Document:

gee_ex1079.htm

EXHIBIT 10.79

 

SECOND WAIVER

TO REVOLVING CREDIT, TERM LOAN

AND SECURITY AGREEMENT

 

SECOND WAIVER, dated as of May 15, 2018 (this "Waiver"), to the Revolving Credit, Term Loan and Security Agreement dated as of March 31, 2017 (as amended, amended and restated, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among GEE GROUP INC., an Illinois corporation ("Holdings"), SCRIBE SOLUTIONS, INC., a Florida corporation ("Scribe"), AGILE RESOURCES, INC., a Georgia corporation ("Agile"), ACCESS DATA CONSULTING CORPORATION, a Colorado corporation ("Access"), TRIAD PERSONNEL SERVICES, INC., an Illinois corporation ("Triad Personnel"), TRIAD LOGISTICS, INC., an Ohio corporation ("Triad Logistics"), PALADIN CONSULTING, INC., a Texas corporation ("Paladin"), BMCH, INC., an Ohio corporation ("BMCH"), GEE GROUP PORTFOLIO INC., a Delaware corporation and the surviving corporation of the merger of SNI HOLDCO INC., a Delaware corporation, with and into GEE Group Portfolio Inc., a Delaware corporation ("SNI Holdings"), and SNI COMPANIES, a Delaware corporation ("SNI" and together with Holdings, Scribe, Agile, Access, Triad Personnel, Triad Logistics, Paladin, BMCH, SNI Holdings and each other Person joined thereto as a borrower from time to time, collectively, the "Borrowers" and each a "Borrower"), each Subsidiary of Holdings listed as a "Guarantor" on the signature pages thereto (together with each other Person joined thereto as a guarantor from time to time, collectively, the "Guarantors", and each a "Guarantor", and together with the Borrowers, collectively, the "Loan Parties" and each a "Loan Party"), the lenders which now are or which thereafter become a party thereto that make Revolving Advances thereunder (together with their respective successors and assigns, collectively, the "Revolving Lenders" and each a "Revolving Lender"), the lenders which now are or which thereafter become a party thereto that made or acquire an interest in the Term Loans (together with their respective successors and assigns, collectively, the "Term Loan Lenders" and each a "Term Loan Lender", and together with the Revolving Lenders, collectively, the "Lenders" and each a "Lender"), MGG INVESTMENT GROUP LP ("MGG"), as administrative agent for the Lenders (together with its successors and assigns, in such capacity, the "Administrative Agent"), as collateral agent for the Lenders (together with its successors and assigns, in such capacity, the "Collateral Agent"), and as term loan agent for the Lenders (together with its successors and assigns, in such capacity, the "Term Loan Agent" and together with the Administrative Agent and the Collateral Agent, each an "Agent" and, collectively, the "Agents").

 

WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to modify certain terms and provisions of the Credit Agreement as hereinafter set forth.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Definitions. All terms used herein that are defined in the Credit Agreement and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement. 

 
	 
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2. Waiver. 

 

(a) Pursuant to the request by the Loan Parties, but subject to satisfaction of the conditions set forth in Section 4 hereof, and in reliance upon (A) the representations and warranties of Loan Parties set forth herein and in the Credit Agreement and (B) the agreements of the Loan Parties set forth herein, the Agents and the Required Lenders hereby waive any Defaults and Events of Default under the Credit Agreement that have solely arisen or would otherwise solely arise under Section 10.5(i) of the Credit Agreement solely by reason of the Loan Parties failing to comply with the financial covenants in Section 6.5 of the Credit Agreement for the period ending March 31, 2018.

 

(b) The waiver in this Section 2 shall be effective only in this specific instance and for the specific purpose set forth herein and does not allow for any other or further departure from the terms and conditions of the Credit Agreement or any Other Document, which terms and conditions shall continue in full force and effect.

 

3. Representations and Warranties. Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:

 

(a) Representations and Warranties; No Event of Default. The representations and warranties herein, in the Credit Agreement and in each Other Document, certificate or other writing delivered by or on behalf of the Loan Parties to any Agent or any Lender pursuant to the Credit Agreement or any Other Document on or prior to the Waiver Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Waiver Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Waiver Effective Date or would result from this Waiver becoming effective in accordance with its terms.

 

(b) Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and authority to conduct its business as now conducted and as presently contemplated and to execute this Waiver and deliver each Other Document to which it is a party, and to consummate the transactions contemplated hereby and by the Credit Agreement, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.

 
	 
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(c) Authorization; Etc. The execution, delivery and performance of this Waiver by the Loan Parties, and the performance of the Credit Agreement, (i) have been duly authorized by all necessary action, (ii) do not and will not contravene (A) any of its Organizational Documents, (B) any material law or regulation, or any judgment, order or decree of any Governmental Body or (C) any Material Contract binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Other Document) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except, in the case of clause (iv), to the extent where such contravention, default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be expected to have a Material Adverse Effect.

 

(d) Governmental Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental Body is required in connection with the due execution, delivery and performance by any Loan Party of this Waiver or any Other Document to which it is or will be a party.

 

4. Conditions to Effectiveness. This Waiver shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Agents, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the "Waiver Effective Date"):

 

(a) The Agents shall have received this Waiver, duly executed by the Loan Parties, each Agent and the Required Lenders.

 

(b) The representations and warranties contained in this Waiver and in the Credit Agreement and in each Other Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Waiver Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).

 

(c) Except as expressly waived herein, no Default or Event of Default shall have occurred and be continuing on the Waiver Effective Date or result from this Waiver becoming effective in accordance with its terms.

 
	 
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5. Continued Effectiveness of the Credit Agreement and Other Documents. Each Loan Party hereby (i) acknowledges and consents to this Waiver, (ii) confirms and agrees that the Credit Agreement and each Other Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Waiver Effective Date all references in any such Other Document to "the Credit Agreement", the "Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Credit Agreement shall mean the Credit Agreement as amended or modified by this Waiver, and (iii) confirms and agrees that to the extent that any such Other Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Credit Agreement (as amended hereby) and the Other Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects. This Waiver does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties' obligations to repay the Loans in accordance with the terms of Credit Agreement, or the obligations of the Loan Parties under any Other Document to which they are a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the execution, delivery and effectiveness of this Waiver shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Credit Agreement or any Other Document, nor constitute a waiver of any provision of the Credit Agreement or any Other Document.

 

6. Release. Each Loan Party hereby acknowledges and agrees that: (a) neither it nor any of its Affiliates has any claim or cause of action against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Credit Agreement and the Other Documents and (b) each Agent and each Lender has heretofore properly performed and satisfied in a timely manner all of its obligations to such Loan Party and its Affiliates under the Credit Agreement and the Other Documents. Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would impair or otherwise adversely affect any of the Agents' and the Lenders' rights, interests, security and/or remedies under the Credit Agreement and the Other Documents. Accordingly, for and in consideration of the agreements contained in this Waiver and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the "Releasors") does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the "Released Parties") from any and all debts, claims, obligations, damages, costs, attorneys' fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Waiver Effective Date and arising out of, connected with or related in any way to this Waiver, the Credit Agreement or any Other Document, or any act, event or transaction related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Waiver Effective Date. 

 
	 
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As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of each provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

 

As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

 

Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 

 

Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees, agents and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section 6. Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Credit Agreement or any of the Other Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent's Lien on any item of Collateral under the Credit Agreement or the Other Documents. If any Loan Party or any of its respective successors, assigns, or officers, directors, employees, agents and attorneys, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys' fees and costs incurred by the Released Parties as a result of such violation.

 

	 
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7. Miscellaneous.

 

(a) This Waiver may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Waiver by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Waiver. 

 

(b) Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Waiver for any other purpose.

 

(c) This Waiver shall be governed by, and construed in accordance with, the laws of the State of New York.

 

(d) Each Loan Party hereby acknowledges and agrees that this Waiver constitutes a "Other Document" under the Credit Agreement. Accordingly, it shall be an Event of Default under the Credit Agreement if (i) any representation or warranty made by a Loan Party under or in connection with this Waiver shall have been untrue, false or misleading in any material respect when made, or (ii) any Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Waiver.

 

(e) Any provision of this Waiver that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

(f) The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Waiver in connection with the preparation, execution and delivery of this Waiver or otherwise payable under the Credit Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Waiver. 

 

[remainder of page intentionally left blank]

 
	 
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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be executed and delivered as of the date set forth on the first page hereof.

 

	
 
	
BORROWERS:

 

GEE GROUP INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
SCRIBE SOLUTIONS INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
AGILE RESOURCES, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
ACCESS DATA CONSULTING CORPORATION
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
TRIAD PERSONNEL SERVICES, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
TRIAD LOGISTICS, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
PALADIN CONSULTING, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

 
	 
	7
	

 
	 

 

	
 
	
BMCH, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
GEE GROUP PORTFOLIO INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
SNI COMPANIES
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title:
	
 
	
 

 
	 
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AGENTS:

 

MGG INVESTMENT GROUP LP, 

as Administrative Agent, Collateral Agent Term Loan Agent
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

		Name:	
 
	
 

		Title:	
 
	
 

 
	 
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LENDERS:

 

MGG FUNDING II, LLC, 

as Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG SF DRAWDOWN UNLEVERED FUND LP,

as Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG SF EVERGREEN UNLEVERED FUND LP,

as Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG CANADA FUND LP, 

as Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

 
	 
	10
	

 
	 

 

	
 
	
MGG OFFSHORE FUNDING I, LLC, as 

Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG SPECIALTY FINANCE FUND LP, as 

Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG SF EVERGREEN MASTER FUND

(CAYMAN) LP, as Lender

 

By: MGG Investment Group GP LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MGG SF DRAWDOWN MASTER FUND

(CAYMAN) LP, as Lender

 

By: MGG Investment Group GP II LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

 
	 
	11
	

 
	 

 

	
 
	
MGG SF DRAWDOWN MASTER FUND

(CAYMAN) LP, Lender

 

By: MGG Investment Group GP II LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name: 
	
 
	
 

	
 
	
Title: 
	
 
	
 

 

	 
	12Exhibit 10.50

 

FS Investment Corporation II

201 Rouse
Boulevard

Philadelphia,
PA 19112

 

	 	March 16, 2018

 

ING Capital LLC, as Administrative Agent

1133 Avenue of the Americas

New York, NY 10036

 

and the Lenders (as defined below)

 

		Re:	FS Investment Corporation II – Consent and Modification in relation to Transition Events

 

Ladies and Gentlemen,

 

Reference is hereby made to the Senior Secured
Revolving Credit Agreement, dated as of February 23, 2016 (as amended by that certain Amendment No. 1 to Senior Secured Revolving
Credit Agreement, dated as of April 25, 2016, and as further amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”; capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in the Credit Agreement), among FS INVESTMENT CORPORATION II, a Maryland corporation (“us” or “we”),
the several banks and other financial institutions or entities from time to time party to the Credit Agreement as lenders (the
“Lenders”), and ING CAPITAL LLC, as administrative agent for the Lenders under the Credit Agreement (in such
capacity, together with its successors in such capacity, the “Administrative Agent”).

 

FSIC II Advisor, LLC (“FSIC II Advisor”)
currently provides investment advisory and administrative services to us pursuant to the Investment Advisory and Administrative
Services Agreement, dated as of February 8, 2012, by and between us and FSIC II Advisor (the “Current Investment Advisory
Agreement”). GSO / Blackstone Debt Funds Management LLC (“GDFM”) currently serves as our investment
sub-advisor pursuant to the Investment Sub-Advisory Agreement, dated as of February 8, 2012, by and between GDFM and FSIC II Advisor
(the “Current Investment Sub-Advisory Agreement”).

 

On (i) December 11, 2017, we filed a current report
with the U.S. Securities and Exchange Commission on Form 8-K (a copy of which is attached hereto as Exhibit A, the “Filing”)
and (ii) January 18, 2018, we filed a definitive proxy report statement with the U.S. Securities and Exchange Commission on Schedule
14A (a copy of which is attached hereto as Exhibit B, the “Proxy”) announcing, among other things (collectively,
the “Proposed Transition”), (a) GDFM’s intended resignation as our investment sub-advisor and termination
of the Current Investment Sub-Advisory Agreement in April 2018 and (b) a proposed transition of our investment advisory services
to a new joint venture relationship between affiliates of Franklin Square Holdings, L.P. (“FS Investments”)
and KKR Credit Advisors (US) LLC (“KKR”), which is proposed to ultimately take the form of a newly formed entity
jointly operated by one or more affiliates of FS Investments and KKR (such proposed new joint investment advisor entity, the “Joint
Advisor”).

 

    	 	 	 

     

    

 

In furtherance of the Proposed Transition, we,
FSIC II Advisor, KKR and the Joint Advisor have taken or intend to take one or more of the following actions, each as more fully
described in the Filing and the Proxy and subject to the terms and conditions set forth in the applicable definitive documents
(collectively and together with all other transactions reasonably necessary to achieve the Proposed Transition, the “Transition
Events”):

 

		(a)	the renewal of the Current Investment Advisory Agreement for an additional one-year term commencing on December 10, 2017;

 

		(b)	the entry into that certain Engagement Letter, dated as of December 13, 2017, by and among FSIC II Advisor, other affiliated
investment advisors, KKR and KKR’s broker-dealer affiliate (the “Sourcing and Administrative Services Agreement”);

 

		(c)	the entry into an interim investment advisory agreement that meets the applicable requirements of Rule 15a-4 under the Investment
Company Act by and between us and KKR, substantially in the form of that certain Interim Investment Advisory Agreement by and between
us and KKR delivered to the Administrative Agent by us on March 9, 2018 (the “Interim Advisory Agreement”);

 

		(d)	the termination of the Current Investment Sub-Advisory Agreement;

 

		(e)	the entry into investment advisory and/or administration agreements by and between us and one or each of FSIC II Advisor and/or
KKR, substantially in the form of (i) that certain Investment Advisory Agreement between us and FSIC II Advisor, attached as Exhibit
A to the Proxy and (ii) that certain Investment Advisory Agreement between us and KKR, attached as Exhibit B to the
Proxy (together, the “Co-Advisory Agreements”);

 

		(f)	the entry into investment advisory and/or administration agreements by and between us and the Joint Advisor, substantially
in the form of that certain Investment Advisory Agreement between us and FS/KKR Advisor, LLC, attached as Exhibit C to the
Proxy (the “Joint Advisor Advisory Agreement”);

 

		(g)	the resignation of GDFM as our investment sub-advisor;

 

		(h)	the provision by KKR and/or KKR’s broker-dealer affiliate of certain origination, administrative and other services to
FSIC II Advisor;

 

		(i)	FSIC II Advisor and KKR serving as our co-investment advisors (“Co-Advisory Status”);

 

		(j)	the Joint Advisor serving as our investment advisor (“Joint Advisory Status”);

 

    	 	2	 

     

    

 

		(k)	upon or after the effectiveness of Joint Advisory Status, the resignation of FSIC II Advisor as our investment advisor or the
resignation of FSIC II Advisor and/or KKR as our co-investment advisors, as applicable;

 

		(l)	changes to the size and composition of our board of directors; and/or

 

		(m)	the receipt by one or more of FSIC II Advisor, KKR and/or the Joint Advisor of management and/or incentive fees from us in
connection with or arising from any of the foregoing.

 

One or more of the Transition Events may require
your consent under the Credit Agreement and the other Loan Documents. Accordingly, we hereby request your consent under the Credit
Agreement and the other Loan Documents to the undertaking of one or more of the Transition Events, and the Lenders signatory hereto
and the Administrative Agent hereby so consent on the terms and subject to the conditions contained in this consent and modification
letter.

 

Effective as of the date hereof, and subject
to the terms and conditions set forth herein, you hereby consent to the following (items (1) through (4) collectively, the “Consent”):

 

1.           The resignation of GDFM as our sub-advisor and the termination of the Current Investment
Sub-Advisory Agreement; provided that,

 

a.           the
definition of “Affiliate Agreement” in Section 1.01 of the Credit Agreement shall be amended by deleting clause (ii)
thereof;

 

b.           the
definition of “Sub-Advisor” in Section 1.01 of the Credit Agreement shall be amended by deleting such definition in
its entirety; and

 

c.           clause
(n) of Article VII shall be amended by deleting subclause (ii) in its entirety.

 

2.           The
entry into one or more of the Sourcing and Administrative Services Agreement, the Interim Advisory Agreement, the Co-Advisory Agreements
and/or the Joint Advisor Advisory Agreement; provided that any of the Interim Advisory Agreement, the Co-Advisory Agreements
or the Joint Advisory Agreement, once entered into, shall be deemed an “Affiliate Agreement” for all purposes under
the Credit Agreement; provided that, for the purposes of Section 6.11(b) of the Credit Agreement, we may freely terminate
one or both of the Interim Advisory Agreement and/or the Co-Advisory Agreements to the extent such termination is in connection
with the effectiveness of Co-Advisory Status or Joint Advisory Status, as applicable.

 

3.           The entry into the Co-Advisory Status pursuant to the Co-Advisory Agreements; provided that, upon entry into any such status,

 

a.           the
definition of “Investment Advisor” in Section 1.01 of the Credit Agreement shall be deemed to be: “(x) FSIC II
Advisor, LLC, a Delaware limited liability company, or an Affiliate thereof, in each case so long as it is a Controlled Affiliate
of Franklin Square Holdings, L.P. and (y) KKR Credit Advisors (US) LLC or an Affiliate thereof, in each case so long as it is a
Controlled Affiliate of KKR & Co. LP, as co-advisors”;

 

    	 	3	 

     

    

 

b.           each
reference to “Affiliate” in Sections 3.17 and 5.02(b) of the Credit Agreement shall be deemed to be a reference to
“Affiliate (other than KKR or any of its Affiliates (except the Investment Advisor) to the extent such entity satisfies the
definition of “Affiliate” solely as a result of the entry into the Co-Advisory Status)”;

 

c.           the
reference to “FSIC II Advisor, LLC (so long as it is an Affiliate of Franklin Square Holdings, L.P.)” in clause (n)
of Article VII of the Credit Agreement shall be deemed to be a reference to “both FSIC II Advisor, LLC or one of its Affiliates
(in each case, so long as it is a Controlled Affiliate of Franklin Square Holdings, L.P.) and KKR Credit Advisors (US) LLC or one
of its Affiliates (in each case, so long as it is a Controlled Affiliate of KKR & Co. LP)”; and

 

d.           the
definition of “Information” in Section 9.13 of the Credit Agreement shall be deemed to also include information received
from the Investment Advisor relating to the Investment Advisor, the Borrower, any of its Subsidiaries, any of their respective
businesses or any Portfolio Investment (including its Value), other than any such information that is available to the Administrative
Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to the disclosure by the Investment Advisor.

 

4.          The
entry into the Joint Advisory Status pursuant to the Joint Advisor Advisory Agreement and, upon or after entry into any such status,
the resignation of FSIC II Advisor as our investment advisor or the resignation of FSIC II Advisor and/or KKR as our co-investment
advisors, as applicable; provided that, upon entry into any such status,

 

a.           the
definition of “Investment Advisor” in Section 1.01 of the Credit Agreement shall be deemed to be “FS/KKR Advisor,
LLC (so long as it is jointly managed by (i) Franklin Square Holdings, L.P. and/or one or more of its Controlled Affiliates and
(ii) KKR & Co. LP and/or one or more of its Controlled Affiliates)”;

 

b.           each
reference to “Affiliate” in Sections 3.17 and 5.02(b) of the Credit Agreement shall be deemed to be a reference to
“Affiliate (other than KKR or any of its Affiliates (except the Investment Advisor) to the extent such entity satisfies the
definition of “Affiliate” solely as a result of the entry into the Co-Advisory Status and/or the Joint Advisory Status)”;

 

c.           the
reference to “FSIC II Advisor, LLC (so long as it is an Affiliate of Franklin Square Holdings, L.P.)” in clause (n)
of Article VII of the Credit Agreement shall be deemed to be a reference to “FS/KKR Advisor, LLC (so long as it is jointly
managed by (i) Franklin Square Holdings, L.P. and/or one or more of its Controlled Affiliates and (ii) KKR & Co. LP and/or
one or more of its Controlled Affiliates)”; and

 

d.           the
definition of “Information” in Section 9.13 of the Credit Agreement shall be deemed to also include information received
from the Investment Advisor relating to the Investment Advisor, the Borrower, any of its Subsidiaries, any of their respective
businesses or any Portfolio Investment (including its Value), other than any such information that is available to the Administrative
Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to the disclosure by the Investment Advisor.

 

    	 	4	 

     

    

 

The Consent will remain effective (i) during the
eighteen (18) month period following the date hereof, so long as one of either the Sourcing and Administrative Services Agreement
or the Interim Advisory Agreement is in full force and effect at such time or (ii) at any time, if one of either the Co-Advisory
Status or Joint Advisory Status has become effective.

 

Additionally, you and we hereby agree, upon the
effectiveness of Co-Advisory Status or Joint Advisory Status (or earlier upon the request of the Administrative Agent or us), to
take such actions (including entering into mutually agreeable amendments, supplements or other modifications to the Loan Documents)
that are reasonably requested by the Administrative Agent or us to document the advisory relationship and the other matters contemplated
in this consent and modification letter and to otherwise effectuate the purposes and objectives of this consent and modification
letter, in each case, on a going-forward basis.

 

To induce the other parties hereto to enter into
this consent and modification letter, the Borrower represents and warrants to the Administrative Agent and each Lender that, as
of the date hereof and after giving effect to this consent and modification letter, (i) the representations and warranties set
forth in Article 3 of the Credit Agreement and each other Loan Document are true and correct in all material respects (other than
any representation or warranty already qualified by materiality or Material Adverse Effect, which shall be true and correct in
all respects) on and as of the date hereof or, as to any such representations and warranties that refer to a specific date, as
of such specific date, with the same effect as though made on the date hereof and (ii) no Default or Event of Default has occurred
or is continuing.

 

Except as expressly modified hereby, all of the
representations, warranties, terms, covenants, conditions and other provisions of the Credit Agreement and the other Loan Documents
and the Liens granted thereunder shall remain unchanged and shall continue to be, and shall remain, in full force and effect in
accordance with their respective terms.  The consents and modifications set forth herein shall be limited precisely as provided
for herein and shall not be deemed to be an amendment to, waiver of, consent to or modification of any other terms or provisions
of the Credit Agreement or any other Loan Document or of any transaction or further or future action on the part of the Borrower.
Upon and after the execution of this consent and modification letter by each of the parties hereto, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as modified hereby.

 

The contemporaneous exchange and release of executed
signature pages by each of the Persons contemplated to be a party hereto shall render this consent and modification letter effective.
This consent and modification letter may not be amended or any provision hereof or thereof waived or modified except by an instrument
in writing signed by each of the parties hereto. This consent and modification letter may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. This consent and modification letter constitutes the entire contract between and among the parties
relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof. Delivery of an executed counterpart of this consent and modification letter by telecopy or electronic
mail shall be effective as delivery of a manually executed counterpart of this consent and modification letter.

 

    	 	5	 

     

    

 

THIS CONSENT AND MODIFICATION LETTER SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

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

 

The provisions of Sections 9.01, 9.07, 9.09
and 9.12 of the Credit Agreement are hereby incorporated by reference mutatis mutandis as if fully set forth herein.

 

[Signature pages follow]

 

    	 	6	 

     

    

 

If you are in agreement with the foregoing, please
sign and return the enclosed counterpart of this consent and modification letter.

 

	 	FS INVESTMENT CORPORATION II, as Borrower
	 	 	 
	 	By:	/s/ William Goebel
	 	Name:	William Goebel
	 	Title:	Chief Financial Officer

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

	 	ING CAPITAL LLC, as Administrative Agent
	 	 	 
	 	By:	/s/ Patrick Frisch
	 	Name:	Patrick Frisch
	 	Title:	Managing Director
	 	 	 
	 	By:	/s/ Dominik Breuer
	 	Name:	Dominik Breuer
	 	Title:	Vice President

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

	 	BARCLAYS BANK PLC, as a Lender
	 	 	 
	 	By:	/s/ Jake Lam
	 	Name:	Jake Lam
	 	Title:	Assistant Vice President

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

	 	CITIBANK, N.A., as a Lender
	 	 	 
	 	By:	/s/ Erik Andersen
	 	Name:	Erik Andersen
	 	Title:	Vice President

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

	 	
        CREDIT SUISSE AG, CAYMAN ISLANDS

        BRANCH, as a Lender

	 	 	 
	 	By:	/s/ Doreen Barr
	 	Name:	Doreen Barr
	 	Title:	Authorized Signatory
	 	 	 
	 	By:	/s/ Sophie Bulliard
	 	Name:	Sophie Bulliard
	 	Title:	Authorized Signatory

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

	 	
        DEUTSCHE BANK AG, NEW YORK BRANCH,

        as a Lender

	 	 	 
	 	By:	/s/ Howard Lee
	 	Name:	Howard Lee
	 	Title:	Assistant Vice President
	 	 	 
	 	By:	/s/ Hoi Yeun Chin
	 	Name:	Hoi Yeun Chin
	 	Title:	Assistant Vice President

 

[Consent and Modification Letter]

 

    	 	 	 

     

    

 

Exhibit
A

 

[See
Attached]

 

    	 	 	 

     

    

 

Exhibit
B

 

[See
Attached]

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