set off any amounts due to Agent under this Section against any amounts payable
to such Lender under any Transaction Document.

 

    	 	-37-	 

     

    

 

5.11.4         FATCA.
If a payment made to a Lender under this Agreement would be subject to U.S. Federal withholding Tax imposed by FATCA, such Lender
shall deliver to Agent, at the time or times prescribed by law and at such time or times reasonably requested by Agent, such documentation
prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by Agent as may be necessary for Agent to comply with its obligations under FATCA, to determine that such
Lender has complied with such Lender’s obligations under FATCA, applicable reporting requirements of FATCA (including those
contained in Section 1471(b) or 1472(b) of the Code, as applicable) or to determine the amount to deduct and withhold from such
payment. Solely for purposes of this paragraph, “FATCA” shall include any amendments made to FATCA after the Closing
Date.

 

SECTION 6.          CONDITIONS
PRECEDENT

 

6.1           Conditions
Precedent to Initial Loans. In addition to the conditions set forth in Section 6.2, Lenders shall not be required
to fund any requested Loan, or otherwise extend credit to Borrower hereunder, until the date (“Closing Date”) that
each of the conditions set forth on Exhibit C attached hereto have been satisfied or waived in writing by Agent.

 

6.2           Conditions
Precedent to All Credit Extensions. Agent and Lenders shall not be required to fund any Loans or grant any other accommodation
to or for the benefit of Borrower, unless the following conditions are satisfied:

 

(a)          No
Default or Event of Default shall exist at the time of, or result from, such funding, issuance or grant;

 

(b)          The
representations and warranties of Borrower in the Transaction Documents shall be true and correct in all material respects on the
date of, and upon giving effect to, such funding, issuance or grant (except for representations and warranties that expressly relate
to an earlier date, and that any representation or warranty which is subject to any materiality qualifier shall be required to
be true and correct in all respects);

 

(c)          All
conditions precedent in any other Transaction Document that are applicable to the funding of any credit extension shall be satisfied;
and

 

(d)          No
event shall have occurred or circumstance exist that has or could reasonably be expected to have a Material Adverse Effect and
no action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court,
governmental authority or legislative body to enjoin, restrain or prohibit, or to obtain damages in respect of, or which is related
to or arises out of, this Agreement or any of the other Transaction Documents or the consummation of the transactions contemplated
hereby or thereby.

 

    	 	-38-	 

     

    

 

Each request (or deemed request) by Borrower
for funding of a Loan or grant of an accommodation shall constitute a representation by Borrower that the foregoing conditions
are satisfied on the date of such request and on the date of such funding, issuance or grant. As an additional condition to any
funding, issuance or grant, Agent shall have received such other information, documents, instruments and agreements as it deems
appropriate in connection therewith including, but not limited to, an updated Borrowing Base Certificate. Each representation and
warranty contained in this Agreement and the other Transaction Documents shall be deemed to be reaffirmed by Borrower as being
true and correct in all material respects (except for representations and warranties that are subject to any materiality qualifiers
shall be required to be true and correct in all respects) on each day that Borrower requests or is deemed to have requested an
extension of credit hereunder, except for changes in the nature of Borrower’s or, if applicable, any Subsidiary’s business
or operations that may occur after the date hereof in the Ordinary Course of Business so long as Agent has consented to such changes
or such changes are not violative of any provision of this Agreement.

 

SECTION 7.          COLLATERAL

 

7.1           Grant
of Security Interest. To secure the prompt payment and performance of all Obligations, Borrower hereby grants to Agent,
for the benefit of Secured Parties, a continuing security interest in and Lien upon the following Property, whether now owned
or hereafter acquired, and wherever located: (a) all Accounts; (b) all Chattel Paper, including electronic chattel paper; (c)
all Commercial Tort Claims, including those shown on Schedule 7; (d) all Deposit Accounts; (e) all Documents; (f) all General
Intangibles, including Intellectual Property; (g) all Goods, including Inventory, Equipment and fixtures; (h) all Instruments;
(i) all Investment Property; (j) all Letter-of-Credit Rights; (k) all Supporting Obligations; (l) all monies, whether or not in
the possession or under the control of Agent, a Lender, or a bailee or Affiliate of Agent or a Lender, including any Cash Collateral;
(m) all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including
proceeds of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction
of any Collateral; (n) all books and records (including customer lists, files, correspondence, tapes, computer programs, print-outs
and computer records) pertaining to the foregoing; and (o) all other personal Property of Borrower.

 

7.2           Lien
on Other Collateral

 

7.2.1           Deposit
and other Accounts. To further secure the prompt payment and performance of all Obligations, Borrower hereby grants to Agent,
for the benefit of Secured Parties, a continuing security interest in and Lien upon all amounts credited to any Deposit Account,
Securities Account and Commodity Account of Borrower, including any sums in any blocked or lockbox accounts or in any accounts
into which such sums are swept. Borrower hereby authorizes and directs each bank or other depository to deliver to Agent, upon
request, all balances in any Deposit Account, Securities Account and Commodity Account maintained by Borrower, without inquiry
into the authority or right of Agent to make such request. Borrower shall take all actions (including, without limitation, the
delivery of one or more control agreements) necessary to establish Agent’s control (including through the execution of a
deposit account control agreement as required by Agent) of each such Deposit Account, Securities Account and Commodity Account
(other than a Deposit Account exclusively used for payroll, payroll taxes or employee benefits, or an account containing not more
than $10,000 at any time). Borrower shall be the sole account holder of each Deposit Account and shall not allow any other Person
(other than Agent) to have control over a Deposit Account or any Property deposited therein (other than a Deposit Account exclusively
used for payroll, payroll taxes or employee benefits). Borrower shall promptly notify Agent of any opening or closing of a Deposit
Account and, with the consent of Agent, will amend Schedule 2 to reflect same. At all times on and after the Closing Date,
all Deposit Accounts, Securities Accounts and Commodity Accounts shall be primarily maintained with the Custodian.

 

    	 	-39-	 

     

    

 

7.2.2           Cash
Collateral. Any Cash Collateral may be invested, at Agent’s discretion (and with the consent of Borrower, as long as
no Event of Default exists), but Agent shall have no duty to do so, regardless of any agreement or course of dealing with Borrower,
and shall have no responsibility for any investment or loss. Borrower hereby grants to Agent, for the benefit of Secured Parties
and as security for the Obligations, a security interest in all Cash Collateral held from time to time and all proceeds thereof,
whether held in a Cash Collateral Account or otherwise. Agent may apply Cash Collateral to the payment of Obligations as they
become due, in such order as Agent may elect. Each Cash Collateral Account and all Cash Collateral shall be under the sole dominion
and control of Agent, and neither Borrower nor other Person shall have any right to any Cash Collateral, until Full Payment of
all Obligations.

 

7.3           Reserved.

 

7.4           Other
Collateral

 

7.4.1           Commercial
Tort Claims. Borrower shall promptly notify Agent in writing if Borrower has a Commercial Tort Claim (other than, as long
as no Default or Event of Default exists, a Commercial Tort Claim for less than $500,000), shall promptly amend Schedule 7
to include such claim, and shall take such actions as Agent deems appropriate to subject such claim to a duly perfected, first
priority Lien in favor of Agent (for the benefit of Secured Parties).

 

7.4.2           Certain
After-Acquired Collateral. Borrower shall promptly notify Agent in writing if, after the Closing Date, Borrower obtains any
interest in any Collateral consisting of Deposit Accounts, Securities Accounts, Commodity Accounts, Chattel Paper (including,
without limitation, tangible Chattel Paper and Electronic Chattel Paper), Documents, Instruments, Intellectual Property, Investment
Property or Letter-of-Credit Rights and, upon Agent’s request, shall promptly take such actions as Agent deems appropriate
to effect Agent’s duly perfected, first priority Lien upon such Collateral, including obtaining any appropriate possession,
or control agreement and delivery of any applicable Collateral to the Custodian for the benefit of Agent, provided that prior
to an Event of Default, Agent shall not require Borrower to deliver any such Collateral to Agent or any Person other than the
Custodian. If any Collateral is in the possession of a third party, at Agent’s request, Borrower shall obtain an acknowledgment
that such third party holds the Collateral for the benefit of Agent.

 

7.5           No
Assumption of Liability. The Lien on Collateral granted hereunder is given as security only and shall not subject Agent
or any Lender to, or in any way modify, any obligation or liability of Borrower relating to any Collateral.

 

7.6           Further
Assurances. Promptly upon request, Borrower shall deliver such instruments, assignments, title certificates, or other
documents or agreements, and shall take such actions, as Agent deems appropriate under Applicable Law to evidence or perfect its
Lien on any Collateral, or otherwise to give effect to the intent of this Agreement. Borrower authorizes Agent to file any financing
statement that indicates the Collateral as “all assets” or “all personal property” of Borrower, or words
to similar effect, and ratifies any action taken by Agent before the Closing Date to effect or perfect its Lien on any Collateral.

 

7.7           Continuation
of Security Interest. Notwithstanding termination of this Agreement or of Lenders’ commitments to extend Loans hereunder,
until Full Payment of all Obligations, Agent shall retain its security interest in all presently owned and hereafter arising or
acquired Collateral.

 

    	 	-40-	 

     

    

 

SECTION 8.          REPRESENTATIONS
AND WARRANTIES

 

8.1           General
Representations and Warranties. To induce Agent and Lenders to enter into this Agreement and to make available the Commitments
and Loans, Borrower represents and warrants that:

 

8.1.1           Organization
and Qualification. Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization. Borrower is duly qualified, authorized to do business and in good standing as a foreign corporation in each
jurisdiction where failure to be so qualified could reasonably be expected to have a Material Adverse Effect. Borrower has not
changed its legal status or the jurisdiction in which it is organized or moved its chief executive office within the five (5)
years preceding the Closing Date.

 

8.1.2           Power
and Authority. Borrower is duly authorized to execute, deliver and perform its obligations under Transaction Documents to
which it is a party. The execution, delivery and performance of the Transaction Documents have been duly authorized by all necessary
action, and do not (a) require any consent or approval of any holders of Equity Interests of Parent or Borrower, other than those
already obtained; (b) contravene the Organic Documents of Borrower; (c) violate or cause a default under any Applicable Law or
Material Contract; or (d) result in or require the imposition of any Lien (other than Permitted Liens) on any Property of Borrower.

 

8.1.3           Enforceability.
Each Transaction Document to which it is a party is a legal, valid and binding obligation of Borrower, enforceable in accordance
with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally.

 

8.1.4           Capital
Structure. Schedule 4 shows, for Borrower, its name, its jurisdiction of organization, its authorized and issued Equity
Interests, the holders of its Equity Interests, and all agreements binding on such holders with respect to their Equity Interests.
Except as disclosed on Schedule 4, in the five years preceding the Closing Date, Borrower has not acquired any substantial
assets from any other Person nor been the surviving entity in a merger or combination. Borrower has no Subsidiaries and does not
own any Equity Interest in any other Person, other than Equity Interest acquired in connection with a Portfolio Investment. There
are no outstanding purchase options, warrants, agreements to buy, subscription rights, agreements to issue or sell, convertible
interests, phantom rights or powers of attorney relating to Equity Interests of Borrower.

 

8.1.5           Title
to Properties; Priority of Liens. Borrower has good and marketable title to (or valid leasehold interests in) all of its real
estate, and good title to all of its personal Property, including all Property reflected in any financial statements delivered
to Agent or Lenders, in each case free of Liens except Permitted Liens. Borrower has paid and discharged all lawful claims that,
if unpaid, could become a Lien on its Properties, other than Permitted Liens. All Liens of Agent in the Collateral are duly perfected,
first priority Liens, subject only to Permitted Liens that are expressly allowed to have priority over Agent’s Liens.

 

8.1.6           Reserved.

 

    	 	-41-	 

     

    

 

8.1.7           Financial
Statements. The consolidated balance sheets, and related statements of income, cash flow and shareholder’s equity, of
Parent, Borrower, and their respective Subsidiaries that have been and are hereafter delivered to Agent and Lenders, are prepared
in accordance with GAAP, and fairly present the financial positions and results of operations of Parent, Borrower, and their respective
Subsidiaries at the dates and for the periods indicated. All projections delivered from time to time to Agent and Lenders have
been prepared in good faith, based on reasonable assumptions in light of the circumstances at such time. Since December 31, 2016,
there has been no change in the condition, financial or otherwise, of Parent, Borrower or Subsidiary that could reasonably be
expected to have a Material Adverse Effect. No financial statement delivered to Agent or Lenders at any time contains any untrue
statement of a material fact, nor fails to disclose any material fact necessary to make such statement not materially misleading.
Borrower is Solvent. No transfer of property has been or will be made by Borrower or any of its Affiliates and no obligation has
been or will be incurred by Borrower or any of its Affiliates in connection with the transactions contemplated by this Agreement
or the other Transaction Documents with the intent to hinder, delay, or defraud either present or future creditors of Borrower
or any of its Affiliates.

 

8.1.8           Surety
Obligations. Borrower is not obligated as surety or indemnitor under any bond or other contract that assures payment or performance
of any obligation of any Person, except as permitted hereunder.

 

8.1.9           Taxes.
Each of Borrower and Parent has filed all federal, state and local tax returns and other reports that it is required by law to
file, and has paid, or made provision for the payment of, all Taxes upon it, its income and its Properties that are due and payable,
except to the extent being Properly Contested (and, in the case of matters being Properly Contested as of the Closing Date, fully
disclosed to Agent and Lenders on or before the Closing Date). The provision for Taxes on the books of each of Borrower and Parent
is adequate for all years not closed by applicable statutes, and for its current Fiscal Year.

 

8.1.10         Brokers.
There are no brokerage commissions, finder’s fees or investment banking fees payable in connection with any transactions
contemplated by the Transaction Documents.

 

8.1.11         Intellectual
Property. Borrower owns or has the lawful right to use all Intellectual Property necessary for the conduct of its business,
without conflict with any rights of others. There is no pending or, to Borrower’s knowledge, threatened Intellectual Property
claim with respect to Borrower or any of its Property (including any Intellectual Property). Except as disclosed on Schedule
5, Borrower does not pay or owe any Royalty or other compensation to any Person with respect to any Intellectual Property.
All Intellectual Property owned, used or licensed by, or otherwise subject to any interests of, Borrower is shown on Schedule
5.

 

8.1.12         Governmental
Approvals. Borrower has, is in compliance with, and is in good standing with respect to, all approvals from all governmental
authorities necessary to conduct its business and to own, lease and operate its Properties. All necessary import, export or other
licenses, permits or certificates for the import or handling of any goods or other Collateral have been procured and are in effect,
and Borrower has complied with all foreign and domestic laws with respect to the shipment and importation of any goods or Collateral.

 

8.1.13         Compliance
with Laws. Borrower has duly complied, and its Properties and business operations are in compliance, in all material respects
with all Applicable Law, except where noncompliance could not reasonably be expected to have a Material Adverse Effect. There
have been no citations, notices or orders of material noncompliance issued to Borrower under any Applicable Law.

 

8.1.14         Burdensome
Contracts. Borrower is not a party or subject to any contract, agreement or charter restriction that could reasonably be expected
to have a Material Adverse Effect. Borrower is not party or subject to any Restrictive Agreement, except as shown on Schedule
6. No such Restrictive Agreement prohibits the execution, delivery or performance of any Transaction Document by Borrower.

 

    	 	-42-	 

     

    

 

8.1.15         Litigation.
Except as shown on Schedule 7, there are no proceedings or investigations pending or, to Borrower’s knowledge, threatened
against Borrower or Parent, or any of their businesses, operations, Properties, prospects or conditions, that (a) relate to any
Transaction Documents or transactions contemplated thereby; or (b) could reasonably be expected to have a Material Adverse Effect
if determined adversely to Borrower or Parent. Except as shown on such Schedule, Borrower does not have a Commercial Tort Claim
(other than, as long as no Default or Event of Default exists, a Commercial Tort Claim for less than $50,000). Borrower is not
in default with respect to any order, injunction or judgment of any governmental authority.

 

8.1.16         No
Defaults. No event or circumstance has occurred or exists that constitutes a Default or Event of Default. Borrower is not
in default, and no event or circumstance has occurred or exists that with the passage of time or giving of notice would constitute
a default, under any Material Contract or in the payment of any Borrowed Money. There is no basis upon which any party (other
than Borrower) could terminate a Material Contract prior to its scheduled termination date.

 

8.1.17         ERISA.
Except as disclosed on Schedule 8, neither Borrower nor any of its Affiliates has any Plan on the date hereof. Borrower
and each of its Affiliates is in full compliance with the requirements of ERISA and the regulations promulgated thereunder with
respect to each Plan. No fact or situation that is reasonably likely to result in a Material Adverse Effect exists in connection
with any Plan. Neither Borrower nor any of its Affiliates has any withdrawal liability in connection with a Multiemployer Plan.

 

8.1.18         [Reserved].

 

8.1.19         Labor
Relations. Borrower is not party to or bound by any collective bargaining agreement, management agreement or consulting agreement.
There are no material grievances, disputes or controversies with any union or other organization of Borrower’s employees,
or, to Borrower’s knowledge, any asserted or threatened strikes, work stoppages or demands for collective bargaining. No
goods or services have been or will be produced by Borrower in violation of any applicable labor laws or regulations or any collective
bargaining agreement or other labor agreements or in violation of any minimum wage, wage-and-hour or other similar laws or regulations.

 

8.1.20         
[Reserved].

 

8.1.21         Not
a Regulated Entity. (a) Borrower is not an “investment company” and is not required to register as an “investment
company” under the Investment Company Act; and (b) Borrower is not subject to regulation under the Federal Power Act, the
Interstate Commerce Act, any public utilities code or any other Applicable Law regarding its authority to incur Debt.

 

8.1.22         Margin
Stock. 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 any Margin Stock. No Loan proceeds will be used by Borrower to purchase or carry, or to
reduce or refinance any Debt incurred to purchase or carry, any Margin Stock or for any related purpose governed by Regulations
T, U or X of the Board of Governors.

 

    	 	-43-	 

     

    

 

8.1.23         Deposit
and Other Accounts. Schedule 2 sets forth all Deposit Accounts, Securities Accounts and Commodity Accounts maintained
by Borrower, including all Dominion Accounts.

 

8.1.24         Anti-Terrorism
Laws, Anti-Corruption Laws and Sanctions.

 

(a)          Neither
Borrower nor any of its Affiliates is in violation of any Anti-Terrorism Law; engages in or conspires to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
any Anti-Terrorism Law; or is a Sanctioned Person. Neither Borrower nor any of its Affiliates conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person or deals in,
or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to Executive Order
No. 13224.

 

(b)          Borrower
and its Affiliates have implemented and maintain in effect policies and procedures designed to ensure compliance by Borrower and
such Affiliates and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions,
and Borrower and its Affiliates, their respective Subsidiaries and their respective directors, officers and employees and, to the
knowledge of Borrower, its agents, are in compliance with Anti-Corruption Laws and applicable Sanctions. None of (i) Borrower,
its Affiliates or any of their respective directors, officers or employees, or (ii) to the knowledge of Borrower, any agent of
Borrower or its Affiliates or any of their respective Subsidiaries that will act in any capacity in connection with or benefit
from the credit facilities established hereby, is a Sanctioned Person. No borrowing, use of proceeds or other transactions contemplated
herein will violate Anti-Corruption Laws or applicable Sanctions.

 

8.1.25         Additional
Collateral Matters.

 

(a)          As
of the date hereof: (i) no amount payable under or in connection with any of the Collateral is evidenced by any Instrument or tangible
Chattel Paper (other than promissory notes delivered to the Custodian on the Closing Date); (ii) (1) Borrower does not hold, own
or have any interest in any certificated securities or uncertificated securities other than those constituting Collateral with
respect to which Agent has a perfected security interest in such Collateral, and (2) it has entered into a duly authorized, executed
and delivered control agreement in form and substance satisfactory to Agent with respect to each Deposit Account, Securities Account
and Commodity Account listed in Schedule 2 with respect to which Agent has a perfected security interest in such accounts
by “control” (as contemplated by Section 9-104 of the UCC); (iii) no amount payable under or in connection with any
of the Collateral is evidenced by any Electronic Chattel Paper or any “transferable record” (as that term is defined
in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction; and (iv) no amount payable under or in connection with any of the Collateral
is evidenced by any Letter-of-Credit Rights.

 

(b)          This
Agreement and the other Security Documents create in favor of Agent, for the benefit of the Secured Parties referred to therein,
a legal, valid, continuing and enforceable security interest and Lien in the Collateral, the enforceability of which is subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. The financing statements,
releases and other filings are in appropriate form and have been or will be filed in appropriate filing offices. Upon such filings
and/or the obtaining of “control” (as contemplated by Section 9-104 of the UCC), Agent will have a perfected Lien on,
and security interest in, to and under all right, title and interest of the grantors thereunder in all Collateral that may be perfected
under the UCC (in effect on the date this representation is made) by filing, recording or registering a financing statement or
analogous document (including without limitation the proceeds of such Collateral subject to the limitations relating to such proceeds
in the UCC) or by obtaining control. The Pledged Collateral (as defined in the Pledge Agreement) has been delivered to Agent (together
with stock powers or other appropriate instruments of transfer executed in blank form).

 

    	 	-44-	 

     

    

 

(c)          If
applicable, when a trademark security agreement or patent security agreement (or a short form thereof) is filed in the United States
Patent and Trademark Office and when financing statements, releases and other filings in appropriate form are filed in the applicable
filing offices, Agent shall have a fully perfected Lien on, and security interest in, all right, title and interest of Borrower
in trademarks, patents and related assets constituting trademark and patent Collateral (as set forth in the applicable trademark
security agreement or patent security agreement) in which a security interest may be perfected by filing, recording or registering
a security agreement, financing statement or analogous document in the United States Patent and Trademark Office, as applicable.
If applicable, when a copyright security agreement or patent security agreement is filed in the United States Copyright Office
and when financing statements, releases and other filings in appropriate form are filed in the applicable filing offices, Agent
shall have a fully perfected Lien on, and security interest in, all right, title and interest of Borrower in copyrights and assets
constituting copyright Collateral (as set forth in the applicable trademark security agreement or patent security agreement) in
which a security interest may be perfected by filing, recording or registering a security agreement, financing statement or analogous
document in the United States Copyright Office, as applicable.

 

(d)          Neither
the businesses nor the properties of Borrower are affected by any fire, explosion, accident, strike, lockout or other labor dispute,
drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance).

 

(e)          Neither
Borrower nor any property of Borrower has (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any liability under
any Environmental Law, (iii) has received notice of any claim or investigation with respect to any material liability or non-compliance
under any Environmental Law or (iv) knows of any basis for any liability under any Environmental Law, except, in each case, as
could not, individually or in the aggregate, reasonably be expected to result in any material liability under Environmental Laws
or have a Material Adverse Effect. Borrower is not is undertaking, and Borrower has not completed, either individually or together
with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual
or threatened release, discharge or disposal of hazardous materials at any site, location or operation, either voluntarily or pursuant
to the order of any governmental authority or the requirements of any Environmental Law; and all hazardous materials generated,
used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by Borrower
have been disposed of in a manner not reasonably expected to result in material liability to Borrower.

 

8.1.26         Special
Purpose Entity. Borrower has not and shall not:

 

(a)          engage
in any business or activity other than the purchase, receipt and management of Collateral, the transfer and pledge of Collateral
pursuant to the terms of the Transaction Documents, the entry into and the performance under the Transaction Documents and such
other activities as are incidental thereto;

 

    	 	-45-	 

     

    

 

(b)          acquire
or own any assets other than (a) the Collateral or (b) incidental property as may be necessary for the operation of Borrower
and the performance of its obligations under the Transaction Documents;

 

(c)          merge
into or consolidate with any Person or dissolve, terminate or liquidate in whole or in part, transfer or otherwise dispose of all
or substantially all of its assets (other than in accordance with the provisions hereof), without in each case first obtaining
the prior written consent of the Agent, or except as permitted by this Agreement, change its legal structure, or jurisdiction of
formation;

 

(d)          fail
to preserve its existence as an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization or formation, or without the prior written consent of the Agent, amend, modify, terminate or fail to comply
with the provisions of its operating agreement, or fail to observe limited liability company formalities;

 

(e)          form,
acquire or own any Subsidiary, own any equity interest in any other entity, or make any Investment in any Person (other than Portfolio
Investments, Cash and Cash Equivalents) without the prior written consent of the Agent;

 

(f)          commingle
its assets with the assets of any of its Affiliates, or of any other Person;

 

(g)          incur
any Indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than Indebtedness to
the Lenders hereunder or in conjunction with a repayment of all Loans owed to the Lenders and a termination of all the Commitments;

 

(h)          fail
to pay its debts and liabilities from its assets as the same shall become due;

 

(i)          fail
to maintain its records, books of account and bank accounts separate and apart from those of any other Person;

 

(j)          enter
into any contract or agreement with any Person, except (i) the Transaction Documents and (ii) other contracts or agreements
that are upon terms and conditions that are commercially reasonable and that would be available on an arms-length basis with third
parties other than such Affiliate;

 

(k)          seek
its dissolution or winding up in whole or in part;

 

(l)          fail
to correct any known misunderstandings regarding the separate identity of Borrower and the Parent or any other Person;

 

(m)          except
as provided in this Agreement, guarantee, become obligated for, or hold itself out to be responsible for the debt of another Person;

 

    	 	-46-	 

     

    

 

(n)          fail
either to hold itself out to the public as a legal entity separate and distinct from any other Person or to conduct its business
solely in its own name in order not (i) to mislead others as to the identity of the Person with which such other party is
transacting business, or (ii) to suggest that it is responsible for the debts of any third party (including any of its principals
or Affiliates);

 

(o)          fail
to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations;

 

(p)          file
or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy,
liquidation or reorganization statute, or make an assignment for the benefit of creditors;

 

(q)          except
as may be required or permitted by the Code and regulations or other applicable state or local tax law, hold itself out as or be
considered as a department or division of (i) any of its principals or Affiliates, (ii) any Affiliate of a principal
or (iii) any other Person;

 

(r)          fail
to maintain separate financial statements, showing its assets and liabilities separate and apart from those of any other Person
and not have its assets listed on any financial statement of any other Person; provided, however, that Borrower’s
assets may be included in a consolidated financial statement of its Affiliate provided that (a) appropriate notation
shall be made on such consolidated financial statements to indicate the separateness of Borrower from such Affiliate and to indicate
that Borrower’s assets and credit are not available to satisfy the debts and other obligations of such Affiliate or any other
Person and (b) such assets shall also be listed on Borrower’s own separate balance sheet;

 

(s)          fail
to pay its own liabilities and expenses only out of its own funds;

 

(t)          acquire
the obligations or securities of its Affiliates or members;

 

(u)          guarantee
any obligation of any person, including an Affiliate;

 

(v)         fail
to allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space and
services performed by any employee of an Affiliate;

 

(w)          fail
to use separate invoices and checks bearing its own name;

 

(x)          pledge
its assets for the benefit of any other Person, other than with respect to payment of the indebtedness to the Secured Parties hereunder;

 

    	 	-47-	 

     

    

 

(y)          (i)
fail at any time to have at least one (1) independent manager (the “Independent Manager”) which manager must,
in each such instance, be a natural person who has prior experience as an independent director, independent manager or independent
member with at least three years of employment experience, and who is provided by CT Corporation, Corporation Service Company,
Global Securitization Services, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities
Corporation or, if none of those companies is then providing professional Independent Managers, another nationally recognized company
reasonably approved by the Lenders, in each case that is not an Affiliate of Borrower and that provides professional Independent
Managers and other corporate services in the ordinary course of its business, and which individual is duly appointed as an Independent
Manager and is not, and has never been, and will not while serving as Independent Manager be, any of the following: (v) a member,
partner, equityholder, manager, director, officer or employee of Borrower or any of its respective equityholders or Affiliates
(other than as an Independent Manager of Borrower or an Affiliate of Borrower that is not in the direct chain of ownership of Borrower
and that is required by a creditor to be a single purpose bankruptcy remote entity); (x) a creditor, supplier or service provider
(including provider of professional services) to Borrower or any of its equityholders or Affiliates (other than a nationally recognized
company that routinely provides professional Independent Managers and other corporate services to Borrower or any of its equityholders
or Affiliates in the ordinary course of business); (y) a family member of any such member, partner, equityholder, manager, director,
officer, employee, creditor, supplier or service provider; or (z) a Person that controls (whether directly, indirectly or otherwise)
any of (v), (x) or (y) above; or (ii) fail to ensure that all limited liability company action relating to the selection, maintenance
or replacement of the Independent Manager shall require the written consent of the Agent. A natural person who otherwise satisfies
the foregoing definition and satisfies subparagraph (v) by reason of being the Independent Manager of a “special purpose
entity” affiliated with Borrower shall be qualified to serve as an Independent Manager of Borrower, provided that the fees
that such individual earns from serving as Independent Manager of affiliates of Borrower in any given year constitute in the aggregate
less than five percent (5%) of such individual’s annual income for that year;

 

(z)          fail
to provide that the unanimous consent of all managers (including the consent of Borrower’s Independent Manager) is required
for Borrower to (a) institute proceedings to be adjudicated bankrupt or insolvent, (b) institute or consent to the institution
of bankruptcy or insolvency proceedings against it, (c) file a petition seeking or consenting to reorganization or relief
under any applicable federal or state law relating to bankruptcy or insolvency, (d) seek or consent to the appointment of
a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for Borrower, (e) make any assignment
for the benefit of Borrower’s creditors, (f) admit in writing its inability to pay its debts generally as they become
due, or (g) take any action in furtherance of any of the foregoing;

 

(aa)         fail
to file its own tax returns separate from those of any other Person, except to the extent that Borrower is treated as a “disregarded
entity” for tax purposes and is not required to file tax returns under applicable law, and pay any taxes required to be paid
under applicable law; or

 

(bb)         fail
to comply with the special purpose entity requirements set forth in this Section 8.1.26 such that Eversheds Sutherland (US)
LLP or another law firm reasonably acceptable to the Agent could no longer render a substantive nonconsolidation opinion with respect
to Borrower.

 

8.2           Complete
Disclosure. No Transaction Document, nor any other agreement, document, certificate, or statement, delivered by or on
behalf of Borrower or any of its Affiliates to Agent or any Lender contains any untrue statement of a material fact, nor fails
to disclose any material fact necessary to make the statements contained therein not misleading. There is no fact or circumstance
that Borrower or any of its Affiliates has failed to disclose to Agent in writing that could reasonably be expected to have a
Material Adverse Effect.

 

8.3           Updated
Representations and Warranties. Each representation and warranty contained in this Agreement and the other
Transaction Documents shall be deemed to be reaffirmed by Borrower on each day that Borrower delivers or is required to
deliver a Borrowing Base Certificate hereunder and on each day a Loan is made hereunder, except for changes in the nature of
Borrower business or operations that may occur after the date hereof in the Ordinary Course of Business so long as Agent has
provided its prior written consent (in its sole discretion) to such changes or such changes are not violative of any
provision of this Agreement.

 

    	 	-48-	 

     

    

 

SECTION 9.          COVENANTS
AND CONTINUING AGREEMENTS

 

9.1           Affirmative
Covenants. As long as any Commitments or Obligations are outstanding, Borrower and/or Servicer, as applicable, shall do
the following:

 

9.1.1           Collateral
Reporting and Records.

 

(a)          Borrowing
Base. Borrower shall (or shall cause Servicer to) deliver to Agent, by the 15th day of each month, a Borrowing Base Certificate
prepared as of the close of business of the previous month, and at such other times as Agent may request; provided that, while
all calculations of Availability in any Borrowing Base Certificate shall originally be made by Borrower and certified by a Senior
Officer, Agent may from time to time review and adjust any such calculation in its Permitted Discretion (i) to reflect its reasonable
estimate of declines in value of any Collateral, due to collections received in the Dominion Account or otherwise; (ii) to adjust
advance rates to reflect changes in dilution, quality, mix and other factors affecting Collateral; and (iii) to the extent the
calculation is not made in accordance with this Agreement, Borrower, Agent and Lenders agree that the Borrowing Base Certificate
and other information required to be delivered to Agent pursuant to this Section 9.1.1 may be delivered electronically
utilizing Agent’s “Stucky Netlink” system or any other electronic transmission system approved by Agent, and
any such information delivered electronically shall be deemed to be delivered with the following certification: “As of the
date of this Certificate, no Event of Default exists or has occurred and is continuing. Borrower acknowledges that the Loans made
by Agent and Lenders to, or for the benefit of, Borrower are based upon Agent’s and Lenders’ reliance on the information
contained herein and all representations and warranties with respect to Collateral in the Loan Agreement are applicable to the
Collateral included in this Certificate. The reliance by Agent and Lenders on this Certificate should not be deemed to limit the
right of Agent to establish or revise criteria of eligibility or other reserves (including, but not limited to, rent reserves)
or otherwise limit, impair, or affect in any manner the rights of Agent and Lenders under the Loan Agreement, in each case in
its Permitted Discretion. In the event of any conflict between the determination of Agent of the amount of the Loans to Borrower
in accordance with the terms of the Loan Agreement and the determination by Borrower of such amounts, the determination of Agent
shall govern. All capitalized terms used in this Certificate shall have the meaning assigned to them in the Loan Agreement.”

 

(b)          Servicing
Reports. Borrower shall cause Servicer to deliver to Agent all reports provided to Borrower pursuant to the terms of the Servicing
Agreement.

 

9.1.2           Inspections;
Appraisals

 

(a)          Borrower
and Servicer shall permit Agent from time to time, subject (except when a Default or Event of Default exists) to reasonable notice
and normal business hours, to (i) visit and inspect Borrower’s or, to the extent relating to the Transaction Documents and
the Collateral, Servicer’s Properties, (ii) inspect, audit and make extracts from Borrower’s or, to the extent relating
to the Transaction Documents and the Collateral, Servicer’s books and records, and (iii) discuss with its officers, employees,
agents, advisors and independent accountants of Borrower’s or, to the extent relating to the Transaction Documents and the
Collateral, Servicer’s business, financial condition, assets, prospects and results of operations. Lenders may participate
in any such visit or inspection, at their own expense. Neither Agent nor any Lender shall have any duty to Borrower or Servicer
to make any inspection, nor to share any results of any inspection, appraisal or report with Borrower or Servicer. Borrower and
Servicer acknowledge that all inspections, appraisals and reports are prepared by Agent and Lenders for their purposes, and Borrower
and Servicer shall not be entitled to rely upon them.

 

    	 	-49-	 

     

    

 

(b)          Reimburse
Agent for all charges, costs and expenses of Agent in connection with (i) examinations of Servicer or Borrower’s books and
records or any other financial or Collateral matters as Agent deems appropriate for each day that an employee or agent of Agent
shall be engaged in an examination or review of any of Servicer’s or Borrower’s properties), plus reasonable expenses,
(ii) valuations of Portfolio Investments; (iii) the establishment of electronic collateral reporting systems performed by employees
or agents of Agent; and (iv) the actual charges paid or incurred by Agent if it elects to employ the services of one or more third
parties to perform financial audits of Borrower, establish electronic collateral reporting of Servicer or Borrower, appraise the
Collateral or to assess Borrower’s business valuation; provided that so long as no Event of Default has occurred and
is continuing, the Borrower shall be responsible for all costs and expenses for only two (2) such visits per fiscal year by the
Agent or its designees. Borrower agrees to pay Agent’s then standard charges for examination activities, including the standard
charges of Agent’s internal examination and appraisal groups ($1,000 per person per day as of the Closing Date), as well
as the charges of any third party used for such purpose.

 

9.1.3           Financial
and Other Information. Borrower and Parent shall keep adequate records and books of account with respect to its business activities,
in which proper entries are made in accordance with GAAP reflecting all financial transactions, and shall furnish to Agent and
Lenders:

 

(a)          as
soon as available, and in any event within 90 days after the close of each Fiscal Year, balance sheets as of the end of such Fiscal
Year and the related statements of income, cash flow and shareholders’ equity for such Fiscal Year, on a consolidated basis
for Parent and its Subsidiaries, together with all supporting schedules and footnotes, which consolidated statements shall be audited
and certified (without qualification) by Ernst & Young or any other firm of independent certified public accountants of recognized
national standing selected by Parent, and shall set forth in comparative form corresponding figures for the preceding Fiscal Year
and other information acceptable to Agent;

 

(b)          as
soon as available, and in any event within 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year,
unaudited balance sheets as of the end of such Fiscal Quarter and the related statements of income and cash flow for such month
and for the portion of the Fiscal Year then elapsed, on a consolidated basis for Parent and its Subsidiaries, setting forth in
comparative form corresponding figures for the preceding Fiscal Year and certified by a manager of Borrower;

 

(c)          as
soon as available, and in any event within 45 days after the end of each Fiscal Quarter (but within 75 days after the last Fiscal
Quarter in a Fiscal Year), unaudited balance sheets as of the end of such Fiscal Quarter and the related statements of income and
cash flow for such month and for the portion of the Fiscal Year then elapsed, on a consolidated basis for Borrower and Borrower’s
Subsidiaries, setting forth in comparative form corresponding figures for the preceding Fiscal Year and certified by a manager
of Borrower as prepared in accordance with GAAP and fairly presenting the financial position and results of operations for such
quarter and period, subject to normal year-end adjustments and the absence of footnotes;

 

    	 	-50-	 

     

    

 

(d)          concurrently
with delivery of financial statements under clause (c) above, or more frequently if requested by Agent while a Default or Event
of Default exists, a Compliance Certificate executed by a manager of Borrower;

 

(e)          concurrently
with delivery of financial statements under clause (a) above, copies of all management letters submitted to Parent and Borrower
by their accountants in connection with such financial statements, and promptly upon receipt thereof, any final comment letter
submitted by such accountants to management in connection with an annual audit;

 

(f)          not
later than 30 days prior to the end of each Fiscal Year, projections of Borrower’s consolidated balance sheets, results of
operations, cash flow and Availability for the next Fiscal Year, month by month;

 

(g)          at
any time upon Agent’s request, all internal and external valuation reports and reviews relating to the Eligible Portfolio
Investments (including all valuation reports delivered by the Approved Third-Party Appraiser in connection with the quarterly appraisals
of Unquoted Investments), and any other information relating to the Eligible Portfolio Investments as requested by the Agent or
any Lender;

 

(h)          as
soon as available, and in any event within 45 days after the end of each Fiscal Quarter, a copy of Borrower’s loan data tape
in a format reasonably acceptable to Agent, which shall include but not be limited to the following information: (i) for each Portfolio
Investment, the name and number of the related Portfolio Company, the collection status, the loan status, an indication of whether
or not such Portfolio Investment is an Eligible Portfolio Investment, the date of each scheduled payment and the outstanding balance,
(y) the Borrowing Base for each Eligible Portfolio Investment, and such other information as may be reasonably required for the
Backup Servicer to perform its duties under the Servicing Agreement;

 

(i)          promptly
after the sending or filing thereof, copies of any proxy statements, financial statements or reports that Borrower or Parent has
made generally available to its shareholders; copies of any regular, periodic and special reports or registration statements or
prospectuses that Borrower or Parent files with the SEC or any other governmental authority, or any securities exchange; and copies
of any press releases or other statements made available by Borrower or Parent to the public concerning material changes to or
developments in the business of Borrower or Parent;

 

(j)          promptly
after the sending or filing thereof, copies of any annual report to be filed in connection with each Plan or any employee benefit
plan or similar employee benefit arrangement maintained or contributed to by Parent or Borrower that is not subject to the laws
of the United States or is mandated by a government other than the United States for employees of Parent or Borrower; and

 

(k)          such
other reports and information (financial or otherwise) as Agent may request from time to time in connection with any Collateral
or Borrower’s or Servicer’s financial condition or business.

 

Notwithstanding the foregoing, the requirement
to deliver financial statements and other information set forth in clauses (a), (b) and (i) of this Section 9.1.3
 may be satisfied with respect to Parent by furnishing (A) the applicable financial statements of Parent, (B) the Parent’s
Form 10-K or 10-Q, or (C) such other instruments, documents or agreements filed with the SEC, as applicable, filed with the SEC,
or by delivering notice to Agent (which notice may be sent via automated email through Parent’s website) that such financial
statements have been filed with the SEC, in each case, within the time periods specified in such paragraphs.

 

    	 	-51-	 

     

    

 

9.1.4           Notices.
Borrower shall notify Agent and Lenders in writing, promptly after an Borrower’s obtaining knowledge thereof, of any of
the following that affects Borrower: (a) the threat or commencement of any proceeding or investigation, whether or not covered
by insurance, if an adverse determination could have a Material Adverse Effect; (b) any pending or threatened labor dispute, strike
or walkout, or the expiration of any material labor contract; (c) any default under or termination of a Material Contract; (d)
the existence of any Default or Event of Default (together with what action, if any, Borrower is taking to correct the same);
(e) any litigation involving an amount at issue in excess of $50,000 or changes in existing litigation or any judgment against
it or its assets with an amount at issue or assets involved exceeding $50,000; (f) the assertion of any Intellectual Property
claim, if an adverse resolution could have a Material Adverse Effect; (g) any violation or asserted violation of any Applicable
Law by Borrower or with respect to the Collateral; (i) the occurrence of any event or occurrence which could possibly, as a result
of the passage of time or otherwise, result in any of the events described in Section 10.1(k); (j) the discharge of or
any withdrawal or resignation by Parent’s or Borrower’s independent accountants; (k) any proposed opening of a new
office or place of business, at least 30 days prior to such opening; (l) any failure of Borrower to pay rent at any of its business
locations; (m) the filing of any Lien against Borrower (other than the Lien of Agent), notice from any taxing authorities as to
claimed deficiencies or any tax lien or any notice relating to alleged ERISA violations, the occurrence of any Reportable Event
or the occurrence of any Termination Event; (n) any damage or loss to property in excess of $50,000; (o) any rejection, return,
offset, dispute, loss or other circumstance in an amount equal to or greater than $50,000 or otherwise having a Material Adverse
Effect on any Collateral; and (p) any acceleration of the maturity of any Debt or the occurrence or existence of any event or
circumstance which gives the holder of such Debt the right to accelerate.

 

9.1.5           Reserved.

 

9.1.6           Compliance
with Laws; Taxes. Borrower and Servicer shall comply with all Applicable Laws, including laws regarding collection and payment
of Taxes, and pay and discharge all Taxes prior to the date on which they become delinquent or penalties attach (unless such Taxes
are being Properly Contested) and maintain all approvals from all governmental authorities necessary to the ownership of its Properties
or conduct of its business, except where the failure to do so would not reasonably be expected to result in a Material Adverse
Effect, and, without limiting the generality of the foregoing, act promptly and diligently to make appropriate remedial actions
with respect to any Environmental Laws, whether or not directed to do so by any governmental authority. If an Account includes
a charge for any Taxes, Agent is authorized, in its discretion, to pay the amount thereof to the proper taxing authority for the
account of Borrower and to charge Borrower therefor; provided, however, that neither Agent nor Lenders shall be liable for any
Taxes that may be due from Borrower or with respect to any Collateral.

 

9.1.7           Insurance.
Parent shall maintain a fidelity bond with respect to Parent and all Subsidiaries of Parent covering certain (a) loss resulting
from dishonest or fraudulent acts committed by an employee, (b) loss of property on premises or in transit, (c) loss resulting
from forgery or alteration of instruments and other documents, (e) loss related to securities and (f) loss resulting from counterfeit
currency, each as more specifically described in the fidelity bond filing previously provided to Agent. Parent shall also maintain
insurance on the Collateral, with Borrower as a named insured, with financially sound and reputable insurance companies, in at
least such amounts and against at least such risks as are usually insured against in the same general area by companies of established
repute engaged in the same or similar business. Upon request, the Borrower shall promptly furnish the Agent copies of all such
insurance policies or certificates evidencing such insurance and such other documents and evidence of insurance as the Agent shall
request.

 

    	 	-52-	 

     

    

 

9.1.8           Licenses
and Other Rights. Borrower and Servicer shall keep each license affecting any Collateral or any other material Property of
Borrower and Servicer each in full force and effect; promptly notify Agent of any proposed modification to any such license, or
entry into any new license, in each case at least 30 days prior to its effective date; pay all Royalties when due; notify Agent
of any default or breach asserted by any Person to have occurred under any license; preserve and maintain its legal existence,
authorities to transact business, rights and franchises, trade names, patents, trademarks, and permit necessary to the proper
conduct of its business; and, except as could not reasonably be expected to have a Material Adverse Effect, remain in good standing
and qualified to transact business as a foreign entity in any state or other jurisdiction in which it is required to be qualified
to transact business as a foreign entity.

 

9.1.9           Other
Affirmative Covenants. (a) If any amount payable under or in connection with any of the Collateral shall be evidenced by any
Instrument or tangible Chattel Paper, Borrower shall forthwith endorse, assign and deliver the same to Custodian, accompanied
by such instruments of transfer or assignment duly executed in blank as Agent may reasonably request from time to time; and (b)
Borrower shall at all times defend its title to Collateral and Agent’s Liens therein against all Persons, claims and demands
whatsoever, except Permitted Liens.

 

9.1.10         Calculation
of Borrowing Base. For purposes of this Agreement, the “Borrowing Base” shall be determined, as
at any date of determination, as the sum of the products obtained by multiplying (x) the Value of each Eligible Portfolio Investment
by (y) the applicable Advance Rate; provided that:

 

(a)    the
Advance Rate applicable to the aggregate Value of all Eligible Portfolio Investments in their entirety shall be 0% at any time
when the Borrowing Base is composed entirely of Eligible Portfolio Investments issued by fewer than 8 different issuers;

 

(b)    not
more than $5,000,000 of the Borrowing Base may consist of Portfolio Investments of the same Portfolio Company;

 

(c)    not
more than 15% of the Borrowing Base may consist of Portfolio Investments having a maturity date of greater than eight (8) years
from the origination or closing date of such Portfolio Investment;

 

(d)    Eligible
Portfolio Investments that are not Cash, Cash Equivalents, Performing First Lien Bank Loans or Performing Last Out Loans shall
be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 35% of the
Borrowing Base;

 

(e)    Eligible
Portfolio Investments that are Revolving Loans and Delayed Draw Loans shall be excluded from the Borrowing Base to the extent such
Eligible Portfolio Investments would exceed, in the aggregate, 15% of the Borrowing Base;

 

    	 	-53-	 

     

    

 

(f)    Eligible
Portfolio Investments that are Single Covenant Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio
Investments would exceed, in the aggregate, 40% of the Borrowing Base;

 

(g)   Eligible
Portfolio Investments that are Covenant Lite Loans (including, but not limited to, Covenant Lite Loans subject to clause (h) below)
shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 40%
of the Borrowing Base;

 

(h)   Eligible
Portfolio Investments that (i) are Covenant Lite Loans and (ii) for which the applicable Portfolio Company had EBITDA of less than
$50,000,000 for the 12 month period most recently ended shall be excluded from the Borrowing Base to the extent such Eligible Portfolio
Investments would exceed, in the aggregate, 10% of the Borrowing Base;

 

(i)    Eligible
Portfolio Investments that are Unitranche Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio
Investments would exceed, in the aggregate, 15% of the Borrowing Base; and

 

(j)    Eligible
Portfolio Investments which are in the same Industry Classification Group shall be excluded from the Borrowing Base to the extent
such Eligible Portfolio Investments would exceed, in the aggregate, 25% of the Borrowing Base.

 

For all purposes of this
Section 9.1.10, all issuers of Eligible Portfolio Investments that are Affiliates of one another shall be treated as
a single issuer (unless such issuers are Affiliates of one another solely because they are under the common Control of the same
private equity sponsor or similar sponsor). For the avoidance of doubt, no Portfolio Investment shall be an Eligible Portfolio
Investment unless, among the other requirements set forth in this Agreement, (i) such Investment is subject only to Permitted Liens
and (ii) such Investment is Transferable.

 

9.1.11         Portfolio
Value and Diversification. 

 

		(a)	Industry Classification Groups. For purposes of
this Agreement, Borrower shall assign each Eligible Portfolio Investment to an Industry Classification Group as reasonably determined
by Borrower. To the extent that Borrower reasonably determines that any Eligible Portfolio Investment is not adequately correlated
with the risks of other Eligible Portfolio Investments in an Industry Classification Group, such Eligible Portfolio Investment
may be assigned by Borrower to an Industry Classification Group that is more closely correlated to such Eligible Portfolio Investment.

 

		(b)	Portfolio Valuation Etc.

 

(i)          Settlement
Date Basis. For purposes of this Agreement, all determinations of whether a Portfolio Investment is an Eligible Portfolio Investment
shall be determined on a Settlement-Date Basis, provided that no such investment shall be included as an Eligible Portfolio Investment
to the extent it has not been paid for in full.

 

(ii)         Determination
of Values. Borrower will conduct reviews of the value to be assigned to each of its Eligible Portfolio Investments as follows:

 

    	 	-54-	 

     

    

 

(A)         Quoted
Investments External Review. With respect to Quoted Investments, Borrower shall, on the date of any Notice of Borrowing and
otherwise not less frequently than once each calendar month, determine the market value of such Quoted Investments which shall,
in each case, be determined in accordance with one of the following methodologies as selected by Borrower (each such value, an
“External Quoted Value”):

 

(w)          in
the case of public and 144A securities, the average of the recent bid prices as determined by two Approved Dealers selected by
Borrower,

 

(x)          in
the case of Bank Loans, the average of the recent bid prices as determined by two Approved Dealers selected by Borrower or an Approved
Pricing Service which makes reference to at least two Approved Dealers with respect to such Bank Loans,

 

(y)          in
the case of any Quoted Investment traded on an exchange, the closing price for such Eligible Portfolio Investment most recently
posted on such exchange, and

 

(z)          in
the case of any other Quoted Investment, the fair market value thereof as determined by an Approved Pricing Service.

 

(B)         Unquoted
Investments. The value of each Unquoted Investment (the “Unquoted Reported Value”) shall be the “fair
value” of such Unquoted Investment as reported in the most recent 10-Q or 10-K filed by Parent with the SEC (which valuations
are (i) produced by Parent consistent with its Investment and Valuation Policies and (ii) are reviewed by Parent’s external
auditors); provided that, (i) for each Unquoted Investment acquired by Borrower prior to the “fair value”
thereof having been reported in the most recent 10-Q or 10-K filed by Parent with the SEC, the value thereof shall be the par value
of such Unquoted Investment multiplied by the purchase price (expressed as a percentage of par) paid by Parent to acquire such
Unquoted Investment, until such time as the “fair value” thereof is reported as described above in this clause (B),
(ii) if Agent so requests as a result of its reasonable determination that intervening events may have resulted in a change in
the most recently determined (pursuant to this definition) “fair value” of such Unquoted Investment, Borrower shall
cause Parent to recalculate (as of the date of determination of the value of such Unquoted Investment) its “fair value”
calculation of such Unquoted Investment using the same methodology as described above in this clause (B), and (iii) at the
request of Agent, the Borrower shall cause Parent to deliver to Agent Parent’s internal valuation memorandum pursuant to
which the “fair value” of any Unquoted Investment is established, and Agent shall maintain the confidentiality of any
such internal valuation memorandum.

 

(C)         Value
of Quoted Investments. Subject to Section 9.1.11(b)(ii)(F), the “Value” of each Quoted Investment for all
purposes of this Agreement shall be the lower of (1) the External Quoted Value of such Quoted Investment as most recently determined
pursuant to Section 9.1.11(b)(ii)(A) and (2) if such Quoted Investment is a debt investment, the par or face value
of such Quoted Investment.

 

(D)         Value
of Unquoted Investments. Subject to Section 9.1.11(b)(ii)(F), the “Value” of each Unquoted Investment for
all purposes of this Agreement shall be the lower of (1) the Unquoted Reported Value of such Unquoted Investment as most recently
determined pursuant to Section 9.1.11(b)(ii)(B) and (2) if such Unquoted Investment is a debt investment, the par or
face value of such Unquoted Investment.

 

    	 	-55-	 

     

    

 

(E)         Actions
Upon an Overadvance. If Borrower determines that an Overadvance exists or that the Borrowing Base has declined by more than
15% from the Borrowing Base stated in the Borrowing Base Certificate last delivered by Borrower to the Agent, then Borrower shall,
promptly and in any event within two Business Days as provided in Section 9.1.3(a), deliver a Borrowing Base Certificate
reflecting the new amount of the Borrowing Base and shall take the actions, and make the payments and prepayments (if any), all
as more specifically set forth in Section 2.1.5.

 

(F)         Failure
to Determine Values. If Borrower shall fail to determine the value of any Eligible Portfolio Investment as at any date pursuant
to the requirements of the foregoing subclauses (A), (B), (C) or (D), then the “Value” of such Eligible Portfolio Investment
as at such date shall be deemed to be zero; provided that any such failure shall not constitute a Default or Event of Default
hereunder solely due to such failure to determine value so as long as all Eligible Portfolio Investments with respect to which
such failure has occurred are assigned a “Value” of zero in the Borrowing Base and all Borrowing Base Certificates
for so long as such failure continues.

 

(iii)  Generally
Applicable Valuation Provisions.

 

(A)         The
value of any Portfolio Investments determined in accordance with any provision of this Section 9.1.11 shall be the Value
of such Portfolio Investment for purposes of this Agreement until a new Value for such Portfolio Investment is subsequently determined
in good faith in accordance with this Section 9.1.11.

 

(B)         The
foregoing valuation procedures shall only be required to be used for purposes of calculating the Borrowing Base and shall not be
required to be utilized by Borrower for any other purpose, including the delivery of financial statements or valuations required
under ASC 820 or the Investment Company Act.

 

9.1.12         Special
Purpose Entity. Borrower shall be in compliance with the special purpose entity requirements set forth in Section 8.1.26.

 

9.1.13         Investment
and Valuation Policies. Borrower will (a) comply in all material respects with the Investment and Valuation Policies in regard
to each Portfolio Investment, and in regard to compliance with Transaction Documents, including determinations with respect to
the enforcement of its rights thereunder, and (b) furnish to the Agent, at least 20 days prior to its proposed effective date,
prompt notice of any material changes in the Investment and Valuation Policies. Borrower shall not make any changes to its Investment
and Valuation Policies except with the approval of its Valuation Committee, Audit Committee and Board of Directors.

 

9.1.14         Post-Closing
Covenants. Borrower shall either (i) within forty-five (45) days after the Closing Date (or such later date as Borrower and
Agent may agree) cause the Servicing Agreement to be amended or amended and restated in form and substance satisfactory to Agent
to add the Backup Servicer as a party, or (ii) within sixty (60) days after the Closing Date, enter into an agreement in form and
substance satisfactory to Agent with another backup servicer acceptable to Agent.

 

    	 	-56-	 

     

    

 

9.2           Negative
Covenants. As long as any Commitments or Obligations are outstanding:

 

9.2.1           Permitted
Debt. Borrower shall not create, incur, guarantee or suffer to exist any Debt, except the Obligations.

 

9.2.2           Permitted
Liens. Borrower shall not create or suffer to exist any Lien upon any of its Property, except the following (collectively,
“Permitted Liens”):

 

(a)          Liens
in favor of Agent;

 

(b)          Liens
for Taxes (excluding any Lien imposed pursuant to any of the provisions of ERISA) not yet due or being Properly Contested; and

 

(c)          statutory
Liens (other than Liens for Taxes or imposed under ERISA) arising in the Ordinary Course of Business, but only if (i) payment of
the obligations secured thereby is not yet due or is being Properly Contested, and (ii) such Liens do not materially impair the
value or use of the Property or materially impair operation of the business of Borrower or Subsidiary.

 

9.2.3           Distributions.
Declare or make any Distributions provided that Borrower may make Distributions to Parent so long as prior to and after giving
pro forma effect to such Distribution (a) Availability is greater than or equal to $500,000, and (b) no Event of Default has occurred
and is continuing, or would result from such Distribution.

 

9.2.4           Restricted
Investments. Borrower shall not create make any investment, other than (a) Portfolio Investments in the Ordinary Course of
Business; and (b) to the extent subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory
to Agent, and no other Liens, Cash and Cash Equivalents.

 

9.2.5           Disposition
of Assets. (a)          Borrower shall not make any disposition of assets
(including a sale, lease, license, consignment or other transfer or disposition of assets (real or personal, tangible or intangible)
or a disposition of property in connection with a sale-leaseback transaction or synthetic lease and including any sale or disposition
of Equity Interests by any Subsidiary), except as expressly permitted by this Section 9.2.5 or any other provision of this
Agreement.

 

(b)          Borrower
may sell, transfer or otherwise dispose of Portfolio Investments that are not Eligible Portfolio Investments so long as (i) prior
to and after giving effect to such sale, transfer or other disposition (and any concurrent acquisitions of Portfolio Investments)
no Event of Default exists and the Borrower delivers to the Agent a certificate of a Senior Officer to such effect, (ii) such sale,
transfer or disposition is for fair market value (as reasonably determined by Servicer), and (iii) the proceeds of such sale, transfer
or disposition, if Cash, are deposited in the Dominion Account.

 

(c)          Borrower
may sell, transfer or otherwise dispose of Portfolio Investments that are Eligible Portfolio Investments so long as (i) prior to
and after giving effect to such sale, transfer or other disposition (and any concurrent acquisitions of Portfolio Investments)
no Default or Event of Default exists (unless, in the case of such a Default, such Default will be cured upon giving effect to
such sale, transfer or disposition and the application of the proceeds thereof) and the Borrower delivers to the Agent a certificate
of a Senior Officer to such effect, (ii) such sale, transfer or disposition is for either the greater of (A) fair market value,
or (B) the amount allocable to such Portfolio Investment in the Borrowing Base, (iii) such sale, transfer or disposition is made
for Cash, all of which is deposited in the Dominion Account, and (iv) upon giving effect to such sale, transfer or disposition
and the application of the proceeds thereof, no Overadvance exists.

 

    	 	-57-	 

     

    

 

(d)          Notwithstanding
anything above that would otherwise prohibit the sale of a Portfolio Investment after the occurrence or during the continuance
of a Default or an Event of Default, if the Borrower entered into a binding agreement to sell any such Portfolio Investment prior
to the occurrence of such Default or an Event of Default, but such sale did not settle prior to the occurrence of such Default
or an Event of Default, then the Borrower shall be permitted to consummate such sale notwithstanding the occurrence of such Default
or an Event of Default; provided that the settlement for such sale occurs within the customary settlement period for similar
trades.

 

(e)          Agent’s
Lien on any Collateral that is sold or transferred pursuant to a disposition permitted under this Section 9.2.5 shall be
automatically released except as to Agent’s Lien on the proceeds of such Collateral, which shall continue to attach to such
proceeds.

 

(f)          Any
sale of a Portfolio Investment by Borrower to any of its Affiliates (other than a sale to Parent in connection with Parent’s
repurchase obligation for Warranty Portfolio Investments (as defined in the Sale Agreement)) shall require the prior written consent
of Agent.

 

9.2.6           Fundamental
Changes. Borrower shall not merge, combine, reorganize, or consolidate with any Person, or liquidate, wind up its affairs
or dissolve itself, in each case whether in a single transaction or in a series of related transactions, except for mergers or
consolidations of a wholly-owned Subsidiary with another wholly-owned Subsidiary or into Borrower; change its name or conduct
business under any fictitious name; change its tax, charter or other organizational identification number or federal employer
identification number (or equivalent); or change its form or state of organization.

 

9.2.7           Restrictive
Agreements. Borrower shall not become a party to any Restrictive Agreement.

 

9.2.8           Conduct
of Business. Borrower shall not engage in any business, other than its business as conducted on the Closing Date and any activities
incidental thereto, and in each case only such businesses and other activities which are insured by the policies of insurance
required by this Agreement; make any loans or other advances of money to any Person; form or acquire any Subsidiary after the
Closing Date or permit any existing Subsidiary to issue any additional Equity Interests except to its parent; acquire any business,
line of business, division, license rights or brand of another Person, or all or substantially all of another Person’s assets;
amend, modify or otherwise change any of its Organic Documents as in effect on the Closing Date, unless consented to in writing
by Agent; file or consent to the filing of any consolidated income tax return with any Person other than Parent; make any change
in accounting methods or treatment or reporting practices; change its Fiscal Year; enter into any Hedging Agreement, except to
hedge risks arising in the Ordinary Course of Business and not for speculative purposes; or become a party to a Multiemployer
Plan or any employee benefit plan or arrangement maintained or contributed to by Parent.

 

9.2.9           Affiliate
Transactions. Borrower shall not enter into or be party to any transaction with an Affiliate, except (a) transactions contemplated
by the Transaction Documents; (b) payment of reasonable compensation to officers, managers and employees for services actually
rendered; (c) payment of customary directors’ and managers’ fees and indemnities; (d) transactions with Affiliates
that were consummated prior to the Closing Date, as shown on Schedule 10; and (e) transactions with Affiliates in the Ordinary
Course of Business, upon fair and reasonable terms fully disclosed to Agent and no less favorable than would be obtained in a
comparable arm’s-length transaction with a non-Affiliate.

 

    	 	-58-	 

     

    

 

9.2.10         Other
Collateral Negative Covenants. Borrower shall not (a) keep, store or otherwise maintain any Collateral at any location other
than with the Custodian; (b) change its chief executive office or principal place of business, or other office where books and
records are kept; or (c) amend, restate, supplement, or otherwise modify any Material Contract without Agent’s prior written
consent.

 

9.3           Financial
Covenants. As long as any Commitments or Obligations are outstanding:

 

9.3.1           Asset
Coverage Ratio. Borrower shall maintain at all times an Asset Coverage Ratio of not less than 2.25 to 1.00.

 

9.3.2           Interest
Coverage Ratio. Borrower shall maintain, as of the last date of each Fiscal Quarter, commencing with the fiscal quarter ending
June 30, 2018, an Interest Coverage Ratio of not less than 2.15 to 1.00.

 

SECTION 10.         EVENTS
OF DEFAULT; REMEDIES ON DEFAULT

 

10.1         Events
of Default. Each of the following shall be an “Event of Default” hereunder, if the same shall occur for any
reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:

 

(a)          Borrower
fails to pay any Obligations when due (whether at stated maturity, on demand, upon acceleration or otherwise);

 

(b)          Any
representation, warranty or other written statement of Borrower or Parent made in connection with any Transaction Documents or
transactions contemplated thereby is incorrect or misleading in any material respect (or, if any such representation, warranty
or other written statement is qualified by “materiality”, “Material Adverse Effect” or similar language,
in any respect) when given or deemed given;

 

(c)          Borrower
or Servicer breaches or fail to perform any covenant contained in Section 5.5, 7.2, 7.4, 9.1.1, 9.1.2, 9.1.3, 9.1.4, 9.1.6, 9.1.7,
9.1.10, 9.1.11, 9.1.12, 9.1.14, 9.2 or 9.3;

 

(d)          Borrower
or Parent breaches or fails to perform any other covenant contained in any Transaction Documents, and such breach or failure is
not cured within 30 days after a Senior Officer of Parent or Borrower has knowledge thereof or receives notice thereof from Agent,
whichever is sooner;

 

(e)          A
Guarantor repudiates, revokes or attempts to revoke its Guaranty; Parent or Borrower denies or contests the validity or enforceability
of any Transaction Documents or Obligations, or the perfection or priority of any Lien granted to Agent; or any Transaction Document
ceases to be in full force or effect for any reason (other than a waiver or release by Agent and Lenders);

 

(f)          Any
breach or default of an Borrower occurs under any Hedging Agreement, or any document, instrument or agreement to which it is a
party or by which it or any of its Properties is bound, relating to any Debt (other than the Obligations) in excess of $500,000,
if the maturity of or any payment with respect to such Debt may be accelerated or demanded due to such breach (including, without
limitation, pursuant to a required mandatory prepayment or “put” of such Debt to any person);

 

    	 	-59-	 

     

    

 

(g)          (i)
Any judgment or order for the payment of money is entered against Borrower or its assets in an amount that exceeds, individually
or cumulatively with all unsatisfied judgments or orders against Borrower, $500,000 or (ii) any one or more non-monetary judgments
that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either
case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive
days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, is not in effect;

 

(h)          (i)
a loss, theft, damage or destruction occurs with respect to any Collateral if the amount not covered by insurance exceeds $500,000
or if a material portion of the Collateral is effected, or (ii) there shall occur any levy upon, or attachment, garnishment, or
other seizure of, any portion of the Collateral or other assets of Borrower in excess of $500,000;

 

(i)          Borrower
is enjoined, restrained or in any way prevented by any governmental authority from conducting any material part of its business;
Borrower suffers the loss, revocation or termination of any material license, permit, lease or agreement necessary to its business;
there is a cessation of any material part of Borrower’s business for a material period of time; Borrower shall take any action,
or shall make a determination, whether or not formally approved by Borrower’s managers, to suspend the operation of its business
in the ordinary course, liquidate all or a material portion of its assets, or employ an agent or other third party to conduct sales
of any material portion of its business; any material Collateral or Property of Borrower is taken or impaired through condemnation;
there occurs any uninsured loss to any material Collateral or Property of Borrower; Borrower agrees to or commences any liquidation,
dissolution or winding up of its affairs; or Borrower is not Solvent;

 

(j)          An
Insolvency Proceeding is commenced by Borrower; Borrower makes an offer of settlement, extension or composition to its unsecured
creditors generally; a trustee, receiver or similar official is appointed to take possession of any substantial Property of or
to operate any of the business of Borrower; or an Insolvency Proceeding is commenced against Borrower and Borrower consents to
institution of the proceeding, the petition commencing the proceeding is not timely contested by Borrower, the petition is not
dismissed within 60 days after filing, or an order for relief is entered in the proceeding;

 

(k)          A
reportable event (consisting of any of the events set forth in Section 4043(b) of ERISA) shall occur which Agent, in its reasonable
discretion, shall determine constitutes grounds for the termination by the Pension Benefit Guaranty Corporation of any Plan or
the appointment by the appropriate United States district court of a trustee for any Plan, or if any Plan shall be terminated or
any such trustee shall be requested or appointed, or if Borrower is in “default” (as defined in Section 4219(c)(5)
of ERISA) with respect to payments to a Multiemployer Plan resulting from Borrower’s complete or partial withdrawal from
such Multiemployer Plan, or any similar event as any of the foregoing occurs in respect of any employee benefit plan or arrangement
maintained or contributed to by Borrower that is not subject to the laws of the United States or is mandated by a government other
than the United States for employees of Borrower.

 

    	 	-60-	 

     

    

 

(l)          Borrower,
Servicer or any of their Senior Officers is criminally indicted or convicted for (i) a felony committed in the conduct of such
Person’s business, or (ii) violating any state or federal law (including the Controlled Substances Act, Money Laundering
Control Act of 1986 and Illegal Exportation of War Materials Act) that could lead to forfeiture of any material Property or any
Collateral;

 

(m)          A
Change of Control occurs; or any event occurs or condition exists that has a Material Adverse Effect;

 

(n)          Borrower
shall become required to register as an “investment company” within the meaning of the Investment Company Act or the
arrangements contemplated by the Transaction Documents shall require registration as an “investment company” within
the meaning of the Investment Company Act;

 

(o)          A
Servicer Termination Event occurs;

 

(p)          Any
Transaction Document, or any Lien granted thereunder, shall (except in accordance with its terms), in whole or in part, terminate,
cease to be effective or cease to be the legally valid, binding and enforceable obligation of Borrower; or

 

(q)          Borrower
fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of any Material Contract or fails to observe or perform any other agreement or condition relating to any such Material
Contract or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause the termination of such Material Contract or to permit the counterparty to such Material
Contract to terminate such Material Contract; or

 

(r)          Parent
fails to maintain, as of the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2018, a Tangible Net
Worth greater than or equal to $100,000,000.

 

10.2         Remedies
upon Default. If an Event of Default described in Section 10.1(j) occurs, then to the extent permitted by Applicable
Law, all Obligations (other than Secured Bank Product Obligations) shall become automatically due and payable and all Commitments
shall terminate, without any action by Agent or notice of any kind. In addition, or if any Event of Default exists, Agent may
in its discretion (and shall upon written direction of Required Lenders) do any one or more of the following from time to time:

 

(a)          declare
any Obligations (other than Secured Bank Product Obligations) immediately due and payable and the Maturity Date to have occurred,
whereupon the Obligations shall be due and payable without diligence, presentment, demand, protest or notice of any kind, all of
which are hereby waived by Borrower to the fullest extent permitted by law;

 

(b)          terminate,
reduce or condition any Commitment, or make any adjustment to the Borrowing Base;

 

(c)          solely
with respect to the Event of Default described in Section 10.1(o), terminate the Servicing Agreement with Servicer;

 

(d)          require
Borrower to Cash Collateralize Secured Bank Product Obligations and other Obligations that are contingent or not yet due and payable,
and, if Borrower fails promptly to deposit such Cash Collateral, Agent may (and shall upon the direction of Required Lenders) advance
the required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or is created thereby, or the conditions in
Section 6 are satisfied); and

 

    	 	-61-	 

     

    

 

(e)          exercise
any other rights or remedies afforded under any agreement, by law, at equity or otherwise, including the rights and remedies of
a secured party under the UCC. Such rights and remedies include the rights to (i) take possession of any Collateral; (ii) exercise
all rights and obligations of Servicer under the Transaction Documents; (iii) require Borrower and Servicer to assemble Collateral,
at Borrower’s expense, and make it available to Agent at a place designated by Agent; (iv) enter any premises where Collateral
is located and store Collateral on such premises until sold (and if the premises are owned or leased by Borrower or Servicer, Borrower
and Servicer agree not to charge for such storage); (v) demand, sue for, collect or receive any money or property at any time payable
or receivable in respect of the Collateral including, without limitation, instructing the obligor or obligors on any agreement,
instrument or other obligation constituting part of the Collateral to make any payment required by the terms of such agreement,
instrument or other obligation directly to Agent, and in connection with any of the foregoing, compromise, settle, extend the time
for payment and make other modifications with respect thereto; provided, however, that in the event that any such
payments are made directly to Borrower or Servicer, prior to receipt by any such obligor of such instruction, Borrower and/or Servicer
shall segregate all amounts received pursuant thereto in trust for the benefit of Agent and shall promptly pay such amounts to
Agent; (vi) direct Servicer to sell, assign, grant a license to use or otherwise liquidate, any and all investments made in whole
or in part with the Collateral or any part thereof, and take possession of the proceeds of any such sale, assignment, license or
liquidation; (vii) withdraw all moneys, instruments, securities and other property with Custodian or any other bank, financial
securities, deposit or other account of Borrower constituting Collateral for application to the Obligations as provided herein;
(viii) exercise any and all rights as beneficial and legal owner of the Collateral, including, without limitation, perfecting assignment
of and exercising any and all voting, consensual and other rights and powers with respect to any Collateral; (ix) exercise all
the rights and remedies of a secured party under the UCC; and (x) direct the sale or disposition and otherwise dispose of any Collateral
in its then condition at public or private sale, with such notice as may be required by Applicable Law, in lots or in bulk, at
such locations, all as Agent, in its discretion, deems advisable. Borrower agrees that (a) 10 days’ notice (unless the Collateral
is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market (in which event,
such advance notice as may be practicable under the circumstances)) of any proposed sale or other disposition of Collateral by
Agent shall be reasonable and (b) Quoted Investments constitute Collateral of a type customarily sold on a recognized market. Agent
shall have the right to conduct such sales on Borrower’s or Servicer’s premises, without charge, and such sales may
be adjourned from time to time in accordance with Applicable Law. Agent shall have the right to direct the sale or other disposition
of any Collateral for cash, credit or any combination thereof, and Agent may purchase any Collateral at public or, if permitted
by law, private sale and, in lieu of actual payment of the purchase price, may credit bid and set off the amount of such price
against the Obligations. Each purchaser, assignee, licensee or recipient at any such sale shall acquire the property sold, assigned
or licensed absolutely free from any claim or right on the part of Borrower, and Borrower hereby waives, to the fullest extent
permitted by Applicable Law, all rights of redemption, stay and/or appraisal which it now has or may at any time in the future
have under any rule of law or statute now existing or hereafter enacted. Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. To the fullest extent permitted by Applicable Law, Borrower hereby waives any claims
against Agent arising by reason of the fact that the price at which any Collateral may have been sold, assigned or licensed at
such a private sale was less than the price which might have been obtained at a public sale, even if Agent accepts the first offer
received and does not offer such Collateral to more than one offeree.

 

10.3         License.
Agent is hereby granted an irrevocable, non-exclusive license or other right to use, license or sub-license (without payment
of royalty or other compensation to any Person) any or all Intellectual Property of Borrower or Servicer, computer hardware and
software, trade secrets, brochures, customer lists, promotional and advertising materials, labels, packaging materials and other
Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or otherwise exercising any rights
or remedies with respect to, any Collateral. Borrower’s rights and interests under Intellectual Property shall inure to
Agent’s benefit.

 

    	 	-62-	 

     

    

 

10.4         Setoff.
At any time during an Event of Default, Agent, Lenders, and any of their Affiliates are authorized, to the fullest extent
permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by Agent, such Lender or
such Affiliate to or for the credit or the account of Borrower against any Obligations, regardless of the adequacy of any other
Collateral and regardless of whether or not Agent, such Lender or such Affiliate shall have made any demand under this Agreement
or any other Transaction Document and although such Obligations may be contingent or unmatured or are owed to a branch or office
of Agent, such Lender or such Affiliate different from the branch or office holding such deposit or obligated on such indebtedness.
The rights of Agent, each Lender and each such Affiliate under this Section are in addition to other rights and remedies (including
other rights of setoff) that such Person may have.

 

10.5         Remedies
Cumulative; No Waiver.

 

10.5.1           Cumulative
Rights. All agreements, warranties, guaranties, indemnities and other undertakings of Borrower and Servicer under the Transaction
Documents are cumulative and not in derogation of each other. The rights and remedies of Agent and Lenders are cumulative, may
be exercised at any time and from time to time, concurrently or in any order, and are not exclusive of any other rights or remedies
available by agreement, by law, at equity or otherwise. All such rights and remedies shall continue in full force and effect until
Full Payment of all Obligations.

 

10.5.2           Waivers.
No waiver or course of dealing shall be established by (a) the failure or delay of Agent or any Lender to require strict performance
by Borrower and Servicer with any terms of the Transaction Documents, or to exercise any rights or remedies with respect to Collateral
or otherwise; (b) the making of any Loan during a Default, Event of Default or other failure to satisfy any conditions precedent,
or Agent’s or any Lender’s permitting to remain outstanding any Loan during a Default or Event of Default; or (c)
acceptance by Agent or any Lender of any payment or performance by Borrower under any Transaction Documents in a manner other
than that specified therein. It is expressly acknowledged by Borrower that any failure to satisfy a financial covenant on a measurement
date shall not be cured or remedied by satisfaction of such covenant on a subsequent date.

 

SECTION 11.         AGENT

 

This Section 11
and the provisions contained in Exhibit D attached hereto (which are hereby incorporated by reference) are an agreement
solely among Secured Parties and Agent, and shall survive Full Payment of the Obligations. Neither Exhibit D, nor this Section
11, confer any rights or benefits upon Borrower or any other Person. As between Borrower, Servicer and Agent, any action that
Agent may take under any Transaction Documents or with respect to any Obligations shall be conclusively presumed to have been authorized
and directed by Secured Parties.

 

    	 	-63-	 

     

    

 

SECTION 12.         BENEFIT
OF AGREEMENT; ASSIGNMENTS

 

12.1         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of Borrower, Servicer, Agent, Lenders, Secured
Parties, and their respective successors and assigns, except that (a) neither Servicer nor Borrower shall have the right to assign
its rights or delegate its obligations under any Transaction Documents; and (b) any assignment by a Lender must be made in compliance
with Section 12.3. Agent may treat the Person which made any Loan as the owner thereof for all purposes until such Person
makes an assignment in accordance with Section 12.3. Any authorization or consent of a Lender shall be conclusive and binding
on any subsequent transferee or assignee of such Lender.

 

12.2         Participations

 

12.2.1           Permitted
Participants; Effect. Any Lender may, subject to Section 12.3.3 and with the prior written consent of Agent, in the
ordinary course of its business and in accordance with Applicable Law, at any time sell to a financial institution (“Participant”)
a participating interest in the rights and obligations of such Lender under any Transaction Documents. Despite any sale by a Lender
of participating interests to a Participant, such Lender’s obligations under the Transaction Documents shall remain unchanged,
such Lender shall remain solely responsible to the other parties hereto for performance of such obligations, such Lender shall
remain the holder of its Loans and Commitments for all purposes, all amounts payable by Borrower shall be determined as if such
Lender had not sold such participating interests, and Borrower and Agent shall continue to deal solely and directly with such
Lender in connection with the Transaction Documents. Each Lender shall be solely responsible for notifying its Participants of
any matters under the Transaction Documents, and Agent and the other Lenders shall not have any obligation or liability to any
such Participant. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
5.10 unless Borrower agrees otherwise in writing.

 

12.2.2           Voting
Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, waiver
or other modification of any Transaction Documents other than that which forgives principal, interest or fees, reduces the stated
interest rate or fees payable with respect to any Loan or Commitment in which such Participant has an interest, postpones the
Commitment Termination Date, Maturity Date, or any date fixed for any regularly scheduled payment of principal, interest or fees
on such Loan or Commitment, or releases Borrower, Guarantor or substantial portion of the Collateral.

 

12.2.3           Benefit
of Set-Off. Borrower agrees that each Participant, if consented to in writing by Agent, shall have a right of set-off in respect
of its participating interest to the same extent as if such interest were owing directly to a Lender, and each Lender shall also
retain the right of set-off with respect to any participating interests sold by it. By exercising any right of set-off, a Participant
agrees to share with Lenders all amounts received through its set-off, in accordance with Section V of Exhibit D
as if such Participant were a Lender.

 

12.3         Assignments.

 

12.3.1           Permitted
Assignments. A Lender may assign to an Eligible Assignee any of its Loans, rights and obligations under the Transaction Documents,
as long as (a) each assignment is of a constant, and not a varying, percentage of the transferor Lender’s rights and obligations
under the Transaction Documents and, in the case of a partial assignment, is in a minimum principal amount of $10,000,000 (unless
otherwise agreed by Agent in its discretion); (b) Agent shall have consented to such assignment (except to the extent such assignment
is to a Lender, an Affiliate of a Lender or an Approved Fund with respect to such Lender) and (c) the parties to each such assignment
shall execute and deliver to Agent, for its acceptance and recording, an Assignment and Acceptance. Nothing herein shall limit
the right of a Lender to pledge or assign any rights under the Transaction Documents to secure obligations of such Lender, including
a pledge or assignment to a Federal Reserve Bank; provided, however, that no such pledge or assignment shall release the Lender
from its obligations hereunder nor substitute the pledge or assignee for such Lender as a party hereto.

 

    	 	-64-	 

     

    

 

12.3.2           Effect;
Effective Date. Upon delivery to Agent of an assignment notice in form and substance satisfactory to Agent and a processing
fee of $3,500 (unless otherwise agreed by Agent in its discretion), the assignment shall become effective as specified in the
notice, if it complies with this Section 12.3. From such effective date, the Eligible Assignee shall for all purposes be
a Lender under the Transaction Documents, and shall have all rights and obligations of a Lender thereunder. Upon consummation
of an assignment, the transferor Lender, Agent and Borrower shall make appropriate arrangements for issuance of replacement and/or
new promissory notes, as applicable, in favor of such assignee Lender. The transferee Lender shall comply with Section 5.11
and deliver, upon request, an administrative questionnaire satisfactory to Agent.

 

12.3.3           Certain
Assignees. No assignment or participation may be made to Borrower, Affiliate of Borrower, Defaulting Lender or natural person.
In connection with any assignment by a Defaulting Lender, such assignment shall be effective only upon payment by the Eligible
Assignee or Defaulting Lender to Agent of an aggregate amount sufficient, upon distribution (through direct payment, purchases
of participations or other compensating actions as Agent deems appropriate), (a) to satisfy all funding and payment liabilities
then owing by the Defaulting Lender hereunder, and (b) to acquire its Pro Rata share of all Loans. If an assignment by a Defaulting
Lender shall become effective under Applicable Law for any reason without compliance with the foregoing sentence, then the assignee
shall be deemed a Defaulting Lender for all purposes until such compliance occurs.

 

12.3.4           Certain
Pledges. Any Lender may, at any time and without consent of Borrower or Agent, pledge or assign a security interest in all
or any portion of its rights under this Agreement (including under any notes issued for its benefit) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any funding source of such Lender;
provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

 

12.4         Replacement
of Certain Lenders. If a Lender (a) requests compensation under Section 3.7.1 or requires Borrower to pay any Indemnified
Taxes or additional amounts to any Lender or any governmental authority for the account of any Lender pursuant to Section 5.10
and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section
3.8, (b) fails to give its consent to any amendment, waiver or action for which consent of all Lenders was required and Required
Lenders consented, or (c) is a Defaulting Lender, then, in addition to any other rights and remedies that any Person may have,
Agent or Borrower may, by notice to such Lender within 120 days after such event, require such Lender to assign all of its rights
and obligations under the Transaction Documents to Eligible Assignee(s), pursuant to appropriate Assignment and Acceptance(s),
within 20 days after the notice; provided, that in the case of any such assignment resulting from a claim for compensation under
Section 3.7.1 or payments required to be made pursuant to Section 5.10, such assignment will result in a reduction
in such compensation or payments thereafter. Agent is irrevocably appointed as attorney-in-fact to execute any such Assignment
and Acceptance if the Lender fails to execute it. Such Lender shall be entitled to receive, in cash from such Eligible Assignee,
concurrently with such assignment, all amounts owed to it under the Transaction Documents, including all principal, interest and
fees through the date of assignment (but excluding any prepayment charge).

 

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SECTION 13.         MISCELLANEOUS

 

13.1         Consents,
Amendments and Waivers.

 

13.1.1           Amendment.
No modification of any Transaction Document, including any extension or amendment of a Transaction Document or any waiver of a
Default or Event of Default, shall be effective without the prior written agreement of Agent (with the consent of Required Lenders)
and Borrower party to such Transaction Document; provided, however, that (a) without the prior written consent of Agent, no modification
shall be effective with respect to any provision in a Transaction Document that relates to any rights, duties or discretion of
Agent; (b) without the prior written consent of each affected Lender, including a Defaulting Lender, no modification shall be
effective that would (i) increase the Commitment of such Lender; (ii) reduce the amount of, or waive or delay payment of, any
principal, interest or fees payable to such Lender (except as provided in Section 4.2); (iii) extend the Commitment Termination
Date or the Maturity Date applicable to such Lender’s Obligations; or (iv) amend this clause (b); (c) without the prior
written consent of all Lenders (except any Defaulting Lender), no modification shall be effective that would (i) alter Section
5.7, 7.1 (except to add Collateral) or 13.1.1; (ii) amend the definition of Required Lenders; (iii) release all or
substantially all of the Collateral, except as currently contemplated by the Transaction Documents; or (iv) release Borrower from
liability for any Obligations; (e) without the prior written consent of all Lenders (i) increase any advance rate with respect
to the Borrowing Base or (ii) amend the definition of Borrowing Base (or any defined term used in such definition), in each case,
if the effect if as a result thereof the amounts available to be borrowed by Borrower would be immediately increased; and (f)
without the prior written consent of a Secured Bank Product Provider, no modification shall be effective that affects its relative
payment priority under Section 5.7.

 

13.1.2           Limitations.
The agreement of Borrower or Servicer shall not be necessary to the effectiveness of any modification of a Transaction Document
that deals solely with the rights and duties of Lenders, and/or Agent as among themselves. Only the consent of the parties to
the Fee Letter or any agreement relating to a Bank Product shall be required for any modification of such agreement, and any non-Lender
that is party to a Bank Product agreement shall have no right to participate in any manner in modification of any other Transaction
Document. Any waiver or consent granted by Agent or Lenders hereunder shall be effective only if in writing and only for the matter
specified.

 

13.1.3           Payment
for Consents. Borrower will not, directly or indirectly, pay any remuneration or other thing of value, whether by way of additional
interest, fee or otherwise, to any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender
with any modification of any Transaction Documents, unless such remuneration or value is concurrently paid, on the same terms,
on a Pro Rata basis to all Lenders providing their consent.

 

    	 	-66-	 

     

    

 

13.2         Indemnity.
BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES AGAINST ANY CLAIMS, LIABILITIES, COSTS, EXPENSES AND OTHER AMOUNTS
OF ANY KIND THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE IN ANY WAY RELATED TO THE TRANSACTION DOCUMENTS, THE COLLATERAL,
ANY BREACH OF APPLICABLE LAW, OR OTHERWISE, INCLUDING CLAIMS ASSERTED BY BORROWER OTHER PERSON OR ARISING FROM THE NEGLIGENCE
OF AN INDEMNITEE; provided, however, in no event shall Borrower have any obligation to indemnify or hold harmless an Indemnitee
with respect to (a) any claims, liabilities, costs, expenses and other amounts of any kind in any way related to the Transaction
Documents or Collateral that are determined in a final, non-appealable judgment by a court of competent jurisdiction to result
from the gross negligence or willful misconduct of any Indemnitee, or (b) any claims, liabilities, costs, expenses and other amounts
of any kind arising from disputes brought by an Indemnitee against another Indemnitee (other than any claim, litigation, investigation
or proceeding that is brought by or against Agent or arranger, acting in its capacity as the Agent or arranger) that does not
arise out of any act or omission of Borrower, Servicer or any of their respective subsidiaries.

 

13.3         Notices
and Communications.

 

13.3.1           Notice
Address. Subject to Section 4.1.4, all notices and other communications by or to a party hereto shall be in writing
and shall be given to Borrower, at Borrower’s address shown on the signature pages hereof, and to any other Person at its
address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after the Closing Date, at the address
shown on its Assignment and Acceptance), or at such other address as a party may hereafter specify by notice in accordance with
this Section 13.3. Each such notice or other communication shall be effective only (a) if given by facsimile transmission,
when transmitted to the applicable facsimile number, if confirmation of receipt is received; (b) if given by mail, three Business
Days after deposit in the U.S. mail, with first-class postage pre-paid, addressed to the applicable address; (c) if given by personal
delivery, when duly delivered to the notice address with receipt acknowledged; or (d) if given by electronic means, only at the
time and to the extent provided in Section 13.3.2. In no event shall a voicemail message be effective as a notice, communication
or confirmation under any of the Transaction Documents. Notwithstanding the foregoing, no notice to Agent pursuant to Section
2.1.4, 3.1.2, or 4.1.1 shall be effective until actually received by the individual to whose attention at Agent such
notice is required to be sent. Any written notice or other communication that is not sent in conformity with the foregoing provisions
shall nevertheless be effective on the date actually received by the noticed party.

 

13.3.2           Electronic
Communications. (i) Borrower authorizes Agent and Lenders to extend Loans, effect selections of interest rates, and transfer
funds to or on behalf of Borrower based on instructions sent by electronic mail. Borrower shall confirm each such request by prompt
delivery to Agent of a Notice of Borrowing, if applicable, but if the foregoing differs in any material respect from the action
taken by Agent, the records of Agent shall govern.

 

(ii)         Electronic
mail and internet websites may be used for delivery of financial statements, Borrowing Base Certificates and other information
required by Section 9.1.3 (other than notices), administrative matters and distribution of Transaction Documents for execution,
pursuant to procedures approved by Agent or as otherwise determined by Agent. Anything herein to the contrary notwithstanding,
except as expressly provided Section 13.2.2(i), notices delivered by electronic mail may not be used as effective notice
under the Transaction Documents.

 

(iii)        Unless
Agent otherwise requires, communications sent to an electronic mail address of Agent shall be deemed received upon the sender’s
receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail, or other written acknowledgement); provided that if such communication is not sent during the normal business hours
of the recipient, such communication shall be deemed to have been sent at the opening of business on the next Business Day for
the recipient.

 

    	 	-67-	 

     

    

 

(iv)        Agent
shall not have any liability for any loss suffered by Borrower as a result of Agent’s acting upon its understanding of electronic
mail requests or instructions from a Person believed in good faith by Agent to be a Person authorized to give such requests or
instructions on Borrower’s behalf. Borrower shall indemnify, defend and hold harmless each Indemnitee from any claims arising
from any electronic communication purportedly given by or on behalf of Borrower.

 

(v)         Agent
may, in its discretion and upon notice to Borrower (A) cease or suspend any actual or implied obligation it may have to act based
on such electronic communications and (B) thereafter, disregard any such electronic communications.

 

13.3.3           Non-Conforming
Communications. Agent and Lenders may rely upon any notices purportedly given by or on behalf of Borrower even if such notices
were not made in a manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as understood by the
recipient, varied from a later confirmation. Borrower shall indemnify and hold harmless each Indemnitee from any liabilities,
losses, costs and expenses arising from any telephonic communication purportedly given by or on behalf of Borrower.

 

13.4         Performance
of Borrower’s Obligations. Agent may, in its discretion at any time and from time to time, at Borrower’s expense,
pay any amount or do any act required of Borrower under any Transaction Documents or otherwise lawfully requested by Agent to
(a) enforce any Transaction Documents or collect any Obligations; (b) protect, insure, maintain or realize upon any Collateral;
or (c) defend or maintain the validity or priority of Agent’s Liens in any Collateral, including any payment of a judgment,
insurance premium, or landlord claim, or any discharge of a Lien. All payments, costs and expenses (including Extraordinary Expenses)
of Agent under this Section shall be reimbursed to Agent by Borrower, on demand, with interest from the date incurred to
the date of payment thereof at the Default Rate applicable to Base Rate Revolver Loans. Any payment made or action taken by Agent
under this Section shall be without prejudice to any right to assert an Event of Default or to exercise any other rights or remedies
under the Transaction Documents.

 

13.5         Credit
Inquiries. Borrower hereby authorizes Agent and Lenders (but they shall have no obligation) to respond to usual and customary
credit inquiries from third parties concerning Borrower.

 

13.6         Severability.
Wherever possible, each provision of the Transaction Documents shall be interpreted in such manner as to be valid under Applicable
Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity
and the remaining provisions of the Transaction Documents shall remain in full force and effect.

 

13.7         Cumulative
Effect; Conflict of Terms. The provisions of the Transaction Documents are cumulative. The parties acknowledge that the
Transaction Documents may use several limitations, tests or measurements to regulate similar matters, and they agree that these
are cumulative and that each must be performed as provided. Except as otherwise provided in another Transaction Document (by specific
reference to the applicable provision of this Agreement), if any provision contained herein is in direct conflict with any provision
in another Transaction Document, the provision herein shall govern and control.

 

    	 	-68-	 

     

    

 

13.8         Counterparts.
Any Transaction Document may be executed in counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement shall become effective when Agent has received counterparts
bearing the signatures of all parties hereto. Delivery of a signature page of any Transaction Document by telecopy or other electronic
means shall be effective as delivery of a manually executed counterpart of such agreement.

 

13.9         Entire
Agreement. Time is of the essence of the Transaction Documents. The Transaction Documents constitute the entire contract
among the parties relating to the subject matter hereof, and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.

 

13.10         Relationship
with Lenders. The obligations of each Lender hereunder are several, and no Lender shall be responsible for the obligations
or Commitments of any other Lender. Amounts payable hereunder to each Lender shall be a separate and independent debt. It shall
not be necessary for Agent or any other Lender to be joined as an additional party in any proceeding for such purposes. Nothing
in this Agreement and no action of Agent, Lenders or any other Secured Party pursuant to the Transaction Documents or otherwise
shall be deemed to constitute Agent and any Secured Party to be a partnership, association, joint venture or any other kind of
entity, nor to constitute control of Borrower.

 

13.11         No
Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated by any Transaction
Document, Borrower and Servicer acknowledge and agree that (a)(i) this credit facility and any related arranging or other services
by Agent, any Lender, any of their Affiliates or any arranger are arm’s-length commercial transactions between Borrower,
Servicer and such Person; (ii) Borrower and Servicer have consulted their own legal, accounting, regulatory and tax advisors to
the extent they have deemed appropriate; and (iii) Borrower and Servicer are capable of evaluating, and understand and accept,
the terms, risks and conditions of the transactions contemplated by the Transaction Documents; (b) each of Agent, Lenders, their
Affiliates and any arranger is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant
parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for Borrower or Servicer, any of their
Affiliates or any other Person, and has no obligation with respect to the transactions contemplated by the Transaction Documents
except as expressly set forth therein; and (c) Agent, Lenders, their Affiliates and any arranger may be engaged in a broad range
of transactions that involve interests that differ from those of Borrower and Servicer and their Affiliates, and have no obligation
to disclose any of such interests to Borrower and Servicer or their Affiliates. To the fullest extent permitted by Applicable
Law, Borrower and Servicer hereby waives and releases any claims that it may have against Agent, Lenders, their Affiliates and
any arranger with respect to any breach of agency or fiduciary duty in connection with any transaction contemplated by a Transaction
Document.

 

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13.12         Confidentiality.
Each of Agent and Lenders shall maintain the confidentiality of all Information (as defined below), except that Information may
be disclosed (a) to its Affiliates and funding or financing sources, and to its and their partners, directors, officers, employees,
agents, advisors and representatives (provided such Persons are informed of the confidential nature of the Information and instructed
to keep it confidential); (b) to the extent requested by any governmental, regulatory or self-regulatory authority purporting
to have jurisdiction over it or its Affiliates; (c) to the extent required by Applicable Law or by any subpoena or other legal
process (provided that such Agent or Lender shall, to the extent permitted by law, endeavor to promptly notify the Borrower in
advance of such pending disclosure); (d) to any other party hereto; (e) in connection with any action or proceeding, or other
exercise of rights or remedies, relating to any Transaction Documents or Obligations; (f) subject to an agreement containing provisions
substantially the same as this Section, to any Transferee or any actual or prospective party (or its advisors) to any Bank Product;
(g) with the consent of Borrower; or (h) to the extent such Information (i) becomes publicly available other than as a result
of a breach of this Section or (ii) is available to Agent, any Lender, or any of their Affiliates on a nonconfidential basis from
a source other than Borrower. Notwithstanding the foregoing, Agent and Lenders may publish or disseminate general information
describing this credit facility, including the names and addresses of Borrower and a general description of Borrower’s and
Parent’s businesses, and may use Borrower’s and Parent’s logos, trademarks or product photographs in advertising
materials, including, without limitation, “tombstones”, league tables and press releases. As used herein, “Information”
means all information received from Borrower or Parent relating to it or its business that is identified as confidential when
delivered. Any Person required to maintain the confidentiality of Information pursuant to this Section shall be deemed to have
complied if it exercises the same degree of care that it accords its own confidential information. Each of Agent and Lenders acknowledges
that (i) Information may include material non-public information concerning Parent or Borrower; (ii) it has developed compliance
procedures regarding the use of material non-public information; and (iii) it will handle such material non-public information
in accordance with Applicable Law, including federal and state securities laws. Borrower and Parent consent to the publication
by Agent or any Lender of advertising material relating to the financing transactions contemplated by this Agreement using Borrower’s
or Parent’s name, product photographs, logo or trademark. Agent reserves the right to provide to industry trade organizations
information necessary and customary for inclusion in league table measurements.

 

13.13         GOVERNING
LAW. THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, UNLESS OTHERWISE SPECIFIED, SHALL BE GOVERNED BY THE LAWS
OF THE STATE OF GEORGIA, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO
NATIONAL BANKS).

 

13.14         Consent
to Forum. BORROWER AND SERVICER EACH HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING
IN OR WITH JURISDICTION OVER ATLANTA, GEORGIA, IN ANY PROCEEDING OR DISPUTE RELATING IN ANY WAY TO ANY TRANSACTION DOCUMENTS,
AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. BORROWER AND SERVICER EACH IRREVOCABLY WAIVES
ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE
OR INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
13.3.1. Nothing herein shall limit the right of Agent or any Lender to bring proceedings against Borrower or Servicer in any other
court, nor limit the right of any party to serve process in any other manner permitted by Applicable Law. Nothing in this Agreement
shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction.

 

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13.15         Waivers
by BORROWER AND SERVICER. To the fullest extent permitted by Applicable Law, Borrower and SERVICER EACH hereby knowingly,
intentionally and intelligently waives (with the benefit of advice of legal counsel of its own choosing), (a) the right to trial
by jury (which Agent and each Lender hereby also waives) in any proceeding or dispute of any kind relating in any way to any Transaction
Documents, Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default, non-payment, maturity,
release, compromise, settlement, extension or renewal of any commercial paper, accounts, documents, instruments, chattel paper
and guaranties at any time held by Agent on which Borrower may in any way be liable, and hereby ratifies anything Agent may do
in this regard; (c) notice prior to taking possession or control of any Collateral; (d) any bond or security that might be required
by a court prior to allowing Agent to exercise any rights or remedies; (e) the benefit of all valuation, appraisement and exemption
laws; (f) any claim against Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any enforcement action or exercise of rights
or remedies, of any kind, the Obligations, Transaction Documents or transactions relating thereto; (g) notice of acceptance hereof;
and (h) the right to assert any confidential relationship that it may have under applicable law with any accounting firm and/or
service bureau in connection with any information requested by Agent pursuant to or in accordance with this Agreement (and BORROWER
and SERVICER EACH agree that Agent may contact directly and such accounting firm and/or service bureau in order to obtain any
such information). BORROWER AND SERVICER Each acknowledges that the foregoing
waivers are a material inducement to Agent and Lenders entering into this Agreement and that they are relying upon the foregoing
in their dealings with Borrower. BORROWER AND SERVICER Each has reviewed the foregoing waivers with its legal counsel and has
knowingly and voluntarily waived its jury trial and other rights following consultation with legal counsel. In the event of litigation,
this Agreement may be filed as a written consent to a trial by the court.

 

13.16         Power
of Attorney. Borrower and Servicer hereby irrevocably constitutes and appoints Agent (and all Persons designated by Agent)
as Borrower or Servicer’s true and lawful attorney (and agent-in-fact) for the purposes provided in this Section. Agent,
or Agent’s designee, may, without notice and in either its or Borrower’s name, but at the cost and expense of Borrower:
(a) endorse an Borrower’s ’s name on any Payment Item or other proceeds of Collateral (including proceeds of insurance)
that come into Agent’s possession or control; and (b) during an Event of Default, (i) collect, liquidate and receive balances
in Deposit Accounts or investment accounts, and take control, in any manner, of proceeds of Collateral; (ii) prepare, file and
sign Borrower’s name to a proof of claim or other document in a bankruptcy of a Portfolio Company, or to any notice, assignment
or satisfaction of Lien or similar document; (iii) receive, open and dispose of mail addressed to Borrower, and notify postal
authorities to deliver any such mail to an address designated by Agent; (iv) endorse any Chattel Paper, Document, Instrument,
bill of lading, or other document or agreement relating to any Collateral; (v) use Borrower’s stationery and sign its name
to verifications of Bank Loans; (vi) use information contained in any data processing, electronic or information systems relating
to Collateral; (vii) make and adjust claims under insurance policies; (viii) take any action as may be necessary or appropriate
to obtain payment under any letter of credit, banker’s acceptance or other instrument for which Borrower is a beneficiary;
and (ix) take all other actions as Agent deems appropriate to fulfill Borrower’s obligations under the Transaction Documents.

 

13.17         PATRIOT
Act Notice. Agent and Lenders hereby notify Borrower and Servicer that pursuant to the requirements of the PATRIOT Act,
Agent and Lenders are required to obtain, verify and record information that identifies Borrower and Servicer, including its legal
name, address, tax ID number and other information that will allow Agent and Lenders to identify it in accordance with the PATRIOT
Act. Agent and Lenders will also require information regarding each personal guarantor, if any, and may require information regarding
Borrower’s and Servicer’s management and owners, such as legal name, address, social security number and date of birth.

 

    	 	-71-	 

     

    

 

SECTION 14.         Custodian
and Backup Servicer 

 

14.1         Designation
of Custodian. The role of Custodian with respect to the Underlying Instruments relating to the Portfolio Investments shall
be conducted by the Person designated as Custodian hereunder until the resignation or removal of Custodian pursuant to the terms
of the Custodian Agreement.

 

14.2         Duties
of Custodian. The duties of the Custodian shall be set forth in the Custodian Agreement.

 

14.3         Custodian
Removal. The Custodian may be removed pursuant to the terms of the Custodian Agreement; provided, however, the Custodian
shall continue to act in such capacity until a successor Custodian has been appointed and has received all Underlying Instruments
held by the previous Custodian.

 

14.4         Access
to Certain Documentation and Information Regarding the Collateral; Audits. The Servicer, Borrower and the Custodian shall
provide to the Agent access to the Underlying Instruments and all other documentation regarding the Collateral including in such
cases where the Agent is required in connection with the enforcement of the rights or interests of the Lenders, or by applicable
statutes or regulations, to review such documentation, such access being afforded without charge and upon reasonable prior written
notice from the Agent. From time to time at the discretion of the Agent, the Agent may review the Servicer’s collection
and administration of the Collateral and may conduct an audit of the Collateral and Underlying Instruments in conjunction with
such a review.

 

14.5         Designation
of Backup Servicer. The role of Backup Servicer with respect to the Underlying Instruments shall be conducted by the Person
designated as Backup Servicer hereunder from until the Agent shall give such Backup Servicer a Backup Servicer Termination Notice.

 

14.6         Duties
of Backup Servicer. The duties of the Backup Servicer shall be set forth in the Servicing Agreement.

 

14.7         Backup
Servicer Removal. The Backup Servicer may be removed, with or without cause, by the Agent (or Borrower with the Agent’s
consent in its sole discretion) by notice given in writing to the Backup Servicer (the “Backup Servicer Termination Notice”);
provided that notwithstanding its receipt of a Backup Servicer Termination Notice, the Backup Servicer shall continue to act in
such capacity until a successor Backup Servicer has been appointed and has agreed to act as Backup Servicer hereunder.

 

[Remainder of page intentionally left blank;
signatures begin on following page]

 

    	 	-72-	 

     

    

 

IN WITNESS WHEREOF, this Agreement has been executed under seal and delivered as of the
date set forth above.

 

	ATTEST:	 	BORROWER:
	 	 	 
	 	 	KCAP FUNDING I, LLC
	Secretary	 	 
	[SEAL]	 	 
	 	 	By:	 
	 	 	Name:	Dayl Pearson
	 	 	Title:	Manager
	 	 	Address:	 
	 	 	 	295 Madison Avenue, 6th Floor
	 	 	 	New York, NY 10017
	 	 	 	Attn: Daniel Gilligan
	 	 	 	Facsimile: (212) 983-7654
	 	 	 	Email: gilligan@kcapinc.com
	 	 	 
	 	 	 
	ATTEST:	 	SERVICER:
	 	 	 
	 	 	KCAP FINANCIAL, INC.
	Secretary	 	 
	[SEAL]	 	 
	 	 	By:	 
	 	 	Name:	Daniel Gilligan
	 	 	Title:	Vice President
	 	 	Address:	 
	 	 	 	295 Madison Avenue, 6th Floor
	 	 	 	New York, NY 10017
	 	 	 	Attn: Daniel Gilligan
	 	 	 	Facsimile: (212) 983-7654
	 	 	 	Email: gilligan@kcapinc.com

 

Signature Page – Loan and Security Agreement

 

     

     

    

 

	 	 	AGENT AND LENDERS:
	 	 	 
	 	 	STATE BANK AND TRUST COMPANY,
	 	 	as Agent and a Lender
	 	 	 
	 	 	By:	 
	 	 	Name:	Megan Enlow
	 	 	Title:	Director
	 	 	Address:	 
	 	 	 	State Bank and Trust Company
	 	 	 	3399 Peachtree Road, N.E., Suite 1900
	 	 	 	Atlanta, GA 30326
	 	 	 	Attn: KCAP Loan Administration Officer
	 	 	 	Telecopy: (404) 365-7112
	 	 	 
	 	 	with courtesy copies to (which shall not be deemed notice):
	 	 	 
	 	 	Troutman Sanders LLP
	 	 	600 Peachtree Street, NE Suite 5200
	 	 	Atlanta, Georgia 30308
	 	 	Attention:  Hazen Dempster, Esq.
	 	 	Facsimile:  (404) 885-3900

 

Signature Page – Loan and Security Agreement

 

     

     

    

 

	 	 	CIBC BANK USA,
	 	 	as a Lender and as Documentation Agent
	 	 	 
	 	 	By:	 
	 	 	Name:	Steven Cohen
	 	 	Title:	Managing Director
	 	 	Address:	 
	 	 	 	120 S. LaSalle Street
	 	 	 	Chicago, Illinois 60603
	 	 	 	Attn:    Michael Free
	 	 	 	Telecopy:  (312) 564-6897

 

Signature Page – Loan and Security Agreement

 

     

     

    

 

	 	 	WOODFOREST NATIONAL BANK,
	 	 	as a Lender
	 	 	 
	 	 	By:	 
	 	 	Name:	Jeffrey A. Mitchell
	 	 	Title:	Senior Vice President, Corporate Banking
	 	 	Address:	 
	 	 	 	Woodforest National Bank - Loan Operations
	 	 	 	25231 Grogan’s Mill Rd.
	 	 	 	Suite 450
	 	 	 	The Woodlands, TX 77380
	 	 	 	Telecopy: (832) 375-3004
	 	 	 	Email: CMBloanservicing@woodforest.com

 

Signature Page – Loan and Security Agreement

 

     

     

    

 

ExhibIT
A

to

Loan and Security Agreement

 

ASSIGNMENT AND ACCEPTANCE

 

Reference is made to
the Loan and Security Agreement dated as of March 1, 2018, as amended (“Loan Agreement”), among KCAP FUNDING
I, LLC (“Borrower”), KCAP FINANCIAL, INC., as servicer, STATE BANK AND TRUST COMPANY, as agent
(“Agent”) for the financial institutions from time to time party to the Loan Agreement (“Lenders”),
and such Lenders. Terms are used herein as defined in the Loan Agreement.

 

______________________________________
(“Assignor”) and _________________________ _____________ (“Assignee”) agree as follows:

 

1.          Assignor
hereby assigns to Assignee and Assignee hereby purchases and assumes from Assignor (a) a principal amount of $________ of Assignor’s
outstanding Revolver Loans, and (b) the amount of $__________ of Assignor’s Revolver Commitment (which represents ____% of
the total Revolver Commitments) (the foregoing items being, collectively, the “Assigned Interest”), together
with an interest in the Transaction Documents corresponding to the Assigned Interest. This Agreement shall be effective as of the
date (“Effective Date”) indicated in the corresponding assignment notice delivered to Agent, provided such assignment
notice is executed by Assignor, Assignee, Agent and Borrower, if applicable. From and after the Effective Date, Assignee hereby
expressly assumes, and undertakes to perform, all of Assignor’s obligations in respect of the Assigned Interest, and all
principal, interest, fees and other amounts which would otherwise be payable to or for Assignor’s account in respect of the
Assigned Interest shall be payable to or for Assignee’s account, to the extent such amounts accrue on or after the Effective
Date.

 

2.          Assignor
(a) represents that as of the date hereof, prior to giving effect to this assignment, its Revolver Commitment is $__________, the
outstanding balance of its Revolver Loans is $__________; (b) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in connection with the Loan Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any other instrument or document
furnished pursuant thereto, other than that (i) Assignor is the legal and beneficial owner of the interest being assigned by it
hereunder, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate
the transactions contemplated hereby; and (c) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of Borrower or the performance by Borrower of its obligations under the Transaction Documents. [Assignor
is attaching the note[s] evidencing the Assigned Interests held by it and requests that Agent exchange such note[s] for new notes
payable to Assignee [and Assignor].]

 

    	 	A-1	 

     

    

 

3.          Assignee
(a) represents and warrants that it is legally authorized to enter into this Assignment and Acceptance; (b) confirms that it has
received copies of the Loan Agreement and such other Transaction Documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and Acceptance; (c) agrees that it shall, independently and
without reliance upon Assignor and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Transaction Documents; (d) confirms that it is an Eligible
Assignee; (e) appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers under the Loan
Agreement as are delegated to Agent by the terms thereof, together with such powers as are incidental thereto; (f) agrees that
it will observe and perform all obligations that are required to be performed by it as a “Lender” under the Transaction
Documents; (g) represents and warrants that the assignment evidenced hereby will not result in a non-exempt “prohibited transaction”
under Section 406 of ERISA and (h) agrees that it will keep confidential all information with respect to Borrower furnished to
it by Borrower or the Assignor to the extent provided in the Loan Agreement. Assignee acknowledges and agrees that it will not
sell or otherwise dispose of the Assigned Interest or any portion thereof, or grant any participation therein, in a manner which,
or take any action in connection therewith which, would violate the terms of any of the Transaction Documents.

 

4.          This
Agreement shall be governed by the laws of the State of Georgia. If any provision is found to be invalid under Applicable Law,
it shall be ineffective only to the extent of such invalidity and the remaining provisions of this Agreement shall remain in full
force and effect.

 

5.          Each
notice or other communication hereunder shall be in writing, shall be sent by messenger, by telecopy or facsimile transmission,
or by first-class mail, shall be deemed given when sent and shall be sent as follows:

 

(a)          If
to Assignee, to the following address (or to such other address as Assignee may designate from time to time):

 

__________________________

__________________________

__________________________

 

(b)          If
to Assignor, to the following address (or to such other address as Assignor may designate from time to time):

__________________________

__________________________

__________________________

__________________________

 

Payments hereunder
shall be made by wire transfer of immediately available Dollars as follows:

 

If to Assignee, to
the following account (or to such other account as Assignee may designate from time to time):

______________________________

______________________________

ABA No._______________________

______________________________

Account No.____________________

Reference: _____________________

 

If to Assignor, to
the following account (or to such other account as Assignor may designate from time to time):

______________________________

______________________________

ABA No._______________________

______________________________

Account No.____________________

Reference: _____________________

 

    	 	A-2	 

     

    

 

IN WITNESS WHEREOF,
this Assignment and Acceptance is executed as of _____________.

 

	 	 
	 	(“Assignee”)
	 	 
	 	By	                        
	 	 	Title:
	 	 
	 	(“Assignor”)
	 	 
	 	By	 
	 	 	Title:

 

CONSENTED TO, ACCEPTED AND AGREED,

AS OF THE DATE SET FORTH ABOVE:

 

AGENT:

 

STATE BANK AND TRUST COMPANY, as
Agent

 

	By	       	 
	 	Name: 	 
	 	Title:	 

 

ACKNOWLEDGED AND AGREED,

AS OF THE DATE SET FORTH ABOVE:

 

BORROWER:

 

KCAP FUNDING I, LLC

 

	By	 	 
	 	Name: 	 
	 	Title:	 

 

    	 	A-3	 

     

    

 

Exhibit b

to

Loan and Security Agreement

 

COMPLIANCE CERTIFICATE

 

[Letterhead of Borrower]

 

__________________, 20___

 

State Bank and Trust Company, as Agent

3399 Peachtree Road, N.E.

Suite 1900

Atlanta, Georgia 30326

Attn: KCAP Loan Administration Officer

 

The undersigned, a manager of KCAP Funding
I, LLC, a Delaware limited liability company (“Borrower”), gives this certificate to State Bank and Trust Company,
in its capacity as agent for the hereinafter defined Lenders (“Agent”), in accordance with the requirements
of Section 9.1.3 of that certain Loan and Security Agreement, dated March 1, 2018, by and among Borrower,
Agent and the financial institutions party from time to time thereto as lenders (the “Lenders”) (as at any time
amended, the “Loan Agreement”). Capitalized terms used in this Certificate, unless otherwise defined herein,
shall have the meanings ascribed to them in the Loan Agreement.

 

1.          Attached
hereto are copies of the [unaudited][audited] balance sheets and statements of income and cash flow
of [Parent] [Borrower] for the Fiscal Quarter ending [____________, 20__], accompanied
by such material as are required to be delivered pursuant to Section 9.1.3, which have been prepared in accordance with GAAP and
fairly present the financial position and results of operations of Borrower for such Fiscal Quarter, subject to normal year-end
adjustments and the absence of footnotes.

 

2.          (a)
I hereby certify based upon my review of the balance sheets and statements of income of Borrower for the four Fiscal Quarter period
ending [__________, 20__], that the Asset Coverage Ratio for the relevant measurement period is [________],
which [is] [is not] in compliance with requirements of Section 9.3.1 to the Loan Agreement.

 

(b) I hereby certify
based upon my review of the balance sheets and statements of income of Borrower for the four Fiscal Quarter Period ending [__________,
20__], that the Interest Coverage Ratio for the relevant measurement period is [________], which [is]
[is not] in compliance with requirements of Section 9.3.2 to the Loan Agreement.

 

(c) I hereby certify
based upon my review of the balance sheets and statements of income of Parent for the Fiscal Quarter ending [__________,
20__], that Parent’s Tangible Net Worth is $______________, which [is] [is not] an Event of Default
under Section 10.1(r) to the Loan Agreement.

 

3.          No
Default or Event of Default exists on the date hereof, other than: __________________ ________________________________________________
[if none, so state]; and

 

    	 	B-1	 

     

    

 

4.          Attached
hereto is a schedule showing the calculations that support Borrower’s compliance [non-compliance] with the
financial covenants, as shown above.

 

5.          The
financial statements furnished to Agent for the Fiscal Quarter ending [____________, 20__] were prepared in accordance
with GAAP consistently applied and present fairly in all material respects the financial condition of Borrower at the close of,
and the results of the Borrower’s operations and cash flows for, the period(s) covered, subject to normal year end audit
adjustments and the absence of footnotes. There has been no change in GAAP or the application thereof since the date of the audited
financial statements furnished to Agent for the year ending [_____], other than the material accounting changes as disclosed on
Appendix III hereto.

 

6.          Except
as set forth in Appendix IV, there has been no change in generally accepted accounting principles used in the preparation
of the financial statements delivered to Agent herewith. If any such change has occurred, a statement of reconciliation conforming
such financial statements to GAAP is attached hereto in Appendix IV.

 

	 	Very truly yours,
	 	 
	 	 
	 	Name:
	 	Title: Manager

 

(Attachments) 

 

    	 	B-2	 

     

    

 

Exhibit
C

to

Loan and Security Agreement

 

CONDITIONS PRECEDENT

 

(a)          Each
Lender requesting a note pursuant to Section 2.1.2 shall have received such note(s), duly executed by Borrower. Each other
Transaction Document shall have been duly executed and delivered to Agent by each of the signatories thereto, and Borrower shall
be in compliance with all terms thereof.

 

(b)          Agent
shall have received acknowledgments of all filings or recordations necessary to perfect its Liens in the Collateral, as well as
UCC and Lien searches and other evidence satisfactory to Agent that such Liens are the only Liens upon the Collateral, except Permitted
Liens. Agent shall in its possession any original documents necessary to perfect and preserve its Lien, including stock certificates
with corresponding powers executed in blank.

 

(c)          Agent
shall have received duly executed agreements establishing each Dominion Account and related lockbox (including all applicable deposit
account control agreements), in form and substance, and with Custodian, satisfactory to Agent.

 

(d)          Agent
shall have received a telephone instruction letter duly executed by Borrower and in form and substance satisfactory to Agent.

 

(e)          Agent
shall have received certificates, in form and substance satisfactory to it, from a knowledgeable Senior Officer of Borrower certifying
that, after giving effect to the initial Loans and transactions hereunder, (i) Borrower is Solvent; (ii) no Default or Event of
Default exists; (iii) the representations and warranties set forth in Section 8 are true and correct; and (iv) Borrower
has complied with all agreements and conditions to be satisfied by it under the Transaction Documents.

 

(f)          Agent
shall have received a certificate of a duly authorized officer of Borrower and Servicer, certifying (i) that attached copies of
such Person’s Organic Documents are true and complete, and in full force and effect, without amendment except as shown, and
that such Person is in good standing in the applicable jurisdictions, with good standing certificates attached; (ii) that an attached
copy of resolutions authorizing execution and delivery of the Transaction Documents is true and complete, and that such resolutions
are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all resolutions adopted
with respect to this credit facility; (iii) to the title, name and signature of each Person authorized to sign the Transaction
Documents; and (iv) that attached copies of Borrower’s Material Contracts are true and complete, and in full force and effect,
without amendment except as shown. Agent may conclusively rely on this certificate until it is otherwise notified by Borrower or
Servicer in writing.

 

(g)          Agent
shall have received a written opinion of counsel to Borrower and Servicer in form and substance satisfactory to Agent covering,
among other matters, (i) the enforceability of the Transaction Documents, (ii) the grant and perfection of security interests in
the Collateral, (iii) the true sale or contribution (as applicable) of the Loans from Parent to Borrower, (iv) non-consolidation
of Borrower with the Parent, and (v) such other matters as Agent may require in Agent’s sole discretion.

 

    	 	C-1	 

     

    

 

(h)          Agent
shall have received copies of the Organic Documents of Borrower and Servicer, certified by the Secretary of State or other appropriate
official of such Person’s jurisdiction of organization. Agent shall have received good standing certificates for Borrower
and Servicer, issued by the Secretary of State or other appropriate official of such Person’s jurisdiction of organization
and each jurisdiction where such Person’s conduct of business or ownership of Property necessitates qualification.

 

(i)          Agent
shall have received copies of policies or certificates of insurance for the insurance policies (and applicable endorsements) carried
by Parent, all in compliance with the Transaction Documents.

 

(j)          Agent
shall have completed its business, financial and legal due diligence of Borrower and Servicer, with results satisfactory to Agent.
No material adverse change in the financial condition of Borrower or Servicer or in the quality, quantity or value of any Collateral
shall have occurred since December 12, 2017.

 

(k)          No
Default or Event of Default shall exist at the time of, or result from, the making of the initial Loans and the consummation of
the other transactions contemplated to occur on the Closing Date. There shall not have occurred any default of any Material Contract
of Borrower.

 

(l)          All
conditions precedent in any other Transaction Document shall be satisfied.

 

(m)          The
representations and warranties of Borrower and Servicer in the Transaction Documents shall be true and correct on the date of,
and upon giving effect to, the making of the initial Loans and the consummation of the other transactions contemplated to occur
on the Closing Date (except for representations and warranties that expressly relate to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date).

 

(n)          
Either (i) the business plan previously provided to Agent shall continue to be, in all material respects, an accurate projection
of Borrower’s performance for the first twelve months following the Closing Date or (ii) Agent shall have received an updated
business plan which will include an update of the same items contained in the business plan previously provided to Agent and shall
be reasonably satisfactory to Agent in both form and substance.

 

(o)          
Agent shall have received all other agreements, documents, certificates and instruments requested by it (including one or more
information certificates) and Agent shall have completed all business, financial and legal due diligence with respect to Borrower
and Servicer (including, but not limited to, a review of any purchase and sale or contribution agreement and transition services
agreement), the results of which shall be satisfactory to Agent.

 

(p)          No
material adverse changes in governmental regulations or policies affecting Borrower, Servicer or any Secured Party shall have occurred
prior to the Closing Date.

 

(q)          Borrower’s
tax assumptions, capital, organization, ownership and legal structure must be satisfactory to Agent.

 

(r)          Agent
shall have received customary background checks on Borrower and Servicer and senior management thereof, the results of which shall
be satisfactory to Agent.

 

    	 	C-2	 

     

    

 

(s)          Agent
shall have received a duly executed and satisfactory disbursement letter and flow of funds memo for the Closing Date. Borrower
shall have paid all fees and expenses (including, without limitation, audit fees, attorneys’ fees of one outside counsel
for Agent and Lenders, taken as a whole, UCC search fees, appraisal fees, documentation costs and expenses, and filing fees and
expenses, as well as all fees owing to Agent and Lenders pursuant to the Fee Letter to the extent due on the Closing Date) to be
paid to Agent and Lenders on the Closing Date.

 

(t)          Agent
shall have received a Borrowing Base Certificate dated as of the Closing Date and prepared as of the Closing Date or a recent date
prior thereto that is acceptable to Agent. Upon giving effect to the initial funding of the Loans, and the payment by Borrower
of all fees and expenses incurred in connection herewith, the repayment of any Debt contemplated to occur on the Closing Date,
Availability shall be at least $20,000,000.

 

(u)          Agent
shall have received evidence that Parent has sold or contributed Eligible Portfolio Investments (including Cash for the purpose
of calculating Value thereof for this clause (u) and evidence satisfactory to Agent that such Cash has been deposited with Custodian)
with a Value of not less than $60,000,000 to Borrower, which Eligible Portfolio Investments shall be free and clear of all Liens,
and the terms of such Eligible Portfolio Investments contribution or sale shall be acceptable to Agent.

 

(v)         Agent
shall have received, in each case in form and substance satisfactory to Agent, all necessary authorizations and consents for the
closing of the transactions contemplated by this Agreement.

 

(w)          
Agent and Lenders shall have received their final credit approvals.

 

(x)          Agent
shall have received Commitments from at least one other Lender in an amount not less than $20,000,000 in the aggregate.

 

(y)          The
Agent's receipt, at least one Business Day prior to the Closing Date, of all documentation and other information required by regulatory
authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without
limitation, the PATRIOT Act, in each case to the extent requested by the Agent in writing at least two Business Days prior to the
Closing Date.

 

    	 	C-3	 

     

    

 

Exhibit
D

to

Loan and Security Agreement

 

AGENCY PROVISIONS

 

1.          Appointment,
Authority and Duties of Agent 

 

a.           Appointment
and Authority. Each Secured Party appoints and designates AloStar as Agent under all Transaction Documents. Agent may, and
each Secured Party authorizes Agent to, enter into all Transaction Documents to which Agent is intended to be a party and accept
all Security Documents, for the benefit of Secured Parties. Each Secured Party agrees that any action taken by Agent or Required
Lenders in accordance with the provisions of the Transaction Documents, and the exercise by Agent or Required Lenders of any rights
or remedies set forth therein, together with all other powers reasonably incidental thereto, shall be authorized by and binding
upon all Secured Parties. Without limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to
(a) act as the disbursing and collecting agent for Lenders with respect to all payments and collections arising in connection with
the Transaction Documents; (b) negotiate the terms of, execute and deliver as Agent each Transaction Document, including any intercreditor
or subordination agreement, and any amendments thereto, and accept delivery of each Transaction Document from Borrower or other
Person; (c) act as collateral agent for Secured Parties for purposes of perfecting and administering Liens under the Transaction
Documents, and for all other purposes stated therein; (d) manage, supervise or otherwise deal with Collateral; and (e) take any
enforcement action or exercise of rights or remedies, of any kind, in connection with the Obligations, the Collateral or the Transaction
Documents, pursuant to the Transaction Documents, Applicable Law or otherwise. The duties of Agent shall be ministerial and administrative
in nature, and Agent shall not have a fiduciary relationship with any Secured Party, Participant or other Person, by reason of
any Transaction Document or any transaction relating thereto. Agent alone shall be authorized to determine whether any Portfolio
Investments constitute Eligible Portfolio Investments, whether to impose or release any reserve, or whether any conditions to funding
have been satisfied, which determinations and judgments, if exercised in good faith, shall exonerate Agent from liability to any
Lender or other Person for any error in judgment. Agent may perform its duties through agents and employees. Agent may consult
with and employ attorneys, accountants, appraisers, auditors, business valuation experts, environmental engineers or consultants,
turnaround consultants, and other professionals and experts, and shall be entitled to act upon, and shall be fully protected in
any action taken in good faith reliance upon, any advice given by any of Agent’s attorneys, accountants, appraisers, auditors,
business valuation experts, environmental engineers or consultants, turnaround consultants, or other professionals or experts.
Agent shall not be responsible for the negligence or misconduct of any agents, employees or other Persons selected by it with reasonable
care.

 

b.           Duties
and Lender Instructions. Agent shall not have any duties except those expressly set forth in the Transaction Documents. The
conferral upon Agent of any right shall not imply a duty to exercise such right, unless instructed to do so by Lenders in accordance
with this Agreement. The rights and remedies conferred upon Agent under the Transaction Documents may be exercised without the
necessity of joinder of any other party, unless required by Applicable Law. Agent may request instructions from Required Lenders
or other Secured Parties with respect to any act (including the failure to act) in connection with any Transaction Documents, and
may seek assurances to its satisfaction from Secured Parties of their indemnification obligations against all claims, liabilities,
costs, expenses and other amounts of any kind in any way related to the Transaction Documents or Collateral at any time that could
be incurred by Agent in connection with any act. Agent shall be entitled to refrain from any act until it has received such instructions
or assurances, and Agent shall not incur liability to any Person by reason of so refraining. Instructions of Required Lenders shall
be binding upon all Secured Parties, and no Secured Party shall have any right of action whatsoever against Agent as a result of
Agent acting or refraining from acting in accordance with the instructions of Required Lenders. Notwithstanding the foregoing,
instructions by and consent of specific parties shall be required to the extent provided in Section 13.1.1. In no event
shall Agent be required to take any action that, in its opinion, is contrary to Applicable Law or any Transaction Documents or
could subject any Agent Indemnitee to personal liability.

 

    	 	D-1	 

     

    

 

II.          Agreements
Regarding Collateral and Field Examination Reports

 

a.           Lien
Releases; Care of Collateral. Secured Parties authorize Agent to release any Lien with respect to any Collateral (a) upon Full
Payment of the Obligations; (b) that is the subject of a disposition permitted under this Agreement; (c) that does not constitute
a material part of the Collateral; or (e) with the written consent of all Lenders. Secured Parties authorize Agent to subordinate
its Liens to any Lien permitted under Section 9.2.2(b). Agent shall have no obligation to assure that any Collateral exists
or is owned by Borrower, or is cared for, protected or insured, nor to assure that Agent’s Liens have been properly created,
perfected or enforced, or are entitled to any particular priority, nor to exercise any duty of care with respect to any Collateral.

 

b.           Possession
of Collateral. Agent and Secured Parties appoint each Lender as agent (for the benefit of Secured Parties) for the purpose
of perfecting Liens in any Collateral held or controlled by such Lender, to the extent such Liens are perfected by possession or
control. If any Lender obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly upon Agent’s
request, deliver such Collateral to Agent or otherwise deal with it in accordance with Agent’s instructions.

 

c.           Reports.
Agent shall promptly forward to each Lender, when complete, copies of any field audit or examination prepared by or for Agent with
respect to Borrower or Collateral (“Report”). Each Lender agrees (a) that neither AloStar nor Agent makes any representation
or warranty as to the accuracy or completeness of any Report, and shall not be liable for any information contained in or omitted
from any Report; (b) that the Reports are not intended to be comprehensive audits or examinations, and that Agent or any other
Person performing any audit or examination will inspect only specific information regarding Obligations or the Collateral and will
rely significantly upon Borrower’s books and records as well as upon representations of Borrower’s officers and employees;
and (c) to keep all Reports confidential and strictly for such Lender’s internal use, and not to distribute any Report (or
the contents thereof) to any Person (except to such Lender’s Participants, attorneys and accountants) or use any Report in
any manner other than administration of the Loans and other Obligations. Each Lender shall indemnify and hold harmless Agent and
any other Person preparing a Report from any action such Lender may take as a result of or any conclusion it may draw from any
Report, as well as from all claims, liabilities, costs, expenses and other amounts of any kind arising as a direct or indirect
result of Agent furnishing a Report to such Lender at any time.

 

III.         Reliance
By Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any certification, notice or other
communication (including those by telephone, telex, telegram, telecopy or e-mail) believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person, and upon the advice and statements of Agent’s attorneys, accountants,
appraisers, auditors, business valuation experts, environmental engineers or consultants, turnaround consultants, or other professionals
or experts. Agent shall have a reasonable and practicable amount of time to act upon any instruction, notice or other communication
under any Transaction Document, and shall not be liable for any delay in acting.

 

    	 	D-2	 

     

    

 

IV.          Action
Upon Default. Agent shall not be deemed to have knowledge of any Default or Event of Default, or of any failure to satisfy
any conditions in Section 6, unless it has received written notice from Borrower or Required Lenders specifying the occurrence
and nature thereof. If any Lender acquires knowledge of a Default, Event of Default or failure of such conditions, it shall promptly
notify Agent and the other Lenders thereof in writing. Each Secured Party agrees that, except as otherwise provided in any Transaction
Documents or with the written consent of Agent and Required Lenders, it will not take any enforcement action or exercise of rights
or remedies, of any kind, in connection with the Obligations, the Collateral or the Transaction Documents, accelerate Obligations
(other than Secured Bank Product Obligations), or exercise any right that it might otherwise have under Applicable Law to credit
bid at foreclosure sales, UCC sales or other similar dispositions of Collateral or to assert any rights relating to any Collateral.

 

V.       Ratable
Sharing. If any Lender shall obtain any payment or reduction of any Obligation, whether through set-off or otherwise, in
excess of its share of such Obligation, determined on a Pro Rata basis or in accordance with Section 5.7.1, as applicable,
such Lender shall forthwith purchase from Agent and the other Lenders such participations in the affected Obligation as are necessary
to cause the purchasing Lender to share the excess payment or reduction on a Pro Rata basis or in accordance with Section 5.7.1,
as applicable. If any of such payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be rescinded
and the purchase price restored to the extent of such recovery, but without interest. Notwithstanding the foregoing, if a Defaulting
Lender obtains a payment or reduction of any Obligation, it shall immediately turn over the amount thereof to Agent for application
under Section 4.2.2 and it shall provide a written statement to Agent describing the Obligation affected by such payment
or reduction. No Lender shall set off against any Dominion Account without the prior consent of Agent.

 

VI.          Indemnification.
EACH LENDER SHALL INDEMNIFY AND HOLD HARMLESS AGENT INDEMNITEES and its officers, directors,
employees, Affiliates, agents and attorneys, TO THE EXTENT NOT REIMBURSED BY BORROWER, ON A PRO RATA BASIS, AGAINST ALL
CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY SUCH INDEMNITEE, PROVIDED THAT ANY CLAIM AGAINST AN AGENT INDEMNITEE RELATES
TO OR ARISES FROM ITS ACTING AS OR FOR AGENT (IN THE CAPACITY OF AGENT), OTHER THAN CLAIMS DIRECTLY CAUSED BY THE GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF THE AGENT, DETERMINED BY A COURT OF COMPETENT JURISDICTION IN A FINAL AND NON-APPEALABLE ORDER. Agent,
in its discretion, may reserve for any all claims, liabilities, costs, expenses and other amounts of any kind in any way related
to the Transaction Documents or Collateral made at any time against an Agent Indemnitee or its officers, directors, employees,
Affiliates, agents and attorneys, and may satisfy any judgment, order or settlement relating thereto, from proceeds of Collateral
prior to making any distribution of Collateral proceeds to Secured Parties. If Agent is sued by any receiver, bankruptcy trustee,
debtor-in-possession or other Person for any alleged preference or fraudulent transfer, then any monies paid by Agent in settlement
or satisfaction of such proceeding, together with all interest, costs and expenses (including attorneys’ fees) incurred in
the defense of same, shall be promptly reimbursed to Agent by each Lender to the extent of its Pro Rata share.

 

    	 	D-3	 

     

    

 

VII.         Limitation
on Responsibilities of Agent. Agent shall not be liable to any Secured Party for any action taken or omitted to be taken
under the Transaction Documents, except for losses directly and solely caused by Agent’s gross negligence or willful misconduct.
Agent does not assume any responsibility for any failure or delay in performance or any breach by Borrower, Servicer, Lender or
other Secured Party of any obligations under the Transaction Documents. Agent does not make any express or implied representation,
warranty or guarantee to Secured Parties with respect to any Obligations, Collateral, Transaction Documents or Borrower. No Agent
Indemnitee shall be responsible to Secured Parties for any recitals, statements, information, representations or warranties contained
in any Transaction Documents; the execution, validity, genuineness, effectiveness or enforceability of any Transaction Documents;
the genuineness, enforceability, collectibility, value, sufficiency, location or existence of any Collateral, or the validity,
extent, perfection or priority of any Lien therein; the validity, enforceability or collectibility of any Obligations; or the assets,
liabilities, financial condition, results of operations, business, creditworthiness or legal status of Borrower, Servicer or Portfolio
Company. No Agent Indemnitee shall have any obligation to any Secured Party to ascertain or inquire into the existence of any Default
or Event of Default, the observance by any Person of any terms of the Transaction Documents, or the satisfaction of any conditions
precedent contained in any Transaction Documents.

 

VIII.         Successor
Agent and Co-Agents

 

a.           Resignation;
Successor Agent. Subject to the appointment and acceptance of a successor Agent as provided below, Agent may resign at any
time by giving at least 30 days written notice thereof to Lenders and Borrower. Upon receipt of such notice, Required Lenders shall
have the right to appoint a successor Agent which shall be (a) a Lender or an Affiliate of a Lender; or (b) another financial institution
approved by the Required Lenders and (provided no Default or Event of Default exists) is reasonably acceptable to Borrower. If
no successor agent is appointed prior to the effective date of the resignation of Agent, then Agent may appoint a successor agent
from among Lenders or, if no Lender accepts such role, Agent may appoint Required Lenders as successor Agent. Upon acceptance by
a successor Agent of an appointment to serve as Agent hereunder, or upon appointment of Required Lenders as successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the powers and duties of the retiring Agent without further
act, and the retiring Agent shall be discharged from its duties and obligations hereunder but shall continue to have the benefits
of the indemnification set forth in Sections 11.6 and 13.2. Notwithstanding any Agent’s resignation, the provisions
of this Exhibit D shall continue in effect for its benefit with respect to any actions taken or omitted to be taken by it
while Agent. Any successor to AloStar by merger or acquisition of stock or otherwise shall continue to be Agent hereunder without
further act on the part of the parties hereto, unless such successor resigns as provided above.

 

b.           Separate
Collateral Agent. It is the intent of the parties that there shall be no violation of any Applicable Law denying or restricting
the right of financial institutions to transact business in any jurisdiction. If Agent believes that it may be limited in the exercise
of any rights or remedies under the Transaction Documents due to any Applicable Law, Agent may appoint an additional Person who
is not so limited, as a separate collateral agent or co-collateral agent. If Agent so appoints a collateral agent or co-collateral
agent, each right and remedy intended to be available to Agent under the Transaction Documents shall also be vested in such separate
agent. Secured Parties shall execute and deliver such documents as Agent deems appropriate to vest any rights or remedies in such
agent. If any collateral agent or co-collateral agent shall die or dissolve, become incapable of acting, resign or be removed,
then all the rights and remedies of such agent, to the extent permitted by Applicable Law, shall vest in and be exercised by Agent
until appointment of a new agent.

 

    	 	D-4	 

     

    

 

IX.          Due
Diligence and Non-Reliance. Each Lender acknowledges and agrees that it has, independently and without reliance upon Agent
or any other Lenders, and based upon such documents, information and analyses as it has deemed appropriate, made its own credit
analysis of Borrower and its own decision to enter into this Agreement and to fund Loans hereunder. Each Secured Party has made
such inquiries as it feels necessary concerning the Transaction Documents, Collateral, Borrower and Servicer. Each Secured Party
acknowledges and agrees that the other Secured Parties have made no representations or warranties concerning Borrower, Servicer,
any Collateral or the legality, validity, sufficiency or enforceability of any Transaction Documents or Obligations. Each Secured
Party will, independently and without reliance upon any other Secured Party, and based upon such financial statements, documents
and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions in making Loans, and
in taking or refraining from any action under any Transaction Documents. Except for notices, reports and other information expressly
requested by a Lender, Agent shall have no duty or responsibility to provide any Secured Party with any notices, reports or certificates
furnished to Agent by Borrower or Servicer or any credit or other information concerning the affairs, financial condition, business
or Properties of Borrower (or any of its Affiliates) which may come into possession of Agent or its Affiliates.

 

X.           Remittance
of Payments and Collections

 

a.           Remittances
Generally. All payments by any Lender to Agent shall be made by the time and on the day set forth in this Agreement, in immediately
available funds. If no time for payment is specified or if payment is due on demand by Agent and request for payment is made by
Agent by 11:00 a.m. on a Business Day, payment shall be made by Lender not later than 2:00 p.m. on such day, and if request is
made after 11:00 a.m., then payment shall be made by 11:00 a.m. on the next Business Day. Payment by Agent to any Secured Party
shall be made by wire transfer, in the type of funds received by Agent. Any such payment shall be subject to Agent’s right
of offset for any amounts due from such payee under the Transaction Documents.

 

b.           Failure
to Pay. If any Secured Party fails to pay any amount when due by it to Agent pursuant to the terms hereof, such amount shall
bear interest from the due date until paid at the rate determined by Agent as customary in the banking industry for interbank compensation.
In no event shall Borrower be entitled to receive credit for any interest paid by a Secured Party to Agent, nor shall any Defaulting
Lender be entitled to interest on any amounts held by Agent pursuant to Section 4.2.

 

c.           Recovery
of Payments. If Agent pays any amount to a Secured Party in the expectation that a related payment will be received by Agent
from Borrower and such related payment is not received, then Agent may recover such amount from each Secured Party that received
it. If Agent determines at any time that an amount received under any Transaction Document must be returned to Borrower or paid
to any other Person pursuant to Applicable Law or otherwise, then, notwithstanding any other term of any Transaction Document,
Agent shall not be required to distribute such amount to any Lender. If any amounts received and applied by Agent to any Obligations
are later required to be returned by Agent pursuant to Applicable Law, each Lender shall pay to Agent, on demand, such Lender’s
Pro Rata share of the amounts required to be returned.

 

XI.          Agent
in its Individual Capacity. As a Lender, AloStar shall have the same rights and remedies under the other Transaction Documents
as any other Lender, and the terms “Lenders,” “Required Lenders” or any similar term shall include AloStar
in its capacity as a Lender. AloStar and its Affiliates may accept deposits from, lend money to, provide Bank Products to, act
as financial or other advisor to, and generally engage in any kind of business with, Borrower and its Affiliates, as if AloStar
were not Agent hereunder, without any duty to account therefor to Lenders. In their individual capacities, AloStar and its Affiliates
may receive information regarding Borrower, its Affiliates and their Portfolio Companies (including information subject to confidentiality
obligations), and each Secured Party agrees that AloStar and its Affiliates shall be under no obligation to provide such information
to any Secured Party, if acquired in such individual capacity.

 

    	 	D-5	 

     

    

 

XII.         Bank
Product Providers. Each Secured Bank Product Provider, by delivery of a notice to Agent of a Bank Product, agrees to be
bound by Section 5.7 and this Exhibit D. Each Secured Bank Product Provider shall indemnify and hold harmless Agent
Indemnitees, to the extent not reimbursed by Borrower, against all claims, liabilities, costs, expenses and other amounts of any
kind in any way related to the Transaction Documents or Collateral that may be incurred by or asserted against any Agent Indemnitee
in connection with such provider’s Secured Bank Product Obligations at any time.

 

XIII.         Integration;
References. This Exhibit D is made an integral part of, and each reference to this Agreement refers to, the Loan
and Security Agreement to which this Exhibit D is attached. Each reference to any section means, unless the context otherwise
requires, a section of this Agreement.

 

    	 	D-6	 

     

    

 

EXHIBIT E

to

Loan and Security Agreement

 

Form of Borrowing Base Certificate

 

	KCAP Funding I, LLC 	 	 
	Borrowing Base Certificate 	 	 
	Date as of:	 	 
	 	 	 
	 	 	 
	Gross Collateral	 	 
	Market Value Adjustment	 	 
	Contributed Assets @ FMV	$0.00	 
	 	 	 
	 	 	 
	Less: ineligibles	 	 
	a The Advance Rate applicable to the aggregate Value of all Eligible Portfolio Investments in their entirety shall be 0% at any time when the Borrowing Base is composed entirely of Eligible Portfolio Investments issued by fewer than 8 different issuers;	 	 
	b Not more than $5,000,000 of the Borrowing Base may consist of Portfolio Investments of the same Portfolio Company;	 	 
	c Not more than 15% of the Borrowing Base may consist of Portfolio Investments having a maturity date of greater than eight (8) years from the origination or closing date of such Portfolio Investment;	 	 
	d Eligible Portfolio Investments that are not Cash, Cash Equivalents, Performing First Lien Bank Loans or Performing Last Out Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 35% of the Borrowing Base;	 	 
	e Eligible Portfolio Investments that are Revolving Loans and Delayed Draw Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 15% of the Borrowing Base;	 	 
	f Eligible Portfolio Investments that are Single Covenant Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 40% of the Borrowing Base;	 	 
	g Eligible Portfolio Investments that are Covenant Lite Loans (including, but not limited to, Covenant Lite Loans subject to clause (h) below) shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 40% of the Borrowing Base;	 	 
	h Eligible Portfolio Investments that (i) are Covenant Lite Loans and (ii) for which the applicable Portfolio Company had EBITDA of less than $50,000,000 for the 12 month period most recently ended shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 10% of the Borrowing Base;	 	 
	i Eligible Portfolio Investments that are Unitranche Loans shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 15% of the Borrowing Base;	 	 
	j Eligible Portfolio Investments which are in the same Industry Classification Group shall be excluded from the Borrowing Base to the extent such Eligible Portfolio Investments would exceed, in the aggregate, 25% of the Borrowing Base; and	 	 
	k. Other ineligibles.	 	 
	Total Ineligibles	$-	 
	 	 	 
	Total Eligible	 	$- 
	 	 	 
	Blended Advance Rate	 	 
	 	 	 
	Borrowing Base	 	$-
	 	 	 
	Loan Roll Forward: 	 	 
	 	 	 
	Beginning Loan Balance (as of previous Borrowing Base Report)	 	 
	 	 	 
	Collections since prior report (input as negative)	 	 
	 	 	 
	Advances since prior report	 	 
	 	 	 
	New Loan Balance	 	$-
	 	 	 
	Maximum Facility Amount	 	$50,000,000.00
	 	 	 
	Excess Availability	 	$-

 

	As of the date of this Certificate, no Event of Default exists or has occurred and is continuing. Borrower acknowledges that the Loans by Lender to Borrower are based upon Lender's reliance on the information contained herein and all representations and warranties with respect to US Collateral in the Loan Agreement are applicable to the US Collateral included in this Certificate. The reliance by Lender on this Certificate should not be deemed to limit the right of Lender to establish or revise criteria of eligibility or Availability Reserves or other Reserves or otherwise limit, impair, or affect in any manner the rights of Lender under the Loan Agreement. In the event of any conflict between the determination of Lender of the amount of the Loans to Borrower in accordance with the terms of the Loan Agreement and the determination by Borrower of such amounts, the determination of Lender shall govern. All capitalized terms used in this Certificate shall have the meaning assigned to them in the Loan Agreement.

 

    	 	E-1	 

     

    

 

SCHEDULE
1

to

Loan and Security Agreement

 

COMMITMENTS OF LENDERS

 

	Lender	 	Revolver Commitment	 	 	Total Commitments	 
	State Bank and Trust Company	 	$	20,000,000	 	 	$	20,000,000	 
	CIBC Bank USA	 	$	15,000,000	 	 	$	15,000,000	 
	Woodforest National Bank	 	$	15,000,000	 	 	$	15,000,000	 
	TOTAL	 	$	50,000,000	 	 	$	50,000,000	 

 

     

     

    

 

SCHEDULE
2

to

Loan and Security Agreement

 

Deposit
and Other Accounts

 

	Depository Bank	 	Type of Account	 	Account Number
	U.S. Bank National Association 	 	Collection Account (“Dominion Account”)	 	190785-200
	U.S. Bank National Association	 	Custodial Account (“Securities Account”)	 	190785-700
	U.S. Bank National Association	 	Distribution Account	 	190785-300 
	State Bank and Trust Company	 	Collection Account	 	1000203776

 

     

     

    

 

SCHEDULE
3

to

Loan and Security Agreement

 

BUSINESS LOCATIONS

 

		1.	Borrower currently has the following business locations, and no others:

 

Chief Executive Office: 295 Madison Avenue,
6th Floor, New York, New York 10017

 

Other Locations: None

 

		2.	In the five years preceding the Closing Date, Borrower has had no office or place of business located in any county other than
as set forth above, except: None

 

		3.	Each Subsidiary currently has the following business locations, and no others: N/A

 

     

     

    

 

SCHEDULE
4

to

Loan and Security Agreement

 

NAMES AND CAPITAL STRUCTURE

 

		1.	The corporate names, jurisdictions of incorporation, and authorized and issued Equity Interests of Borrower and each Subsidiary
are as follows:

 

	Name	 	
        Jurisdiction/Type of 

        Entity
	 	
        Number and Class

        of Authorized Shares
	 	
        Number and Class

        of Issued Shares

	KCAP Funding I, LLC	 	Delaware limited liability company 	 	N/A	 	N/A

 

		2.	The record holders of Equity Interests of Borrower and each Subsidiary are as follows:

 

	Name	 	
        Jurisdiction/Type 

        of Entity
	 	Class of Stock	 	Number of Shares	 	Record Owner
	KCAP Funding I, LLC	 	Delaware limited liability company	 	Membership interest	 	100%	 	KCAP Financial, Inc. 

 

		3.	All agreements binding on holders of Equity Interests of Borrower and Subsidiaries with respect to such interests are as follows:

 

Amended and Restated Limited Liability
Company Agreement of KCAP Funding I, LLC dated as of March 1, 2018

 

		4.	In the five years preceding the Closing Date, Borrower has not acquired any substantial assets from any other Person nor been
the surviving entity in a merger or combination, except:

 

None

 

     

     

    

 

SCHEDULE
5

to

Loan and Security Agreement

 

PATENTS, TRADEMARKS, COPYRIGHTS AND
LICENSES

 

		1.	Borrower’s patents:

 

	Patent	 	Owner	 	
        Status in

        Patent Office
	 	
        Federal

        Registration No.
	 	
        Registration

        Date

	None	 	 	 	 	 	 	 	 

 

		2.	Borrower’s trademarks:

 

	Trademark	 	Owner	 	
        Status in

        Trademark Office
	 	
        Federal

        Registration No.
	 	
        Registration

        Date

	None	 	 	 	 	 	 	 	 

 

		3.	Borrower’s copyrights:

 

	Copyright	 	Owner	 	
        Status in

        Copyright Office
	 	
        Federal

        Registration No.
	 	
        Registration

            Date    

	None	 	 	 	 	 	 	 	 

 

		4.	Borrower’s licenses (other than routine business licenses, authorizing them to transact business in local jurisdictions):

 

	Licensor	 	Description of License	 	Term of License	 	Royalties Payable
	None	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE
6

to

Loan and Security Agreement

 

RESTRICTIVE AGREEMENTS

 

None

 

     

     

    

 

SCHEDULE
7

to

Loan and Security Agreement

 

LITIGATION

 

		1.	Proceedings and investigations pending against Borrower:

 

None

 

		2.	Threatened proceedings or investigations of which Borrower is aware:

 

None

 

		3.	Pending Commercial Tort Claim of Borrower:

 

None

 

     

     

    

 

SCHEDULE
8

to

Loan and Security Agreement

 

PLANS

 

None

 

     

     

    

 

SCHEDULE
9

to

Loan and Security Agreement

 

Intentionally Omitted

 

     

     

    

 

SCHEDULE
10

to

Loan and Security Agreement

 

EXISTING AFFILIATE TRANSACTIONS

 

None

 

     

     

    

 

SCHEDULE
11

to

Loan and Security Agreement

 

APPROVED DEALERS and APPROVED PRICING
SERVICES

 

APPROVED DEALERS

 

Antares Capital

Ares Management

BNP Paribas SA

Bank of America Merrill Lynch

Barclays Bank PLC

BMO Capital Markets

Bank of NY Mellon (BNYM Capital Markets)

BTIG LLC

Cantor Fitzgerald & Co.

Citigroup Global Markets Inc.

Citicorp Securities Services, Inc.

Credit Agricole

Credit Suisse Securities (USA) LLC

Daiwa Capital Markets America Inc.

Deutsche Bank Securities Inc.

FBR Capital Markets & Co.

Fidelity Brokerage Services LLC

Fifth Third Bank

Goldman, Sachs & Co.

Golub Capital

Guggenheim Securities LLC

HSBC Securities (USA) Inc.

Imperial Capital LLC

ING Financial Markets LLC

Jefferies & Company, Inc.

J.P. Morgan Securities Inc.

Lazard Ltd.

Macquarie Capital USA Inc.

Mitsubishi UFJ Securities USA Inc.

Mizuho Securities USA Inc.

Morgan Stanley & Co. Incorporated

Morgan Stanley Smith Barney

Nomura Securities International, Inc.

RBC Capital Markets

RBS Securities Inc.

RW Baird

Scotia Bank

 

     

     

    

 

Societe Generale

SunTrust Bank

UBS Financial Services Inc.

UBS Securities LLC

Wells Fargo Advisors, LLC

Wells Fargo Securities, LLC

Wells Fargo Investments, LLC

 

APPROVED PRICING SERVICES

 

Bloomberg

Interactive Data Corporation

International Data Corporation

Reuters Loan Pricing Corporation

Markit Group Limited

 

     

     

    

 

SCHEDULE
12

to

Loan and Security Agreement

 

ELIGIBLE PORTFOLIO INVESTMENT CRITERIA

 

A Portfolio Investment shall not be an
Eligible Portfolio Investment on any date of determination unless it meets all of the following criteria:

 

		1)	(a) If an Investment in Indebtedness other than a Noteless Assigned Loan (and other than a High
Yield Security that is held through DTC and has been credited to the Dominion Account), such Portfolio Investment is evidenced
by an original promissory note registered in the name of Borrower, delivered to the Custodian and credited to the Dominion Account;
provided, however, that solely in the case of Portfolio Investments (other than Noteless Assigned Loans) in which the Agent has
a first priority perfected security interest pursuant to a valid Uniform Commercial Code filing, (x) if such Portfolio Investment
is owned by Borrower on the Closing Date, Borrower shall have up to 45 Business Days following the Closing Date to deliver such
original promissory note with respect to such Portfolio Investment to the Custodian, and (y) (1) if such Portfolio Investment is
acquired by Borrower after the Closing Date, Borrower shall have up to 10 Business Days following the acquisition of such Portfolio
Investment to deliver an original promissory note with respect to such Portfolio Investment to the Custodian and (2) as a result
of the syndication, sale, transfer, assignment or exchange of a portion of a Portfolio Investment Borrower shall have up to 20
Business Days to return, transfer, assign or exchange any promissory note with respect to such Portfolio Investment and deliver
new or additional promissory notes to the Custodian as required above (each note referred to in clause (x) or (y) during the time
when it is not in the possession of the Custodian, an “Undelivered Note”) (it being understood that during the
time periods in clauses (x) and (y) above only the portion of such Portfolio Investment that has not been syndicated, sold, transferred,
assigned or exchanged shall satisfy the criteria specified in this paragraph 1(a)); provided, further that (i) any portion of the
Borrowing Base that consists of an Eligible Portfolio Investment that is an Undelivered Note shall be identified as such in any
Borrowing Base Certificate and (ii) with respect to Undelivered Notes under clause (y) above, at no time may the aggregate amount
of Undelivered Notes included in the Borrowing Base constitute more than 10% of the Portfolio Investments included in the Borrowing
Base;

 

(b) If a debt investment is
a Noteless Assigned Loan, the Custodian shall have received and credited to the Dominion Account an original of each transfer document
or instrument relating to such Noteless Assigned Loan evidencing the assignment of such Noteless Assigned Loan from any prior third
party owner thereof directly to Borrower(together with the consent of each party required under the applicable loan documentation);

 

     

     

    

 

(c) If any Investment in Indebtedness,
(x) the Custodian shall have received originals or copies of each of the following, to the extent applicable, any related loan
agreement, credit agreement, note purchase agreement, security agreement (if separate from any mortgage), sale and servicing agreement,
acquisition agreement pursuant to which such Investment was acquired, subordination agreement, intercreditor agreement or similar
instruments, guarantee, assumption or substitution agreement or similar material operative document, in each case together with
any amendment or modification thereto; and (y) all documentation evidencing or otherwise relating to such Portfolio Investment
has been duly authorized and executed, is in full force and effect and is the legal, binding and enforceable obligation of the
parties thereto and has been delivered to the Custodian; and

 

		2)	Such Portfolio Investment, whether originated directly or purchased, was underwritten and closed
in all material respects in accordance with the Investment and Valuation Policies;

 

		3)	Such Portfolio Investment is Transferable (as defined below);

 

		4)	Such Portfolio Investment is not a Defaulted Obligation;

 

		5)	Such Portfolio Company of such Portfolio Investment has a trailing 12-month EBITDA of at least
$1,000,000, as calculated by Borrower in a commercially reasonable manner;

 

		6)	Such Portfolio Investment does not represent an investment in any investment fund, Subsidiary,
Structured Finance Obligation, Third Party Finance Companies, or similar off balance sheet financing vehicle, or any joint venture
or other Person that is in the principal business of making debt or equity investments primarily in other unaffiliated Persons;

 

		7)	(x) Such Portfolio Investment is owned by Borrower, free and clear of any liens and Agent holds
a first priority, perfected security interest in the Portfolio Investment (subject to no other Lien other than Permitted Liens),
(y) the Custodian is holding all documents evidencing or otherwise relating to such Portfolio Investment (which may be copies,
except as required in paragraph (1)(a) above) and (z) the other steps to ensure that the Agent has “control” or other
customary protection of the relevant Portfolio Investment have been taken;

 

		8)	Such Portfolio Investment and related documents are in compliance, in all material respects, with
applicable laws rules and regulations (including relating to usury, truth in lending, fair credit billing, fair credit reporting,
equal credit opportunity, fair debt collection practices and privacy, OFAC and PATRIOT Act);

 

		9)	Such Portfolio Investment is denominated and payable only in Dollars and the primary obligor or
issuer of such Portfolio Investment is organized under the laws of the United States of America or Canada or any state, province
or Commonwealth thereof (or, if approved by the Agent and the Lenders in their sole discretion, a member country of the European
Union), is domiciled in the United States of America or Canada (or, if approved by the Agent in the Agent’s sole discretion,
a member country of the European Union), and its principal operations and any property or other assets of the issuer thereunder
pledged as collateral are primarily located in the United States of America and the only place of payment of such loans is the
United States of America (or, if approved by the Agent in the Agent’s sole discretion, a member country of the European Union);

 

		10)	Such Portfolio Investment, if a debt investment, bears interest which is due and payable no less
frequently than semi-annually and provides for a fixed amount of principal payable on a scheduled payment date and or at maturity,
and does not have a final maturity greater than 10 years;

 

     

     

    

 

		11)	Such Portfolio Investment includes a contractual provision requiring all payments to be made without
set off, defense or counterclaim, and does not include a contractual provision granting rights of rescission, set off, counterclaim
or defense in favor of the obligor in respect of such Portfolio Investment;

 

		12)	Such Portfolio Investment is not (x) secured primarily by a mortgage, deed of trust or similar
lien on real estate, or (y) issued by a Person whose primary asset is real estate, or whose value is otherwise primarily derived
from real estate;

 

		13)	Such Portfolio Investment does not represent a consumer obligation (including a mortgage loan,
auto loan, credit card loan or personal loan);

 

		14)	No payment in respect of such Portfolio Investment, if a debt investment, is subject to withholding
in respect to taxes of any nature, unless the issuer is required to make customary and market-based gross-up payments on an after
tax basis for the full amount of such tax;

 

		15)	Such Portfolio Investment is not a derivative instrument;

 

		16)	The issuer of such Portfolio Investment (or an agent on its behalf) is required to make payments
directly into an account of Borrower over which the Agent has “control” and no other Person’s assets are commingled
in such account;

 

		17)	If such Portfolio Investment is a Participation Interest (other than a KCAP Participation Interest),
the seller thereof has (x) long-term unsecured ratings of at least “Baa1” by Moody’s and “BBB+” by
S&P and (y) short-term unsecured ratings of at least “A-1” by S&P and “P-1” by Moody’s;

 

		18)	If such Portfolio Investment is a KCAP Participation Interest, such Portfolio Investment has been
a KCAP Participation Interest for not more than sixty (60) days after the date of the sale or contribution of such KCAP Participation
Interest to Borrower; and

 

		19)	No Person acting as Agent, collateral agent or in a similar capacity shall be an Affiliate of Borrower.

 

For purposes of paragraph (3)
above, “Transferable” means, in the case of any Portfolio Investment, both that:

 

(i)          Borrower
may create a security interest in or pledge all of its rights under and interest in such Portfolio Investment to secure its obligations
under this Agreement or any other Transaction Document, and that such pledge or security interest may be enforced in any manner
permitted under applicable law; and

 

(ii)         such
Portfolio Investment (and all documents related thereto) contains no provision that directly or indirectly restricts the assignment
of Borrower’s, or any assignee of Borrower’s, rights under such Portfolio Investment (including any requirement that
Borrower maintain a minimum ownership percentage of such Portfolio Investment); provided that, such Portfolio Investment
may contain the following restrictions on customary and market based terms: (a) restrictions pursuant to which assignments may
be subject to the consent of the obligor or Portfolio Company or agent under the Portfolio Investment so long as the applicable
provision also provides that such consent may not be unreasonably withheld, (b) restrictions on transfer to parties that are not
‘eligible assignees’ within the customary and market based meaning of the term, and (c) restrictions on transfer to
the applicable obligor or issuer under the Portfolio Investment or its equity holders or financial sponsor entities.

 

     

     

    

 

SCHEDULE
13

to

Loan and Security Agreement

 

INDUSTRY CLASSIFICATION GROUPS

 

	Industry Code	 	Description	 	Industry Code	 	Description
	1020000	 	Energy Equipment & Services	 	5220000	 	Personal Products
	1030000	 	Oil, Gas & Consumable Fuels	 	6020000	 	Health Care Equipment & Supplies
	2020000	 	Chemicals	 	6030000	 	Health Care Providers & Services
	2030000	 	Construction Materials	 	9551729	 	Health Care Technology
	2040000	 	Containers & Packaging	 	6110000	 	Biotechnology
	2050000	 	Metals & Mining	 	6120000	 	Pharmaceuticals
	2060000	 	Paper & Forest Products	 	9551727	 	Life Sciences Tools & Services
	3020000	 	Aerospace & Defense	 	7011000	 	Banks
	3030000	 	Building Products	 	7020000	 	Thrifts & Mortgage Finance
	3040000	 	Construction & Engineering	 	7110000	 	Diversified Financial Services
	3050000	 	Electrical Equipment	 	7120000	 	Consumer Finance
	3060000	 	Industrial Conglomerates	 	7130000	 	Capital Markets
	3070000	 	Machinery	 	7210000	 	Insurance
	3080000	 	Trading Companies & Distributors	 	7311000	 	Real Estate Investment Trusts (REITs)
	3110000	 	Commercial Services & Supplies	 	7310000	 	Real Estate Management & Development
	9612010	 	Professional Services	 	8020000	 	Internet Software & Services
	3210000	 	Air Freight & Logistics	 	8030000	 	IT Services
	3220000	 	Airlines	 	8040000	 	Software
	3230000	 	Marine	 	8110000	 	Communications Equipment
	3240000	 	Road & Rail	 	8120000	 	Technology Hardware, Storage & Peripherals
	3250000	 	Transportation Infrastructure	 	8130000	 	Electronic Equipment, Instruments & Components
	4011000	 	Auto Components	 	8210000	 	Semiconductors & Semiconductor Equipment
	4020000	 	Automobiles	 	9020000	 	Diversified Telecommunication Services
	4110000	 	Household Durables	 	9030000	 	Wireless Telecommunication Services
	4120000	 	Leisure Products	 	9520000	 	Electric Utilities
	4130000	 	Textiles, Apparel & Luxury Goods	 	9530000	 	Gas Utilities
	4210000	 	Hotels, Restaurants & Leisure	 	9540000	 	Multi-Utilities
	9551701	 	Diversified Consumer Services	 	9550000	 	Water Utilities
	4310000	 	Media	 	9551702	 	Independent Power and Renewable Electricity Producers
	4410000	 	Distributors	 	9551727	 	Life Sciences Tools and Services
	4420000	 	Internet and Catalog Retail	 	9551729	 	Health Care Technology
	4430000	 	Multiline Retail	 	9612010	 	Professional Services

 

     

     

    

 

	Industry Code	 	Description	 	Industry Code	 	Description
	4440000	 	Specialty Retail	 	PF1	 	Project Finance: Industrial Equipment
	5020000	 	Food & Staples Retailing	 	PF2	 	Projection Finance: Leisure and Gaming
	5110000	 	Beverages	 	PF3	 	Project Finance: Natural Resources and Mining
	5120000	 	Food Products	 	PF4	 	Project Finance: Oil and Gas
	5130000	 	Tobacco	 	PF5	 	Project Finance: Power
	5210000	 	Household Products	 	PF6	 	Project Finance: Public Finance and Real Estate
	 	 	 	 	PF7	 	Project Finance: Telecommunications
	 	 	 	 	PF8	 	Project Finance: Transport
	 	 	 	 	IPF	 	International Public FinanceExhibit 10.3

LICENSING AND SERVICES AGREEMENT

 

This Licensing and Services Agreement
(“Agreement”) is made and entered into as of the 5th day of March, 2018 (“Effective
Date”), by and between ETF Managers Capital LLC (“ETFMC”), a Delaware limited
liability company with its principal place of business at 30 Maple Street, Suite 2, Summit, NJ 07901 and Breakwave Advisors
LLC (“Breakwave”) a Delaware limited liability company with its principal place of business at 2
South End Avenue, TH3, New York, New York 10280.

 

WHEREAS, ETFMC is a registered commodity
pool operator and commodity trading advisor which is organizing and will operate the Breakwave Dry Bulk Shipping ETF (the “Fund”),
a series of the ETF Managers Group Commodity Trust I, a Delaware series trust. The Fund will offers its units to the public, and
the units will be traded on a national securities exchange; and

 

WHEREAS, ETFMC desires to license
the use of a model portfolio that is owned, maintained and published by Breakwave (the “Benchmark”);
and

 

WHEREAS, Breakwave is willing to
license the use of the Benchmark under the terms of this Agreement;

 

WHEREAS, ETFMC wishes to retain Breakwave
to provide certain commodity trading services in connection with the operation of the Fund and Breakwave is registered with the
National Futures Association as a commodity trading adviser and is willing to provide such services under the terms of this Agreement;
and

 

NOW, THEREFORE, in consideration
of the foregoing, and in reliance upon the mutual promises contained in this Agreement, the parties, intending to be legally bound,
agree as follows:

 

1.       LICENSE

 

(a) Subject to the terms and
conditions of this Agreement, Breakwave hereby grants to ETFMC and the Fund a non-transferable, non-exclusive license: (i) to
use the Benchmark as the basis, or a component, of the Fund, and (ii) subject to this Article, to reproduce, modify and
create derivative works from any information provided to ETFMC by Breakwave, in each case solely in connection with the
marketing, promotion and sale of the Fund and its shares and in connection with making such disclosure about the Fund as
ETFMC deems necessary or desirable under any applicable laws, rules or regulations in order to indicate the source of the
Benchmark (“License”). Breakwave reserves all rights with respect to the Benchmark except those expressly
licensed to ETFMC hereunder; however, Breakwave shall not grant any license or sublicense permitting the use of the Benchmark
for an exchange-traded fund on any U.S. or foreign securities exchange by any party other than ETFMC or the Fund for as long
as this Agreement remains in effect and for six (6) months following the termination of this Agreement if a termination has
occurred other than pursuant to a voluntary termination by ETFMC under the terms of this Agreement.

 

(b) ETF Managers Capital acknowledges that,
as between ETFMC and Breakwave, the Benchmark is the exclusive property of Breakwave, and that the Benchmark and its compilation
and composition and change therein are in the control of Breakwave. Breakwave warrants and represents that ETFMC does not need
to obtain a license from any person (other than the License provided herein) with respect to the use of the Benchmark or the exercise
of rights under the License.

 

2.       SERVICES

 

During the term of this Agreement, Breakwave
shall maintain, and publish the Benchmark in accordance with the terms of this Agreement and consistent with (i) the Fund’s
investment objective, strategies, policies, and limitations as all are described in the Fund’s then-current prospectus and
(ii) with any other regulatory requirements applicable to the Fund. In addition, Breakwave shall provide to ETFMC and the Fund,
as applicable, services, including but not limited, to general consultation regarding the calculation, maintenance, and publication
of the Benchmark, anticipated changes to the Benchmark and the nature of the Benchmark’s current or anticipated components
and other such services as the parties to this Agreement may subsequently determine, as permitted by applicable law and exchange
rules. Breakwave also agrees to use all commercially reasonable efforts to assist in the dissemination of the Benchmark’s
data (to include, but not limited to, its components and such components value) as required by applicable securities laws and exchange
rules.

 

    

     

    

 

During the term of this Agreement, Breakwave
shall also (a) provide general advice regarding the markets for and trading in commodity interests, (b) provide such information
and data as may reasonably be requested by ETFMC regarding the principals of Breakwave and the Benchmark for inclusion in regulatory
filings and marketing materials for the Fund, (c) furnish an investment program in respect of, make investment decisions for, and
place all orders for the purchase and sale of futures contracts, forward contracts, options on futures contracts and other commodity
interests and securities issued by the United States Department of the Treasury, all on behalf of the Fund and as described in
the Fund’s registration statement on Form S-1 as declared effective by the United States Securities and Exchange Commission
(the “Registration Statement”), consistent with the investment objectives and restrictions of the Fund
described therein and (d) make reasonably available upon adequate notice speakers for Fund marketing events and persons to be interviewed
by the press who can describe the Benchmark and its maintenance (the “Services”).

 

Breakwave and Breakwave’s affiliates,
including their respective partners, directors, members, stockholders, officers and employees (together, Breakwave’s “Affiliates”)
shall not engage in management, investment, or commodity trading activities, as the general partner, managing member, investment
adviser, commodity trading advisor or otherwise for an exchange-traded fund (as defined below) that bases its return by reference
to the Benchmark or a Substantially Similar Benchmark (as defined below), for as long as they are parties to this Agreement, and
for six (6) months following the termination of this Agreement. “Substantially Similar Benchmark” shall mean a benchmark
with all of the following criteria: (i) it is created by Breakwave or any of its Affiliates; and (ii) its components consist of
exchange cleared futures contracts and/or options on futures on the cost of shipping dry bulk freight. “Exchange-traded fund”
shall mean a fund open to the public and traded on a U.S. or foreign securities exchange whose net asset value is calculated daily
and which trades throughout the trading day, and which does not invest in securities.

 

3.       FEES

 

For the Services provided hereunder, ETFMC
shall cause the Fund to pay Breakwave an advisory fee as set forth in the fee schedule attached as Exhibit A to this Agreement.

 

4.       TERM AND TERMINATION

 

(a) This Agreement shall commence on the
Effective Date and remain in effect for a period of two (2) years therefrom (“Initial Term”), unless
earlier terminated by either Breakwave or ETFMC in accordance with this Article 4(b). After the Initial Term, this Agreement shall
continue for successive one-year periods unless terminated by either such party as of the end of an annual period by providing
written notice as provided in Article 4(b) prior to such termination and prior to the end of the annual period.

 

(b) If a party (the “Breaching
Party”) is in material breach of any terms of this Agreement, either Breakwave or ETFMC as the case may be (the “Non-Breaching
Party”), may so notify the Breaching Party in writing, specifying the nature of the breach in reasonable detail. The
Breaching Party shall have thirty (30) calendar days from delivery of that notice to correct the breach; provided that if the breach
is not cured within the identified time period, the Non-Breaching Party may terminate this Agreement at any time after the thirty
(30) days’ written notice to the Breaching Party. Either party may terminate this Agreement upon thirty (30) days’
written notice to such other party in the event that the party is dissolved or its existence is terminated; becomes insolvent or
bankrupt or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors;
makes a voluntary assignment or transfer of all or substantially all of its property; has a custodian, trustee, or receiver appointed
for it, or for all or substantially all of its property; has bankruptcy, reorganization, arrangements, insolvency or liquidation
proceedings, or other proceedings for relief under any bankruptcy or similar law for the relief of debtors, instituted by or against
it, and, if instituted against it, any of the foregoing is allowed or consented to by the other party or is not dismissed within
sixty (60) days after such institution.

 

    - 2 -

     

    

 

(d) No fees under Article 3 of this Agreement
will be payable to Breakwave after termination of this Agreement as set forth in this Article 4 except any outstanding fees. The
fee for the month in which this Agreement is terminated will be pro rated based on the number of days in the month during which
the Agreement was in effect.

 

5.       INDEMNIFICATION

 

(a) ETFMC shall indemnify, defend and hold
Breakwave and its affiliates, members, directors, officers, shareholders, employees, representatives, agents, attorneys, successors
and assigns (collectively, the “Breakwave Indemnified Parties”) harmless from and against any and all
claims, liabilities, obligations, judgments, causes of action, costs and expenses (including reasonable attorneys’ fees)
(collectively, “Losses”) arising out of any material breach of this Agreement by ETFMC or any disclosure
in the Registration Statement (except disclosure about Breakwave or the Benchmark that has been specifically approved by Breakwave),
other than a case in which Breakwave is obligated to indemnify ETFMC under Article 5(b) and except to the extent Losses are the
result of any grossly negligent act or omission of Breakwave.

 

(b) Breakwave shall indemnify, defend and
hold ETFMC and its affiliates, members, directors, officers, shareholders, employees, representatives, agents, attorneys, successors
and assigns (collectively, the “ETFMC Indemnified Parties”) harmless from and against any and all Losses
arising out of (i) any material breach of this Agreement by Breakwave, (ii) any disclosure in the Registration Statement of the
Fund about Breakwave or the Benchmark that has been specifically approved by Breakwave, (iii) any claim that Breakwave does not
possess all rights necessary to grant the License granted by this Agreement, or (iv) the gross negligence, recklessness or willful
misconduct of ETFMC in providing Services under this Agreement.

 

(c) Except as otherwise expressly provided
herein, in no event shall either Breakwave or ETFMC be liable for any indirect, incidental, special or consequential damages, even
if the party or an authorized representative thereof has been advised of the possibility of such damages. The federal securities
laws impose liabilities under certain circumstances on persons who act in good faith; thus, nothing in this Agreement shall in
any way constitute a waiver or limitation on any rights which a party may have under the federal securities laws.

 

(d) Promptly after receipt by any Indemnified
Party of notice of the commencement of any action, the Indemnified Party shall, if indemnification is to be sought against the
other party (the “Indemnifying Party”) under this Article 5, notify the Indemnifying Party in writing
of the commencement thereof, but the omission to notify the Indemnifying Party shall relieve the Indemnifying Party from liability
hereunder only to the extent that such omission results in the forfeiture by the Indemnifying Party of rights or defenses with
respect to such action. In any action or proceeding, following provision of proper notice by the Indemnified Party of the existence
of such action, the Indemnified Party shall be entitled to participate in any such action and to assume the defense thereof, with
counsel of its choice, and after notice from the Indemnifying Party to the Indemnified Party of the Indemnified Party’s election
to assume the defense of the action, the Indemnifying Party shall not be liable to such Indemnified Party hereunder for any attorneys’
fees subsequently incurred by the Indemnified Party. The Indemnified party shall cooperate in the defense of settlement of claims
so assumed. The Indemnifying Party shall not be liable hereunder for the settlement by the Indemnified Party for any claim or demand
unless it has previously approved the settlement or it has been notified of such claim or demand and has failed to provide a defense
in accordance with the provisions hereof. Without limiting the foregoing, in no event may either party make any admission of liability
by or on behalf of the other party without such other party’s express prior written consent.

 

6.       REPRESENTATIONS
AND WARRANTIES

 

		(a)	Each party represents and warrants that it has full power and authority to enter into and perform its obligations under this
Agreement.

 

(b) Breakwave represents and warrants that
it has the right to grant licenses under the Benchmark and that to its knowledge use of the Benchmark by ETFMC as provided herein
shall not infringe any trade name, trademark, trade dress, copyright, other proprietary right, or contractual right of any person
not a party to this Agreement..

 

    - 3 -

     

    

 

(c) ETFMC agrees to include the following
disclosure or the substance thereof in the Fund’s prospectus:

 

“The Benchmark Portfolio is the exclusive
property of Breakwave, which has licensed the use of the Benchmark Portfolio for use by ETFMC. Breakwave is solely responsible
for determining the securities included in, and the calculation of, the Benchmark Portfolio. Neither Breakwave nor its affiliates
make any representation regarding the appropriateness of the Fund’s investments for the purpose of tracking the performance
of the Benchmark Portfolio or otherwise.”

 

(d) ETFMC represents and warrants that both
ETFMC and the Fund shall not commit any material violation of any applicable law or regulation, including but not limited to banking,
commodities and securities laws.

 

(e) Breakwave represents and warrants that
Breakwave shall not commit any material violation of any applicable law or regulation, including but not limited to banking, commodities
and securities laws.

 

7.       GENERAL

 

(a) CTA. Breakwave is registered
as a commodity trading advisor with the U.S. Commodity Futures Trading Commission, and is a member of the National Futures Association.

 

(b) Captions Not Determinative. Titles
and paragraph headings herein are for convenient reference only and are not part of this Agreement.

 

(c) Independent Contractors. Breakwave
and ETFMC are independent contractors to one another. Nothing in this Agreement shall be construed to create a partnership, joint
venture or agency relationship between ETFMC, on the one hand, and Breakwave on the other hand.

 

(d) Force Majeure. No party shall
be in default or otherwise liable for any delay in or failure of its performance under this Agreement where such delay or failure
arises by reason of any act of God, or any government or any governmental body, any act of war or terrorism, the elements, strikes
or labor disputes, or other similar or dissimilar cause beyond the control of such party.

 

(e) Notice. All notices, including
notices of address changes, required to be sent hereunder shall be in writing and shall be deemed to have been given when mailed
by registered or certified mail, postage prepaid to the appropriate address below:

 

If to ETFMC: 

 

ETF Managers Capital, LLC

 

2nd floor 

30 Maple Street 

Summit, NJ 07901

 

If to Breakwave:

 

2 South End Ave., TH3 

New York, NY 10280

 

(e) Severability. In the event that
any provision of this Agreement is held invalid by a court with jurisdiction over the parties, such provision shall be deemed to
be restated to be enforceable, in a manner which reflects, as nearly as possible, the intent and economic effect of the invalid
provision in accordance with applicable law. The remainder of this Agreement shall remain in full force and effect.

 

(f) Waiver. The waiver by any party
of any default or breach of this Agreement shall not constitute a waiver of any other or subsequent default or breach.

 

    - 4 -

     

    

 

(g) Modification. No representation
or promise hereafter made, nor any modification or amendment of this Agreement, shall be binding unless in writing and executed
by duly authorized agents of all parties affected by the modification or amendment.

 

(h) Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original, but which together shall constitute one
and the same document.

 

(i) Assignment. Breakwave may not
assign this Agreement or any of the rights or obligations granted hereunder without the prior written consent of ETFMC (except
to an affiliate under common control), and ETFMC may not assign this Agreement or any of the rights or obligations granted hereunder
without Breakwave’s prior written consent.

 

(j) Governing Law. This Agreement
shall be governed by and construed solely and exclusively in accordance with the laws of the State of New Jersey without reference
to its conflicts of law principles and both parties submit to exclusive jurisdiction in the State of New Jersey

 

(k) Survival. The terms of Articles
4 and 6 shall survive the expiration or termination of this Agreement.

 

(l) Authority. The person signing
this Agreement on behalf of each party has been properly authorized and empowered to execute agreements such as this Agreement
on behalf of such party.

 

(m) Entire Agreement. This Agreement
and any Exhibits constitute the complete agreement between the parties and supersede all previous or contemporaneous agreements,
proposals, understandings, and representations, written or oral, with respect to the subject matter addressed herein.

 

    - 5 -

     

    

 

PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING
COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE,
AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING
IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES
TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.

 

IN WITNESS WHEREOF, the parties have
entered into this Agreement, and intend to be legally bound by it, as of the Effective Date.

 

	Breakwave Advisors LLC	 
	 	 
	/s/ John Kartsonas	 
	 	 
	 	 
	John Kartsonas	 
	 	 
	Printed name	 
	 	 
	ETF Managers Capital LLC	 
	 	 
	/s/ Samuel Masucci III	 
	 	 
	 	 
	Samuel Masucci III	 
	 	 
	Printed name	 

 

    - 6 -

     

    

 

EXHIBIT A

 

Fee Schedule

 

In payment for the Services to be rendered by Breakwave,
the Fund shall pay to Breakwave a fee, which fee shall be paid to Breakwave on a monthly basis not later than the fifteenth
business day of the month following the month in which said services were rendered. The fee payable by the Fund shall be
1.45% per annum of the average of the Fund’s net asset value as determined as at the close of each business day of the
month. Breakwave has agreed to waive its CTA Fee so that the Fund’s total annual expenses do not exceed 3.5% per annum
through February 28, 2019 as detailed in the prospectus.

 

For the month and year in which this Agreement becomes effective
or terminates, there shall be an appropriate proration of the fee on the basis of the number of days that the Agreement is in
effect during the month and year, respectively. 

 

    - 7 -

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