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ASSET PURCHASE AGREEMENT

By and between

BRANDYWINE GLOBAL INVESTMENT MANAGEMENT, LLC

(a Delaware limited liability company),

and

DIAMOND HILL CAPITAL MANAGEMENT, INC.

(an Ohio corporation)

Dated as of February 2, 2021

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”), is made and entered into as of February 2, 2021, by and between Diamond Hill Capital Management, Inc., an Ohio corporation (the “Seller”) and Brandywine Global Investment Management, LLC, a Delaware limited liability company (the “Purchaser”).
WHEREAS, the Seller desires to sell to the Purchaser and the Purchaser desires to purchase from the Seller, certain property and assets, tangible and intangible, of the Seller on the terms and subject to the conditions set forth in this Agreement;
NOW, THEREFORE, the parties hereto agree as follows: 
1.    Asset Purchase.

a.Sale and Purchase.  Subject to the terms and conditions of this Agreement, at the Closing (as defined in Section 1.2(a)), the Seller shall convey, transfer, set over, assign and deliver to the Purchaser, free and clear of all liens, attachments, charges, and encumbrances of any nature (except as may otherwise expressly be permitted by this Agreement), and the Purchaser shall purchase from the Seller, for the Initial Purchase Price and any Additional Payments (each as defined in Section 1.4 below), all of the Books and Records (as defined in Section 1.4 below) (i) of the Diamond Hill Corporate Credit Fund (the “CC Fund”);(ii) of the Diamond Hill High Yield Fund (the “HY Fund”, and together with the CC Fund, each a  “Fund” and together the “Funds”);  (iii) of all current and historic institutional separate accounts related to the strategy of each Fund (the “Institutional Separate Accounts”);  (iv) that are necessary to maintain a composite track record that complies with the Global Investment Performance Standards (“GIPS”, and the relevant books and records, “GIPS Data”); and (v) of the institutional investors listed on Schedule 1.1 (each, an “Institutional Prospect” and collectively, the “Institutional Prospects”) ((i), (ii), (iii), (iv) and (v) collectively, the “Purchased Assets”).

1.2    Closing. 

(a)    The closing of the sale and purchase of the Purchased Assets (the “Closing”) will take place remotely via the electronic exchange of documents and signatures at 3:00pm Eastern Time, on the last Business Day (as defined in Section 1.4) of the month following the satisfaction and/or waiver of the conditions set forth in Section 5, or at such other date and time as the parties shall have agreed to in writing.  The date on which the Closing shall occur is hereinafter referred to as the “Closing Date.”  The Closing shall be effective as of 11:59 p.m. Eastern Time on the Closing Date.  
 (b)    The Purchaser shall deliver to the Seller aggregate consideration of up to $22,000,000, consisting of the Initial Purchase Price, and, if applicable, the Additional Payments.
1.3    Additional Consideration. 
   
(a)    As further consideration for the sale of the Purchased Assets to the Purchaser at the Closing, the Purchaser shall make, as applicable, the Retention Payment set forth in Section 1.3(a)(i) below, and the Growth Payment set forth in Section 1.3(a)(ii) below (each such payment, an “Additional 
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Payment” and together, the “Additional Payments”) following the first anniversary of the Closing Date (the “Anniversary Date”): 
(i)    Retention Payment.  Purchaser shall make an additional retention payment (the “Retention Payment”) to Seller as follows:
(A)    if the Anniversary Date Net Revenues are less than or equal to 75% of the Base Date Net Revenues, no Retention Payment will be made;
(B)    if the Anniversary Date Net Revenues are between 75% and 100% of the Base Date Net Revenues, a Retention Payment in an amount equal to the amount interpolated (based on such Anniversary Date Net Revenues) on a straight line between (I) if the Anniversary Date Net Revenues are 75% of the Base Date Net Revenues, a Retention Payment of $0, and (II) if the Anniversary Date Net Revenues are equal to the Base Date Net Revenues, a Retention Payment of $9,000,000; and
(C)     if the Anniversary Date Net Revenues are greater than the Base Date Net Revenues, a Retention Payment in an amount equal to $9,000,000.
For illustrative purposes only, using the interpolation described in Section 1.3(a)(i)((B) above, in the event that the Anniversary Date Net Revenues are 91.5% of the Base Date Net Revenues, Seller would receive a Retention Payment of $5,940,000.
(ii)    Growth Payment.  Purchaser shall make an additional growth payment (the “Growth Payment”) to Seller as follows:
(A)    if the Anniversary Date Net Revenues are less than or equal to the Base Date Net Revenues, no Growth Payment will be made;
(B)    if the Anniversary Date Net Revenues are between 100% and 125% of the Base Date Net Revenues, a Growth Payment in an amount equal to the amount interpolated (based on such Anniversary Date Net Revenues) on a straight line between (I) if the Anniversary Date Net Revenues are 100% of the Base Date Net Revenues, a Growth Payment of $0, and (II) if the Anniversary Date Net Revenues are equal to 125% of the Base Date Net Revenues, a Growth Payment of $4,000,000; and
(C)     if the Anniversary Date Net Revenues are 125% or greater of the Base Date Net Revenues, a Growth Payment in an amount equal to $4,000,000.
For illustrative purposes only, using the interpolation described in Section 1.3(a)(ii)((B) above, in the event that the Anniversary Date Net Revenues are 117.5% of the Base Date Net Revenues, Seller would receive a Growth  Payment of $2,800,000.
(b)    For the avoidance of doubt, the Growth Payment and Retention Payment shall be calculated separately, and any Growth Payment payable by Purchaser to Seller shall be in addition to, and not in lieu of, any Retention Payment payable by Purchaser to Seller.
(c)     As promptly as practicable (and in any event within fifteen (15) Business Days) following the Anniversary Date, the Purchaser shall deliver to the Seller a written statement (the “Anniversary Date Payment Statement”) setting forth the Anniversary Date Net Revenues, and the amount of any Additional Payments (including a calculation of the components thereof in reasonable detail) owed pursuant to Section 1.3.  The Seller (and its agents and advisors) shall have reasonable 
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access, during normal business hours and with reasonable notice, to review (and copy) the work papers, schedules, memoranda and other documents and information prepared or reviewed by or for the Purchaser in connection with the preparation of the Anniversary Date Payment Statement and the calculation of the amounts of any Additional Payments and to communicate with those Persons who conducted such preparation and review, and the Purchaser shall (and shall cause its Affiliates, accountants and other outside service providers to) cooperate in good faith with the Seller and its agents and advisors, and provide them with reasonable access, during normal business hours and with reasonable notice, to the books and records of the Purchaser and such other information as they may reasonably request, in each case in connection with their review of the Anniversary Date Payment Statement.
(d)    Within twenty (20) Business Days after the Seller’s receipt of the Anniversary Date Payment Statement, the Seller shall notify the Purchaser in writing of any objection to such Anniversary Date Payment Statement, specifying the aggregate amount of any additional payment sought and describing in reasonable detail the basis for the demand (an “Anniversary Date Payment Protest Notice”).  The Purchaser and Seller shall then negotiate in good faith to attempt to resolve the dispute set forth in such Anniversary Date Payment Protest Notice.  If no Anniversary Date Payment Protest Notice is delivered to the Purchaser within such twenty (20) Business Day period, the Seller shall be deemed to have agreed to, and to have waived any and all objections to, such Anniversary Date Payment Statement as prepared by the Purchaser, and such Anniversary Date Payment Statement shall be final and binding on all parties hereto.  
(e)    Any Additional Payment(s) shall be paid by the Purchaser to the Seller promptly (and in any event within three (3) Business Days) following the final determination of the amount thereof pursuant to the process set forth above, by wire transfer of immediately available funds to bank accounts designated in writing by the Seller.
(f)     Notwithstanding anything contained herein to the contrary, if, prior to the Anniversary Date: (i) one or both of the Acquiring Funds (as defined below): (A) is sold or otherwise transferred to an unaffiliated third party, (B) is closed or liquidated, or (C) is merged with or into another fund owned or managed by Purchaser or any of its Affiliates other than as contemplated by the Reorganizations ; (ii) Purchaser or any of its Affiliates ceases to provide advisory and/or management services to either of the Acquiring Funds; or (iii) Purchaser breaches Section 6.2. of this Agreement, in any such case the Purchaser shall pay to Seller the Liquidated Payment Amount in cash by wire transfer of immediately available funds to one or more bank accounts designated by the Seller, whereupon this Agreement (and all rights and obligations of the parties hereto) shall terminate. 
    1.4    Definitions.  In addition to the terms otherwise defined elsewhere in this Agreement, the following terms shall have the meanings given below:
        “Acquiring Funds” means the two open-end management companies, having investment strategies similar to those of the Funds, that are to be formed for purposes of the Reorganizations and, on or prior to the Closing Date, are to be registered under the Investment Company Act and managed by the Purchaser.
“Advisers Act” means the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder.

“Affiliate” means, with respect to a specified entity, all Persons directly or indirectly controlling, controlled by or under common control with such Person, where control may be by either management authority, contract or equity interest. No Person shall be considered an “Affiliate” of the 
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Purchaser unless such Person has actually received information from the Purchaser prior to the date hereof about this Agreement and the transactions contemplated thereby.

“Anniversary Date Net Revenues” means the combined aggregate Net Revenues of the Acquiring Funds and the Institutional Prospects as of the Anniversary Date.

“Applicable Law” means, with respect to any Person, any statute, law, ordinance, rule, regulation, order, writ, injunction, directive, judgment, decree or other requirement of any Governmental Authority (including, but not limited to, anti-bribery laws, anti-money laundering laws, the Securities Act, the Exchange Act, the Investment Company Act, the Advisers Act, any applicable requirements of the relevant exchange and any applicable rules or regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”)) to the extent applicable to such Person or any of its properties, assets, officers, directors or employees.

“AUM” means, with respect to each of the Funds, the Acquiring Funds, or Institutional Prospects, as applicable, the assets under management of such Fund, Acquiring Fund, or Institutional Prospect as of any date of determination.

“Base Date AUM” means the $1,870,000,000 AUM of the CC Fund and the $640,000,000 AUM of the HY Fund, which together equals a combined aggregate AUM for the Funds of $2,510,000,000.
“Base Date Net Revenues” means the Funds’ combined aggregate Net Revenues of $11,008,200.
“Books and Records” means originals or copies of all books and records (in whatever form maintained) that are both maintained by the Seller and/or the Funds’ distributor and relate primarily to the business of the Funds, the Institutional Separate Accounts, the GIPS Data, and the Institutional Prospects, including, without limitation, all documents required to be maintained by the Seller pursuant to the Investment Company Act and Advisers Act, all marketing materials, investment performance materials, client relationship management data, consultant data, and all information and back-up data necessary to calculate and reflect the historical investment performance of the Funds and a composite track record that complies with GIPS.
“Business Day” means any day other than a Saturday, a Sunday, a legal holiday, or other day on which banking institutions or trust companies are authorized or obligated by law in the State of New York or by other governmental action to close.
“Closing Date Net Revenues” means the Funds’ combined aggregate Net Revenues as of the Closing Date.
“Code” means the Internal Revenue Code of 1986, as amended.
“Employment Agreement” means each of the employment agreements dated as of the date hereof and effective as the Closing Date, between Purchaser and each of the individuals named on Schedule 5.4(b).
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
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“Fixed Net Management Fee” means 0.422% in the case of the CC Fund, and 0.487% in the case of the HY Fund. 

“Fund Financial Statements” means: (a) the audited financial statements of each Fund for the fiscal years ended in 2017, 2018 and 2019, as applicable, together with reports on such year-end statements by each Fund’s independent registered public accountants, including a statement of assets and liabilities and schedule of investments and a statement of operations; and (b) the unaudited financial statements of each Fund for the semi-annual period ended June 30, 2020, including a statement of changes in net assets and schedule of investments, in each case as determined in accordance with GAAP.

“Fundamental Representations” means each of the representations and warranties included in Sections 2.1-2.3; 2.8 (a), (g), (k) and (m); and 3.1-3.3.  

“GAAP” means generally accepted accounting principles as used in the United States of America as in effect at the time any applicable financial statements were prepared or any act requiring the application of GAAP was performed applied on a consistent basis.

“Governmental Authority” means any nation, state, territory, province, county, city or other unit or subdivision thereof or any entity, authority, agency, department, board, commission, instrumentality, court or other judicial body authorized on behalf of any of the foregoing to exercise legislative, judicial, regulatory or administrative functions of or pertaining to government, and any governmental or nongovernmental self-regulatory organization of which the Person was or is a member or to whose regulations the Person was or is subject.

“Initial Purchase Price” means an amount equal to $9,000,000; provided, however, that if the Closing Date Net Revenues are equal to or more than 70% but less than 95% of the Base Date Net Revenues, the Initial Purchase Price shall be an amount equal to: (i) $9,000,000, multiplied by (ii) the percentage obtained by dividing (A) the Closing Date Net Revenues by (B) the Base Date Net Revenues.  For the avoidance of doubt, if the Closing Date Net Revenues are 95% or more of the Base Date Net Revenues, the Initial Purchase Price shall be $9,000,000.
“Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.
“Liquidated Payment Amount” means $13,000,000 reflecting the combined aggregate of the maximum $9,000,000 Retention Payment and $4,000,000 Growth Payment under this Agreement.

“Net Revenue” means, (i) for each Fund, as of any date of determination: (A) the Fixed Net Management Fee for the Fund, multiplied by (B) the AUM for the Fund and (ii) for each Institutional Prospect, as of any date of determination, an amount equal to 25% of: (A) the fee rate stated in the investment management agreement (or equivalent document) for such Institutional Prospect, multiplied by (B) the AUM of such Institutional Prospect.

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

“SEC” means the Securities and Exchange Commission.

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“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Separation Agreement” means each of the separation agreements dated as of the date hereof, between Seller and each of the individuals named on Schedule 5.4(b).

“Tax Representations” are those representations included in Sections 2.8(i) and 4.2.

“Tax Return” means any report, return, information statement, claim for refund, document, declaration or other information or filing required to be supplied to any taxing authority or jurisdiction (foreign or domestic) with respect to Taxes, including, without limitation, any schedule or attachment thereto or amendment thereto.

“Taxes” means any and all taxes, charges, fees, levies or other assessments, including income, gross receipts, excise, severance, stamp, premium, windfall profits, environmental, customs duties, capital stock, real or personal property, capital gains, employment, sales, withholding, social security (or similar), unemployment, disability, registration, add-on minimum, estimated, occupation, use, service, service use, value added, license, net worth, payroll, franchise, escheat, abandoned property, transfer and recording taxes, fees and charges, imposed by any taxing authority (whether domestic or foreign including any state, local or foreign government or any subdivision or taxing agency thereof (including a United States possession)), whether computed on a separate, consolidated, unitary, combined or any other basis; and such term shall include any interest, penalties or additional amounts attributable to, or imposed upon, or with respect to, any such taxes, charges, fees, levies or other assessments, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person.

2    Representations and Warranties of the Seller.  The Seller represents and warrants to the Purchaser as follows:

2.1    Corporate Status and Authority.   The Seller is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Ohio and has the corporate power and authority to own the Purchased Assets and to execute and deliver this Agreement and perform its obligations hereunder.  The execution, delivery, and performance of the Seller’s obligations under this Agreement have been duly authorized by the Seller’s sole director, which constitutes all necessary corporate action on the part of the Seller for such authorization.  This Agreement has been duly executed and delivered by the Seller and constitutes the valid and binding obligation of the Seller, except as limited by laws affecting the enforcement of creditor’s rights generally or by general equitable principles.

2.2    No Conflicts, Consents and Approvals, etc. 
  

(a)    The execution and delivery of this Agreement by the Seller and the performance of its obligations hereunder will not result in: (i) any conflict with the articles of incorporation, (ii) any breach or violation of, or default under, any Applicable Law, or other governmental authorization or any mortgage, lease, agreement, deed of trust, indenture or any other instrument to which the Seller is a party or by which the Seller or any of its properties or assets are bound, or (iii) the creation or imposition of any lien, except in the case of the foregoing (ii) and (iii) for such breaches, violations or defaults, and such 
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liens, which would not, individually or in the aggregate, impair the ability of the Seller to fulfill its obligations hereunder.
(b)    Except as provided in Section 4.4 below, no consent, approval or authorization of, or filing with any third party or governmental authority is required on the part of the Seller in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.  
2.3    No Liens on Purchased Assets.  The Seller owns outright, and has good and marketable title to, the Purchased Assets free and clear of all liens, pledges, mortgages, security interests, conditional sales contracts or other encumbrances or conflicting claims of any nature whatsoever, except as set forth in Schedule 2.3 hereto which liens shall be removed on or before the Closing Date. 

2.4    Investment Advisory Matters.
(a)    The Seller has adopted a formal code of ethics, a written policy regarding insider trading and other policies and procedures required to be adopted under Rule 206(4)-7 under the Advisers Act and, with respect to such code of ethics, Rule 17j-1 under the Investment Company Act.  Such code of ethics complies in all material respects with Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Investment Company Act.  There have been no material violations of such code of ethics, and the Seller has not received a written notice from any Governmental Authority: (i) asserting any material violation of such codes of ethics, or (ii) indicating that the Seller is under any investigation by any Governmental Authority for any alleged violation of such code of ethics.  The policies and procedures of the Seller with respect to avoiding conflicts of interest, or the conflicts of interest that exist, as the case may be, are described in its most recent Form ADV (or incorporated by reference therein), as amended.  As of the date of this Agreement and since the formation of the Funds, there have been no material violations of such policies.
(b)    None of the Seller or any other Person “associated” (as defined under the Advisers Act) with the Seller: (i) is ineligible under the Advisers Act to serve as a Person associated with a registered investment adviser, and (ii) has been convicted of any crime or is or has been subject to any disqualification that would be a basis for denial, suspension or revocation of registration of an investment adviser under Section 203(e) of the Advisers Act, and to the Seller’s knowledge, there is no basis for any such disqualification, denial, suspension or revocation.  
(c)    None of the Seller or any of its directors, officers or employees, is subject to any cease and desist, censure or other disciplinary or similar order issued by, or is a party to any written agreement, consent agreement, memorandum of understanding or disciplinary agreement with, or is a party to any commitment letter or similar undertaking to, or subject to any order or directive by, or a recipient of any supervisory letter from, any governmental authority with respect to the business of the Funds.
(d)    The Seller and each of its directors, officers and employees has complied in all material respects with, and has not been and is not now in violation in any material respect of, Applicable Law, except for violations, if any, that individually and in the aggregate, have not been, and would not reasonably be expected to be material to the business of the Funds.  Neither the Seller nor any of its directors, officers or employees has received any written notice relating to any alleged violation of any Applicable Law from any Governmental Authority, or of any investigation with respect thereto, except 
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for violations, if any, that, individually and in the aggregate, have not been, and would not reasonably be expected to be, material to the business of the Funds.
(e)    The Seller is, and at all times since it has served as the investment advisor to each of the Funds has been, duly registered under the Advisers Act as an investment adviser with the SEC.  The Seller is, and at all times since each Fund’s inception has been, duly registered, licensed, qualified or has made a notice of filing as an investment adviser in each jurisdiction where the conduct of its business requires such registration or notice filing.  The Seller has delivered the Purchaser true and complete copies of its most recent Form ADV, as amended to date.  The information contained therein was true and complete in all material respects at the time of filing and the Seller has made all amendments to such Form ADV as it is required to make under Applicable Laws except as has not been, and would not reasonably be expected to be, material to the business of either Fund.
(f)    The Prohibited Transaction Class Exemption 84-14 issued by the U.S. Department of Labor (“QPAM Exemption”) is not unavailable with respect to transactions negotiated by or under the authority and general direction of the Seller as a “qualified professional asset manager” (as defined in the QPAM Exemption) by virtue of: (i) the application of Section I(e) of the QPAM Exemption, or (ii) the application of Section I(g) of the QPAM Exemption, and the consummation of the transactions contemplated hereby will not cause the QPAM Exemption to be unavailable to the Purchaser or its Affiliates by virtue thereof.  
2.5     Litigation. There are no judicial or administrative actions, proceedings or investigations pending or, to the knowledge of the Seller, threatened, which question the validity of this Agreement or any action taken or to be taken by the Seller in connection herewith. 
2.6      Solvency.  Immediately after giving effect to the Closing, the Seller’s total assets will exceed the sum of the Seller’s liabilities.
2.7    Anti-Corruption Laws.   None of the Seller or, to the Seller’s knowledge, any employee of the Seller, has, in the past two years, violated or been convicted of violating the United States Foreign Corrupt Practices Act of 1977, as amended, and any other similar laws concerning or relating to bribery or corruption, other than any such violations would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Seller or the Funds.  
2.8.     Matters Relating to the Funds.
(a)    Each Fund, since it was required to be registered under the Investment Company Act, has been continuously: (i) registered as an open-end management company under the Investment Company Act, (ii) in material compliance with all Applicable Laws including: (A) the Investment Company Act, the Securities Act and the Exchange Act, and (B) the laws of each jurisdiction in which shares of such Fund have been offered for sale or sold, (iii) in material compliance with such Fund’s fundamental and non-fundamental investment policies, investment objective, principal investment strategies and investment restrictions as from time to time in effect, and (iv) duly registered or licensed and in good standing under the laws of each jurisdiction in which qualification is necessary, except where the failure to be in such material compliance or the failure to be duly registered and in good standing has not been, and would not reasonably be expected to be, material to the business of such Fund.  Without limiting the generality of the foregoing, each Fund has maintained true and correct records as required by the Investment Company Act, the Advisers Act, the rules of FINRA or the SEC and any other Applicable Law, except where the failure to maintain such records has not been, and would not reasonably be 
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expected to be, material to the business of such Fund.  There are no special restrictions, consent judgments, SEC or judicial orders on or against or with regard to either of the Funds in effect, nor have there been any for the past three years.  All copies of exemptive orders or no-action letters issued with respect to, or on which, either Fund relies have been provided to the Purchaser.  
(b)    Neither the Seller nor any “affiliated person” (as defined in the Investment Company Act) of the Seller or any of the Funds receives or is entitled to receive any compensation directly or indirectly: (i) from any Person in connection with the purchase or sale of securities or other property to, from or on behalf of either of the Funds, other than bona fide ordinary compensation as a broker in connection with the purchase or sale of securities in compliance with Section 17(e) of the Investment Company Act, or (ii) from either of the Funds or such Fund’s security holders for other than bona fide investment advisory, administrative or other services.  Accurate disclosure (that does not omit any material information required to be disclosed under Applicable Law) of all such compensation arrangements has been made in the registration statement of each Fund filed with the SEC.  
 (c)    Except as set forth in Schedule 2.8(c), there are no agreements or understandings in effect pursuant to which the Seller has capped, waived, or reimbursed or is required under any circumstances to cap, waive or reimburse any or all advisory fees or expenses payable by either of the Funds, and no such arrangements have been requested in writing of Seller by the Board of Trustees of the Funds.  
(d)    Neither of the Funds is or has been, a party to any, and there are and have not been any, legal, administrative, arbitral or other proceedings, claims, actions or governmental or regulatory investigations of any nature pending or threatened in writing against or relating to either of the Funds that has been, or would reasonably be expected to be, material to the business of such Fund or that challenge any of the transactions contemplated by this Agreement.  There is no injunction, order, judgment, decree, or regulatory restriction in effect with respect to either of the Funds that has been, or would reasonably be expected to be, material to the business of such Fund.  
(e)    Each of the Funds has adopted a formal code of ethics, as required by Rule 17j-1 under the Investment Company Act.  There have been no material violations of such code of ethics.  Neither of the Funds has received a written notice from any Governmental Authority: (i) asserting any material violation by any such codes of ethics; or (ii) indicating that either Fund is under any investigation by any Governmental Authority for any alleged violation of such code of ethics.  
(f)    Each Fund has duly adopted written policies and procedures required by Rule 38a-1 under the Investment Company Act.  All such policies and procedures of each such Fund comply in all material respects with Applicable Law.  There have been no material violations of any such policies and procedures, and neither the Seller nor either of the Funds has received written notice: (i) from any Governmental Authority or from any shareholders of such Fund asserting any material violation by the Seller or such Fund of such policies and procedures, or (ii) indicating that the Seller or such Fund is under any investigation by any Governmental Authority for any alleged violation of such policies and procedures.
(g)    The Books and Records of the Funds are complete and accurate in all material respects.  
(h)    Schedule 2.8(h) sets forth all of the current investment advisory agreements and all material administrative services and other services agreements (collectively, the “Fund Agreements”), to which either of the Funds is a party and which are in effect on the date of this Agreement.  True and correct copies of the Fund Agreements: (a) have been provided to the Purchaser prior to the date hereof, 
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and (b) are in full force and effect.  Each Fund Agreement was duly approved in accordance in all material respects with the applicable provisions of the Investment Company Act, to the extent required.  Each Fund Agreement is valid and in full force and effect in accordance with its terms, and there is not and has not been, under any Fund Agreement, a material breach by any party thereto or event which, with the giving of notice or the lapse of time or both, would become such a material breach.
(i)    All Tax Returns of each of the Funds that are required to have been filed have been duly and timely filed, all such Tax Returns are true, correct and complete in all material respects, and all Taxes of or imposed on each of the Funds (whether or not shown on any Tax Return) have been duly and timely paid in full (or adequate provision for such has been made in the applicable Fund’s financial statements in accordance with GAAP).  For all taxable years, or parts thereof, of each Fund ending on or prior to the Closing Date, such Fund has qualified as a regulated investment company as defined in Section 851 of the Code, has complied with all provisions of the Code relevant to its treatment, status and operation as a regulated investment company, and has made distributions sufficient to meet the requirements of Section 852(a) of the Code.
(j)    Each Fund has in full force and effect such fidelity bonds as may be required by the Investment Company Act.  Schedule 2.8(j) sets forth all policies of insurance in effect with respect to the Funds or the Purchased Assets.  Such insurance is maintained with reputable insurers and provides coverage sufficient in each case, in the reasonable business judgment of the Seller, for the operation of the business of the Funds.  
(k)    All shares of each of the Funds have been duly authorized and are validly issued, fully paid and non-assessable.  All shares of each of the Funds have been offered for sale or sold pursuant to: (a) an effective registration statement under the Securities Act, or a qualified exemption therefrom for the issuance of shares to the Seller or an Affiliate of the Seller prior to the commencement of operations of such Fund, and (b) an effective registration or qualification statement or a current notice of offering to sell or sale required under the securities laws of each jurisdiction in which such shares have been offered for sale or sold and during all such period or periods when such registration, qualification or notice has been required.  No stop order suspending the effectiveness of any such registration or qualification statement or notice has been issued and, to the Seller’s knowledge, no proceedings for that purpose have been instituted.  
(l)    Each of the Funds has timely filed all prospectuses, annual information forms, registration statements, proxy statements, financial statements, notices, other forms, reports, sales literature and advertising materials and any other documents required to be filed with any Governmental Authority, and any amendments thereto (the “Fund Reports”), and has timely paid all fees and interest required to be paid in connection therewith, except where the failure to file Fund Reports or timely pay all fees and interest has not been, and would not reasonably be expected to be, material to the business of the Fund. The Fund Reports: (a) have been prepared in all material respects in accordance with the requirements of Applicable Law, and (b) did not at the time they were filed, and with respect to any prospectus, proxy statement, sales literature or advertising material, did not during the period of its authorized use, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were or are made, not misleading.
(m)    The statements of net assets or assets and liabilities and schedule of investments included in the Fund Financial Statements present fairly in all material respects the financial position of each of the Funds as at the respective dates thereof, and the statements of operations and changes in net assets 
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included in the Fund Financial Statements present fairly in all material respects the results of operations and cash flows of each of the Funds for the respective periods indicated, in each case in accordance with GAAP, except: (a) as may be stated in the footnotes to such financial statements, and (b) that the unaudited financial statements are subject to year-end adjustments in the ordinary course of business consistent with industry practice.  The Funds have no liabilities, whether absolute, contingent or otherwise, that are not disclosed in the Fund Financial Statements or the footnotes to such financial statements, other than liabilities arising in the ordinary course of business since the date of such financial statements and that are not in excess of the expense ratios disclosed in the applicable Fund’s prospectus.  Correct and complete copies of the Fund Financial Statements have been provided to the Purchaser.  There have been no material deficiencies or weaknesses in the design or operation of internal controls over financial reporting or disclosure controls and procedures that have adversely affected or would reasonably be expected to adversely affect any Fund’s ability to record, process, summarize, and report financial information. 
2.9    No Other Representations.   Except for the representations and warranties expressly set forth in this Section 2, the Seller makes no representation or warranty, express or implied, at law or in equity, in respect of the Seller or any of its assets, liabilities, or operations, including, without limitation, any implied representation or warranty as to the condition, merchantability, suitability, or fitness for a particular purpose, and expressly disclaims any such representation or warranty.  
3    Representations and Warranties of the Purchaser.  The Purchaser represents and warrants to the Seller as follows:

3.1    Company Status and Authority.   The Purchaser is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has the requisite power and authority to execute and deliver this Agreement and perform its obligations hereunder.  The execution, delivery, and performance of this Agreement have been duly authorized by all necessary action of the Purchaser, including under its governing documents.   This Agreement has been duly executed and delivered by the Purchaser and constitutes the valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as limited by laws affecting the enforcement of creditors’ rights generally or by general equitable principles.  
3.2    No Conflicts; Consents and Approvals, etc.
  
(a)    Except as provided in Section 4.4 below, the execution, delivery and performance of this Agreement by the Purchaser will not result in: (i) any conflict with the certificate of formation, operating agreement or other governing documents of the Purchaser, (ii) any breach or violation of, or default under, Applicable Law or any mortgage, lease, agreement, deed of trust, indenture or any other instrument to which the Purchaser is a party or by which the Purchaser or any of its properties or assets are bound, or (iii) the creation or imposition of any lien, except for such breaches, violations or defaults, and such liens which would not, individually or in the aggregate, impair the ability of the Purchaser to fulfill its obligations hereunder.
(b)    Except as provided in Section 4.4 below, no consent, approval or authorization of, or filing with any third party or governmental authority is required on the part of the Purchaser in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
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3.3    Litigation.   There are no judicial or administrative actions, proceedings or investigations pending or, to the knowledge of the Purchaser, threatened, which question the validity, or would prevent or impair Purchaser’s performance, of this Agreement or any action taken or to be taken by the Purchaser in connection herewith.

3.4    Brokers.   All negotiations relating to this Agreement and the transactions contemplated hereby have been carried out without the intervention of any Person acting on behalf of the Purchaser in such manner as to give rise to any valid claim against the Purchaser or the Seller for any brokerage or finder’s commission, fee, or similar compensation.
3.5    Investment Advisory Matters.
(a)    The Purchaser has adopted a formal code of ethics, a written policy regarding insider trading and other policies and procedures required to be adopted under Rule 206(4)-7 under the Advisers Act and, with respect to such code of ethics, Rule 17j-1 under the Investment Company Act.  Such code of ethics complies in all material respects with Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Investment Company Act.  There have been no material violations of such code of ethics, and the Purchaser has not received a written notice from any Governmental Authority (i) asserting any material violation of such codes of ethics or (ii) indicating that the Purchaser is under any investigation by any Governmental Authority for any alleged violation of such code of ethics.  The policies and procedures of the Purchaser with respect to avoiding conflicts of interest, or the conflicts of interest that exist, as the case may be, are described in its most recent Form ADV (or incorporated by reference therein), as amended.  As of the date of this Agreement, there have been no material violations of such policies.
(b)    None of the Purchaser or any other Person “associated” (as defined under the Advisers Act) with the Purchaser: (i) is ineligible under the Advisers Act to serve as a Person associated with a registered investment adviser, and (ii) has been convicted of any crime or is or has been subject to any disqualification that would be a basis for denial, suspension or revocation of registration of an investment adviser under Section 203(e) of the Advisers Act, and to the Purchaser’s knowledge, there is no basis for any such disqualification, denial, suspension or revocation.  
(c)    None of the Purchaser or any of the directors, officers or employees of the Purchaser, is subject to any cease and desist, censure or other disciplinary or similar order issued by, or is a party to any written agreement, consent agreement, memorandum of understanding or disciplinary agreement with, or is a party to any commitment letter or similar undertaking to, or subject to any order or directive by, or a recipient of any supervisory letter from, any governmental authority that would impair the ability of Purchaser to carry out its obligations under this Agreement.
(d)    The Purchaser and each of its directors, officers and employees has complied in all material respects with, and has not been and is not now in violation in any material respect of, Applicable Law, except for violations, if any, that individually and in the aggregate, have not been, and would not reasonably be expected to be material to the business of the funds advised or sub-advised by the Purchaser.  Neither the Purchaser nor any of its directors, officers or employees has received any written notice relating to any alleged violation of any Applicable Law from any Governmental Authority, or of any investigation with respect thereto, except for violations, if any, that, individually and in the aggregate, have not been, and would not reasonably be expected to be, material to the business of the funds advised or sub-advised by the Purchaser.
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(e)    The Purchaser is, and at all times since it has been required by the Advisers Act to be registered with the SEC has been, duly registered under the Advisers Act as an investment adviser with the SEC.  The Purchaser is, and at all times since required by Applicable Law has been, duly registered, licensed, qualified or has made a notice of filing as an investment adviser in each jurisdiction where the conduct of its business requires such registration or notice filing.  The information contained in the Purchaser’s most recent Form ADV was true and complete in all material respects at the time of filing and the Purchaser has made all amendments to such Form ADV as it is required to make under Applicable Laws except as has not been, and would not reasonably be expected to be, material to the business of the funds advised or sub-advised by the Purchaser.
3.6    Solvency.   Immediately after giving effect to the transactions contemplated by this Agreement, the Purchaser shall (a) be able to pay its debts as they become due; (b) own property which has a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to carry on its business.  No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay, or defraud either present or future creditors of the Purchaser.

3.7    Anti-Corruption Laws.   None of the Purchaser or, to the Purchaser’s knowledge, any employee of the Purchaser, has, in the past two years, violated or been convicted of violating the United States Foreign Corrupt Practices Act of 1977, as amended, and any other similar laws concerning or relating to bribery or corruption, other than any such violations would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Purchaser or the funds advised or sub-advised by the Purchaser.

4    Covenants.

4.1    Conduct of Business, etc.  From the date hereof until the Closing, except for entering into and performing its obligations under this Agreement and subject to Applicable Law, the Seller shall cause the business of each Fund to be conducted in the ordinary course in substantially the same manner in which it previously has been conducted.
4.2    Payment of Transaction-Related Expenses.  Each of Seller and Purchaser shall pay for any third party costs, fees, or expenses incurred by it in connection with the transactions contemplated hereby.  In the case of Seller, such costs, fees, and expenses shall include without limitation: (i) all transfer, sales, use, and similar taxes arising out of the sale of the Purchased Assets pursuant to this Agreement; and (ii) all costs incurred in connection with seeking and obtaining shareholder approval of the transactions contemplated hereby, proxy solicitation costs, and printing and mailing expenses, regardless whether or not the transactions contemplated by this Agreement are consummated (collectively, the “Proxy Actions”).   In the case of Purchaser, such costs, fees, and expenses shall include without limitation: (i) all costs, fees and expenses in connection with the formation, establishment, and registration of the Acquiring Funds; and (ii) all costs, fees and expenses related to the Reorganization, other than the costs related to the Proxy Actions.   To the extent applicable, Seller shall reimburse Purchaser for any reasonable documented out-of-pocket expenses incurred by the Purchaser in connection with facilitating the Proxy Actions.  In the event that there is any disagreement or lack of clarity as to whether a cost, expense, or fee is the Seller’s or Purchaser’s responsibility, the parties shall discuss and reach mutual agreement on the issue. 

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4.3    Publicity.   No press release or public announcement related to this Agreement, or the transactions contemplated hereby, shall be issued or made without the joint approval of the Seller and the Purchaser; provided, however, that if required by law or the rules of any exchange on which the shares of the Purchaser’s ultimate parent company or the shares of the Seller or the Seller’s ultimate parent company are listed (in the reasonable opinion of counsel), such party may make such disclosures as may be required to comply with such law or rules, in which case the other party shall have the right to review such press release or announcement in advance.

4.4    Consummation of the Transaction.  
(a)    Each of Seller and Purchaser shall use its commercially reasonable best efforts to: (i) bring about the satisfaction as soon as possible of all the conditions contained in Section 5, and (ii) perform and fulfill all conditions and obligations to be performed and fulfilled by it under this Agreement, to the end that the transactions contemplated by this Agreement shall be fully carried out.  Without limiting the generality of the foregoing, the parties shall apply for and diligently prosecute all applications for, and shall use their commercially reasonable efforts promptly to obtain, such consents, authorizations, and approvals from such third parties and governmental authorities (including the Securities and Exchange Commission) as shall be necessary to permit the consummation of the transactions contemplated by this Agreement, including all action by Purchaser necessary for Purchaser to obtain any required authorizations to purchase the Purchased Assets and to operate and manage the Acquiring Funds.  Specifically, in furtherance of the foregoing, each of the Seller and the Purchaser, as applicable, shall use their respective commercially reasonable efforts to:
i.obtain, as soon as reasonably practicable following the date of this Agreement, (A)(x) the approval of the Board of Trustees of each of the Funds (including the separate approval of a majority of the Independent Trustees) of the transfer of all of the assets of each Fund to the corresponding Acquiring Funds, in exchange for: (I) the assumption by the corresponding Acquiring Fund of all of the liabilities of the Fund, and (II) shares of the corresponding Acquiring Fund, pursuant to the terms of an Agreement and Plan of Reorganization in a form mutually agreeable to the Seller and the Purchaser (the “Reorganizations”), (y) the convening of a meeting of the shareholders of each Fund (the “Shareholder Meetings”) to be held as soon as reasonably practicable to vote upon the Reorganizations and such other matters as may properly come before the meeting (the “Shareholder Matters”),  the preparation and filing of a proxy statement, the setting of a record date and taking other measures necessary for the Shareholder Meetings to be held as soon as reasonably practicable, and (z) such other matters as may be required (to the extent mutually agreed by the Seller and the Purchaser, such agreement to not be unreasonably withheld) to consummate the Reorganizations and the transactions contemplated by this Agreement (the “Additional Matters”), (B) the positive recommendation of the Board of Trustees of each of the Funds to shareholders of each Fund of the above-described matters (the approvals described in this paragraph (i), collectively, the “Required Fund Board Approvals”);
ii.subject to the Required Fund Board Approvals first being obtained, (A) cause the applicable Shareholder Meetings to be convened, (B) obtain the requisite proxies of shareholders in advance of the applicable Shareholder Meetings to approve the applicable Shareholder Matters, and (C) obtain the approval by shareholders of the applicable Fund of the applicable Shareholder Matters and, if any, the applicable Additional Matters to the 
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extent requiring shareholder approval (the approvals of applicable Fund shareholders described in this clause (C), the “Required Shareholder Approvals”);
iii.obtain, as soon as reasonably practicable following the date of this Agreement, the approval of the Board of Trustees of each of the Acquiring Funds (including the separate approval of a majority of the Independent Trustees) of the Reorganizations, including the filing of a registration statement on Form N-14 to register shares of the Acquiring Funds to be issued in connection with the Reorganizations, and such other matters as may be required (to the extent mutually agreed by the Seller and the Purchaser, such agreement to not be unreasonably withheld) to consummate the Reorganizations and the transactions contemplated by this Agreement (the approvals described in this paragraphs (iii), together with the Required Fund Board Approvals and the Required Shareholder Approvals, the “Required Approvals”).
 (b)    Purchaser and Seller each agree to use reasonable best efforts and to cooperate with the other party in all reasonable respects to prepare necessary proxy statements and all other shareholder communications to obtain all Required Shareholder Approvals to carry out the transactions contemplated by this Agreement.  Seller and Purchaser agree that none of the information supplied or to be supplied by each of them for inclusion or incorporation by reference in such proxy statements will, at the date of mailing to the shareholders of the Funds, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
4.5    Intercompany Accounts.  All monetary obligations of the Funds to the Seller or the Seller’s Affiliates shall be deemed due as of the Closing, and Purchaser shall cause such obligations to be paid promptly following Closing.   
4.6    Accounts Receivable.  Seller shall use its reasonable best efforts to collect all accounts or notes receivable due to the Seller from or in connection with the Funds at or prior to the Closing.  In the event all such accounts or notes receivable are not collected prior to the Closing, the Purchaser shall pay any such amounts to Seller upon receipt thereof, and shall remain liable to the Seller, and shall indemnify the Seller, for the amounts due under this Section 4.6 until all such amounts are paid in full to the Seller.

5.    Conditions Precedent.
 

5.1    General.
  The respective obligations set forth herein of the Seller and the Purchaser to consummate the sale and purchase of the Purchased Assets at the Closing shall be subject to the fulfillment, on or before the Closing Date, in the case of the Seller, of the conditions set forth in Sections 5.2 and 5.3, and in the case of the Purchaser, of the conditions set forth in Sections 5.2 and 5.4.

5.2    Conditions to Obligations of Both Parties. 
(a)    Receipt of Closing Deliveries.  Each party shall have received all of the closing deliveries from the other party pursuant to Section 1.
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(b)    Fund Shareholder Approvals.   All Required Approvals shall have been obtained in accordance with Applicable Law.
(c)    Reorganizations.  Each of the Reorganizations shall be consummated simultaneously with the Closing.
(d)    No Injunction.    There shall not be in effect any injunction or other order issued by a court of competent jurisdiction restraining or prohibiting the consummation of the transactions contemplated by this Agreement.
5.3    Conditions to Obligations of the Seller.
(a)    Representations and Warranties of the Purchaser.  The representations and warranties in Section 3 shall be true and correct when made and at and as of the Closing with the same effect as though made at and as of such time, with such exceptions as are not in the aggregate material.  The Purchaser shall have duly performed and complied in all material respects with all agreements contained herein required to be performed or complied with by it at or before the Closing.

(b)    Separation Agreements.  Each of the Key Employees listed on Schedule 5.4(b): (i) has executed a Separation Agreement with Seller before or simultaneously with the execution of this Agreement; and: (ii) shall be employed by the Seller until the Closing and shall not have given notice to the Seller (except as contemplated by the Closing) that he intends to terminate his employment with Seller.
(c)    Officer’s Certificate.  The Purchaser shall have delivered to the Seller a certificate, dated the Closing Date and signed by an authorized officer thereof, as to the fulfillment of the conditions set forth in Section 5.3(a). 

5.4    Conditions to Obligations of the Purchaser. 

(a)    Representations and Warranties of the Seller.
   The representations and warranties in Section 2 shall be true and correct when made and at and as of the Closing with the same effect as though made at and as of such time, with such exceptions as are not in the aggregate material.  The Seller shall have duly performed and complied in all material respects with all agreements contained herein required to be performed or complied with by it at or before the Closing. 

a.Employment Agreements.  Each of the Key Employees listed on Schedule 5.4(b) that executed an Employment Agreement: (i) shall be employed by the Seller at the Closing and shall not have given notice to the Seller or Purchaser that he intends to terminate his employment with Seller (except as contemplated by the Closing) or with the Purchaser; and (ii) each such Employment Agreement shall be effective as of the Closing. 
b.Closing Date Net Revenues.  The amount of the Closing Date Net Revenues shall be 70% or more of the amount of the Base Date Net Revenues. 
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c.Officer’s Certificate.  The Seller shall have delivered to the Purchaser a certificate, dated the Closing Date and signed by an authorized officer thereof, as to the fulfillment of the conditions set forth in Section 5.4(a).
6    Covenants and Agreements.    

6.1    Non-Solicitation; Non-Competition.  

(a)Each party agrees that, from the date of this Agreement until the Anniversary Date, neither it nor any of its directors, officers, managers, managing members, partners and employees, agents, advisors or subsidiaries (collectively, “Representatives”) will directly or indirectly, solicit for employment or employ or cause to leave the employ of the other party or any of its Affiliates  any individual serving as an officer of the other party or any employee of the other party without obtaining the prior written consent of the other party (the “Restricted Persons”),which limitation shall not apply to any solicitation by the Purchaser or its Affiliates of current Seller employees John McClain, Jack Parker, and Bill Zox (each, a “Key Employee”). The foregoing shall not preclude either party from  hiring or soliciting: (i) any person as a result of placing general solicitation advertisements (including, without limitation, any general recruitment efforts conducted by any recruitment agency), in each case not specifically targeted at hiring any Restricted Persons, (ii) any persons with whom a party has had contact regarding possible employment prior to the date of this Agreement , (ii) persons who are referred to either party by search firms, employment agencies or other similar entities provided that such entities have not been specifically instructed to solicit any Restricted Persons, (iv) persons who contact either party on his or her own accord with no solicitation or (v) persons who have not been employed by  a party for a period of six months prior to the date such persons were first solicited for employment by the other party . 

(b)Seller acknowledges that: (i) the Purchaser is acquiring certain confidential information pertaining to the Funds through the transactions contemplated by this Agreement (“Funds Confidential Information”) consisting of any and all: (A) nonpublic information concerning each of the Funds and each of their respective shareholders, including the identity of shareholders of the Funds; (B) information concerning the Funds, however documented, and (C) notes, analysis, compilations, studies, summaries, working papers or other materials prepared by or for Seller containing, based on, in whole or in part, or derived from any information included in clauses (A) or (B) above; (ii) the products and services comprising the Funds are, or may be, marketed throughout the United States; (iii) the Funds compete with other businesses that are or could be located in any part of the United States; (iv) Purchaser has required the covenants set forth in this Section 6.1 as a condition to Purchaser entering into this Agreement; (v) the covenants set forth in this Section 6.1 are reasonable and necessary to protect and preserve the Business; and (vi) Purchaser will be irreparably harmed and damaged if any of the covenants in this Section 6.1 are breached.  Anything contained herein to the contrary notwithstanding, Seller shall retain equal rights in, and be permitted to continue to use, all Funds Confidential Information concerning clients of the Funds that are also clients of other funds, investment vehicles, or accounts managed by the Seller or its Affiliates.

(c)Seller agrees that, except as otherwise provided in this Section 6.1, from and after the Closing, Seller will not, and will not permit any of its Affiliates to, at any time, disclose to any unauthorized Person or use for its own account (except as required as part of maintaining business records) or for the benefit of any third party any Funds Confidential Information, whether it has such information in memory or embodied in a writing or other physical form, without Purchaser’s prior written consent, unless and to the extent that: (i) the Funds Confidential Information is or becomes generally known to the public other than as a result of a breach of the provisions of this Section 6.1 by Seller; (ii) 
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the public disclosure thereof is required by a court of competent jurisdiction or otherwise by Applicable Law; (iii) the disclosure thereof is necessary in connection with the enforcement of this Agreement or (iv) the disclosure thereof is required by Applicable Law, regulation, subpoena, court order, inquiry or request from a court or an administrative or regulatory agency or self-regulatory organization having competent jurisdiction. If Seller becomes legally compelled to disclose any Funds Confidential Information, Seller shall: (A) provide Purchaser with prior written notice (to the extent not prohibited under Applicable Law) of the need for such disclosure and the required content of such disclosure; (B) if disclosure is required, furnish only that portion of the Funds Confidential Information which, upon the advice of counsel to the Seller, is legally required; and (C) reasonably cooperate with Purchaser, at Purchaser’s request and sole expense, to enable Purchaser to obtain reasonable assurances that confidential treatment will be accorded to the Funds Confidential Information.  As requested by Purchaser, Seller agrees to deliver to Purchaser at any time at or following the Closing, a copy or an original of any or all Funds Confidential Information, whether in hardcopy, electronic, disk or other form, that may be in the Seller’s possession or control; provided, however, Seller may retain a copy of such Funds Confidential Information solely for the purposes of, and to the extent necessary in connection with, any audit, accounting matter, investigation, legitimate business recordkeeping, litigation or compliance or regulatory requirement applicable to Seller or any of its Affiliates.  The obligations in this Section 6.1(c) shall survive the Closing indefinitely.

(d)For and in consideration of the payments to be received under this Agreement in connection with the Transactions, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller agrees that, until: (i) two years from the Closing Date, if pursuant to the terms of Section 1.1 and 1.3, Purchaser is obligated to pay only the Initial Purchase Price, and (ii) two years from the Anniversary Date, if pursuant to the terms of Section 1.1 and 1.3 Purchaser is obligated to pay the Initial Purchase Price and any Additional Payments, it shall not, and shall not permit any of its subsidiaries to, directly or indirectly, whether for its own account or the account of another Person, invest in, own, manage, operate, finance or control or participate in the ownership, management, operation, financing or control of any entity that derived more than one-third (1/3) of its gross revenues for the most recently-completed fiscal year from mutual funds with a strategy and investment philosophy substantially similar to the strategy and investment philosophy of either fund as of the Closing, provided, however, that the forgoing limitation shall not apply to activities undertaken (i) by Seller in connection with their investment of client assets; (ii) by the Seller in connection with the conduct of its businesses as of the Closing Date, and (iii) for the avoidance of doubt, by Seller in the acquisition of or merger with another investment manager that derived less than one-third (1/3) of its gross revenues for the most recently-completed fiscal year from mutual funds with a strategy and investment philosophy substantially similar to the strategy and investment philosophy of either fund as of the Closing.

(e)From the date of this Agreement until the Closing, the Seller shall not (and shall cause its Affiliates and their respective officers, managers and employees not to): (1) take or fail to take any actions, (2) act in bad faith, with willful misconduct, or with gross negligence, or (3) otherwise manage the Funds in any manner with the intention, or the reasonably foreseeable result, of artificially inflating the Closing Date Net Revenues or otherwise circumvent the terms of the Closing Date Net Revenues as contemplated by this Agreement.

6.2     Certain Agreements of Purchaser Regarding the Acquiring Funds.  From the date of the Closing until the Anniversary Date, the Purchaser shall (and shall cause its Affiliates and their respective officers, managers and employees to): 

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(a) conduct the business of each Acquiring Fund in the ordinary course using the same degree of skill, care, and attention as it uses to manage its other open-end management company registered under the Investment Company Act;

(b) not act in bad faith, with willful misconduct, or with gross negligence, or otherwise manage the Acquiring Funds in any manner with the intention, or the reasonably foreseeable result, of reducing the amount of the Additional Payment(s) or otherwise circumventing the terms of the Additional Payment(s) contemplated by this Agreement; and

(c) not solicit any shareholder in the Acquiring Funds to move such shareholder’s investment from the Acquiring Funds into other funds, collective investment vehicles, or separately managed accounts owned, managed, or established by Purchaser or its affiliates in any manner with the intention, or the reasonably foreseeable result, of reducing the amount of the Additional Payment(s) or otherwise circumventing the terms of the Additional Payment(s) contemplated by this Agreement; and not terminate its advisory services or management of the Acquiring Funds (without making payment to the Seller pursuant to Section 1.3(f)).

6.3    Use of Sellers’ Marks.  The Purchaser shall not use the trademarks, service marks, brand names or trade, corporate, or business names of the Seller or of any of its subsidiaries or affiliates in print or other advertising media or in any other manner; provided, however, that the Purchaser may refer to the Funds’ and each of the Key Employee’s past relationship with the Seller and all other information included in the Books and Records, including the marketing materials and historical track records of each of the Funds. The Seller also agrees that the Purchaser shall have permission to use any materials authored by the Key Employees while employed at the Seller (or its predecessors); provided that any future use will not make reference to the Seller or any affiliate of the Seller, except as permitted hereby.

    6.4    Purchaser AUM Statements.  From the Closing Date through the Anniversary Date, Purchaser shall provide to Seller each month, within two (2) Business Days of the end thereof, a statement setting forth the AUM of each Acquiring Fund and the aggregate amount thereof. 

    6.5         Non-Disparagement.    From the date hereof until: (i) two years from the Closing Date, if pursuant to the terms of Section 1.1 and 1.3, Purchaser is obligated to pay only the Initial Purchase Price, and (ii) two years from the Anniversary Date, if pursuant to the terms of Section 1.1 and 1.3 Purchaser is obligated to pay the Initial Purchase Price and any Additional Payments, each of Purchaser and Seller agrees that it will not disparage or defame the other party, its Affiliates or any of their directors, officers, employees, services, products, or processes. This Section 6.5 shall not prohibit either party, its Affiliates, or any of such party’s or its Affiliates’ directors, officers, or employees, from: (i) communicating truthfully with any Governmental Authority, including without limitation, the U.S. Department of Justice, the U.S. Securities and Exchange Commission, NASDAQ, or the New York Stock Exchange; or (ii) responding truthfully to, cooperating with, testifying, assisting or participating in any governmental investigation, proceeding, hearing, subpoena, court order, inquiry, or request conducted, issued, or made by a Governmental Authority, including by providing documents or other information.  Solely for purposes of this paragraph, Purchaser’s sole Affiliate shall be Franklin Resources, Inc.

7.     Indemnification.

7.1     Indemnification by the Seller.  Subject to the limitations in this Section 7, Seller agrees to indemnify Purchaser, its Affiliates, their respective directors, officers, employees and agents and each of the successors and assigns of any of the foregoing (the “Purchaser Indemnified Parties”) against, and 
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agrees to hold such Purchaser Indemnified Parties harmless from, all losses costs, damages, liabilities, claims, demands, judgments, fines, settlements, fees and expenses, whether governmental or non-governmental (including reasonable out-of-pocket expenses of investigation and reasonable out-of-pocket attorneys’ fees and expenses in connection with any claim, action, suit, arbitration or other proceeding, whether involving a third party claim or a claim between the parties) (collectively, “Losses”), incurred or resulting from: (i) any inaccuracy of any representation or warranty made by Seller in this Agreement or the Seller Officer’s Certificate, or (ii) any breach of any covenant or agreement on the part of Seller under this Agreement.  

7.2    Indemnification by the Purchaser. Subject to the limitations in Sections 7.1(c) and (d), Purchaser agrees to indemnify Seller, its affiliates, their respective directors, officers, employees and agents and each of the successors and assigns of any of the foregoing (the “Seller Indemnified Parties”) against, and agrees to hold such Seller Indemnified Parties harmless from all Losses incurred or resulting from (i) any inaccuracy of any representation or warranty made by Purchaser in this Agreement or the Purchaser Officer’s Certificate or (ii) any breach of any covenant or agreement on the part of the Purchaser under this Agreement.  
7.3    Survival.  Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is eighteen (18) months from the Closing Date, other than: (i) the Fundamental Representations, which shall survive until the expiration of the applicable statutory period of limitations (including extensions thereof), or if there is no applicable statutory period of limitations, shall survive indefinitely; and (ii) the Tax Representations, which shall survive until six (6) months following the expiration of the applicable statutory period of limitations (including any extensions thereof).  None of the covenants or other agreements contained in this Agreement shall survive the Closing Date other than those which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated by its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonably specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive until finally resolved.
7.4    Certain Limits.
(a)    Each of Purchaser and Seller shall take, and cause its affiliates to take, all reasonable steps to mitigate any Loss upon becoming aware of any event or circumstance that would be reasonably expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach that gives rise to such Loss.

(b)    Notwithstanding anything to the contrary contained in this Agreement (except to the extent such damages are actually paid, awarded or incurred in connection with a third party claim), no party shall be liable under this Section 7 for any punitive, exemplary, consequential, indirect or special damages, any lost profits or diminution of value, or similar damages or losses. 

(c)    Payments pursuant to this Section 7 in respect of any Loss shall be limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment actually received by a Purchaser Indemnified Party or Seller Indemnified Party, as applicable, in respect of any such claim, less any related costs and expenses, including the aggregate cost of pursuing any related insurance claims and any related increases in 
21

insurance premiums or other chargebacks (it being agreed that no party shall have any obligation to seek to recover any insurance proceeds in connection with making a claim under this Section 7 and that, promptly after the realization of any insurance proceeds, indemnity, contribution or other similar payment, the Seller Indemnified Party or Purchaser Indemnified Party, shall reimburse the Purchaser or Seller, as applicable, for such reduction in Losses for which the Seller Indemnified Party or Purchaser Indemnified Party, as applicable, was indemnified prior to the realization of reduction of such Losses).

(d)    Anything contained in this Agreement to the contrary notwithstanding, neither party hereto shall have any payment obligations to the other party hereto under this Section 7, other than for Fundamental Representations or Tax Representations unless and until the Losses for which such party is required to indemnify the other party exceeds $25,000 (the “Deductible”) and thereafter only to the extent such Losses exceed the Deductible.

(e)    Other than with respect to any indemnification claim for Losses arising from or resulting from willful misrepresentation, gross negligence or fraud under the laws of the State of Delaware, or in respect of any failure of the Fundamental Representations and the Tax Representations to be true and correct,  the maximum aggregate liability of the Seller for all indemnification obligations under this Agreement for Losses shall be the Initial Purchase Price, and the maximum aggregate liability of the Purchaser for all indemnification obligations under this Agreement for Losses shall be the Initial Purchase Price. 

For the avoidance of doubt, for any Loss or Losses for which the Seller has liability pursuant to Section 7.1, the Purchaser shall be entitled to reduce the Additional Payments (such reduction in Additional Payments, a “Liability Retention Amount”),  by: (i) if the Purchaser is reasonably able, in its discretion, to estimate the amount of such Loss or Losses at the time of an indemnification claim, an amount equal to the lesser of (A) fifty percent (50%) of the Purchaser’s estimate of the amount of such Loss or Losses and (B) fifty percent (50%) of the Additional Payments amount, and (ii) if the amount of such Loss or Losses is not known by the Purchaser at the time of such indemnification claim, an amount equal to fifty percent (50%) of the Additional Payments amount.  In addition, once the amount of any such Loss or Losses has been determined for an indemnification event, the amount of any Liability Retention Amount in excess of the determined amount of such Loss or Losses shall be payable pursuant to the Section 1.3, or, if the procedures set forth in Section 1.3 have been completed, promptly paid to Seller.

(f)    The parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims for Losses (other than claims arising from Fraud) shall be pursuant to the indemnification provisions set forth in this Section 7.

7.5    Procedure.
(a)    The Purchaser, on the one hand, and Seller, on the other hand, each agrees to notify promptly each other if either of them becomes aware of any Losses with respect to which indemnity may be asserted under this Section 7 (hereinafter referred to for purposes of this Section 7(d) as a “claim”), provided, however, that failure to notify the indemnifying party shall not relieve such party from liability except to the extent such party is materially prejudiced thereby.  
 
(b)    The party entitled to indemnity (the “Indemnitee”) shall permit the party responsible for such indemnity (the “Indemnitor”) to assume, by giving written notice to the Indemnitee within forty-five (45) calendar days after receipt of notice of such claim, the defense of any third-party 
22

claim or any litigation resulting from such third-party claim at its own cost and, at its own expense, to employ counsel reasonably acceptable to the Indemnitee; provided, however, that if the Indemnitor is Seller, such Indemnitor shall not have the right to assume, defend or direct the defense of any such claim or demand that (x) seeks an injunction or other equitable relief against the Indemnitee, (y) relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation against the Indemnitee, or (z) the Indemnitor and the Indemnitee are both named parties to the proceedings and the Indemnitee shall have concluded in good faith that there is a conflict of interest between the Indemnitor and the Indemnitee.  If the Indemnitor assumes the defense of any such claim or Litigation resulting therefrom, the Indemnitee may participate, at its expense, in the defense of such claim or Litigation; provided, however, that the Indemnitor shall direct and control the defense of such claim or Litigation to the extent related to its indemnification obligation; and provided, further, however, that, if the Indemnitor proposes that the same counsel represent both the Indemnitee and the Indemnitor and representation of both parties by the same counsel is subject to a conflict of interest in the reasonable conclusion of the Indemnitee upon the advice of legal counsel, then the Indemnitee shall have the right to retain its own counsel at the cost and expense of the Indemnitor.  The Indemnitor shall not consent to any settlement or to the entry of any judgment which does not include a complete release of the Indemnitee, from all liability with respect thereto or which imposes any liability or obligation on the Indemnitee, other than an obligation to pay money which will be satisfied by the Indemnitor, without the written consent of the Indemnitee, which shall not be unreasonably withheld, conditioned or delayed.  The Indemnitee shall make available to the Indemnitor all records and other materials in the possession or under the control of the Indemnitee and required by the Indemnitor in defending any such claim, and shall in all respects give reasonable cooperation in such defense.

(c)    If the Indemnitor does not assume the defense of any such third-party claim or Litigation resulting therefrom, by giving written notice to the Indemnitee within forty-five (45) calendar days of receipt of notice of such claim, the Indemnitee may defend against such claim or Litigation in a reasonable and customary manner.  The Indemnitee shall not consent to entry of any judgment or enter into any settlement of such claim or Litigation without the written consent of the Indemnitor, which consent shall not be unreasonably withheld, conditioned or delayed.  The Indemnitor shall promptly reimburse the Indemnitee from time to time for any and all amounts reasonably paid for or incurred by the Indemnitee and for which the Indemnitor is obligated pursuant to this Section 7, upon submission by the Indemnitee of a statement reflecting the basis upon which such amounts are sought and the computation of such amounts.
(d)    Tax Treatment of Indemnification Payments.  The parties agree that any payment made under this Section 7 shall be treated by such parties as an adjustment to the Purchase Price.
8    Termination.  This Agreement may be terminated at any time prior to the Closing as follows: 

(a)    by mutual written consent of the Purchaser and the Seller;
(b)    upon the issuance by any governmental authority of an order, decree or ruling or their taking of any other action restraining, enjoining or otherwise prohibiting the transactions contemplated hereby, which order, decree, ruling or any other action shall have become final and nonappealable;
(c)    by either the Purchaser or Seller if the Closing has not have occurred on or before the later of September 30, 2021, or such later date as may have been agreed upon in writing by the parties 
23

hereto; provided, however, that no termination may be made under this Section 7.1(c) if the failure to close was caused by the action or inaction of the terminating party;
(d)    by the Purchaser upon a breach of any covenant or agreement on the part of the Seller set forth in this Agreement, or if any representation or warranty of the Seller shall have become untrue, in either case such that the condition set forth in Section 5.4(a) could not be satisfied; provided, however, that, if such breach is curable by Seller, for so long as the Seller continues to exercise such commercially reasonable efforts, the Purchaser may not terminate this Agreement under this Section  7.1(d); or
(e)    by Seller upon a breach of any covenant or agreement on the part of the Purchaser set forth in this Agreement, or if any representation or warranty of the Purchaser shall have become untrue, in either case such that the condition set forth in Section 5.3(a) hereof would not be satisfied; provided, however, that, if such breach is curable by the Purchaser, for so long as the Purchaser continues to exercise such reasonable commercially efforts, the Seller may not terminate this Agreement under this Section 7.1(e).
9    General Provisions. 

9.1    Modification; Waiver.
  This Agreement may be modified only by a written instrument executed by the parties hereto.  Any of the terms and conditions of this Agreement may be waived in writing at any time on or prior to the Closing Date by the party entitled to the benefits thereof.
9.2    Entire Agreement.  This Agreement, including the schedules and exhibits hereto (which are hereby incorporated by reference and made a part hereof) is the entire agreement of the parties with respect to the subject matter hereof and supersedes all other prior agreements, understandings, documents, projections, financial data, statements, representations and warranties, oral or written, express or implied, between the parties hereto and their respective affiliates, representatives, and agents in respect of the subject matter hereof. 

9.3    Certain Limitations; Purchaser Acknowledgement.  It is the explicit intent and understanding of each of the parties hereto that neither party nor any of its affiliates, representatives or agents is making any representation or warranty whatsoever, oral or written, express or implied, other than those set forth in Section 2 and Section 3 and neither party is relying on any statement, representation or warranty, oral or written, express or implied, made by the other party or such other party’s affiliates, representatives, or agents, except for the representations and warranties set forth in such sections.  The parties agree that this is an arm’s length transaction in which the parties’ undertakings and obligations are limited to the performance of their obligations under this Agreement.  The Purchaser acknowledges that it is a sophisticated investor, that it has undertaken a full investigation of the Purchased Assets, and that it has only a contractual relationship with the Seller based solely on the terms of this Agreement, and that there is no special relationship of trust or reliance between the Purchaser and the Seller.  

9.4    Expenses.  Except as expressly provided in Section 4.2, whether or not the transactions contemplated herein shall be consummated, each of the Purchaser and the Seller shall pay its own expenses incident to the preparation and performance of this Agreement.
24

9.5    Further Actions.  Each party shall execute and deliver such certificates and other documents and take such other actions as may reasonably be requested by the other party in order to consummate or implement the transactions contemplated hereby.

9.6    Post-Closing Access.

(a)In connection with any matter relating to any period prior to, or any period ending on, the Closing, the Purchaser shall, upon the request and at the expense of the Seller, permit the Seller and its representatives full access at all reasonable times to the books and records of the Seller, and the Purchaser shall execute such documents as the Seller may reasonably request to enable the Seller to file any required reports or tax returns.  The Purchaser shall not dispose of such books and records during the seven-year period beginning with the Closing Date without the Seller’s consent, which consent shall not be unreasonably withheld.  Following the expiration of such seven-year period, the Purchaser may dispose of such books and records at any time upon giving sixty (60) days’ prior written notice to the Seller, unless the Seller agrees to take possession of such books and records within sixty (60) days at no expense to the Purchaser.

(b)The Seller shall, upon the request of the Purchaser, provide the Purchaser and its representatives with full access to any Books and Records relating to the Purchased Assets in the possession of the Seller. The Seller shall not dispose of such Books and Records during the seven-year period beginning with the Closing Date without the Purchaser’s consent, which consent shall not be unreasonably withheld.  Following the expiration of such seven-year period, the Seller may dispose of such Books and Records at any time upon giving sixty (60) days’ prior written notice to the Purchaser, unless the Purchaser has already taken  possession of all such Books and Records or agrees to take possession before the expiration of the sixty (60) day notice period.

9.7    Notices.  All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given or made as follows:  (a) if sent by reputable overnight air courier (such as UPS, DHL or Federal Express), two (2) Business Days after mailing; (b) if sent by facsimile or email transmission, with a copy mailed on the same day in the manner provided in (a) above, when transmitted; or (c) if otherwise actually personally delivered, when delivered.  All such notices, requests, demands, and other communications and shall be delivered as follows:

if to the Seller:

Diamond Hill Capital Management, Inc.
325 John H. McConnell Boulevard, Suite 200
Columbus, OH  43215-2232

With a copy to:

Vorys, Sater, Seymour and Pease LLP
301 East Fourth Street
Suite 3500, Great American Tower
Cincinnati, OH  45202

25

if to the Purchaser: 

Brandywine Global Investment Management LLC
1735 Market Street, Suite 1800
Philadelphia, PA 19103
	
	

with a copy to:

Franklin Resources, Inc.
One Franklin Parkway
San Mateo, CA 94403

or to such other address or to such other Person as either party hereto shall have last designated by notice to the other party.
9.8    Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that any assignment, by operation of Applicable Law or otherwise, by either party hereto shall require the prior written consent of the other party and any purported assignment or other transfer without such consent shall be void and unenforceable.

9.9    No Third Party Beneficiaries.  Nothing in this Agreement shall confer any rights upon any Person which is not a party or a successor or permitted assignee of a party to this Agreement, except that the Acquiring Funds shall be deemed third party beneficiaries of the representations and warranties of the Seller set forth in Section 2.

9.10    Counterparts.  This Agreement and any document or instrument delivered in connection herewith may be executed in counterparts, both of which shall constitute one and the same instrument.  Signed counterparts of this Agreement and any document or instrument delivered in connection herewith may be delivered by facsimile, by scanned .pdf image, or by electronic signature, and via email delivery, all of which shall be deemed to be original signatures.

9.11    Interpretation.  The section headings in this Agreement are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provision hereof.  

9.12    Governing Law.  This Agreement shall be construed, performed and enforced in accordance with the laws of the State of Delaware, without regard to the conflicts of law principles of such state.

9.13    Consent to Jurisdiction, etc. 
  
(a)    Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the jurisdiction of any State court or Federal court of the United States of America sitting in New York, New York, and any appellate court of any court thereof, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, or for recognition or enforcement of any judgment relating thereto, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be 
26

heard and determined in such New York State court or, to the extent permitted by Applicable Law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law.
(b)    Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent to which it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in any State or Federal court located in New York, New York.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(c)    Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.7.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by Applicable Law.
9.14    Waiver of Punitive and Other Damages and Jury Trial. 
  
(a)    The parties to this Agreement expressly waive and forego any right to recover punitive, exemplary, consequential, indirect or special damages, any lost profits or diminution of value, or similar damages or losses in any arbitration, lawsuit, litigation, or proceeding arising out of or resulting from any controversy or claim arising out of or relating to this Agreement or the transactions contemplated hereby.
(b)    Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore it hereby irrevocably and unconditionally waives any right it may have to trial by jury in respect of any litigation directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby.
(c)    Each party certifies and acknowledges that (i) 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 either of the foregoing waivers, (ii) it understands and has considered the implications of such waivers, (iii) it makes such waivers voluntarily, and (iv) it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 9.14.

[Remainder of page intentionally left blank; signature page follows.]

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

BRANDYWINE GLOBAL INVESTMENT MANAGEMENT, LLC

By:    /s/ Adam B. Spector         
Name:    Adam B. Spector              
Title:     Managing Partner             

DIAMOND HILL CAPITAL MANAGEMENT, INC.

By:    /s/ Thomas E. Line            
Name:    Thomas E. Line                 
Title:    Chief Financial Officer     

28Exhibit 4.2

 

 

SIXTH SUPPLEMENTAL INDENTURE 

 

between 

 

OWL ROCK CAPITAL CORPORATION 

 

and

 

WELLS FARGO
BANK, NATIONAL ASSOCIATION, 

 

as Trustee 

 

Dated as of April 26, 2021

 

 

     

     

    

 

SIXTH SUPPLEMENTAL INDENTURE

 

THIS SIXTH SUPPLEMENTAL INDENTURE
(this “Sixth Supplemental Indenture”), dated as of April 26, 2021, is between Owl Rock Capital Corporation, a Maryland corporation
(the “Company”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”). All capitalized terms
used herein shall have the meaning set forth in the Base Indenture (as defined below) unless otherwise defined herein.

 

RECITALS OF THE COMPANY

 

The Company and the Trustee
executed and delivered an Indenture, dated as of April 10, 2019 (the “Base Indenture” and, as supplemented by this Sixth Supplemental
Indenture, collectively, the “Indenture”), to provide for the issuance by the Company from time to time of the Company’s
unsecured debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided
in the Indenture.

 

The Company desires to issue
and sell $500,000,000 aggregate principal amount of the Company’s 2.625% Notes due 2027 (the “Notes”).

 

The Company previously entered
into the First Supplemental Indenture, dated as of April 10, 2019 (the “First Supplemental Indenture”), the Second Supplemental
Indenture, dated as of October 8, 2019 (the “Second Supplemental Indenture”), the Third Supplemental Indenture, dated as of
January 22, 2020 (the “Third Supplemental Indenture”), the Fourth Supplemental Indenture, dated as of July 23, 2020 (the “Fourth
Supplemental Indenture”) and the Fifth Supplemental Indenture, dated as of December 8, 2020 (the “Fifth Supplemental Indenture”)
which supplemented the Base Indenture.  Neither the First Supplemental Indenture, nor the Second Supplemental Indenture, nor the
Third Supplemental Indenture, nor the Fourth Supplemental Indenture, nor the Fifth Supplemental Indenture are applicable to the Notes.

 

Sections 9.01(iv) and 9.01(vi)
of the Base Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture, the Company,
when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures
supplemental to the Base Indenture to (i) change or eliminate any of the provisions of the Indenture when there is no Security Outstanding
of any series created prior to the execution of a supplemental indenture that is entitled to the benefit of such provision and (ii) establish
the form or terms of Securities of any series as permitted by Section 2.01 and Section 3.01 of the Base Indenture.

 

The Company desires to establish
the form and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of
the Holders of the Notes (except as may be provided in a future supplemental indenture to the Indenture (“Future Supplemental Indenture”)).

 

The Company has duly authorized
the execution and delivery of this Sixth Supplemental Indenture to provide for the issuance of the Notes and all acts and things necessary
to make this Sixth Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement of
the Company, in accordance with its terms, have been done and performed.

 

    1 

     

    

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of
the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all
Holders of the Notes, as follows:

 

ARTICLE
I

TERMS OF THE NOTES

 

Section 1.01       
Terms of the Notes. The following terms relating to the Notes are hereby established:

 

(a)              
The Notes shall constitute a series of Securities having the title “2.625% Notes due 2027” and shall be designated
as Senior Securities under the Indenture. The Notes shall bear a CUSIP number of 69121K AF1 and an ISIN number of US69121KAF12.

 

(b)              
The aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 3.04,
3.05, 3.06, 9.06 or 11.07 of the Base Indenture) shall be $500,000,000. Under a Board Resolution, Officers’ Certificate pursuant
to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders of Notes, issue
additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest rate, maturity, CUSIP
number and other terms as the Notes (except for the issue date, offering price and, if applicable, the initial interest payment date);
provided that such Additional Notes must either (i) be issued in a “qualified reopening” for U.S. Federal income
tax purposes, with no more than a de minimis amount of original issue discount, or otherwise (ii)  be part of the same issue
as the Notes for U.S. federal income tax purposes. Any Additional Notes and the existing Notes will constitute a single series under the
Indenture and all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise requires.

 

(c)              
The entire Outstanding principal amount of the Notes shall be payable on January 15, 2027, unless earlier redeemed or repurchased
in accordance with the provisions of this Sixth Supplemental Indenture.

 

(d)              
The rate at which the Notes shall bear interest shall be 2.625% per annum (the “Applicable Interest Rate”). The date
from which interest shall accrue on the Notes shall be April 26, 2021, or the most recent Interest Payment Date to which interest has
been paid or provided for; the Interest Payment Dates for the Notes shall be January 15 and July 15 of each year, commencing July 15,
2021 (if an Interest Payment Date falls on a day that is not a Business Day, then the applicable interest payment will be made on the
next succeeding Business Day with the same force and effect as if made on the scheduled Interest Payment Date and no additional interest
will accrue as a result of such delayed payment); the initial interest period will be the period from and including April 26, 2021 (or
the most recent Interest Payment Date to which interest has been paid or provided for), to, but excluding, the initial Interest Payment
Date, and the subsequent interest periods will be the periods from and including an Interest Payment Date to, but excluding, the next
Interest Payment Date or the Stated Maturity, as the case may be; the interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date, will be paid to the Person in whose name the Note (or one or more predecessor Notes) is registered at the close
of business on the Regular Record Date for such interest, which shall be January 1 and July 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Payment of principal of (and premium, if any) and any such interest on the Notes
will be made at the Corporate Trust Office of the Paying Agent, which shall initially be the Trustee, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however,
that in the case of Notes that are not in global form, at the option of the Company, payment of interest may be made by check mailed to
the address of the Person entitled thereto as such address shall appear in the Security Register. Interest on the Notes will be computed
on the basis of a 360-day year of twelve 30-day months.

 

(e)              
The Notes shall be initially issuable in global form (each such Note, a “Global Note”). The Global Notes and the Trustee’s
certificate of authentication thereon shall be substantially in the form of Exhibit A to this Sixth Supplemental Indenture.
Each Global Note shall represent the Outstanding Notes as shall be specified therein and each shall provide that it shall represent the
aggregate amount of Outstanding Notes from time to time endorsed thereon and that the aggregate amount of Outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the amount of Outstanding Notes represented thereby shall be made by the Trustee
or the Security Registrar, in accordance with Sections 2.03 and 3.05 of the Base Indenture.

 

    2 

     

    

 

(f)               
The depositary for such Global Notes shall be the Depositary Custodian. The Security Registrar with respect to the Global Notes
shall be the Trustee.

 

(g)              
The Notes shall be defeasible pursuant to Section 14.02 or Section 14.03 of the Base Indenture. Covenant defeasance contained
in Section 14.03 of the Base Indenture shall apply to the covenants contained in Sections 10.07 and 10.08 of the Indenture.

 

(h)              
The Notes shall be redeemable pursuant to Section 11.01 of the Base Indenture and as follows:

 

(i)                
The Notes will be redeemable, in whole or in part, at any time, or from time to time, at the option of the Company, at a Redemption
Price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the Redemption
Date:

 

A.               
100% of the principal amount of the Notes to be redeemed, or

 

B.               the
sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to
the Redemption Date) on the Notes to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting
of twelve 30-day months) using the applicable Treasury Rate plus 30 basis points;

 

provided, however, that
if the Company redeems any Notes on or after December 15, 2026, the Redemption Price for the Notes will be equal to 100% of the principal
amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 

For purposes of
calculating the Redemption Price in connection with the redemption of the Notes, on any Redemption Date, the following terms have the
meanings set forth below:

 

“Treasury
Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity of
the Comparable Treasury Issue (computed as of the third Business Day immediately preceding the redemption), assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The
Redemption Price and the Treasury Rate will be determined by the Company.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable
to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financing
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes being redeemed.

 

“Comparable
Treasury Price” means (1) the average of the remaining Reference Treasury Dealer Quotations for the Redemption Date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such
Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Quotation
Agent” means a Reference Treasury Dealer selected by the Company.

 

    3 

     

    

 

“Reference
Treasury Dealer” means each of BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and a primary U.S.
government securities dealer in the United States (a “Primary Treasury Dealer”) selected by MUFG Securities America Inc. or
SMBC Nikko Securities America, Inc., or any of their respective affiliates which are Primary Treasury Dealers, and each of their respective
successors, and any other treasury dealers selected by the Company; provided, however, that if any of the foregoing shall cease
to be a Primary Treasury Dealer, the Company shall select another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

 

All determinations
made by any Reference Treasury Dealer, including the Quotation Agent, with respect to determining the Redemption Price will be final and
binding absent manifest error.

 

(ii)             
Notice of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day
delivery, or sent electronically in accordance with Applicable Procedures with respect to Notes in global form, to each Holder of the
Notes to be redeemed, not less than 30 nor more than 60 days prior to the Redemption Date, at the Holder’s address appearing
in the Security Register. All notices of redemption shall contain the information set forth in Section 11.04 of the Base Indenture.
If the Redemption Price is not known at the time such notice is to be given, the actual Redemption Price, calculated as described in the
terms of the Notes, will be set forth in an Officers’ Certificate of the Company delivered to the Trustee no later than two Business
Days prior to the Redemption Date.

 

(iii)           
Any exercise of the Company’s option to redeem the Notes will be done in compliance with the Investment Company Act, to the
extent applicable.

 

(iv)            
If the Company elects to redeem only a portion of the Notes, the particular Notes to be redeemed will be selected by the Trustee
on a pro rata basis to the extent practicable, or, if a pro rata basis is not practicable for any reason, by lot or in such
other manner as the Trustee shall deem fair and appropriate, and in any case in accordance with the applicable procedures of the Depositary
and in accordance with the Investment Company Act as directed by the Company; provided, however, that no such partial redemption
shall reduce the portion of the principal amount of a Note not redeemed to less than $2,000.

 

(v)              
Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue
on the Notes called for redemption hereunder.

 

(i)                
The Notes shall not be subject to any sinking fund pursuant to Section 12.01 of the Base Indenture.

 

(j)                
The Notes shall be issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(k)              
Holders of the Notes will not have the option to have the Notes repaid prior to the Stated Maturity other than in accordance with
Article Thirteen of the Indenture.

 

    4 

     

    

 

ARTICLE
II

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 2.01       
Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of
Securities under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by
adding the following defined terms to Section 1.01 of the Base Indenture in appropriate alphabetical sequence, as follows:

 

“Below Investment
Grade Rating Event” means the Notes are downgraded below Investment Grade by all three Rating Agencies on any date from the
date of the public notice of an arrangement that results in a Change of Control until the end of the 60-day period following public notice
of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced
consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise
arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control
(and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event
hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly
confirm or inform the Company in writing that the reduction was the result, in whole or in part, of any event or circumstance comprised
of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall
have occurred at the time of the Below Investment Grade Rating Event).

 

“Change of Control”
means the occurrence of any of the following:

 

(1)              
the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation) in
one or a series of related transactions, of all or substantially all of the assets of the Company and its Controlled Subsidiaries taken
as a whole to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act),
other than to any Permitted Holders; provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured debt
instrument of the Company or its Controlled Subsidiaries shall not be deemed to be any such sale, lease, transfer, conveyance or disposition;

 

(2)              
the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any
 “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) (other than any Permitted
Holders) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly,
of more than 50% of the outstanding Voting Stock of the Company, measured by voting power rather than number of shares; or

 

(3)              
the approval by the Company’s stockholders of any plan or proposal relating to the liquidation or dissolution of the Company.

 

“Change of Control
Repurchase Event” means the occurrence of a Change of Control and a Below Investment Grade Rating Event.

 

“Controlled Subsidiary”
means any Subsidiary of the Company, 50% or more of the outstanding equity interests of which are owned by the Company and its direct
or indirect Subsidiaries and of which the Company possesses, directly or indirectly, the power to direct or cause the direction of the
management or policies, whether through the ownership of voting equity interests, by agreement or otherwise.

 

    5 

     

    

 

“Depositary”
means, with respect to each Note in global form, The Depository Trust Company, until a successor shall have been appointed and becomes
such person, and thereafter, Depositary shall mean or include such successor.

 

“Fitch”
means Fitch Ratings, Inc., also known as Fitch Ratings, or any successor thereto.

 

“Investment Grade”
means a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch), BBB- or better by S&P
(or its equivalent under any successor rating categories of S&P) and Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s) (or, in each case, if such Rating Agency ceases to rate the Notes for reasons outside of
the Company’s control, the equivalent investment grade credit rating from any Rating Agency selected by the Company as a replacement
Rating Agency).

 

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

 

“Permitted Holders”
means (i) the Company, (ii) one or more of the Company’s Controlled Subsidiaries and (iii) Owl Rock Capital Advisors
LLC or any Affiliate of Owl Rock Capital Advisors LLC that is organized under the laws of a jurisdiction located in the United States
of America and in the business of managing or advising clients.

 

“Rating Agency”
means (1) each of Fitch, S&P and Moody’s; and (2) if any of Fitch, S&P or Moody’s cease to rate the Notes
or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized
statistical rating organization” as defined in Section 3(a)(62) of the Exchange Act selected by the Company as a replacement
agency for Fitch, S&P and/or Moody’s, or both, as the case may be.

 

“S&P”
means S&P Global Ratings, or any successor thereto.

 

“Significant Subsidiary”
means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X under the
Exchange Act, as such regulation is in effect on the original date of this Indenture (but excluding any Subsidiary which is (a) a
non-recourse or limited recourse Subsidiary, (b) a bankruptcy remote special purpose vehicle or (c) is not consolidated with
the Company for purposes of GAAP).

 

“Voting Stock”
as applied to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other
than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

 

    6 

     

    

 

ARTICLE
III

REMEDIES

 

Section 3.01       
Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of
Securities under the Indenture, whether now or hereafter issued and Outstanding, Section 5.01 of the Base Indenture shall be amended
by replacing clause (ii) thereof with the following:

 

“(ii)     
default in the payment of the principal of (or premium, if any, on) any Note when it becomes due and payable at its Maturity, including
upon any Redemption Date or required repurchase date; or”

 

Section 3.02       
Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of
Securities under the Indenture, whether now or hereafter issued and Outstanding, Section 5.01 of the Base Indenture shall be amended
by adding the following language as clause (ix):

 

“(ix):     default
by the Company or any of its Significant Subsidiaries, with respect to any mortgage, agreement or other instrument under which there may
be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $100 million in the aggregate
of the Company and/or any such Significant Subsidiary, whether such indebtedness now exists or shall hereafter be created (i) resulting
in such indebtedness becoming or being declared due and payable or (ii) constituting a failure to pay the principal or interest of
any such debt when due and payable at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, unless,
in either case, such indebtedness is discharged, or such acceleration is rescinded, stayed or annulled, within a period of 30 calendar
days after written notice of such failure is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Notes then Outstanding.”

 

Section 3.03       
Except as may be provided in in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series
of Securities under the Indenture, whether now or hereafter issued and Outstanding, Section 5.02 of the Base Indenture shall be amended
by replacing the first paragraph of Section 5.02 with the following:

 

“If an Event of Default with respect
to the Notes occurs and is continuing, then and in every such case (other than an Event of Default specified in Section 5.01(v) or
5.01(vi)), the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes may declare the principal of all
the Outstanding Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal shall become immediately due and payable; provided that 100% of the principal of,
and accrued and unpaid interest on, the Notes will automatically become due and payable in the case of an Event of Default specified in
Section 5.01(v) or 5.01(vi) hereof.”

 

    7 

     

    

 

ARTICLE
IV

COVENANTS

 

Section 4.01       
 Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series
of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article Ten of the Base Indenture shall be amended
by adding the following new Sections 10.07 and 10.08 thereto, each as set forth below:

 

“Section 10.07 
    Section 18(a)(1)(A) of the Investment Company Act.

 

The Company hereby agrees
that for the period of time during which Notes are Outstanding, the Company will not violate, whether or not it is subject to, Section 18(a)(1)(A) as
modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, giving
effect to any exemptive relief granted to the Company by the Commission.”

 

“Section 10.08    
Commission Reports and Reports to Holders.

 

If, at any time, the Company
is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Commission,
the Company agrees to furnish to the Holders of Notes and the Trustee for the period of time during which the Notes are Outstanding: (i) within
90 days after the end of the each fiscal year of the Company, audited annual consolidated financial statements of the Company and (ii) within
45 days after the end of each fiscal quarter of the Company (other than the Company’s fourth fiscal quarter), unaudited interim
consolidated financial statements of the Company. All such financial statements shall be prepared, in all material respects, in accordance
with GAAP, as applicable.

 

Delivery of such reports,
information, and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively rely exclusively on Officers’
Certificates).”

 

ARTICLE
V

THE TRUSTEE

 

Section 5.01       
Neither the Trustee nor any Paying Agent shall be responsible for determining whether any Change of Control or Below Investment
Grade Rating Event has occurred and whether any Change of Control offer with respect to the Notes is required.

 

    8 

     

    

 

ARTICLE
VI

OFFER TO REPURCHASE UPON A CHANGE OF CONTROL REPURCHASE EVENT

 

Section 6.01       
Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of
Securities under the Indenture, whether now or hereafter issued and Outstanding, Article Thirteen of the Base Indenture shall be amended
by replacing Sections 13.01 to 13.05 thereto with the following:

 

“Section 13.01     Change
of Control.

 

If a Change of Control Repurchase
Event occurs, unless the Company shall have exercised its right to redeem the Notes in full, the Company shall make an offer to each Holder
of the Notes to repurchase all or any part (in minimum denominations of $2,000 and integral multiples of $1,000 principal amount thereabove)
of that Holder’s Notes at a repurchase price in cash equal to 100% of the aggregate principal amount of Notes repurchased plus any
accrued and unpaid interest on the Notes repurchased to the date of purchase. Within 30 days following any Change of Control Repurchase
Event or, at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the
Company will send a notice to each Holder and the Trustee describing the transaction or transactions that constitute or may constitute
the Change of Control Repurchase Event and offering to repurchase Notes on the payment date specified in the notice, which date will be
no earlier than 30 days and no later than 60 days from the date such notice is sent. The notice shall, if sent prior to the date of consummation
of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior
to the payment date specified in the notice. The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase
of the Notes as a result of a Change of Control Repurchase Event.

 

To the extent that the provisions
of any securities laws or regulations conflict with this Section 13.01, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under this Section 13.01 by virtue of such conflict.

 

On the Change of Control Repurchase
Event payment date, subject to extension if necessary to comply with the provisions of the Investment Company Act, the Company shall,
to the extent lawful:

 

(1)              
accept for payment all Notes or portions of Notes properly tendered pursuant to its offer;

 

(2)             deposit
with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered;
and

 

(3)             deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate
principal amount of Notes being purchased by the Company.

 

The Paying Agent will promptly
remit to each Holder of Notes properly tendered the purchase price for the Notes, and the Trustee will promptly authenticate upon receipt
of a Company Order and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided that each new Note will be in a minimum principal amount of $2,000 or an integral multiple
of $1,000 in excess thereof.

 

If any Repayment Date upon
a Change of Control Repurchase Event falls on a day that is not a Business Day, then the required payment will be made on the next succeeding
Business Day and no additional interest will accrue as a result of such delayed payment.

 

The Company will not be required
to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes an offer in respect of the Notes
in the manner, at the time and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases
all Notes properly tendered and not withdrawn under its offer.”

 

    9 

     

    

 

ARTICLE
VII

MISCELLANEOUS

 

Section 7.01       
This Sixth Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of
New York, without regard to principles of conflicts of laws that would cause the application of laws of another jurisdiction. This Sixth
Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the Indenture and shall,
to the extent applicable, be governed by such provisions. If any provision of the Indenture limits, qualifies or conflicts with the duties
imposed by Section 318(c) of the Trust Indenture Act, the imposed duties will control.

 

Section 7.02       
In case any provision in this Sixth Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 7.03       
This Sixth Supplemental Indenture may be executed in any number of counterparts, each of which will be an original, but such counterparts
will together constitute but one and the same Sixth Supplemental Indenture. The exchange of copies of this Sixth Supplemental Indenture
and of signature pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and delivery
of this Sixth Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf transmission, email
or other electronic means shall be deemed to be their original signatures for all purposes.

 

Section 7.04       
The Base Indenture, as supplemented and amended by this Sixth Supplemental Indenture, is in all respects ratified and confirmed,
and the Base Indenture and this Sixth Supplemental Indenture shall be read, taken and construed as one and the same instrument with respect
to the Notes. All provisions included in this Sixth Supplemental Indenture supersede any conflicting provisions included in the Base Indenture
with respect to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Indenture, as supplemented by this
Sixth Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented by this Sixth
Supplemental Indenture. All of the provisions contained in the Base Indenture in respect of the rights, privileges, immunities, powers,
and duties of the Trustee shall be applicable in respect of this Sixth Supplemental Indenture as fully and with like force and effect
as though fully set forth in full herein.

 

Section 7.05       
The provisions of this Sixth Supplemental Indenture shall become effective as of the date hereof.

 

Section 7.06       
Notwithstanding anything else to the contrary herein, the terms and provisions of this Sixth Supplemental Indenture shall apply
only to the Notes and shall not apply to any other series of Securities under the Indenture and this Sixth Supplemental Indenture shall
not and does not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under
the Indenture, whether now or hereafter issued and Outstanding.

 

Section 7.07       
The recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility
for their correctness. The Trustee makes no representations as to and shall not be responsible for the validity or sufficiency of this
Sixth Supplemental Indenture, the Notes or any Additional Notes, except that the Trustee represents that it is duly authorized to execute
and deliver this Sixth Supplemental Indenture, authenticate the Notes and any Additional Notes and perform its obligations hereunder.
The Trustee shall not be accountable for the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof.

 

    10 

     

    

 

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

 

		OWL ROCK CAPITAL CORPORATION
	 	 
	 	/s/ Alan Kirshenbaum
	 	Name: Alan Kirshenbuam
	 	Title: Chief Financial Officer and Chief Operating Officer
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
	 	 
	 	/s/ Joel Odenbrett
	 	Name: Joel Odenbrett
	 	Title: Assistant Vice President

 

[Signature Page to Sixth Supplemental Indenture]

 

     

     

    

 

 

Exhibit A – Form of Global Note

 

THIS SECURITY IS A GLOBAL
NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE
THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR
IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

Unless this certificate
is presented by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer,
exchange or payment and such certificate issued in exchange for this certificate is registered in the name of Cede & Co., or
such other name as requested by an authorized representative of The Depository Trust Company, any transfer, pledge or other use hereof
for value or otherwise by or to any person is wrongful, as the registered owner hereof, Cede & Co., has an interest herein. 

 

Owl Rock Capital Corporation 

 

	 	 	 
	No.        	 	Initially $            
	 	 	CUSIP No. 69121K AF1
	 	 	ISIN No.  US69121KAF12

 

2.625% Notes due 2027

 

Owl Rock Capital Corporation,
a corporation duly organized and existing under the laws of Maryland (herein called the “Company”, which term includes any
successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of [__] dollars (U.S. $[__]), or such other principal sum as shall be set forth in the Schedule of Increases
or Decreases attached hereto, on January 15, 2027, and to pay interest thereon from April 26, 2021 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on January 15 and July 15 in each year, commencing July 15, 2021,
at the rate of 2.625% per annum, until the principal hereof is paid or made available for payment. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this
Security is registered at the close of business on the Regular Record Date for such interest, which shall be January 1 and July 1 (whether
or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Company, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said
Indenture. This Security may be issued as part of a series.

 

    

     

    

 

Payment of the principal of
(and premium, if any) and any such interest on this Security will be made at the Corporate Trust Office of the Paying Agent, which shall
initially be the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided, further,
however, that so long as this Security is registered to Cede & Co., such payment will be made by wire transfer in accordance
with the procedures established by the Depository Trust Company and the Trustee.

 

Reference is hereby made to
the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    

     

    

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed.

 

Dated:        April 26, 2021             

 

	 	OWL ROCK CAPITAL CORPORATION
	 	 
	 	By:	 
	 	 	Name: Alan Kirshenbaum
	 	 	Title: Chief Financial Officer and Chief Operating Officer

 

	Attest:	 	 
	 	Name: Neena Reddy	 
	 	Title: Secretary	 

 

    

     

    

 

This is one of the Securities
of the series designated therein referred to in the within-mentioned Indenture.

 

Dated:                     

 

	 	
    WELLS FARGO BANK, NATIONAL ASSOCIATION,

    as Trustee

     

	 	By:	 
	 	 	Authorized Signatory

 

    

     

    

 

[BACK OF NOTE] 

 

Owl Rock Capital Corporation 

2.625% Notes due 2027

 

This Security is one of a
duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more
series under an Indenture, dated as of April 10, 2019 (herein called the “Base Indenture”, which term shall have the meaning
assigned to it in such instrument), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Base Indenture), and reference is hereby made to the Base Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered, as supplemented by the Sixth Supplemental
Indenture, relating to the Securities, dated as of April 26, 2021, by and between the Company and the Trustee (herein called the “Sixth
Supplemental Indenture”; and together with the Base Indenture, the “Indenture”). In the event of any conflict between
the Base Indenture and the Sixth Supplemental Indenture, the Sixth Supplemental Indenture shall govern and control.

 

This Security is one of the
series designated on the face hereof, initially limited in aggregate principal amount to $500,000,000. Under a Board Resolution, Officers’
Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders
of Securities, issue additional Securities of this series (in any such case “Additional Securities”) having the same ranking
and the same interest rate, maturity, CUSIP number and other terms as the Securities, provided that such Additional Securities
must either (i) be issued in a “qualified reopening” for U.S. Federal income tax purposes, with no more than a de
minimis amount of original issue discount, or otherwise (ii)  be part of the same issue as the Securities for U.S. federal income
tax purposes. Any Additional Securities and the existing Securities will constitute a single series under the Indenture and all references
to the relevant Securities herein shall include the Additional Securities unless the context otherwise requires. The aggregate amount
of Outstanding Securities represented hereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.

 

The Securities of this series
are subject to redemption in whole or in part at any time or from time to time, at the option of the Company, at a Redemption Price equal
to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the Redemption Date:

 

		(a)	100% of the principal amount of the Securities to be redeemed, or

 

		(b)	the sum of the present values of the remaining scheduled payments of principal and interest (exclusive
of accrued and unpaid interest to the Redemption Date) on the Securities to be redeemed, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 30 basis points;

 

    

     

    

 

provided, however, that if the Company
redeems any Securities on or after December 15, 2026, the Redemption Price for the Securities will be equal to 100% of the principal amount
of the Securities to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 

For purposes of calculating
the Redemption Price in connection with the redemption of the Securities, on any Redemption Date, the following terms have the meanings
set forth below:

 

“Treasury Rate”
means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity of the Comparable
Treasury Issue (computed as of the third Business Day immediately preceding the redemption), assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Redemption
Price and the Treasury Rate will be determined by the Company.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the
remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financing
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities being redeemed.

 

“Comparable Treasury
Price” means (1) the average of the remaining Reference Treasury Dealer Quotations for the Redemption Date, after excluding
the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.

 

“Quotation Agent”
means a Reference Treasury Dealer selected by the Company.

 

“Reference Treasury
Dealer” means each of BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and a primary U.S. government
securities dealer in the United States (a “Primary Treasury Dealer”) selected by MUFG Securities America Inc. or SMBC Nikko
Securities America, Inc., or any of their respective affiliates which are Primary Treasury Dealers, and each of their respective successors,
and any other treasury dealers selected by the Company; provided, however, that if any of the foregoing shall cease to be a Primary
Treasury Dealer, the Company shall select another Primary Treasury Dealer.

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business Day
preceding such Redemption Date.

 

All determinations made by
any Reference Treasury Dealer, including the Quotation Agent, with respect to determining the Redemption Price will be final and binding
absent manifest error.

 

    

     

    

 

Notice of redemption shall
be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, or sent electronically
in accordance with Applicable Procedures with respect to Notes in global form, to each Holder of the Securities to be redeemed, not less
than 30 nor more than 60 days prior to the Redemption Date, at the Holder’s address appearing in the Security Register. All
notices of redemption shall contain the information set forth in Section 11.04 of the Base Indenture.

 

Any exercise of the Company’s
option to redeem the Securities will be done in compliance with the Investment Company Act, to the extent applicable.

 

If the Company elects to redeem
only a portion of the Securities, the particular Securities to be redeemed will be selected by the Trustee in accordance with the applicable
procedures of the Depositary and in accordance with the Investment Company Act. In the event of redemption of this Security in part only,
a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof; provided, however, that no such partial redemption shall reduce the portion of the
principal amount of a Security not redeemed to less than $2,000.

 

Unless the Company defaults
in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Securities called for redemption.

 

Holders will have the right
to require the Company to repurchase their Securities upon the occurrence of a Change of Control Repurchase Event as set forth in the
Indenture.

 

The Indenture contains provisions
for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect
to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default with
respect to Securities of this series shall occur and be continuing (other than Events of Default related to certain events of bankruptcy,
insolvency or reorganization as set forth in the Indenture), the principal of the Securities of this series may be declared due and payable
in the manner and with the effect provided in the Indenture. In the case of certain events of bankruptcy, insolvency or reorganization
described in the Indenture, 100% of the principal of and accrued and unpaid interest on the Securities will automatically become due and
payable.

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the
rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of each series to
be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities
of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

 

    

     

    

 

As provided in and subject
to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the
Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously
given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less
than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity against the costs, expenses and
liabilities to be incurred in compliance with such request, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed
to institute any such proceeding, for 90 days after receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin
or currency, herein prescribed.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender
of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium
and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees.

 

The Securities of this series
are issuable only in registered form without coupons in denominations of $2,000 and any integral multiples of $1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

 

No service charge shall be
made for any such registration of transfer or exchange, but the Company or Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person
in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

All terms used in this Security
which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

To the extent any provision
of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Indenture and this Security
shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of
laws.

 

    

     

    

 

 

Assignment
Form

 

	To assign this Note, fill in the form below:

 

	(I) or (we) assign and transfer this Note to:	 

	(Insert Assignee’s Legal Name)                                                                 
	 
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

 

	and irrevocably appoint	

 

	to transfer this Note on the books of the Company. The agent may substitute another to act for him.
	 
	Date:                  
	 
	                                      Your Signature:	 
	(Sign exactly as your name appears on the face of this Note)                            
	 
	Signature Guarantee*:                                                

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

    A-10

     

    

 

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to
have this Note purchased by the Company pursuant to Section 13.01 of the Indenture, check the box below:

 

 ̈  Section 13.01

 

If you want to elect to
have only part of the Note purchased by the Company pursuant to Section 13.01 of the Indenture, state the amount you elect to have
purchased:

$                         

 

Date:                     

 

	 	Your Signature:	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)
	 	 	 

	 	Tax Identification No.:	 	                              
                                          
                
	 	 	 

Signature Guarantee*:                                          
    

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

    A-11

     

    

 

 

SCHEDULE OF INCREASES AND DECREASES OF
GLOBAL NOTE

 

The
initial principal amount of this Global Note is $______. The following increases and decreases to
this Global Note have been made: 

 

	
    Date of Increase or

Decrease
	 	Amount of Decrease in

Principal Amount at

Maturity

of this Global Note	 	Amount of Increase in

Principal Amount at

Maturity

of this Global Note	 	Principal Amount at

Maturity

of this Global Note

Following such

decrease (or  increase)	 	Signature of

Authorized Signatory

of Trustee or DTC

Custodian

 

    A-12

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