Document:

Exhibit 10.2

 Exhibit 10.2 
 PURCHASE AND SALE AGREEMENT 
 by and between 

SOLAR CAPITAL FUNDING II LLC, 
 as the Purchaser 
 and 

SOLAR CAPITAL LTD. 
 as the Seller 
 Dated as of December 17, 2010 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE I.
	 	DEFINITIONS	  	 	1	  
			
	         Section 1.1.
	 	        General	  	 	1	  
	         Section 1.2.
	 	        Specific Terms	  	 	2	  
	         Section 1.3.
	 	        Other Terms	  	 	5	  
	         Section 1.4.
	 	        Computation of Time Periods	  	 	5	  
	         Section 1.5.
	 	        Certain References	  	 	5	  
			
	 ARTICLE II.
	 	SALE AND PURCHASE OF THE ELIGIBLE LOAN ASSETS AND OTHER PORTFOLIO ASSETS	  	 	5	  
			
	         Section 2.1.
	 	        Sale and Purchase of the Eligible Loan Assets and the Other Portfolio Assets	  	 	5	  
	         Section 2.2.
	 	        Purchase Price	  	 	8	  
	         Section 2.3.
	 	        Payment of Purchase Price	  	 	8	  
	         Section 2.4.
	 	        Nature of the Sales	  	 	8	  
			
	 ARTICLE III.
	 	CONDITIONS OF SALE AND PURCHASE	  	 	10	  
			
	         Section 3.1.
	 	        Conditions Precedent to Effectiveness	  	 	10	  
	         Section 3.2.
	 	        Conditions Precedent to All Purchases	  	 	11	  
			
	 ARTICLE IV.
	 	REPRESENTATIONS AND WARRANTIES	  	 	12	  
			
	         Section 4.1.
	 	        Representations and Warranties of the Seller	  	 	12	  
	         Section 4.2.
	 	        Representations and Warranties of the Seller Relating to the Agreement and the Sale Portfolio	  	 	20	  
	         Section 4.3.
	 	        Representations and Warranties of the Purchaser	  	 	21	  
			
	 ARTICLE V.
	 	COVENANTS OF THE SELLER	  	 	23	  
			
	         Section 5.1.
	 	        Protection of Title of the Purchaser	  	 	23	  
	         Section 5.2.
	 	        Affirmative Covenants of the Seller	  	 	26	  
	         Section 5.3.
	 	        Negative Covenants of the Seller	  	 	30	  
			
	 ARTICLE VI.
	 	REPURCHASES AND SUBSTITUTION BY THE SELLER	  	 	32	  
			
	         Section 6.1.
	 	        Repurchase of Loan Assets	  	 	32	  
	         Section 6.2.
	 	        Substitution of Loan Assets	  	 	33	  
	         Section 6.3.
	 	        Repurchase Limitations	  	 	34	  
			
	 ARTICLE VII.
	 	ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF THE SALE PORTFOLIO	  	 	34	  
			
	         Section 7.1.
	 	        Rights of the Purchaser	  	 	34	  
	         Section 7.2.
	 	        Rights With Respect to Loan Asset Files	  	 	35	  

  
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 TABLE OF CONTENTS 

(cont’d) 
  

							
	 	  	 	  	Page	 
			
	         Section 7.3.
	  	        Notice to Collateral Agent, Administrative Agent and each Lender Agent	  	 	35	  
			
	 ARTICLE VIII.
	  	SELLER TERMINATION EVENTS	  	 	35	  
			
	         Section 8.1.
	  	        Seller Termination Events	  	 	35	  
	         Section 8.2.
	  	        Survival of Certain Provisions	  	 	38	  
			
	 ARTICLE IX.
	  	INDEMNIFICATION	  	 	38	  
			
	         Section 9.1.
	  	        Indemnification by the Seller	  	 	38	  
	         Section 9.2.
	  	        Assignment of Indemnities	  	 	41	  
			
	 ARTICLE X.
	  	MISCELLANEOUS	  	 	41	  
			
	         Section 10.1.
	  	        Liability of the Seller	  	 	41	  
	         Section 10.2.
	  	        Limitation on Liability	  	 	41	  
	         Section 10.3.
	  	        Amendments; Limited Agency	  	 	42	  
	         Section 10.4.
	  	        Waivers; Cumulative Remedies	  	 	42	  
	         Section 10.5.
	  	        Notices	  	 	42	  
	         Section 10.6.
	  	        Merger and Integration	  	 	43	  
	         Section 10.7.
	  	        Severability of Provisions	  	 	43	  
	         Section 10.8.
	  	        GOVERNING LAW; JURY WAIVER	  	 	43	  
	         Section 10.9.
	  	        Consent to Jurisdiction; Service of Process	  	 	43	  
	         Section 10.10.
	  	        Costs, Expenses and Taxes	  	 	43	  
	         Section 10.11.
	  	        Counterparts	  	 	44	  
	         Section 10.12.
	  	        Bankruptcy Non-Petition and Limited Recourse; Claims	  	 	44	  
	         Section 10.13.
	  	        Binding Effect; Assignability	  	 	45	  
	         Section 10.14.
	  	        Waiver of Setoff	  	 	45	  
	         Section 10.15.
	  	        Headings and Exhibits	  	 	45	  
	         Section 10.16.
	  	        Rights of Inspection	  	 	45	  
	         Section 10.17.
	  	        Subordination	  	 	46	  
	         Section 10.18.
	  	        Confidentiality	  	 	46	  

 SCHEDULES AND
EXHIBITS 
  

					
	 Schedule I
	  	-	  	Sale Portfolio List
			
	 Exhibit A
	  	-	  	Form of Loan Assignment
	 Exhibit B
	  	-	  	Form of Officer’s Purchase Date Certificate
	 Exhibit C
	  	-	  	Form of Power of Attorney for Seller

  
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 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT, dated as of December 17, 2010, by and between SOLAR CAPITAL LTD., a Maryland corporation, as the
seller (the “Seller”) and SOLAR CAPITAL FUNDING II LLC, a Delaware limited liability company, as the purchaser (the “Purchaser”). 
 W I T N E S S E T H: 
 WHEREAS, the Purchaser has agreed to Purchase (as hereinafter defined) from the Seller from time to time, and the Seller has agreed to Sell (as hereinafter defined) to the Purchaser from time to time,
certain Loan Assets and Portfolio Assets related thereto on the terms set forth herein; 
 WHEREAS, it is contemplated that the
Loan Assets and Portfolio Assets Purchased hereunder may be Pledged by the Purchaser pursuant to the Loan and Servicing Agreement (as defined herein) and the related Transaction Documents, to the Collateral Agent, for the benefit of the Secured
Parties; and 
 WHEREAS, the Seller agrees that all representations, warranties, covenants and agreements made by the Seller
herein with respect to the Sale Portfolio shall also be for the benefit of any Secured Party. 
 NOW, THEREFORE, in
consideration of the premises and the mutual agreements hereinafter contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Purchaser and the Seller, intending to be legally bound, hereby agree as
follows: 
 ARTICLE I. 
 DEFINITIONS 
 Section 1.1. General. The specific terms defined in this
Article include the plural as well as the singular. Words herein importing a gender include the other gender. References herein to “writing” include printing, typing, lithography and other means of reproducing words in visible form.
References to agreements and other contractual instruments include all subsequent amendments thereto or changes therein entered into in accordance with their respective terms and not prohibited by this Agreement or the Loan and Servicing Agreement
(as hereinafter defined). References herein to Persons include their successors and assigns permitted hereunder or under the Loan and Servicing Agreement. The terms “include” or “including” mean “include without
limitation” or “including without limitation”. The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section
or other subdivision, and Article, Section, Schedule and Exhibit references, unless otherwise specified, refer to Articles and Sections of and Schedules and Exhibits to this Agreement. References to any Applicable Law means such Applicable Law as
amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any Section or other provision of any Applicable Law means that
provision of such Applicable Law 

 
from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such Section or other provision. Capitalized terms used herein
but not defined herein shall have the respective meanings assigned to such terms in the Loan and Servicing Agreement, provided that, if, within such definition in the Loan and Servicing Agreement a further term is used which is defined
herein, then such further term shall have the meaning given to such further term herein. 
 Section 1.2. Specific
Terms. Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: 
 “Agreement” means this Purchase and Sale Agreement, as the same may be amended, restated, waived, supplemented and/or otherwise modified from time to time hereafter. 

“Available Collections” means all cash collections and other cash proceeds with respect to any Loan Asset, including,
without limitation, all Principal Collections, all Interest Collections, all proceeds of any sale or disposition with respect to such Loan Asset, cash proceeds or other funds received by the Seller or the Servicer with respect to any Underlying
Collateral (including from any guarantors). 
 “Early Termination” has the meaning specified in
Section 8.1. 
 “Facility Financing Statements” has the meaning specified in
Section 3.1(iv). 
 “Indemnified Amounts” has the meaning specified in Section 9.1(a).

 “Indemnified Party” has the meaning specified in Section 9.1(a). 

“Loan and Servicing Agreement” means that certain Loan and Servicing Agreement, dated as of the Closing Date, by and
among the Purchaser, as the Borrower, the Seller, as the Servicer and the Transferor, Wells Fargo Securities, LLC, as the Administrative Agent, each of the Conduit Lenders and Institutional Lenders from time to time party thereto, each of the Lender
Agents from time to time party thereto, Wells Fargo Delaware Trust Company, N.A., as the Collateral Agent and Wells Fargo Bank, N.A., as the Account Bank and as the Collateral Custodian, as such may be amended, restated, supplemented or otherwise
modified from time to time pursuant to the terms thereof. 
 “Loan Asset” means any loan listed on Schedule
I hereto, as the same may be amended, supplemented, restated or replaced from time to time, and all accounts, payment intangibles, instruments and other property related to the foregoing. 

“Loan Assignment” means a Loan Assignment executed by the Seller, substantially in the form of Exhibit A attached
hereto. 
 “Non-Consolidation/True Sale Opinion” has the meaning specified in Section 4.1(jj).

 “Pension Plan” has the meaning specified in Section 4.1(r). 

  
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 “Portfolio Assets” means all Loan Assets owned by the Seller, together with
all proceeds thereof and other assets or property related thereto, including all right, title and interest of the Seller in and to: 
 (a) any amounts on deposit in any cash reserve, collection, custody or lockbox accounts securing the Loan Assets; 
 (b) all rights with respect to the Loan Assets to which the Seller is entitled as lender under the applicable Loan Agreement; 
 (c) any Underlying Collateral securing a Loan Asset and all Recoveries related thereto, all payments paid in respect thereof and all monies due, to become due and paid in respect thereof accruing after
the applicable Cut-Off Date and all liquidation proceeds; 
 (d) all Required Loan Documents, the Loan Asset Files related to
any Loan Asset, any Records, and the documents, agreements, and instruments included in the Loan Asset Files or Records; 
 (e)
all Insurance Policies with respect to any Loan Asset; 
 (f) all Liens, guaranties, indemnities, warranties, letters of credit,
accounts, bank accounts and property subject thereto from time to time purporting to secure or support payment of any Loan Asset, together with all UCC financing statements, mortgages or similar filings signed or authorized by an Obligor relating
thereto; 
 (g) all records (including computer records) with respect to the foregoing; and 

(h) all collections, income, payments, proceeds and other benefits of each of the foregoing. 

“Purchase” means a purchase by the Purchaser of an Eligible Loan Asset and the related Portfolio Assets from the Seller
pursuant to Article II. 
 “Purchase Date” has the meaning specified in Section 2.1(b).

 “Purchase Price” has the meaning specified in Section 2.2. 

“Purchaser” has the meaning specified in the Preamble. 

“Purchaser Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect, on account
of any class of membership interests of the Purchaser now or hereafter outstanding, except a dividend paid solely in interests of that class of membership interests or in any junior class of membership interests of the Purchaser; (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any class of membership interests of the Purchaser now or hereafter outstanding, (iii) any payment made to redeem,
purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire membership interests of the Purchaser now or hereafter outstanding, and (iv) any payment of management fees by the

  
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Purchaser. For the avoidance of doubt, (x) payments and reimbursements due to the Servicer in accordance with the Transaction Documents do not constitute Purchaser Restricted Junior
Payments, and (y) distributions by the Purchaser to holders of its membership interests of Loan Assets or of cash or other proceeds relating thereto which have been substituted by the Purchaser in accordance with the Loan and Servicing
Agreement shall not constitute Purchaser Restricted Junior Payments. 
 “Replaced Loan Asset” has the meaning
specified in Section 6.2(b)(i). 
 “Repurchase Price” means, with respect to a Loan Asset to be
repurchased pursuant to Article VI hereof, (i) the greater of (a) an amount equal to the Purchase Price less all Principal Collections received in respect of such Loan Asset from the Purchase Date to the date of repurchase hereunder
and (b) an amount equal to the Advance Date Assigned Value multiplied by the Outstanding Balance of such Loan Asset, plus (ii) any expenses or fees with respect to such Loan Asset and costs and damages incurred by the Administrative Agent
or by any Lender in connection with any violation by such Loan Asset of any predatory or abusive lending law which is an Applicable Law. 
 “Sale” and “Sell” have the meanings specified in Section 2.1(a), and the term “Sold” shall have the corresponding meaning. 

“Sale Portfolio” means all right, title, and interest (whether now owned or hereafter acquired or arising, and wherever
located) of the Seller in the property identified below in clauses (i) through (iii) and all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright licenses,
equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, securities entitlements, commercial tort claims, deposit accounts, inventory,
investment property, letter-of-credit rights, software, supporting obligations, accessions, or other property consisting of, arising out of, or related to any of the following (in each case excluding the Retained Interest and the Excluded Amounts):

 (i) the Loan Assets, and all monies due or to become due in payment under such Loan Assets on and after the related Cut-Off
Date, including, but not limited to, all Available Collections, but excluding any related Attached Equity; 
 (ii) the Portfolio
Assets with respect to the Loan Assets referred to in clause (i); and 
 (iii) all income and Proceeds of the foregoing.

 “Schedule I” means the schedule of all Sale Portfolio that is Sold by the Seller to the Purchaser on a
Purchase Date, as supplemented on any subsequent Purchase Date by the “Schedule I” attached to the applicable Loan Assignment, and incorporated herein by reference, as such schedule may be supplemented and amended from time to time
pursuant to the terms hereof, which schedule shall, together with all supplements and amendments thereto, be included in and made part of the Loan Asset Schedule attached to the Loan and Servicing Agreement. 

“SEC” has the meaning specified in Section 5.2(n)(i). 

  
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 “Seller Purchase Event” means with respect to any Loan Asset, the
occurrence of a breach of the Seller’s representations and warranties under Section 4.2 on the Cut-Off Date for such Loan Asset. 
 “Seller Termination Event” has the meaning specified in Section 8.1(a). 
 “Substitute Eligible Loan Asset” has the meaning specified in Section 6.2(a). 
 “Substitution” has the meaning specified in Section 6.2(a). 
 “Transfer Taxes” means any tax, fee or governmental charge payable by the Purchaser, the Seller or any other Person to any federal, state or local government arising from or otherwise
related to the Sale of any Loan Asset, the related Underlying Collateral (if any) and/or any other related Portfolio Assets from the Seller to the Purchaser under this Agreement (excluding taxes measured by net income). 

Section 1.3. Other Terms. All accounting terms used but not specifically defined herein shall be construed in accordance with
GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not specifically defined herein, are used herein as defined in such Article 9. 
 Section 1.4. Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to later specified date, the word
“from” means “from and including” and the words “to” and “until” each mean “to but excluding”. Reference to days or days without further qualification means calendar days. Reference to any time means
New York, New York time. 
 Section 1.5. Certain References. All references to the Outstanding Balance of a Loan
Asset as of a Purchase Date shall refer to the close of business on such day. 
 ARTICLE II. 

SALE AND PURCHASE OF THE ELIGIBLE LOAN ASSETS 
 AND OTHER PORTFOLIO ASSETS 
 Section 2.1. Sale and Purchase of the
Eligible Loan Assets and the Other Portfolio Assets. 
 (a) Subject to the terms and conditions of this Agreement (including
the conditions to Purchase set forth in Article III), on and after the Closing Date, the Seller hereby agrees to (i) sell, transfer and otherwise convey (collectively, “Sell” and any such sale, transfer and/or other
conveyance, a “Sale”), from time to time, to the Purchaser, without recourse (except to the extent specifically provided herein), and the Purchaser hereby agrees to purchase, all right, title and interest of the Seller (whether now
owned or hereafter acquired or arising, and wherever located) in and to certain Sale Portfolio designated by the Seller and (ii) transfer, or cause the deposit into, the Collection Account of all Available Collections received by the Seller on
account of any Sale Portfolio hereunder on and after the Purchase Date with respect to such Sale Portfolio, in each case, within two Business Days of the receipt thereof. The Seller hereby acknowledges that each Sale to the Purchaser hereunder is
absolute and irrevocable, without reservation or retention of any interest whatsoever by the Seller. 

  
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 (b) The Seller shall on or prior to any Business Day prior to a Seller Termination Event
(each a “Purchase Date”) execute and deliver to the Purchaser a proposed Loan Assignment identifying the Sale Portfolio to be Sold by the Seller to the Purchaser on such Purchase Date. From and after such Purchase Date, the Sale
Portfolio listed on Schedule I to the related Loan Assignment shall be deemed to be listed on Schedule I hereto and constitute part of the Sale Portfolio hereunder. 

(c) On or before any Purchase Date with respect to the Sale Portfolio to be acquired by the Purchaser on such date, the Seller shall
provide the Purchaser with an Officer’s Certificate, in the form of Exhibit B hereto, signed by a duly authorized Responsible Officer certifying, as of such Purchase Date, to each of the items in Section 4.2. 

(d) On and after each Purchase Date hereunder and upon payment of the Purchase Price therefor, the Purchaser shall own the Sale Portfolio
Sold by the Seller to the Purchaser on such Purchase Date, and the Seller shall not take any action inconsistent with such ownership and shall not claim (except for tax and accounting purposes) any ownership interest in such Sale Portfolio.

 (e) Except as specifically provided in this Agreement, the Sale and Purchase of the Sale Portfolio under this Agreement shall
be without recourse to the Seller; it being understood that the Seller shall be liable to the Purchaser for all representations, warranties, covenants and indemnities made by the Seller pursuant to the terms of this Agreement, all of which
obligations are limited so as not to constitute recourse to the Seller for the credit risk of the Obligors. 
 (f) Neither the
Purchaser nor any assignee of the Purchaser (including the Secured Parties) shall have any obligation or liability to any Obligor or client of the Seller (including any obligation to perform any obligation of the Seller, including with respect to
any other related agreements) in respect of the Sale Portfolio. No such obligation or liability is intended to be assumed by the Purchaser or any assignee of the Purchaser (including the Secured Parties) and any such assumption is expressly
disclaimed. Without limiting the generality of the foregoing, the Sale of the Sale Portfolio by the Seller to the Purchaser pursuant to this Agreement does not constitute and is not intended to result in a creation or assumption by the Purchaser or
any assignee of the Purchaser (including the Secured Parties), of any obligation of the Seller, as lead agent, collateral agent or paying agent under any Agented Note. 
 (g) In connection with each Purchase of Sale Portfolio hereunder, the Seller shall cause to be delivered to the Collateral Custodian (with a copy to the Administrative Agent), no later than 2:00 p.m. one
Business Day prior to the related Purchase Date, a faxed or e-mailed copy of the duly executed original promissory notes of the Loan Assets (and, in the case of any Noteless Loan Asset, a fully executed assignment agreement) and if any Loan Assets
are closed in escrow, a certificate (in the form of Exhibit K to the Loan and Servicing Agreement) from the closing attorneys of such Loan Assets certifying the possession of the Required Loan Documents; provided that, notwithstanding the
foregoing, the Seller shall cause the Loan Asset Checklist and the Required Loan Documents to be in the possession of the Collateral Custodian within five Business Days after the related Purchase Date. 

  
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 (h) In accordance with the Loan and Servicing Agreement, certain documents relating to Sale
Portfolio shall be delivered to and held in trust by the Collateral Custodian for the benefit of the Purchaser and its assignees, and the Purchaser hereby instructs the Seller to cause such documents to be delivered to the Collateral Custodian. Such
delivery to the Collateral Custodian of such documents and the possession thereof by the Collateral Custodian is at the will of the Purchaser and its assignees and in a custodial capacity for their benefit only. 

(i) The Seller shall provide all information, and any other reasonable assistance, to the Servicer, the Collateral Custodian and the
Collateral Agent necessary for the Servicer, the Collateral Custodian and the Collateral Agent, as applicable, to conduct the management, administration and collection of the Sale Portfolio Purchased hereunder in accordance with the terms of the
Loan and Servicing Agreement. 
 (j) In connection with the Purchase by the Purchaser of Sale Portfolio as contemplated by this
Agreement, the Seller further agrees that it shall, at its own expense, indicate clearly and unambiguously in its computer files on or prior to each Purchase Date, and its financial statements, that such Sale Portfolio has been purchased by the
Purchaser in accordance with this Agreement. 
 (k) The Seller further agrees to deliver to the Purchaser on or before each
Purchase Date a computer file containing a true, complete and correct list of all Loan Assets to be Sold hereunder on such Purchase Date, identified by Obligor’s name and Outstanding Balance as of the related Cut–Off Date. Such file or
list shall be marked as Schedule I to the applicable Loan Assignment and shall be delivered to the Purchaser as confidential and proprietary, and is hereby incorporated into and made a part of Schedule I to this Agreement, as such
Schedule I may be supplemented and amended from time to time. 
 (l) The Seller shall, at all times, continue to
fulfill its obligations under, and in strict conformance with, the terms of all Loan Agreements related to any Sale Portfolio purchased hereunder, including without limitation any obligations pertaining to any Retained Interest. 

(m) The Seller and the Purchaser each acknowledge with respect to itself that the representations and warranties of the Seller in
Sections 4.1 and 4.2 hereof and of the Purchaser in Section 4.3 hereof, and the covenants and agreements of the Seller herein, including without limitation, in Article V and Article VI hereof, will run to and
be for the benefit of the Purchaser and the Collateral Agent (on behalf of the Secured Parties) and the Collateral Agent (on behalf of the Secured Parties) may enforce directly (without joinder of the Purchaser when enforcing against the Seller),
the obligations of the Seller or the Purchaser, as applicable, with respect to breaches of such representations, warranties, covenants and all other obligations as set forth in this Agreement. 

  
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 Section 2.2. Purchase Price. 

The purchase price for each item of Sale Portfolio Sold to the Purchaser hereunder (the “Purchase Price”) shall be in a
dollar amount equal to the fair market value of such Loan Asset as determined from time to time by the Seller and the Purchaser. Each of the Purchaser and the Seller hereby agree that the fair market value of each Loan Asset Sold hereunder as of the
related Purchase Date shall not be less than the Advance Date Assigned Value thereof multiplied by the Outstanding Balance of such Loan Asset on the related Purchase Date. 
 Section 2.3. Payment of Purchase Price. 
 (a) The Purchase Price for
any Sale Portfolio Sold by the Seller to the Purchaser on any Purchase Date shall be paid in a combination of: (i) immediately available funds; and (ii) if the Purchaser does not have sufficient funds to pay the full amount of the Purchase
Price (after taking into account the proceeds the Purchaser expects to receive pursuant to the Advances under the Loan and Servicing Agreement), by means of a capital contribution by the Seller to the Purchaser. 

(b) The portion of such Purchase Price to be paid in immediately available funds shall be paid by wire transfer on the applicable
Purchase Date to an account designated by the Seller on or before such Purchase Date or by means of proper accounting entries being entered upon the accounts and records of the Seller and the Purchaser on the applicable Purchase Date. 

(c) In connection with each delivery of a Loan Assignment, the Seller hereunder shall be deemed to have certified, with respect to the
Sale Portfolio to be Sold by it on such day, that its representations and warranties contained in Sections 4.1 and 4.2 are true and correct in all material respects on and as of such day, with the same effect as though made on and as
of such day (other than any representation or warranty that is made as of a specific date), that no Event of Default has occurred or would result therefrom and no Unmatured Event of Default exists or would result therefrom. 

(d) Upon the payment of the Purchase Price for any Purchase, title to the Sale Portfolio included in such Purchase shall vest in the
Purchaser, whether or not the conditions precedent to such Purchase and the other covenants and agreements contained herein were in fact satisfied; provided that the Purchaser shall not be deemed to have waived any claim it may have under
this Agreement for the failure by the Seller in fact to satisfy any such condition precedent, covenant or agreement. 

Section 2.4. Nature of the Sales. 
 (a) It is the express intent of the parties hereto that the Sale of the Sale Portfolio by the Seller to the Purchaser hereunder be, and be treated for all purposes (other than tax and accounting purposes)
as an absolute sale by the Seller (free and clear of any Lien, security interest, charge or encumbrance other than Permitted Liens) of such Sale Portfolio. It is, 

  
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further, not the intention of the parties that such Sale be deemed a pledge of the Sale Portfolio by the Seller to the Purchaser to secure a debt or other obligation of the Seller. However, in
the event that, notwithstanding the intent of the parties, the Sale Portfolio is held to continue to be property of the Seller, then the parties hereto agree that: (i) this Agreement shall also be deemed to be, and hereby is, a “security
agreement” within the meaning of Article 9 of the UCC; (ii) the transfer of the Sale Portfolio provided for in this Agreement shall be deemed to be a grant by the Seller to the Purchaser of a first priority security interest (subject only
to Permitted Liens) in all of the Seller’s right, title and interest in and to the Sale Portfolio and all amounts payable to the holders of the Sale Portfolio in accordance with the terms thereof and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other property, including, without limitation, all amounts from time to time held or invested in the Collection Account, whether in the form of cash, instruments, securities or
other property, to secure the prompt and complete payment of a loan deemed to have been made in an amount equal to the aggregate Purchase Price of the Sale Portfolio together with all of the other obligations of the Seller hereunder; (iii) the
possession by the Purchaser (or the Collateral Custodian on behalf of the Collateral Agent, for the benefit of the Secured Parties) of Sale Portfolio and such other items of property as constitute instruments, money, negotiable documents or chattel
paper shall be, subject to clause (iv), for purposes of perfecting the security interest pursuant to the UCC; and (iv) acknowledgements from Persons holding such property shall be deemed acknowledgements from custodians, bailees or
agents (as applicable) of the Purchaser for the purpose of perfecting such security interest under Applicable Law. The parties further agree in such event that any assignment of the interest of the Purchaser pursuant to any provision hereof shall
also be deemed to be an assignment of any security interest created pursuant to the terms of this Agreement. The Purchaser shall, to the extent consistent with this Agreement and the other Transaction Documents, take such actions as may be necessary
to ensure that, if this Agreement were deemed to create a security interest in the Sale Portfolio, such security interest would be deemed to be a perfected security interest of first priority (subject only to Permitted Liens) under Applicable Law
and will be maintained as such throughout the term of this Agreement. The Purchaser shall have, in addition to the rights and remedies which it may have under this Agreement, all other rights and remedies provided to a secured creditor under the UCC
and other Applicable Law, which rights and remedies shall be cumulative. 
 (b) It is the intention of each of the parties
hereto that the Sale Portfolio Sold by the Seller to the Purchaser pursuant to this Agreement shall constitute assets owned by the Purchaser and shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or
against the Seller under any bankruptcy or similar law. 
 (c) The Purchaser agrees to treat, and shall cause the Seller to
treat, for all purposes (other than tax and accounting purposes), the transactions effected by this Agreement as sales of assets to the Purchaser. The Seller agrees to reflect in the Seller’s financial records and to include a note in the
publicly filed annual and quarterly financial statements of Solar Capital indicating that: (i) assets related to transactions (including transactions pursuant to the Transaction Documents) that do not meet GAAP requirements for accounting sale
treatment are reflected in the consolidated balance sheet of Solar Capital as finance receivables pledged and non-recourse, secured borrowings and (ii) those assets are owned by a special purpose entity that is consolidated in the financial
statements of Solar Capital, and the creditors of that special purpose entity have received ownership and/or security interests in such assets and such assets are not intended to be available to the creditors of sellers (or any affiliate of the
sellers) of such assets to that special purpose entity. 

  
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 ARTICLE III. 
 CONDITIONS OF SALE AND PURCHASE 
 Section 3.1. Conditions Precedent to
Effectiveness. This Agreement shall be effective upon the satisfaction of the conditions precedent that the Purchaser shall have received on or before the Closing Date, in form and substance satisfactory to the Purchaser, all of the following:

 (i) a copy of this Agreement duly executed by each of the parties hereto; 

(ii) a certificate of the Secretary or Assistant Secretary of the Seller, dated the Closing Date, certifying (A) the
names and true signatures of the incumbent officers of the Seller authorized to sign on behalf of the Seller this Agreement, the Loan Assignments and all other documents to be executed by the Seller hereunder or in connection herewith (on which
certificate the Purchaser and its assignees may conclusively rely until such time as the Purchaser and such assignees shall receive from the Seller, a revised certificate meeting the requirements of this Section 3.1(ii)), (B) that
the copy of the certificate of incorporation of the Seller is a complete and correct copy and that such certificate of incorporation has not been amended, modified or supplemented and is in full force and effect, (C) that the copy of the
by-laws of the Seller are a complete and correct copy, and that such by-laws have not been amended, modified or supplemented and are in full force and effect, and (D) the resolutions of the board of directors of the Seller approving and
authorizing the execution, delivery and performance by the Seller of this Agreement, the Loan Assignments and all other documents to be executed by the Seller hereunder or in connection herewith; 

(iii) a good standing certificate, dated as of a recent date for the Seller, issued by the Secretary of State of the
Seller’s State of incorporation; 
 (iv) filed, original copies of proper financing statements (the
“Facility Financing Statements”) describing the Sale Portfolio, and naming the Seller as the “Debtor/Seller”, the Purchaser as “Secured Party/Buyer” and the Collateral Agent, for the benefit of the Secured
Parties, as “Total Assignee”, or other similar instruments or documents, in form and substance sufficient for filing under the UCC or any comparable law of any and all jurisdictions as may be necessary to perfect the Purchaser’s
ownership interest in all Sale Portfolio; 
 (v) copies of properly authorized termination statements or
statements of release (on Form UCC-3) or other similar instruments or documents, if any, in form and substance sufficient for filing under the UCC or any comparable law of any and all jurisdictions as may be necessary to release all security
interests and similar rights of any Person in the Sale Portfolio previously granted by the Seller; 

  
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 (vi) copies of tax and judgment lien searches in all jurisdictions
reasonably requested by the Purchaser or its assignees and requests for information (or a similar UCC search report certified by a party acceptable to the Purchaser and its assigns), dated a date reasonably near to the Closing Date, and with respect
to such requests for information or UCC searches, listing all effective financing statements which name the Seller (under its present name and any previous name) as debtor and which are filed in the State of Maryland, together with copies of such
financing statements (none of which shall cover any Sale Portfolio); 
 (vii) all instruments in connection with
the transactions contemplated by this Agreement shall be satisfactory in form and substance to the Purchaser, each Lender Agent and the Administrative Agent, and the Purchaser, each Lender Agent and the Administrative Agent shall have received from
the Seller copies of all documents (including, without limitation, records of corporate proceedings, approvals and opinions) relevant to the transactions herein contemplated as the Purchaser, each Lender Agent and the Administrative Agent may have
reasonably requested; 
 (viii) any necessary third party consents to the closing of the transactions
contemplated hereby, in form and substance satisfactory to the Purchaser; 
 (ix) the Seller shall have paid all
fees then required to be paid by it on the Closing Date; and 
 (x) one or more favorable Opinions of Counsel
from counsel to the Seller with respect to the perfection and enforceability of the security interest hereunder and such other matters as the Purchaser or any assignee thereof may reasonably request. 

Section 3.2. Conditions Precedent to All Purchases. The Purchase to take place on the initial Purchase Date and each Purchase
to take place on a subsequent Purchase Date hereunder shall be subject to the further conditions precedent that: 
 (a) The
following statements shall be true: 
 (i) The representations and warranties of the Seller contained in
Sections 4.1 and 4.2 shall be true and correct on and as of such Purchase Date in all material respects, before and after giving effect to the Purchase to take place on such Purchase Date and to the application of proceeds therefrom,
as though made on and as of such date (other than any representation and warranty that is made as of a specific date); 
 (ii) The Seller is in compliance in all respects with each of its covenants and other agreements set forth herein; 
 (iii) No Seller Termination Event (or event which, with the passage of time or the giving of notice, or both, would constitute a Seller Termination Event) shall have occurred or would result from such
Purchase; 
 (iv) The Facility Maturity Date has not yet occurred; and 

  
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 (v) No Applicable Law shall prohibit or enjoin, and no order, judgment or
decree of any federal, state or local court or governmental body, agency or instrumentality shall prohibit or enjoin, the making of any such Purchase by the Purchaser in accordance with the provisions hereof. 

(b) The Purchaser shall have received a duly executed and completed Loan Assignment along with a Schedule I that is true, accurate
and complete in all respects as of the related Cut-Off Date. 
 (c) The Seller shall have delivered to the Collateral Custodian
on behalf of the Purchaser and any assignee thereof each item required to be contained in the Required Loan Documents and the Loan Asset Checklist of any of the Eligible Loan Assets or Portfolio Assets related thereto being acquired by the Purchaser
within five Business Days of the related Purchase Date. 
 (d) The Seller shall have taken all steps necessary under all
Applicable Law in order to Sell to the Purchaser the Sale Portfolio being Purchased on such Purchase Date and, upon the Sale of such Sale Portfolio from the Seller to the Purchaser pursuant to the terms hereof, the Purchaser will have acquired good
and marketable title to and a valid and perfected ownership interest in such Sale Portfolio, free and clear of any Lien, security interest, charge or encumbrance (other than Permitted Liens); provided that if such item of Sale Portfolio
contains a restriction of transferability, the applicable Loan Agreement provides that any consents necessary for future assignments shall not be unreasonably withheld by the applicable Obligor and/or agent, and the rights to enforce rights and
remedies in respect of the same under the applicable Loan Agreement inure to the benefit of the holder of such Loan Asset (subject to the rights of any applicable agent or other lenders). 

(e) The Seller shall have received a copy of an Approval Notice executed by the Administrative Agent evidencing the approval of the
Administrative Agent, in its sole and absolute discretion of the Sale to the Purchaser of the Eligible Loan Assets identified on Schedule I to the applicable Loan Assignment on the applicable Purchase Date. 

ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES 
 Section 4.1. Representations and Warranties of the Seller. The Seller makes the following representations and warranties, on which the Purchaser relies in acquiring the Sale Portfolio
Purchased hereunder and each of the Secured Parties relies upon in entering into the Loan and Servicing Agreement. As of each Purchase Date and each Reporting Date (unless a specific date is specified below), the Seller represents and warrants to
the Purchaser for the benefit of the Purchaser and each of its successors and assigns (and as to any Loan Assets, only with respect to the Loan Assets being purchased on such Purchase Date) that: 

(a) Organization and Good Standing. The Seller has been duly organized and is validly existing as a corporation in good standing
under the laws of the State of Maryland (subject to Section 5.1(f)), with all requisite corporate power and authority to own or lease its 

  
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properties and to conduct its business as such business is presently conducted, and had at all relevant times, and now has, all necessary power, authority and legal right to acquire and own the
Sale Portfolio and to Sell such Sale Portfolio to the Purchaser hereunder. 
 (b) Due Qualification. The Seller is duly
qualified to do business and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification, licenses and/or approvals. 

(c) Power and Authority; Due Authorization; Execution and Delivery. The Seller (i) has all necessary corporate power,
authority and legal right to (a) execute and deliver this Agreement, each Loan Assignment and the other Transaction Documents to which it is a party and (b) carry out the terms of this Agreement, each Loan Assignment and the other
Transaction Documents to which it is a party and (ii) has duly authorized by all necessary corporate action the execution, delivery and performance of this Agreement, each Loan Assignment and the other Transaction Documents to which it is a
party and the sale and assignment of an ownership interest in the Sale Portfolio on the terms and conditions herein provided. This Agreement, each Loan Assignment and each other Transaction Document to which the Seller is a party have been duly
executed and delivered by the Seller. 
 (d) Valid Conveyance; Binding Obligations. This Agreement, each Loan Assignment
and the Transaction Documents to which the Seller is party have been and, in the case of each Loan Assignment delivered after the Closing Date, will be, duly executed and delivered by the Seller, and this Agreement, together with the applicable Loan
Assignment in each case, shall effect valid Sales of Sale Portfolio, enforceable against the Seller and creditors of and purchasers from the Seller, and this Agreement, each Loan Assignment and such Transaction Documents shall constitute legal,
valid and binding obligations of the Seller enforceable against the Seller in accordance with their respective terms, except as enforceability may be limited by Bankruptcy Laws and general principles of equity (whether such enforceability is
considered in a proceeding in equity or at law). 
 (e) No Violation. The execution, delivery and performance of this
Agreement, each Loan Assignment and all other agreements and instruments executed and delivered or to be executed and delivered by the Seller pursuant hereto or thereto in connection with the Sale of the Sale Portfolio will not (i) conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Seller’s certificate of incorporation or by-laws or any contractual obligation of the Seller,
(ii) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Seller’s properties pursuant to the terms of any such contractual obligation, other than this Agreement, or (iii) violate any
Applicable Law. 
 (f) No Proceedings. There is no litigation, proceeding or investigation pending or, to the knowledge
of the Seller, threatened against the Seller, before any Governmental Authority (i) asserting the invalidity of this Agreement, any Loan Assignment or any other Transaction Document to which the Seller is a party, (ii) seeking to prevent
the consummation of any of the transactions contemplated by this Agreement, any Loan Assignment or any other Transaction Document to which the Seller is a party or (iii) seeking any determination or ruling that could reasonably be expected to
have a Material Adverse Effect. 

  
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 (g) No Consents. The Seller is not required to obtain the consent or approval of any
other party or any consent, license, approval or authorization, or registration or declaration with, any Governmental Authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement
or any Loan Assignment, except those which have been obtained. 
 (h) State of Organization, Etc. Except as permitted
hereunder, the Seller’s legal name is as set forth in this Agreement. Except as permitted hereunder, the Seller has not changed its name since its incorporation; does not have tradenames, fictitious names, assumed names or “doing business
as” names. Except as permitted hereunder, the chief executive office of the Seller (and the location of the Seller’s records regarding the Sale Portfolio (other than those delivered to the Collateral Custodian)) is at the address of the
Seller set forth in Section 10.5. The Seller’s only jurisdiction of incorporation is Maryland, and, except as permitted hereunder, the Seller has not changed its jurisdiction of incorporation. 

(i) Bulk Sales. The execution, delivery and performance of this Agreement and the transactions contemplated hereby do not require
compliance with any “bulk sales” act or similar law by the Seller. 
 (j) Solvency. The Seller is not the
subject of any Bankruptcy Proceedings or Bankruptcy Event. The Seller is Solvent and will not become insolvent after giving effect to the transactions contemplated by this Agreement and the other Transaction Documents. The Seller after giving effect
to the transactions contemplated by this Agreement and the other Transaction Documents, will have an adequate amount of capital to conduct its business in the foreseeable future. 

(k) Selection Procedures. No procedures believed by the Seller to be adverse to the interests of the Purchaser were utilized by
the Seller in identifying and/or selecting the Eligible Loan Assets included in the Sale Portfolio. 
 (l) Compliance with
Laws. The Seller has complied in all material respects with all Applicable Law to which it may be subject, and no item of Sale Portfolio contravenes any Applicable Law. 
 (m) Taxes. The Seller has filed or caused to be filed all tax returns that are required to be filed by it (subject to any extensions to file properly obtained by the same). The Seller has paid or
made adequate provisions for the payment of all Taxes and all assessments made against it or any of its property (other than any amount of Tax the validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which reserves in accordance with GAAP have been provided on the books of the Seller), and no tax lien has been filed and, to the Seller’s knowledge, no claim is being asserted, with respect to any such Tax, assessment or other
charge. 
 (n) Exchange Act Compliance; Regulations T, U and X. None of the transactions contemplated herein or in the
other Transaction Documents (including, without 

  
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limitation, the use of the proceeds from the Sale of the Sale Portfolio) will violate or result in a violation of Section 7 of the Exchange Act, or any regulations issued pursuant thereto,
including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. The Seller does not own or intend to carry or purchase, and no proceeds from the Sale of the Sale Portfolio will be
used to carry or purchase, any Margin Stock or to extend “purpose credit” within the meaning of Regulation U. 
 (o)
Loan Assignments. Each Loan Assignment is accurate in all respects. 
 (p) No Liens, Etc. The Sale Portfolio to be
acquired by Purchaser hereunder is owned by the Seller free and clear of any Lien, security interest, charge or encumbrance (subject only to Permitted Liens), and the Seller has the full right, corporate power and lawful authority to Sell the same
and interests therein and, upon the Sale thereof hereunder, the Purchaser will have acquired good and marketable title to and a valid and perfected ownership interest in such Sale Portfolio, free and clear of any Lien, security interest, charge or
encumbrance (subject only to Permitted Liens); provided that if such item of Sale Portfolio contains a restriction of transferability, the applicable Loan Agreement provides that any consents necessary for future assignments shall not be
unreasonably withheld by the applicable Obligor and/or agent, and the rights to enforce rights and remedies in respect of the same under the applicable Loan Agreement inure to the benefit of the holder of such Loan Asset (subject to the rights of
any applicable agent or other lenders). No effective financing statement reflecting the Seller or the Seller’s predecessor in interest, as a “Debtor”, or other instrument similar in effect covering all or any part of any Sale
Portfolio Purchased hereunder is on file in any recording office, except such as may have been filed in favor of the Collateral Agent as “Secured Party” or “Assignee”, in each case, for the benefit of the Secured Parties pursuant
to the Loan and Servicing Agreement. 
 (q) Information True and Correct. All information heretofore furnished by or on
behalf of the Seller to the Purchaser or any assignee thereof in connection with this Agreement or any transaction contemplated hereby is true and complete and does not omit to state a material fact necessary to make the statements contained
therein, in light of the circumstances under which they were made, not misleading; provided that, solely with respect to written or electronic information furnished by or on behalf of the Seller which was provided to the Seller from an
Obligor with respect to a Loan Asset, such information need only be accurate, true and correct to the knowledge of the Seller; provided, further, that the foregoing proviso shall not apply to any information presented in a
Servicer’s Certificate, Servicing Report, Notice of Borrowing or Borrowing Base Certificate. 
 (r) ERISA
Compliance. The present value of all benefits vested under each “employee pension benefit plan”, as such term is defined in Section 3 of ERISA, that is, or at any time during the preceding six years was, maintained by the Seller
or any ERISA Affiliate of the Seller, or open to participation by employees of the Seller or of any ERISA Affiliate of the Seller, as from time to time in effect (each, a “Pension Plan”) does not exceed the value of the assets of
the Pension Plan allocable to such vested benefits (based on the value of such assets as of the last annual valuation date). No prohibited transactions, failure to meet the minimum funding standard set forth in Section 302(a) of ERISA and
Section 412(a) of the Code (with respect to any Pension Plan other than a Multiemployer Plan), withdrawals or reportable events 

  
 15 

 
have occurred with respect to any Pension Plan that, in the aggregate, could subject the Seller to any material Tax, penalty or other liability. No notice of intent to terminate a Pension Plan
has been filed, nor has any Pension Plan been terminated under Section 4041(f) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to terminate, or appoint a trustee to administer, a Pension Plan and no event has
occurred or condition exists that might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan. 

(s) Investment Company Status. The Seller is an “investment company” that has elected to be regulated as a
“business development company” within the meaning of the 1940 Act. The Seller conducts its business and other activities in compliance in all material respects with the applicable provisions of the 1940 Act and any applicable rules,
regulations or orders issued by the SEC thereunder. 
 (t) Intent of The Seller. The Seller has not sold, contributed,
transferred, assigned or otherwise conveyed any interest in any Sale Portfolio to the Purchaser with any intent to hinder, delay or defraud any of the Seller’s creditors. 
 (u) Value Given. The Seller has received reasonably equivalent value from the Purchaser in exchange for the Sale of such Sale Portfolio Sold hereunder. No such Sale has been made for or on account
of an antecedent debt owed by the Seller and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code. 
 (v) Accounting. Other than for tax and consolidated accounting purposes, the Seller will not account for or treat (whether in financial statements or otherwise) the transactions contemplated hereby
in any manner other than as a sale of the Sale Portfolio by the Seller to the Purchaser. 
 (w) No Broker-Dealers. The
Seller is not a broker-dealer or subject to the Securities Investor Protection Act of 1970, as amended. 
 (x) Special
Purpose Entity. The Purchaser is an entity with assets and liabilities separate and distinct from those of the Seller and any Affiliates thereof, and the Seller hereby acknowledges that the Administrative Agent, the Lenders, the Lender Agents,
the Collateral Agent, the Collateral Custodian and the other Secured Parties are entering into the transactions contemplated by the Loan and Servicing Agreement in reliance upon the Purchaser’s identity as a legal entity that is separate from
the Seller and from each other Affiliate of the Seller. Therefore, from and after the date of execution and delivery of this Agreement, the Seller shall take all reasonable steps, including, without limitation, all steps that the Administrative
Agent and the Collateral Agent may from time to time request, to maintain the Purchaser’s identity as a separate legal entity and to make it manifest to third parties that the Purchaser is an entity with assets and liabilities distinct from
those of the Seller and each other Affiliate thereof and not just a division of the Seller or any such other Affiliate (other than for tax purposes). Without limiting the generality of the foregoing and in addition to the other covenants set forth
herein, the Seller shall take all reasonable steps to ensure that the Purchaser has not and will not take, refrain from taking, or fail to take (as applicable) any action described in Section 9(j) of its limited liability company operating
agreement and Sections 5.01(a), 5.01(b), 5.02(a) and 5.02(b) of the Loan and Servicing Agreement. 

  
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 (y) Sale Agreement. This Agreement and the Loan Assignments contemplated herein are
the only agreements or arrangements pursuant to which the Seller Sells the Sale Portfolio Sold by it to the Purchaser. 
 (z)
Security Interest. 
 (i) This Agreement creates a valid and continuing security interest (as defined in
the applicable UCC) in the Sale Portfolio in favor of the Purchaser, which security interest is prior to all other Liens (except for Permitted Liens), and is enforceable as such against creditors of and purchasers from the Seller; 

(ii) the Loan Assets, along with the related Loan Asset Files, constitute either a “general intangible,” an
“instrument,” an “account,” “securities entitlement,” “tangible chattel paper”, “certificated security,” “uncertificated security,” “supporting obligation,” or
“insurance” (each as defined in the applicable UCC), real property and/or such other category of collateral under the applicable UCC as to which the Seller has complied with its obligations under this Section 4.1(z).

 (iii) the Seller owns and has good and marketable title to (or with respect to assets securing any Loan Assets
as of the relevant Cut-Off Date, a valid security interest in) the Sale Portfolio Sold by it to the Purchaser hereunder on such Purchase Date, free and clear of any Lien (other than Permitted Liens) of any Person; 

(iv) the Seller has received all consents and approvals required by the terms of any Loan Asset, to the Sale thereof and
the granting of a security interest in the Loan Assets hereunder to the Purchaser; 
 (v) the Seller has caused
the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in that portion of the Sale Portfolio in which a security interest may be
perfected by filing granted hereunder to the Purchaser; provided that filings in respect of real property shall not be required; 
 (vi) other than (i) as expressly permitted by the terms of this Agreement and the Loan and Servicing Agreement and (ii) the security interest granted to the Purchaser and the Collateral Agent,
on behalf of the Secured Parties, the Seller has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of the Sale Portfolio. The Seller has not authorized the filing of and is not aware of any financing statements
against the Seller that include a description of collateral covering the Sale Portfolio other than any financing statement (A) relating to the security interest granted to the Purchaser under this Agreement, or (B) that has been terminated
and/or fully and validly assigned to the Collateral Agent on or prior to the date hereof. The Seller is not aware of the filing of any judgment or tax lien filings against the Seller; 

  
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 (vii) all original executed copies of each underlying promissory note or
copies of each Loan Asset Register, as applicable, that constitute or evidence each Loan Asset have been, or subject to the delivery requirements contained herein, will be delivered to the Collateral Custodian; 

(viii) other than in the case of Noteless Loan Assets, the Seller has received, or subject to the delivery requirements
herein will receive, a written acknowledgment from the Collateral Custodian that the Collateral Custodian, as the bailee of the Collateral Agent, is holding the underlying promissory notes that constitute or evidence the Loan Assets solely on behalf
of and for the Collateral Agent, for the benefit of the Secured Parties; provided that the acknowledgement of the Collateral Custodian set forth in Section 12.11 of the Loan and Servicing Agreement may serve as such acknowledgement;

 (ix) none of the underlying promissory notes or Loan Asset Registers, as applicable, that constitute or
evidence the Loan Assets has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Collateral Agent, on behalf of the Secured Parties; 

(x) with respect to any Sale Portfolio that constitutes a “certificated security”, such certificated security
has been delivered to the Collateral Custodian, on behalf of the Secured Parties and, if in registered form, has been specifically Indorsed to the Collateral Agent, for the benefit of the Secured Parties, or in blank by an effective Indorsement or
has been registered in the name of the Collateral Agent, for the benefit of the Secured Parties, upon original issue or registration or transfer by the Purchaser of such certificated security; and 

(xi) with respect to any Sale Portfolio that constitutes an “uncertificated security”, that the Seller shall
cause the issuer of such uncertificated security to register the Collateral Agent, on behalf of the Secured Parties, as the registered owner of such uncertificated security. 
 (aa) Notice to Agents and Obligors. The Seller has directed any agent, administrative agent or Obligor for any Loan Asset to remit all payments and collections with respect to such Loan Asset
directly to the Collection Account. 
 (bb) Collections. The Collection Account is the only account to which Obligors
have been instructed to send Interest Collections and Principal Collections on the Sale Portfolio Sold by the Seller. The Seller acknowledges that all Interest Collections and Principal Collections received by it or its Affiliates with respect to
the Sale Portfolio Purchased by the Purchaser as contemplated by this Agreement are held and shall be held in trust for the benefit of the Purchaser (or its assignees) until deposited into the Collection Account as required by the Loan and Servicing
Agreement. 
 (cc) Set–Off, Etc. No Sale Portfolio has been compromised, adjusted, extended, satisfied,
subordinated, rescinded, set–off or modified by the Seller or the Obligor thereof, and no Sale Portfolio is subject to compromise, adjustment, extension, satisfaction, 

  
 18 

 
subordination, rescission, set–off, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification, whether arising out of transactions concerning
the Sale Portfolio or otherwise, by the Seller or the Obligor with respect thereto, except for amendments, extensions or modifications to such Sale Portfolio otherwise permitted under Section 6.04(a) of the Loan and Servicing Agreement and in
accordance with the Servicing Standard. 
 (dd) Full Payment. As of the related Purchase Date thereof, the Seller has no
knowledge of any fact which should lead it to expect that any Sale Portfolio will not be paid in full. 
 (ee) Ownership of
the Purchaser. The Seller owns, directly or indirectly, 100% of the membership interests of the Purchaser, free and clear of any Lien. Such membership interests are validly issued, fully paid and non–assessable, and there are no options,
warrants or other rights to acquire membership interests of the Purchaser. 
 (ff) Confirmation from the Seller. The
Seller has provided written confirmation to the Purchaser that the Seller will not cause the Purchaser to file a voluntary petition under the Bankruptcy Code. 
 (gg) Environmental. With respect to each item of Underlying Collateral as of the Cut-Off Date for the Loan Asset related to such Underlying Collateral, to the actual knowledge of a Responsible
Officer of the Seller (a) the related Obligor’s operations comply in all material respects with all applicable Environmental Laws; (b) none of the related Obligor’s operations is the subject of a Federal or state investigation
evaluating whether any remedial action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (c) the related Obligor does not have any material contingent liability in connection with
any release of any Hazardous Materials into the environment. As of the Cut-Off Date for the Loan Asset related to such Underlying Collateral, the Seller has not received any written or verbal notice of, or inquiry from any Governmental Authority
regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Underlying Collateral, nor does the Seller have knowledge
or reason to believe that any such notice will be received or is being threatened. 
 (hh) USA PATRIOT Act. Neither the
Seller nor any Affiliate of the Seller is (i) a country, territory, organization, person or entity named on an Office of Foreign Asset Control (OFAC) list, (ii) a Person that resides or has a place of business in a country or territory
named on such lists or which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (iii) a
“Foreign Shell Bank” within the meaning of the USA PATRIOT Act, i.e., a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of
regulation and supervision; or (iv) a person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting
special measures due to money laundering concerns. 

  
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 (ii) Covenants; Seller Termination Event. All covenants, agreements and undertakings
of the Seller hereunder have been fully performed. No event has occurred which constitutes a Seller Termination Event and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both would constitute a
Seller Termination Event (other than any Seller Termination Event which has previously been disclosed to the Administrative Agent as such). 
 (jj) Opinion. The statements of fact in the section heading “Assumptions” in the non-consolidation and true sale opinion (the “Non-Consolidation/True Sale Opinion”) of
Milbank Tweed Hadley McCloy LLP, dated as of the date hereof are true and correct in all respects. 
 (kk) Accuracy of
Representations and Warranties. Each representation or warranty by the Seller contained (i) herein or (ii) in any certificate or other document furnished by the Seller to the Purchaser or the Administrative Agent in writing pursuant
hereto or in connection herewith is, as of its date, true and correct in all material respects. 
 (ll) Representations and
Warranties for Benefit of the Purchaser’s Assignees. The Seller hereby makes each representation and warranty contained in this Agreement and the other Transaction Documents to which it is a party and that have been executed and delivered
on or prior to such Purchase Date to, and for the benefit of the Purchaser (and its assignees), the Administrative Agent, the Lenders, the Lender Agents, the Collateral Agent, the Collateral Custodian and the other Secured Parties as if the same
were set forth in full herein. 
 It is understood and agreed that the representations and warranties provided in this
Section 4.1 shall survive (x) the Sale of the Sale Portfolio to the Purchaser and (y) and the grant of a first priority perfected security interest in, to and under the Sale Portfolio pursuant to the Loan and Servicing
Agreement by the Purchaser. Upon discovery by the Seller or the Purchaser of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other and to the
Administrative Agent and each Lender Agent immediately upon obtaining knowledge of such breach. 
 Section 4.2.
Representations and Warranties of the Seller Relating to the Agreement and the Sale Portfolio. The Seller makes the following representations and warranties, on which the Purchaser relies in acquiring the Sale Portfolio Purchased hereunder
and each of the Secured Parties relies upon in entering into the Loan and Servicing Agreement. As of each Purchase Date and each Reporting Date, the Seller represents and warrants to the Purchaser for the benefit of the Purchaser and each of its
successors and assigns (and as to any Loan Assets, only with respect to the Loan Assets being purchased on such Purchase Date) that: 
 (a) Binding Obligation, Valid Transfer and Security Interest. This Agreement, together with the Loan Assignments, constitutes a valid transfer to the Purchaser of all right, title and interest in,
to and under all Sale Portfolio, free and clear of any Lien of any Person claiming through or under the Seller or its Affiliates, except for Permitted Liens. If the conveyances contemplated by this Agreement are determined to be a transfer for
security, then this Agreement constitutes a grant of a security interest in all Sale Portfolio to the Purchaser which upon the delivery of the Required Loan Documents and the filing of the financing

  
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statements shall be a first priority perfected security interest in all Sale Portfolio, subject only to Permitted Liens. Neither the Seller nor any Person claiming through or under the Seller
shall have any claim to or interest in the Collection Account; provided if this Agreement constitutes only a grant of a security interest in such property, then the Seller shall have the rights in such property as a debtor for purposes of the
UCC. 
 (b) Eligibility of Sale Portfolio. (i) Schedule I is an accurate and complete listing of all the Sale
Portfolio as of the related Cut–Off Date and the information contained therein with respect to the identity of such Sale Portfolio and the amounts owing thereunder is true and correct as of the related Cut–Off Date, (ii) each item of
the Sale Portfolio Purchased by the Purchaser hereunder is an Eligible Loan Asset, and (iii) with respect to each item of the Sale Portfolio all consents, licenses, approvals or authorizations of or registrations or declarations of any
Governmental Authority or any Person required to be obtained, effected or given by the Seller in connection with the transfer of an ownership interest or security interest in each item of Sale Portfolio to the Purchaser have been duly obtained,
effected or given and are in full force and effect. For the avoidance of doubt, any inaccurate representation that a Loan Asset is an Eligible Loan Asset hereunder or under the Loan and Servicing Agreement shall not constitute an Event of Default
under the Loan and Servicing Agreement if the Seller complies with Section 2.07(c) of the Loan and Servicing Agreement and the Transferor complies with Section 6.1 hereunder (subject to the 30 day grace period set forth in such
provisions); provided, that any such Loan Asset will not be included in any calculation of the Loan to Value Ratio or the Borrowing Base (as set forth in the Loan and Servicing Agreement) during such 30 day period. 

(c) No Fraud. Each Eligible Loan Asset was originated without any fraud or misrepresentation by the Seller or, to the best of the
Seller’s knowledge, on the part of the Obligor. 
 It is understood and agreed that the representations and warranties
provided in this Section 4.2 shall survive (x) the Sale of the Sale Portfolio to the Purchaser, (y) the grant of a first priority perfected security interest in, to and under the Sale Portfolio pursuant to the Loan and
Servicing Agreement by the Purchaser and (z) the termination of this Agreement and the Loan and Servicing Agreement. Upon discovery by the Seller or the Purchaser of a breach of any of the foregoing representations and warranties, the party
discovering such breach shall give prompt written notice thereof to the other and to the Administrative Agent and each Lender Agent immediately upon obtaining knowledge of such breach. 

Section 4.3. Representations and Warranties of the Purchaser. The Purchaser makes the following representations and
warranties, on which the Seller relies in selling the Sale Portfolio to the Purchaser hereunder and each of the Secured Parties relies upon in entering into the Loan and Servicing Agreement. As of each Purchase Date and each Reporting Date, the
Purchaser represents and warrants to the Seller for the benefit of the Seller and each of its successors and assigns (and as to any Loan Assets, only with respect to the Loan Assets being purchased on such Purchase Date) that: 

(a) Organization and Good Standing. The Purchaser has been duly organized and is validly existing and in good standing as a
limited liability company under the laws of the State of Delaware or such other jurisdiction as permitted under the terms of the Transaction 

  
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Documents, with the power and authority to own or lease its properties and to conduct its business as such properties are currently owned and such business is currently conducted, and had at all
relevant times, and has, all necessary power, authority and legal right to acquire and own the Sale Portfolio. 
 (b) Due
Qualification. The Purchaser is duly qualified to do business and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification,
licenses and/or approvals. 
 (c) Power and Authority; Due Authorization; Execution and Delivery. The Purchaser
(i) has all necessary limited liability company power, authority and legal right to (a) execute and deliver this Agreement and the other Transaction Documents to which it is a party and (b) carry out the terms of this Agreement and
the other Transaction Documents to which it is a party and (ii) has duly authorized by all necessary limited liability company action the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a
party and the Purchase of the Sale Portfolio on the terms and conditions herein provided. This Agreement and each other Transaction Document to which the Purchaser is a party have been duly executed and delivered by the Purchaser. 

(d) No Consent Required. The Purchaser is not required to obtain the consent of any other Person, or any consent, license,
approval or authorization or registration or declaration with, any Governmental Authority, bureau or agency in connection with the execution, delivery or performance of this Agreement, each Loan Assignment and the Transaction Documents to which it
is a party, except for such as have been obtained, effected or made. 
 (e) Binding Obligation. This Agreement and each
other Transaction Document to which the Purchaser is a party constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its respective terms, subject, as to enforceability, to applicable
Bankruptcy Laws and general principles of equity (whether such enforceability is considered in a proceeding in equity or at law). 
 (f) No Violation. The consummation of the transactions contemplated by this Agreement, each Loan Assignment and the other Transaction Documents to which it is a party and the fulfillment of the
terms hereof and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Purchaser’s certificate of formation,
operating agreement or any contractual obligation of the Purchaser, (ii) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Purchaser’s properties pursuant to the terms of any such contractual
obligation, other than this Agreement, or (iii) violate any Applicable Law. 
 (g) Value Given. The Purchaser has
given reasonably equivalent value to the Seller in exchange for the Sale of such Sale Portfolio, which amount the Purchaser hereby agrees is the fair market value of such Sale Portfolio. No such Sale has been made for or on account of an antecedent
debt owed by the Seller and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code. 

  
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 (h) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the knowledge of the Purchaser, threatened against the Purchaser, before any Governmental Authority (i) asserting the invalidity of this Agreement, any Loan Assignment or any other Transaction Document to which the Purchaser is a party,
(ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, any Loan Assignment or any other Transaction Document to which the Purchaser is a party or (iii) seeking any determination or ruling that
could reasonably be expected to have a Material Adverse Effect. 
 (i) Sale Agreement. This Agreement and the Loan
Assignments contemplated herein are the only agreements or arrangements pursuant to which the Purchaser Purchases the Sale Portfolio Sold to it by the Seller. 
 (j) Investment Company Act. The Purchaser is not required to register as an “investment company” under the provisions of the 1940 Act. 

(k) Compliance with Law. The Purchaser has complied in all material respects with all Applicable Law to which it may be subject,
and no item of Sale Portfolio contravenes any Applicable Law. 
 (l) Opinions. The statements of fact in the section
heading “Assumptions” in the Non-Consolidation/True Sale Opinion are true and correct in all respects. 
 ARTICLE V.

 COVENANTS OF THE SELLER 
 Section 5.1. Protection of Title of the Purchaser. 
 (a) On or prior
to the Closing Date, the Seller shall have filed or caused to be filed UCC-1 financing statements, naming the Seller as “Debtor/Seller”, naming the Purchaser as “Secured Party/Buyer”, and naming the Collateral Agent, for the
benefit of the Secured Parties, as “Total Assignee”, and describing the Sale Portfolio to be acquired by the Purchaser, with the office of the Secretary of State of the state of the jurisdiction of organization of the Seller. From time to
time thereafter, the Seller shall file such financing statements and cause to be filed such continuation statements, all in such manner and in such places as may be required by law (or deemed desirable by the Purchaser or any assignee thereof) to
fully perfect, preserve, maintain and protect the ownership interest of the Purchaser under this Agreement and the security interest of the Collateral Agent for the benefit of the Secured Parties under the Loan and Servicing Agreement, in the Sale
Portfolio acquired by the Purchaser hereunder, as the case may be, and in the proceeds thereof. The Seller shall deliver (or cause to be delivered) to the Purchaser, the Collateral Agent, the Collateral Custodian, the Servicer and the Administrative
Agent file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. The Seller agrees that it will from time to time, at its expense, take all actions, that the Purchaser, the
Collateral Agent or the Administrative Agent may reasonably request in order to perfect, protect or more fully evidence the Purchases hereunder and the security and/or interest granted in the Sale Portfolio, or to enable the Purchaser, the
Collateral Agent, the Administrative Agent or the Secured Parties to exercise and enforce their rights and remedies hereunder or under any Transaction Document. 

  
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 (b) On or prior to each Purchase Date hereunder, the Seller shall take all steps necessary
under all Applicable Law in order to Sell to the Purchaser the Sale Portfolio being acquired by the Purchaser on such Purchase Date to the Purchaser so that, upon the Sale of such Sale Portfolio from the Seller to the Purchaser pursuant to the terms
hereof on such Purchase Date, the Purchaser will have acquired good and marketable title to and a valid and perfected ownership interest in such Sale Portfolio, free and clear of any Lien, security interest, charge or encumbrance or restrictions on
transferability (subject only to Permitted Liens). On or prior to each Purchase Date hereunder, the Seller shall take all steps required under Applicable Law in order for the Purchaser to grant to the Collateral Agent, for the benefit of the Secured
Parties, a first priority perfected security interest (subject only to Permitted Liens) in the Sale Portfolio being Purchased by the Purchaser on such Purchase Date and, from time to time thereafter, the Seller shall take all such actions as may be
required by Applicable Law to fully preserve, maintain and protect the Purchaser’s ownership interest in, and the Collateral Agent’s first priority perfected security interest in (subject only to Permitted Liens), the Sale Portfolio which
have been acquired by the Purchaser hereunder. 
 (c) The Seller shall direct any agent or administrative agent for any Sale
Portfolio originated or acquired by the Seller to remit all payments and collections with respect to such Sale Portfolio and direct the Obligor with respect to such Sale Portfolio to remit all such payments and collections directly to the Collection
Account. The Seller will not make any change, or permit the Servicer to make any change, in its instructions to Obligors regarding payments to be made to the Seller or the Servicer or payments to be made to the Collection Account, unless the
Purchaser and the Administrative Agent have consented to such change. The Seller shall ensure that only funds constituting payments and collections relating to Sale Portfolio shall be deposited into the Collection Account. In the event any payments
relating to any Sale Portfolio are remitted directly to the Seller or any Affiliate of the Seller, the Seller will remit (or will cause all such payments to be remitted) directly to the Collection Account within two Business Days following receipt
thereof, and, at all times prior to such remittance, the Seller will itself hold or, if applicable, will cause such payments to be held in trust for the exclusive benefit of the Purchaser and its assignees. Until so deposited, all such Interest
Collections and Principal Collections shall be held in trust for the Purchaser or its assignees by the Seller. 
 (d) At any
time after the occurrence an Event of Default, the Purchaser, the Collateral Agent or the Administrative Agent may direct the Seller or the Servicer to notify the Obligors, at Seller’s expense, of the Purchaser’s (or its assigns) or the
Secured Parties’ interest in the Sale Portfolio under this Agreement and may direct that payments of all amounts due or that become due under any or all of the Sale Portfolio be made directly to the Purchaser (or its assigns), the Collateral
Agent or the Administrative Agent. 
 (e) The Seller shall, not earlier than six months and not later than three months prior to
the fifth anniversary of the date of filing of the financing statement referred to in Section 3.1 or any other financing statement filed pursuant to this Agreement or in connection with any Purchase hereunder, unless the Collection Date
shall have occurred: 
 (i) file or cause to be filed an appropriate continuation statement with respect to such
financing statement; and 

  
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 (ii) deliver or cause to be delivered to the Purchaser, the Collateral
Agent, the Administrative Agent and each Lender Agent an opinion of the counsel for Seller, in form and substance reasonably satisfactory to the Purchaser, the Collateral Agent and the Administrative Agent, confirming and updating the opinion
delivered pursuant to Section 3.1 with respect to perfection and otherwise to the effect that the security interest hereunder continues to be an enforceable and perfected security interest, subject to no other Liens of record except as
provided herein or otherwise permitted hereunder, which opinion may contain usual and customary assumptions, limitations and exceptions. 
 (f) The Seller shall not (x) make any change to its corporate name or use any tradenames, fictitious names, assumed names, “doing business as” names or other names, move the location of its
principal place of business and chief executive office, change the offices where it keeps records concerning the Sale Portfolio from the address set forth under its name in Section 10.5, or change the jurisdiction of its incorporation, or
(y) move, or consent to the Collateral Custodian moving, the Required Loan Documents and Loan Asset Files from the location required under the Transaction Documents, unless, in each case, the Seller shall provide the Administrative Agent with
such Opinions of Counsel and other documents and instruments as the Administrative Agent may request in connection therewith and has taken all actions required under the UCC of each relevant jurisdiction in order to continue the first priority
perfected security interest of the Purchaser in the Sale Portfolio. 
 (g) The Seller shall at all times maintain each office
from which it services Sale Portfolio and its principal executive office within the United States of America. 
 (h) The Seller
shall mark its master data processing records so that, from and after the time of Sale under this Agreement of Sale Portfolio to the Purchaser and the grant of a security interest in such Sale Portfolio by the Purchaser to the Collateral Agent for
the benefit of the Secured Parties under the Loan and Servicing Agreement, the Seller’s master data processing records (including archives) that refer to such Sale Portfolio shall indicate clearly that such Sale Portfolio has been Purchased by
the Purchaser hereunder and Pledged by the Purchaser to the Collateral Agent, on behalf of the Secured Parties, under the Loan and Servicing Agreement. Indication of the Collateral Agent’s security interest for the benefit of the Secured
Parties in the Sale Portfolio shall be deleted from or modified on the Seller’s computer systems when, and only when, such Sale Portfolio shall be (i) paid off by the related Obligor, (ii) purchased or substituted by the Seller in
accordance with Section 6.1 or 6.2 hereof or (iii) released by the Collateral Agent pursuant to Section 2.16 of the Loan and Servicing Agreement. 
 (i) If the Seller fails to perform any of its obligations hereunder, the Purchaser, the Collateral Agent or the Administrative Agent may (but shall not be required to) perform, or cause performance of,
such obligation; and the Purchaser’s, the Collateral Agent’s or the Administrative Agent’s costs and expenses incurred in connection therewith shall be payable by the Seller as provided in Section 9.1. The Seller
irrevocably authorizes the Purchaser, the Collateral Agent or the Administrative Agent at any time and from time to time at the 

  
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Purchaser’s, the Collateral Agent’s or the Administrative Agent’s sole discretion and appoints the Purchaser, the Collateral Agent and the Administrative Agent as its
attorney–in–fact pursuant to a Power of Attorney substantially in the form of Exhibit C to act on behalf of the Seller (i) to file financing statements on behalf of the Seller, as debtor, necessary or desirable in the
Purchaser’s, the Collateral Agent’s or the Administrative Agent’s sole discretion to perfect and to maintain the perfection and priority of the interest of the Purchaser or the Collateral Agent in the Sale Portfolio and (ii) to
file a carbon, photographic or other reproduction of this Agreement or any financing statement with respect to the Sale Portfolio as a financing statement in such offices as the Purchaser, the Collateral Agent or the Administrative Agent in their
sole discretion deem necessary or desirable to perfect and to maintain the perfection and priority of the interests of the Purchaser or the Collateral Agent in the Sale Portfolio. This appointment is coupled with an interest and is irrevocable.

 Section 5.2. Affirmative Covenants of the Seller. 

From the date hereof until the Collection Date: 
 (a) Compliance with Law. The Seller will comply in all material respects with all Applicable Law, including those applicable to the Seller as a result of its interest in the Sale Portfolio or any
part thereof. 
 (b) Preservation of Company Existence. The Seller will preserve and maintain its corporate existence,
rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified in good standing as a corporation in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises,
privileges and qualification could reasonably be expected to have a Material Adverse Effect. 
 (c) Performance and
Compliance with Sale Portfolio. The Seller will, at its expense, timely and fully perform and comply in all material respects with all provisions, covenants and other promises required to be observed by it under the Sale Portfolio and all other
agreements related to such Sale Portfolio. 
 (d) Keeping of Records and Books of Account. The Seller will maintain and
implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing the Sale Portfolio in the event of the destruction of the originals thereof), and keep and maintain all documents, books,
records and other information reasonably necessary or advisable for the collection of all or any portion of the Sale Portfolio. 

(e) Separate Identity. The Seller acknowledges that the Administrative Agent, the Collateral Agent, the Collateral Custodian, the
Lenders, the Lender Agents and the other Secured Parties are entering into the transactions contemplated by this Agreement, the Loan and Servicing Agreement and the other Transaction Documents in reliance upon the Purchaser’s identity as a
legal entity that is separate from the Seller and each other Affiliate of the Seller. Therefore, from and after the date of execution and delivery of this Agreement, the Seller will take all reasonable steps including, without limitation, all steps
that the Administrative Agent or the Collateral Agent may from time to time reasonably request to maintain the Purchaser’s identity as a legal entity that is separate from the Seller and each other

  
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Affiliate of the Seller and to make it manifest to third parties that the Purchaser is an entity with assets and liabilities distinct from those of the Seller and each other Affiliate thereof
(other than for tax or accounting purposes) and not just a division of the Seller or any such other Affiliate. Without limiting the generality of the foregoing and in addition to the other covenants set forth herein, the Seller agrees that:

 (i) the Seller will take all other actions necessary on its part to ensure that the Purchaser is at all times
in compliance with the criteria and the restrictions set forth in Section 9(j) of the limited liability company operating agreement of the Purchaser and Sections 5.01(a), 5.01(b), 5.02(a) and 5.02(b) of the Loan and Servicing Agreement;

 (ii) the Seller shall maintain corporate records and books of account separate from those of the Purchaser;

 (iii) the annual financial statements of the Seller shall disclose the effects of the Seller’s
transactions in accordance with GAAP and the annual financial statements of the Seller shall not reflect in any way that the assets of the Purchaser, including, without limitation, the Sale Portfolio, could be available to pay creditors of the
Seller or any other Affiliate of the Seller; 
 (iv) the resolutions, agreements and other instruments underlying
the transactions described in this Agreement shall be continuously maintained by the Seller as official records; 

(v) the Seller shall maintain an arm’s–length relationship with the Purchaser and will not hold itself out as
being liable for the debts of the Purchaser; 
 (vi) the Seller shall keep its assets and its liabilities wholly
separate from those of the Purchaser; 
 (vii) the Seller will avoid the appearance, and promptly correct any
known misperception of any of the Seller’s creditors, that the assets of the Purchaser are available to pay the obligations and debts of the Seller; and 
 (viii) to the extent that the Seller services the Loan Assets and performs other services on the Purchaser’s behalf, the Seller will clearly identify itself as an agent of the Purchaser in the
performance of such duties. 
 (f) Taxes. The Seller will file or cause to be filed its tax returns and pay any and all
Taxes imposed on it or its property as required by the Transaction Documents (except as contemplated in Section 4.1(m)). 
 (g) Cooperation with Requests for Information or Documents. The Seller will cooperate fully with all reasonable requests of the Purchaser and its assigns regarding the provision of any information
or documents, necessary or desirable, including the provision of such information or documents in electronic or machine–readable format, to allow each of the Purchaser and its assignees to carry out their responsibilities under the Transaction
Documents. 

  
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 (h) Payment, Performance and Discharge of Obligations. The Seller will pay, perform
and discharge all of its obligations and liabilities, including, without limitation, all Taxes, assessments and governmental charges upon its income and properties, when due, unless and only to the extent that such obligations, liabilities, Taxes,
assessments and governmental charges shall be contested in good faith and by appropriate proceedings and that, to the extent required by GAAP, proper and adequate book reserves relating thereto are established by the Seller and then only to the
extent that a bond is filed in cases where the filing of a bond is necessary to avoid the creation of a Lien against any of its properties. 
 (i) Notices. 
 (i) Income Tax Liability. The Seller
will furnish telephonic or facsimile notice to the Purchaser, the Collateral Agent and the Administrative Agent within 10 Business Days (confirmed in writing within five Business Days thereafter) of the receipt of revenue agent reports or other
written proposals, determinations or assessments of the Internal Revenue Service or any other taxing authority which propose, determine or otherwise set forth positive adjustments (i) to the Tax liability of the Seller or any “affiliated
group” (within the meaning of Section 1504(a)(l) of the Code) of which the Seller is a member in an amount equal to or greater than $10,000,000 in the aggregate, or (ii) to the Tax liability of the Purchaser in an amount equal to or
greater than $500,000 in the aggregate. Any such notice shall specify the nature of the items giving rise to such adjustments and the amounts thereof. 
 (ii) Auditors’ Management Letters. Promptly after the receipt thereof, the Seller will (i) provide the Purchaser with any auditors’ management letters that are received by the Seller
or by its accountants and (ii) notify the Administrative Agent of the receipt of any auditors’ management letters and, upon request of the Administrative Agent, provide the Administrative Agent with a copy of any auditors’ management
letters. 
 (iii) Representations and Covenants. Promptly, upon receipt of notice or discovery thereof,
the Seller will furnish notice to the Purchaser, the Collateral Agent and the Administrative Agent (i) if any representation or warranty set forth in Section 4.1 or Section 4.2 was incorrect at the time it was given or
deemed to have been given or (ii) of the breach of any covenant under Section 5.1, Section 5.2 or Section 5.3 and at the same time deliver to the Purchaser, the Collateral Agent and the Administrative Agent a
written notice setting forth in reasonable detail the nature of such facts and circumstances. In particular, but without limiting the foregoing, the Seller shall notify the Purchaser, the Collateral Agent and the Administrative Agent in the manner
set forth in the preceding sentence before any Purchase Date of any facts or circumstances within the knowledge of the Seller which would render any of the said representations and warranties untrue at the date when such representations and
warranties were made or deemed to have been made. 
 (iv) ERISA. Promptly after receiving notice of any
“reportable event” (as defined in Title IV of ERISA, other than an event for which the reporting requirements have been waived by regulations) with respect to the Seller (or any ERISA Affiliate thereof), the Seller will provide a copy of
such notice to the Purchaser, the Collateral Agent and the Administrative Agent. 

  
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 (v) Proceedings. As soon as possible and in any event within three
Business Days, after the Seller receives notice or obtains knowledge thereof, the Seller will provide the Purchaser, the Collateral Agent and the Administrative Agent with notice of any settlement of, material judgment (including a material judgment
with respect to the liability phase of a bifurcated trial) in or commencement of any material labor controversy, material litigation, material action, material suit or material proceeding before any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, affecting the Sale Portfolio, the Transaction Documents, the Collateral Agent’s, for the benefit of the Secured Parties, interest in the Sale Portfolio, or the Purchaser, the
Servicer, the Seller or the Transferor or any of their Affiliates. For purposes of this Section 5.2(i), (i) any settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Sale Portfolio, the
Transaction Documents, the Collateral Agent’s, for the benefit of the Secured Parties, interest in the Sale Portfolio, or the Purchaser in excess of $500,000 shall be deemed to be material and (ii) any settlement, judgment, labor
controversy, litigation, action, suit or proceeding affecting the Seller or any of its Affiliates (other than the Purchaser) in excess of $10,000,000 shall be deemed to be material. 

(vi) Material Events. The Seller will, promptly upon becoming aware thereof, notify the Purchaser, the Collateral
Agent and the Administrative Agent any event or other circumstance that is reasonably likely to have a Material Adverse Effect. 
 (vii) Events of Default. The Seller will provide the Purchaser, the Collateral Agent and the Administrative Agent with immediate written notice of the occurrence of each Event of Default of which
the Seller has knowledge or has received notice. In addition, no later than two Business Days following the Seller’s knowledge or notice of the occurrence of any Event of Default, the Seller will provide to the Purchaser, the Collateral Agent
and the Administrative Agent a written statement of a Responsible Officer of the Seller setting forth the details of such event and the action that the Seller proposes to take with respect thereto. 

(viii) Seller Termination Event and Seller Purchase Event. The Seller will provide the Purchaser, the Collateral
Agent and the Administrative Agent with immediate written notice of the occurrence of each Seller Termination Event and each Seller Purchase Event of which the Seller has knowledge or has received notice. 

(j) Other. The Seller will furnish to the Purchaser, the Collateral Agent, the Administrative Agent and each Lender Agent
promptly, from time to time such other information, documents, records or reports respecting the Sale Portfolio or the condition or operations, financial or otherwise, of the Seller as the Purchaser, the Collateral Agent, the Administrative Agent
and each Lender Agent may from time to time reasonably request in order to protect the interests of the Purchaser, the Administrative Agent, the Collateral Agent, the Lenders, the Lender Agents or the Secured Parties under or as contemplated by this
Agreement and the other Transaction Documents. 

  
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 (k) Costs and Expenses. The Seller shall pay all reasonable, documented costs and
disbursements in connection with the performance of its obligations hereunder. 
 (l) Annual Certificates. On each
anniversary of the Closing Date, the Seller shall deliver an Officer’s Certificate, in form and substance acceptable to the Purchaser, the Administrative Agent and each Lender Agent, providing (i) a certification, based upon a review and
summary of UCC search results reasonably satisfactory to the Purchaser and the Administrative Agent, that there is no other interest in the Sale Portfolio perfected by filing of a UCC financing statement other than in favor of the Purchaser and the
Collateral Agent pursuant to the terms of the Transaction Documents and (ii) a certification, based upon a review and summary of tax and judgment lien searches satisfactory to the Purchaser and the Administrative Agent, that there is no other
interest in the Sale Portfolio based on any tax or judgment lien. 
 (m) Opinion. The Seller will comply in all respects
with any requirements for future action set forth in the section heading “Assumptions” in the Non-Consolidation/True Sale Opinion, with respect to the Transaction Documents. 

(n) Copies of Other Information. The Seller will deliver to the Purchaser, the Collateral Agent, the Administrative Agent and each
Lender Agent: 
 (i) promptly, but in any event within ten Business Days after the filing thereof, notice of
(a) each report or other filing made by the Seller or any of its Affiliates with the Securities and Exchange Commission (the “SEC”) and required by the SEC to be delivered to the shareholders of the Seller or any such
Affiliate, and (b) each report and final registration statement of the Seller or any Affiliate filed with the SEC; and 
 (ii) promptly, from time to time, such other information, documents, records or reports respecting the Sale Portfolio or the conditions or operations, financial or otherwise, of the Seller (including,
without limitation, reports and notices relating to the Seller’s actions under and compliance with ERISA and the 1940 Act) as the Purchaser, the Collateral Agent, the Administrative Agent or each Lender Agent may from time to time request in
order to perform their obligations hereunder or under any other Transaction Document or to protect the interests of the Purchaser under or as contemplated by this Agreement and the other Transaction Documents. 

(o) Disregarded Entity. The Seller shall cause the Purchaser to be disregarded as an entity separate from its owner pursuant to
Treasury Regulation Section 301.7701-3(b) and shall cause that neither the Purchaser nor any other Person on its behalf shall make an election to be, or take any other action that is reasonably likely to result in the Borrower being, treated as
other than an entity disregarded from its owner under Treasury Regulation Section 301.7701-3(c). 
 Section 5.3.
Negative Covenants of the Seller. 
 From the date hereof until the Collection Date: 

(a) Sale Portfolio Not to be Evidenced by Instruments. The Seller will take no action to cause any Sale Portfolio that is not, as
of the related Purchase Date, as the case may be, evidenced by an instrument, to be so evidenced except in connection with the enforcement or collection of such Sale Portfolio. 

  
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 (b) Security Interests. Except as otherwise permitted herein and in the Loan and
Servicing Agreement, the Seller will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Sale Portfolio Sold by the Seller to the Purchaser hereunder, whether now existing or
hereafter transferred hereunder, or any interest, therein, and the Seller will not sell, pledge, assign or suffer to exist any Lien (except for Permitted Liens) on its interest in the Sale Portfolio Sold by the Seller to the Purchaser hereunder. The
Seller will promptly notify the Purchaser, the Collateral Agent, each Lender Agent and the Administrative Agent of the existence of any Lien on any Sale Portfolio and the Seller shall defend the right, title and interest of the Purchaser and the
Collateral Agent, on behalf of the Secured Parties, in, to and under the Sale Portfolio against all claims of third parties; provided, that nothing in this Section 5.3(b) shall prevent or be deemed to prohibit the Seller from
suffering to exist Permitted Liens upon any of the Sale Portfolio. 
 (c) Mergers, Acquisitions, Sales, Etc. The Seller
will not consolidate with or merge into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person, or sell or assign with or without recourse any Sale Portfolio or any interest therein (other than in
the ordinary course of business or as permitted pursuant to this Agreement or the Transaction Documents). 
 (d) Transfer of
Purchaser Membership Interests. The Seller shall not transfer, pledge, participate or otherwise encumber its membership interests in the Purchaser without the prior written consent of the Administrative Agent and the delivery of an acceptable
(in the Administrative Agent’s reasonable discretion) non-consolidation opinion. 
 (e) Restricted Payments. The
Seller shall not cause or permit the Purchaser to make any Purchaser Restricted Junior Payment except that, so long as no Event of Default has occurred or would result therefrom and no Unmatured Event of Default has occurred and is continuing or
would result therefrom, the Purchaser may declare and make distributions to its member on its membership interests. 
 (f)
Accounting of Purchases. Other than for tax and consolidated accounting purposes, the Seller will not account for or treat (whether in financial statements or otherwise) the transactions contemplated hereby in any manner other than as a sale
of the Loan Assets to the Purchaser. 
 (g) ERISA Matters. The Seller will not (a) engage, and will exercise its
best efforts not to permit any ERISA Affiliate to engage, in any prohibited transaction (within the meaning of ERISA Section 406(a) or (b) or Code Section 4975) for which an exemption is not available or has not previously been
obtained from the United States Department of Labor, (b) fail to meet the minimum funding standard set forth in Section 302(a) of ERISA and Section 412(a) of the Code with respect to any Pension Plan other than a Multiemployer Plan,
(c) fail to make any payments to a Multiemployer Plan that the Seller or any ERISA Affiliate may be required to make under the agreement relating to such Multiemployer Plan or any law pertaining thereto, (d) terminate any Pension Plan so
as to result, directly or indirectly, in any liability to the 

  
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Seller, or (e) permit to exist any occurrence of any reportable event described in Title IV of ERISA with respect to any Pension Plan other than an event for which the reporting requirements
have been waived by regulations. 
 (h) Extension or Amendment of Sale Portfolio. The Seller will not, except as
otherwise permitted in Section 6.04(a) of the Loan and Servicing Agreement, extend, amend or otherwise modify, or permit the Servicer to extend, amend or otherwise modify, the terms of any Sale Portfolio. 

(i) Limitation on Financing Activities. The Seller shall not, directly or indirectly, advance or loan to the Purchaser any funds
pursuant to any financial accommodation. For the avoidance of doubt, this clause (i) shall not prohibit the Seller from contributing Loan Assets to the Purchaser as contemplated herein or providing cash equity contributions to the Purchaser.

 (j) Organizational Documents. The Seller will not cause or permit the Purchaser to amend, modify, waive or terminate
any provision of the Purchaser’s operating agreement without the prior written consent of the Administrative Agent. 

ARTICLE VI. 

REPURCHASES AND SUBSTITUTION BY THE SELLER 
 Section 6.1. Repurchase of Loan Assets. In the event of the occurrence of a Seller Purchase Event, the Seller will within 30 days of the discovery by or notice (from any Person) to the Seller
of the Seller Purchase Event, (i) purchase each Loan Asset hereunder which is affected by or related to such Seller Purchase Event from the Purchaser, and the Seller shall pay to the Purchaser (by means of a deposit to the Collection Account)
the Repurchase Price of such Loan Asset as of the date of the purchase thereof from the Purchaser or (ii) with the consent of the Administrative Agent and subject to the satisfaction of the conditions in Section 6.2, substitute for
such Loan Asset, a Substitute Eligible Loan Asset. It is understood and agreed that the obligation of the Seller to purchase the Loan Assets or substitute a Substitute Eligible Loan Asset for the Loan Assets which are affected by or related to such
Seller Purchase Event is not intended to, and shall not, constitute a guaranty of the collectability or payment of any Loan Asset which is not collected, not paid or uncollectible on account of the insolvency, bankruptcy or financial inability to
pay of the related Obligor. Upon deposit in the Collection Account of the Repurchase Price for any Loan Asset purchased by the Seller, the Purchaser shall, automatically and without further action be deemed to transfer, assign and set over to the
Seller, without recourse, representation or warranty of any kind, except as to the absence of Liens, charges or encumbrances created by or arising solely as a result of actions of the Purchaser or the Collateral Agent, all the right, title and
interest of the Purchaser, in, to and under such Loan Asset and all future monies due or to become due with respect thereto, the Underlying Collateral, all Proceeds of such Loan Asset and Recoveries and Insurance Proceeds relating thereto, all
rights to security for such Loan Asset and all Proceeds and products of the foregoing. The Purchaser shall (and shall request the Collateral Agent to), at the sole expense of the Seller, execute such documents and instruments of transfer as may be
prepared by the Seller and take such other actions as may be reasonably requested by the Seller in order to effect the transfer of such Loan Asset pursuant to this Section 6.1. Such Sale shall be a sale outright, and not for security.

  
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 Section 6.2. Substitution of Loan Assets. 

(a) The Seller shall have the right, but not the obligation, subject to the prior written consent of the Administrative Agent and the
Purchaser, in their sole discretion, to substitute one or more Eligible Loan Assets (“Substitute Eligible Loan Asset”) for a Loan Asset (each such act, a “Substitution”). 

(b) The Substitution shall not occur unless the following conditions are satisfied as of the date of such Substitution: 

(i) the Seller has recommended to the Purchaser and the Administrative Agent (with a copy to the Collateral Agent and the
Collateral Custodian) in writing that the Loan Asset to be replaced should be replaced (each, a “Replaced Loan Asset”); 
 (ii) no event has occurred, or would result from such Substitution, which constitutes an Event of Default and no event has occurred and is continuing, or would result from such Substitution, which
constitutes an Unmatured Event of Default or a Borrowing Base Deficiency; 
 (iii) each Substitute Eligible Loan
Asset is an Eligible Loan Asset on the date of Substitution; 
 (iv) solely in the case of Substitutions pursuant
to this Section 6.2 undertaken because a Seller Purchase Event has occurred, the sum of the Advance Date Assigned Value multiplied by the Outstanding Balances of such Substitute Eligible Loan Assets shall be equal or greater than the sum
of the Advance Date Assigned Value of the Replaced Loan Assets multiplied by the Outstanding Balance thereof; 

(v) all representations and warranties contained in Sections 4.1 and 4.2 shall be true and correct in all
material respects as of the date of Substitution (other than any representation and warranty that is made as of a specific date); 
 (vi) no selection procedures adverse to the interests of the Purchaser, the Administrative Agent, the Lenders, the Lender Agents or the other Secured Parties were utilized by the Seller in the selection
of the Loan Asset to be replaced by the Substitute Eligible Loan Asset; 
 (vii) the Outstanding Balance of all
Loan Assets (other than Warranty Loan Assets) sold pursuant to Section 2.07(b) of the Loan and Servicing Agreement or substituted pursuant to this Section 6.2 during the 12-month period (or such lesser number of months as shall have
elapsed as of such date) immediately preceding the proposed date of Substitution does not exceed 20% of the highest aggregate Outstanding Balance of any month during such 12-month period (or such lesser number of months as shall have elapsed as of
such date); 

  
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 (viii) the Outstanding Balance of all Loan Assets subject to clause
(ii) or (iv) of the definition of “Value Adjustment Event” (other than Warranty Loan Assets) substituted pursuant to this Section 6.2 or otherwise sold or transferred to the Seller (or an Affiliate thereof) during
the 12-month period (or such lesser number of months as shall have elapsed as of such date) immediately preceding the proposed date of sale or Substitution does not exceed 10% of the highest aggregate Outstanding Balance of any month during such
12-month period (or such lesser number of months as shall have elapsed as of such date); 
 (ix) each Loan Asset
that is replaced pursuant to the terms of this Section 6.2 shall be substituted only with another Eligible Loan Asset that meets the foregoing conditions; 

(x) all terms, provisions, representations, warranties and covenants hereunder with respect to Loan Assets that have been
Sold by the Seller to the Purchaser hereunder shall apply equally to Substitute Eligible Loan Assets; and 
 (xi)
the Seller shall deliver to the Purchaser on the date of such Substitution a certificate of a Responsible Officer certifying that each of the foregoing is true and correct as of such date. 

(c) In addition, in connection with such Substitution, the Seller shall deliver or cause to be delivered to the Collateral Custodian the
related Required Loan Documents. On the date any such Substitution is completed, the Purchaser shall, automatically and without further action, release and shall transfer to the Seller, free and clear of any Lien created pursuant to this Agreement,
all of the right, title and interest of the Purchaser in, to and under such Replaced Loan Asset, and the Purchaser shall be deemed to represent and warrant that it has the company authority and has taken all necessary company action to accomplish
such transfer, but without any other representation and warranty, express or implied. 
 Section 6.3. Repurchase
Limitations. The Seller and the Purchaser agree that the Seller and any Affiliate of the Seller may repurchase any Sale Portfolio only from the Purchaser in the case of a repurchase or Substitution of any Sale Portfolio pursuant to Sections
6.1 or 6.2. 
 ARTICLE VII. 
 ADDITIONAL RIGHTS AND OBLIGATIONS IN 
 RESPECT OF THE SALE PORTFOLIO 

Section 7.1. Rights of the Purchaser. 
 (a) After the occurrence or declaration of the Facility Maturity Date, the Seller hereby authorizes the Purchaser, the Servicer, the Collateral Agent and the Administrative Agent and/or their respective
designees or assignees to take any and all steps in Seller’s name and on behalf of the Seller that the Purchaser, the Servicer, the Collateral Agent or the Administrative Agent and/or their respective designees or assignees determine are
necessary or appropriate to collect all amounts due under any and all Sale Portfolio and to enforce or protect the Purchaser’s, the Collateral Agent’s and the Administrative Agent’s rights under this Agreement, including endorsing the
name of the Seller on checks and other instruments representing Interest Collections and Principal Collections and enforcing such Sale Portfolio. 

  
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 (b) Except as set forth in Sections 6.1 and 6.2 with respect to the repurchase
or Substitution of certain Loan Assets, the Purchaser shall have no obligation to account for, replace, substitute or return any Sale Portfolio to the Seller. The Purchaser shall have no obligation to account for or to return Interest Collections or
Principal Collections, or any interest or other finance charge collected pursuant thereto, to the Seller, irrespective of whether such Interest Collections and Principal Collections and charges are in excess of the Purchase Price for such Sale
Portfolio. 
 (c) The Purchaser shall have the right to further assign, transfer, deliver, hypothecate, subdivide or otherwise
deal with the Sale Portfolio and all of the Purchaser’s right, title and interest in, to and under this Agreement, pursuant to the Loan and Servicing Agreement. 
 (d) The Purchaser shall have the sole right to retain any gains or profits created by buying, selling or holding the Sale Portfolio and shall have the sole risk of and responsibility for losses or damages
created by such buying, selling or holding. 
 Section 7.2. Rights With Respect to Loan Asset Files. 

At any time when a Servicer other than Solar Capital Ltd. has been designated pursuant to Article VI of the Loan and Servicing Agreement,
the Seller shall, at the Purchaser’s, the Collateral Agent’s, the Collateral Custodian’s or the Administrative Agent’s request, assemble all of the Loan Asset Files which evidence the Sale Portfolio originated by the Seller, or
which are otherwise necessary or desirable to collect such Sale Portfolio, and make the same available to the Purchaser, the Collateral Agent, the Collateral Custodian or the Administrative Agent at a place selected by the Purchaser, the Collateral
Agent, the Collateral Custodian, the Administrative Agent or their designee. 
 Section 7.3. Notice to Collateral Agent,
Administrative Agent and each Lender Agent. 
 The Seller agrees that, concurrently with its delivery to the Purchaser,
copies of all notices, reports, documents and other information required to be delivered by the Seller to the Purchaser hereunder shall be delivered by the Seller to the Collateral Agent, the Administrative Agent and each Lender Agent. 

ARTICLE VIII. 

SELLER TERMINATION EVENTS 
 Section 8.1. Seller Termination Events. 
 (a) If any of the following
events (each a “Seller Termination Event”) shall have occurred: 
 (i) the Seller shall fail to
pay (A) any amount due pursuant to Section 6.1 in accordance with the provisions thereof or (B) any other amount required to be paid by the Seller hereunder within two Business Days of the date when due; or 

  
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 (ii) the Seller shall fail to observe or perform any covenant or agreement
in any material respect applicable to it contained herein (other than as specified in paragraph (i) of this Section 8.1); and such failure shall continue unremedied for a period of 30 days (if such failure can be remedied)
after the earlier to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Seller by the Administrative Agent, the Collateral Agent (at the direction of the Administrative
Agent) or the Purchaser and (ii) the date on which the Seller acquires knowledge thereof; or 
 (iii) any
representation, warranty or certification made by the Seller in this Agreement or in any statement, record, certificate, financial statement or other document delivered pursuant to this Agreement shall prove to have been incorrect when made or
deemed made, which has a Material Adverse Effect on the Purchaser and continues to be unremedied for a period of 30 days after the earlier to occur of (i) the date on which written notice of such incorrectness requiring the same to be remedied
shall have been given to the Seller by the Administrative Agent, the Collateral Agent (at the direction of the Administrative Agent) or the Purchaser and (ii) the date on which a Responsible Officer of the Seller acquires knowledge thereof;
provided that a Seller Termination Event shall not be deemed to have occurred under this paragraph (iii) based upon a Seller Purchase Event if the Seller shall have complied with the provisions of Section 6.1 in
respect thereof; or 
 (iv) (A) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Seller in an involuntary case under the Bankruptcy Code or any other Bankruptcy Laws, which decree or order is not stayed or any other similar relief shall be granted under any applicable federal or state law now or
hereafter in effect and shall not be stayed; (B) (1) any involuntary case is commenced against the Seller under any Bankruptcy Law now or hereafter in effect, a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Seller, or over all or a substantial part of the property of the Seller, shall have been entered, an interim receiver, trustee or
other custodian of the Seller for all or a substantial part of the property of the Seller is involuntarily appointed, a warrant of attachment, execution or similar process is issued against any substantial part of the property of the Seller, and
(2) any event referred to in clause (B)(1) above continues for 60 days unless dismissed, bonded or disclosed; (C) the Seller shall at its request have a decree or an order for relief entered with respect to it or commence a
voluntary case under any Bankruptcy Law now or hereafter in effect, or shall consent to the entry of a decree or an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such Bankruptcy
Law, consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; (D) the making by the Seller of any general assignment for the benefit of creditors; (E) the
inability or failure of the Seller generally to pay its debts as such debts become due; or (F) the board of directors of the Seller authorizes action to approve any of the foregoing; or 

  
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 (v) the occurrence of (A) an Event of Default set forth in
Section 7.01 of the Loan and Servicing Agreement (past any applicable notice or cure period provided in the definition thereof) or (B) the Facility Maturity Date; or 

(vi) the Seller has been terminated as Servicer following a Servicer Termination Event with respect to the Servicer under
the Loan and Servicing Agreement; or 
 (vii) a notice of Lien shall have been filed by the Pension Benefit
Guaranty Corporation against the Seller under Section 430(k) of the Code or Section 303(k) of ERISA for a failure to make a required installment or other payment to a plan to which Section 430(k) of the Code or Section 303(k) of
ERISA applies unless there shall have been delivered to the Administrative Agent and each Lender Agent proof of release of such Lien; or 
 (viii) any Lien in an amount equal to or greater than $10,000,000 has been asserted against or imposed on, any real or personal property of the Seller pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9607(1), or any equivalent or comparable state law, relating to or arising from the costs of, response to, or investigation, remediation or monitoring of, any environmental contamination resulting
from the current or past operations of the Seller; or 
 (ix) a Federal tax notice of Lien, in an amount equal to
or greater than $10,000,000, shall have been filed against the Seller unless there shall have been delivered to the Administrative Agent and each Lender Agent proof of release of such Lien; 
 then, (A) in the case of any Seller Termination Event described in paragraph (iv), (v)(A), (vi), (vii), (viii) or (ix) above, the obligation of the
Purchaser to Purchase Sale Portfolio from the Seller shall thereupon automatically terminate without further notice of any kind, which is hereby waived by the Seller, (B) in the case of any Seller Termination Event described in paragraph
(v)(B) above, the obligation of the Purchaser to Purchase Sale Portfolio from the Seller shall thereupon terminate without notice of any kind, which is hereby waived by the Seller unless both the Purchaser and the Seller agree in writing that
such event shall not trigger an Early Termination (as hereinafter defined) hereunder, and (C) in the case of any other Seller Termination Event, so long as such Seller Termination Event shall be continuing, the Purchaser or the Administrative
Agent may terminate its obligation to Purchase Sale Portfolio from the Seller by written notice to the Seller (any termination pursuant to clause (A), (B) or (C) of this Article VIII is herein called an
“Early Termination”); provided, that, in the event of any involuntary petition or proceeding as described in paragraphs (iv)(A) and (iv)(B) above, the Purchaser shall not Purchase Sale Portfolio from the Seller
unless such involuntary petition or proceeding is dismissed, bonded or discharged within 60 days of the filing of such petition or the commencement of such proceeding. 

  
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 Section 8.2. Survival of Certain Provisions. 

Notwithstanding any provision contained herein to the contrary, the Seller’s and the Purchaser’s representations, covenants and
obligations set forth in Articles IV, V, VI, and VII, as applicable, create and constitute the continuing obligation of the parties hereto in accordance with its terms, and shall remain in full force and effect until the
Collection Date; provided, that the rights and remedies with respect to any breach of any representation and warranty made or deemed made by the Seller pursuant to Articles III and IV and the provisions of Sections 6.1
and 6.2, the rights and obligations under Article VII, the indemnification provisions of Article IX and the provisions of Sections 5.1, 10.2, 10.8, 10.9, 10.10, 10.12, 10.13,
10.14 and 10.17 shall be continuing and shall survive any termination of this Agreement. 
 ARTICLE IX. 

INDEMNIFICATION. 

Section 9.1. Indemnification by the Seller. 
 (a) Without limiting any other rights which the Purchaser, any assignee of the Purchaser or any such Persons’ respective shareholders, officers, employees, agents, or Affiliates (each, an
“Indemnified Party”) may have hereunder or under Applicable Law, the Seller hereby agrees to indemnify any Indemnified Party from and against any and all costs, expenses, losses, damages, claims, and liabilities, including
attorneys’ fees and disbursements (all of the foregoing, being collectively referred to as, “Indemnified Amounts”), awarded against or incurred by such Indemnified Party or other non-monetary damages of any such Indemnified
Party or any of them arising out of or as a result of this Agreement excluding, however, (a) any such amounts resulting solely from any gross negligence, bad faith or willful misconduct on the part of the applicable Indemnified Party or
(b) Loan Assets that are uncollectible due to the Obligor’s financial inability to pay. Without limiting the foregoing, the Seller shall indemnify each Indemnified Party for Indemnified Amounts relating to or resulting from any of the
following (to the extent not resulting from the conditions set forth in (a) or (b) above): 
 (i) any
Person’s use, ownership or operation of any Underlying Collateral to the extent that such use, ownership or operation took place prior to the Purchase Date with respect to the related Sale Portfolio; 

(ii) any action taken by the Seller, other than in accordance with this Agreement, in respect of any portion of the Sale
Portfolio; 
 (iii) any Taxes (other than Taxes based upon the net or gross income of an Indemnified Party and
Taxes that would constitute Excluded Amounts) that may at any time be asserted against any Indemnified Party with respect to the transactions contemplated in this Agreement, including, without limitation, any sales, gross receipts, general
corporation, tangible or intangible personal property, privilege, stamp or license Taxes and costs and expenses in defending against the same, arising by reason of the acts to be performed by the Seller under this Agreement and imposed against such
Indemnified Party. Without limiting the foregoing, in the event that the Purchaser, the 

  
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Collateral Agent, the Collateral Custodian, the Account Bank, the Servicer, any Lender, any Lender Agent or the Administrative Agent receives actual notice of any Transfer Taxes arising out of
the Sale of any Sale Portfolio from the Seller to the Purchaser under this Agreement, on written demand by such party, or upon the Seller otherwise being given notice thereof, the Seller shall pay, and otherwise indemnify and hold the Purchaser, the
Collateral Agent, the Collateral Custodian, the Account Bank, the Servicer, each Lender, each Lender Agent and the Administrative Agent harmless, on an after-tax basis, from and against any and all such Transfer Taxes (it being understood that the
Purchaser, the Collateral Agent, the Collateral Custodian, the Account Bank, the Servicer, the Lenders, the Lender Agents and the Administrative Agent shall have no contractual obligation to pay such Transfer Taxes); 

(iv) the failure by the Seller to pay when due any Taxes due by the Seller for which the Seller is liable, including
without limitation, sales, excise or personal property Taxes payable in connection with the Sale Portfolio; 

(v) the gross negligence, willful misconduct or bad faith of the Seller in the performance of its duties under this
Agreement or by reason of reckless disregard of the Seller’s obligations and duties under this Agreement; 

(vi) any failure of the Seller to perform its duties or obligations in accordance with the provisions of this Agreement or
any of the other Transaction Documents to which it is a party or any failure by the Seller or any Affiliate thereof to perform its respective duties under any Sale Portfolio; 

(vii) the failure of any Sale Portfolio to comply with all requirements of Applicable Law as of its Purchase Date;

 (viii) the failure by the Seller to comply with all requirements of Section 6.1 hereof;

 (ix) the failure by the Seller to comply with any term, provision or covenant contained in this Agreement or
any agreement executed in connection with this Agreement, any Transaction Document or with any Applicable Law; 

(x) any representation or warranty made or deemed made by the Seller, or any of its officers, under or in connection with
this Agreement or any other Transaction Document, which shall have been false, incorrect or misleading in any material respect when made or deemed made or delivered; 

(xi) the failure to vest and maintain vested in the Purchaser an undivided ownership interest in the Sale Portfolio,
together with all Interest Collections and Principal Collections, free and clear of any Lien (other than Permitted Liens) whether existing at the time of any Purchase or at any time thereafter; 

(xii) the failure to file, or any delay in filing, financing statements, continuation statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other Applicable Law with respect to any Sale Portfolio, whether at the time of any Purchase or at any subsequent time; 

  
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 (xiii) any dispute, claim, offset or defense (other than the discharge in
bankruptcy of the Obligor) of the Obligor to the payment with respect to any Sale Portfolio (including, without limitation, a defense based on the Sale Portfolio not being a legal, valid and binding obligation of such Obligor enforceable against it
in accordance with its terms); 
 (xiv) any inability to obtain any judgment in, or utilize the court or other
adjudication system of, any state in which an Obligor may be located as a result of the failure of the Seller to qualify to do business or file any notice or business activity report or any similar report; 

(xv) any action taken by the Seller in the enforcement or collection of any Sale Portfolio which results in any claim,
suit or action of any kind pertaining to the Sale Portfolio or which reduces or impairs the rights of the Purchaser with respect to any Loan Asset or the value of any such Loan Asset; 

(xvi) any claim, suit or action of any kind arising out of or in connection with Environmental Laws relating to the Seller
or the Sale Portfolio including any vicarious liability; 
 (xvii) the commingling of Interest Collections and
Principal Collections on the Sale Portfolio at any time with other funds of the Seller; 
 (xviii) any
investigation, litigation or proceeding related to this Agreement or the use of proceeds by the Seller or the security interest in the Sale Portfolio granted hereunder; 

(xix) any failure by the Purchaser to give reasonably equivalent value to the Seller in consideration for the transfer by
the Seller to the Purchaser of any item of the Sale Portfolio or any attempt by any Person to void or otherwise avoid any such transfer under any statutory provision or common law or equitable action, including, without limitation, any provision of
the Bankruptcy Code; 
 (xx) the failure of the Seller or any of its agents or representatives to remit to the
Purchaser Interest Collections and Principal Collections on the Sale Portfolio remitted to the Seller or any such agent or representative as provided in this Agreement; or 

(xxi) failure or delay in assisting a successor Servicer in assuming each and all of the Servicer’s obligations to
service and administer the Collateral Portfolio in accordance with the Loan and Servicing Agreement, or failure or delay in complying with instructions from the Administrative Agent with respect thereto. 

  
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 (b) Any amounts subject to the indemnification provisions of this Section 9.1
shall be paid by the Seller to the Indemnified Party within five Business Days following such Person’s demand therefor. 

(c) If for any reason the indemnification provided above in this Section 9.1 is unavailable to the Indemnified Party or is
insufficient to hold an Indemnified Party harmless, then the Seller shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not
only the relative benefits received by such Indemnified Party, on the one hand, and the Seller as the case may be, on the other hand, but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations.

 (d) Indemnification under this Section 9.1 shall be in an amount necessary to make the Indemnified Party whole
after taking into account any tax consequences to the Indemnified Party of the receipt of the indemnity provided hereunder, including the effect of such Tax or refund on the amount of Tax measured by net income or profits that is or was payable by
the Indemnified Party. 
 (e) The obligations of the Seller under this Section 9.1 shall survive the termination of
this Agreement. 
 Section 9.2. Assignment of Indemnities. 

The Seller acknowledges that, pursuant to the Loan and Servicing Agreement, the Purchaser shall assign its rights of indemnity hereunder
to the Collateral Agent, on behalf of the Secured Parties. Upon such assignment, (a) the Collateral Agent, on behalf of the Secured Parties, shall have all rights of the Purchaser hereunder and may in turn assign such rights, and (b) the
obligations of the Seller under this Article IX shall inure to the Collateral Agent, on behalf of the Secured Parties. The Seller agrees that, upon such assignment, the Collateral Agent, on behalf of the Secured Parties, may enforce directly,
without joinder of the Purchaser, the indemnities set forth in this Article IX. 
 ARTICLE X. 

MISCELLANEOUS 

Section 10.1. Liability of the Seller. The Seller shall be liable in accordance herewith only to the extent of the
obligations in this Agreement specifically undertaken by the Seller and with respect to its representations and warranties expressly set forth hereunder. 
 Section 10.2. Limitation on Liability. Except with respect to any claim arising solely out of the willful misconduct or gross negligence of the Lenders, the Lender Agents, the Collateral
Agent, the Collateral Custodian, the Administrative Agent or any other Secured Party, no claim may be made by the Seller or any other Person against the Lenders, the Lender Agents, the Collateral Agent, the Collateral Custodian, the Administrative
Agent or any other Secured Party or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of
liability arising out of or related to the transactions contemplated by this 

  
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Agreement, or any act, omission or event occurring in connection therewith; and the Seller hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor. 
 Section 10.3. Amendments; Limited Agency.
Except as provided in this Section 10.3, no amendment, waiver or other modification of any provision of this Agreement shall be effective unless signed by the Purchaser and the Seller and consented to in writing by the Administrative
Agent, the Collateral Agent and the Required Lenders. The Purchaser shall provide not less than ten Business Days’ prior written notice of any such amendment to the Administrative Agent, the Collateral Agent, each Lender and each Lender Agent.

 Section 10.4. Waivers; Cumulative Remedies. No failure or delay on the part of the Purchaser (or any assignee
thereof) or the Seller, in exercising any power, right, privilege or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right, privilege or remedy preclude any other or future
exercise thereof or the exercise of any other power, right, privilege or remedy. The powers, rights, privileges and remedies herein provided are cumulative and not exhaustive of any powers, rights, privileges and remedies provided by law. Any waiver
of this Agreement shall be effective only in the specific instance and for the specific purpose for which it is given. 

Section 10.5. Notices. All demands, notices and other communications hereunder shall, unless otherwise stated herein, be in
writing (which shall include facsimile communication and communication by e-mail in portable document format (.pdf)) and faxed, e-mailed or delivered, to each party hereto, at its address set forth below: 

Purchaser  
 Solar Capital Funding II LLC

 500 Park Avenue, 5th Floor 
 New
York, NY 10022 
 Attention: Nicholas Radesca 
 Facsimile: (212) 993-1698 
 Phone: (212) 993-1668 

Seller 
 Solar Capital Ltd. 

500 Park Avenue, 5th Floor 
 New York, NY 10022

 Attention: Nicholas Radesca 

Facsimile: (212) 993-1698 
 Phone:
(212) 993-1668 
 or at such other address as shall be designated by such party in a written notice to the other parties hereto. Notices
and communications by facsimile and e-mail shall be effective when sent (and shall be followed by hard copy sent by regular mail), and notices and communications sent by other means shall be effective when received. 

  
 42 

 Section 10.6. Merger and Integration. Except as specifically stated otherwise
herein, this Agreement, the Loan and Servicing Agreement and the other Transaction Documents set forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by
this Agreement, the Loan and Servicing Agreement and the Transaction Documents. This Agreement may not be modified, amended, waived or supplemented except as provided herein. 
 Section 10.7. Severability of Provisions. If any one or more of the covenants, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants,
provisions or terms shall be deemed severable from the remaining covenants, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement. 

Section 10.8. GOVERNING LAW; JURY WAIVER. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY OR
INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREUNDER. 

Section 10.9. Consent to Jurisdiction; Service of Process. 

(a) Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court sitting in New
York City in any action or proceeding arising out of or relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State court or,
to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties
hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

(b) Each of the Seller and the Purchaser agrees that service of process may be effected by mailing a copy thereof by registered or
certified mail, postage prepaid, to the Seller or the Purchaser, as applicable, at its address specified in Section 10.5. Nothing in this Section 10.9 shall affect the right of the Seller or the Purchaser to serve legal
process in any other manner permitted by law. 
 Section 10.10. Costs, Expenses and Taxes. 

(a) In addition to the rights of indemnification granted to the Purchaser and its Affiliates and officers, directors, employees and
agents thereof under Article IX hereof, the Seller agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Purchaser or its assignees incurred in connection with the preparation, execution, delivery, enforcement,
administration (including periodic auditing), renewal, amendment or modification of, any waiver 

  
 43 

 
or consent issued in connection with, this Agreement and the other documents to be delivered hereunder or in connection herewith, including, without limitation, the reasonable fees and
out–of–pocket expenses of counsel with respect thereto and with respect to advising the Purchaser or its assignees as to its rights and remedies under this Agreement and the other documents to be delivered hereunder or in connection
herewith, and all out-of-pocket costs and expenses, if any (including reasonable counsel fees and expenses), incurred by the Purchaser or its assignees in connection with the enforcement of this Agreement and the other documents to be delivered
hereunder or in connection herewith. 
 (b) The Seller shall pay on demand any and all stamp, sales, excise and other Taxes and
fees payable or determined to be payable to any Governmental Authority in connection with the execution, delivery, filing and recording of this Agreement and the other documents to be delivered hereunder. 

(c) The Seller shall pay on demand all other reasonable out-of-pocket costs, expenses and Taxes (excluding Taxes imposed on or measured
by net income) incurred by the Purchaser or its assignees in connection with the execution, delivery, filing and recording of this Agreement and the other documents to be delivered hereunder, including, without limitation, all costs and expenses
incurred by the Purchaser or its assignees in connection with periodic audits of the Seller’s books and records. 
 (d) For
the avoidance of doubt, costs and expenses to be paid pursuant to this Section 10.10 shall exclude all allocable overhead costs and expenses. 
 Section 10.11. Counterparts. For the purpose of facilitating the execution of this Agreement and for other purposes, this Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and all of which counterparts shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or
e-mail in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. 

Section 10.12. Bankruptcy Non-Petition and Limited Recourse; Claims. The Seller hereby agrees that it will not institute
against, or join any other Person in instituting against, the Purchaser any Bankruptcy Proceeding so long as there shall not have elapsed one year and one day (or such longer preference period as shall then be in effect) since the Collection Date.
The Seller hereby acknowledges that (i) the Purchaser has no assets other than the Sale Portfolio and rights and interests in the Transaction Documents and rights incidental thereto, (ii) the Purchaser shall, immediately upon Purchase
hereunder, grant a security interest in the Sale Portfolio to the Collateral Agent, on behalf of the Secured Parties, pursuant to the Loan and Servicing Agreement, and (iii) Available Collections generated by the Sale Portfolio will be applied
to payment of the Purchaser’s obligations under the Loan and Servicing Agreement. In addition, the Seller shall have no recourse for any amounts payable or any other obligations arising under this Agreement against any officer, member,
director, employee, partner, Affiliate or security holder of the Purchaser or any of its successors or assigns. 

  
 44 

 Section 10.13. Binding Effect; Assignability. 

(a) This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted
assigns. 
 (b) Notwithstanding anything to the contrary contained herein, this Agreement may not be assigned by the Purchaser
or the Seller except as permitted by this Section 10.13 or the Loan and Servicing Agreement. Simultaneously with the execution and delivery of this Agreement, the Purchaser will assign all of its right, title and interest in this
Agreement to the Collateral Agent, for the benefit of the Secured Parties, to which assignment the Seller hereby expressly consents. Upon assignment, the Seller agrees to perform its obligations hereunder for the benefit of the Collateral Agent, for
the benefit of the Secured Parties, under the Loan and Servicing Agreement and the Collateral Agent, in such capacity, shall be a third party beneficiary hereof. Upon such assignment, the Collateral Agent, for the benefit of the Secured Parties,
under the Loan and Servicing Agreement may enforce the provisions of this Agreement, exercise the rights of the Purchaser and enforce the obligations of the Seller hereunder without joinder of the Purchaser. 

(c) The Administrative Agent, each Lender Agent, each Lender, the Collateral Custodian, the Collateral Agent and the other Secured
Parties shall be third-party beneficiaries of this Agreement. 
 Section 10.14. Waiver of Setoff. 

(a) The Seller’s obligations under this Agreement shall not be affected by any right of setoff, counterclaim, recoupment, defense or
other right the Seller might have against the Purchaser, the Administrative Agent, the Lenders, the Lender Agents, the Collateral Agent, the Collateral Custodian, the other Secured Parties or any assignee of such Persons, all of which rights are
hereby waived by the Seller. 
 (b) The Purchaser shall have the right to set–off against the Seller any amounts to which
the Seller may be entitled hereunder and to apply such amounts to any claims the Purchaser may have against the Seller from time to time under this Agreement. Upon any such set–off, the Purchaser shall give notice of the amount thereof and the
reasons therefor to the Seller. 
 Section 10.15. Headings and Exhibits. The headings herein are for purposes of
references only and shall not otherwise affect the meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes. 
 Section 10.16. Rights of Inspection. The Purchaser and the Administrative Agent, and
each of their respective representatives and assigns may conduct at any reasonable time, with reasonable notice, and from time to time, and the Seller will fully cooperate with, a reasonable number of field examinations and audits of the inventory,
the Loan Assets and business affairs of the Seller each calendar year, subject to any limitations in the Loan and Servicing Agreement. Each such inspection shall be at the sole expense of the Seller. The Purchaser and its representatives and
successors and assigns acknowledge that in exercising the rights and 

  
 45 

 
privileges conferred in this Section 10.16, it or its representatives or assigns may, from time to time, obtain knowledge of information, practices, books, correspondence and records
of a confidential nature and in which the Seller has a proprietary interest. The Purchaser and its representatives and successors and assigns each agree that (i) it shall retain in strict confidence and shall use its reasonable efforts to
ensure that its representatives retain in strict confidence and will not disclose without the prior written consent of the Seller any or all of such information, practices, books, correspondence and records furnished to them and (ii) that it
will not, and will use its reasonable efforts to ensure that its representatives and assigns will not, make any use whatsoever (other than for the purposes contemplated by this Agreement) of any of such information, practices, books, correspondence
and records without the prior written consent of the Seller, unless such information is generally available to the public or is required by law to be disclosed. 
 Section 10.17. Subordination. After giving effect to any payment relating to any indebtedness, obligation or claim the Seller may from time to time hold or otherwise have against the Purchaser
or any assets or properties of the Purchaser, whether arising hereunder or otherwise existing, the Borrowing Base at such time must exceed the Obligations owed by the Purchaser to the Secured Parties under the Loan and Servicing Agreement. The
Seller hereby agrees that at any time during which the condition set forth in the preceding sentence shall not be satisfied, the Seller shall be subordinate in right of payment to the prior payment of any indebtedness or obligation of the Purchaser
owing to each Lender, each Lender Agent, the Collateral Agent, the Collateral Custodian, the Administrative Agent or any other Secured Party under the Loan and Servicing Agreement. 

Section 10.18. Confidentiality. Each of the parties hereto hereby agrees with the confidentiality provisions set forth in
Sections 11.13 and 11.14 of the Loan and Servicing Agreement. 
 [Signature pages to follow.] 

  
 46 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their
respective officers as of the day and year first above written. 
  

			
	SOLAR CAPITAL FUNDING II LLC,
	as the Purchaser
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	SOLAR CAPITAL LTD.,
	as the Seller
		
	By:	 	  

		 	Name:
		 	Title:2011 Omnibus Equity Plan

 Exhibit 4.3 
 GLOBAL-TECH ADVANCED INNOVATIONS INC. 
 2011 OMNIBUS EQUITY PLAN

 ARTICLE 1 
 General Purpose of Plan; Definitions 
 1.1 Name and Purposes. The
name of this plan is the Global-Tech Advanced Innovations Inc. 2011 Omnibus Equity Plan. The purpose of this Plan is to enable Global-Tech Advanced Innovations Inc. and its Affiliates to: (i) attract and retain skilled and qualified officers,
employees and directors who are expected to contribute to the Company’s success by providing long-term incentive compensation opportunities competitive with those made available by other companies; (ii) motivate participants to achieve the
long-term success and growth of the Company; (iii) facilitate ownership of shares of the Company; and (iv) align the interests of the participants with those of the Company’s Stockholders. 

1.2 Certain Definitions. Unless the context otherwise indicates, the following words shall have the following meanings whenever
used in this Plan: 
 “Affiliate” means any corporation, partnership, joint venture or other entity, directly or
indirectly, through one or more intermediaries, controlling, controlled by, or under common control with the Company within the meaning of Section 414(b) or (c) of the Code. 

“Award” means any Common Share, Stock Option, Stock Appreciation Right, Restricted Share, Restricted Share Unit or Performance
Share granted pursuant to this Plan. 
 “Base Value” is defined in Section 7.3. 

“Beneficial Owner” means a “beneficial owner,” as such term is defined in Rule 13d-3 under the Exchange Act (or any
successor rule thereto). 
 “Board” means the Board of Directors of the Company. 

“Change in Control” is defined in Section 12.1. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and lawful regulations and guidance promulgated thereunder. Whenever reference is made to a specific Internal
Revenue Code section, such reference shall be deemed to be a reference to any successor Internal Revenue Code section or sections with the same or similar purpose. 
 “Committee” means the entity administering this Plan as provided in Section 2.1. 
 “Common Shares” means shares of common stock of the Company, par value $0.04 per share. 

 “Company” means Global-Tech Advanced Innovations Inc., a corporation organized
under the laws of the British Virgin Islands, and, except for purposes of determining whether a Change in Control has occurred, any corporation or entity that is a successor to Global-Tech Advanced Innovations Inc. or substantially all of the assets
of Global-Tech Advanced Innovations Inc. and that assumes the obligations of Global-Tech Advanced Innovations Inc. under this Plan by operation of law or otherwise. 
 “Date of Grant” means the date on which the Committee grants an Award. 

“Director” means a member of the Board. 
 “Disability” shall be defined in the Award agreements, as necessary. 

“Eligible Director” is defined in Section 4.1. 
 “Employment” as used herein shall be deemed to refer to (i) a participant’s employment if the participant is an employee of the Company or any of its Affiliates, (ii) a
participant’s services as a consultant, if the participant is a consultant to the Company or its Affiliates and (iii) a participant’s services as a non-employee director, if the participant is a non-employee member of the Board;
provided that, for any Award that is or becomes subject to Section 409A of the Code, termination of Employment means a “separation from service” under Section 409A of the Code. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any lawful regulations and guidance
promulgated thereunder. Whenever reference is made to a specific Securities Exchange Act of 1934 section, such reference shall be deemed to be a reference to any successor section or sections with the same or similar purpose. 

“Exercise Price” means the purchase price of a Share pursuant to a Stock Option. 

“Fair Market Value” means the last closing price of a Share as reported on The Nasdaq Stock Market, or, if applicable, on
another national securities exchange on which the Common Shares are principally traded, on the date for which the determination of Fair Market Value is made or, if there are no sales of Common Shares on such date, then on the most recent immediately
preceding date on which there were any sales of Common Shares. If the Common Shares are not traded on The Nasdaq Stock Market or another national securities exchange, the “Fair Market Value” of Common Shares shall be determined by the
Committee in a reasonable manner pursuant to a reasonable valuation method. Notwithstanding anything to the contrary in the foregoing, as of any date, the “Fair Market Value” of Common Shares shall be determined in a manner consistent with
avoiding adverse tax consequences under Code Section 409A. In addition, “Fair Market Value” with respect to ISOs and related SARs shall be determined in accordance with Section 6.2(f). 

“Full-Value Awards” means Restricted Share Awards, Restricted Share Unit Awards, Performance Share Awards and Common Share
Awards. 

 “Incentive Stock Option” and “ISO” mean a Stock Option which meets the
requirements of Section 422 of the Code. 
 “Non-Qualified Stock Option” and “NQSO” mean a Stock Option
that does not meet the requirements of Section 422 of the Code. 
 “Outside Director” means a Director who meets
the definitions of the terms “outside director” used in Section 162(m) of the Code, “independent director” set forth in The Nasdaq Stock Market, Inc. rules, and “non-employee director” set forth in Rule 16b-3, or
any successor definitions adopted by the Internal Revenue Service, The Nasdaq Stock Market, Inc. and Securities and Exchange Commission, respectively, and similar requirements under any other applicable laws, rules and regulations. 

“Parent” means any corporation which qualifies as a “parent corporation” of the Company under Section 424(e) of
the Code. 
 “Performance Period” is defined in Section 8.4(g). 

“Performance Shares” is defined in Article 9. 
 “Permitted Holder” means as of the date of determination, an employee benefit plan (or trust forming a part thereof) maintained by (i) the Company or its Affiliates or (ii) any
corporation or other Person of which a majority of its voting power of its voting equity securities or equity interest is owned, directly or indirectly, by the Company. 
 “Person” means a “person,” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act. 

“Plan” means this Global-Tech Advanced Innovations Inc. 2011 Omnibus Equity Plan, as amended from time to time. 

“Plan Year” means the calendar year. 
 “Restricted Share Units” is defined in Article 8. 
 “Restricted
Shares” is defined in Article 8. 
 “Retirement” shall be defined in the Award agreements, as necessary.

 “Rule 16b-3” is defined in Article 17. 
 “Section 16 Person” means a person potentially subject to liability under Section 16(b) of the Exchange Act with respect to transactions involving equity securities of the Company.

 “Section 162(m) Person” means, for any taxable year, a person who is a “covered employee” under
Section 162(m)(3) of the Code. 

 “Share” or “Shares” mean one or more of the Common Shares. 

“Stock Appreciation Rights” and “SARs” mean any right pursuant to an Award granted under Article 7. 

“Stock Option” means a right to purchase a specified number of Shares at a specified price which is granted pursuant to Article
5; such right may be an Incentive Stock Option or a Non-Qualified Stock Option. 
 “Stock Power” means a power of
attorney executed by a participant and delivered to the Company which authorizes the Company to transfer ownership of Restricted Shares, Performance Shares or Common Shares from the participant to the Company or a third party. 

“Stockholder” means an individual or entity that owns one or more Shares. 

“Subsidiary” means any corporation which qualifies as a “subsidiary corporation” of the Company under
Section 424(f) of the Code. 
 “Vested” means, with respect to a Common Share, when the Common Share has been
awarded; with respect to a Stock Option, when the Stock Option first becomes exercisable; with respect to a Stock Appreciation Right, when the Stock Appreciation Right first becomes exercisable; with respect to Restricted Shares, when the Shares are
no longer subject to forfeiture and restrictions on transferability; with respect to Restricted Share Units and Performance Shares, when the units or Shares are no longer subject to forfeiture and are convertible to Shares. “Vest” and
“Vesting” shall have correlative meanings. 
 ARTICLE 2 

Administration 
 2.1 Authority and Duties of the Committee. 
 (a) The Plan shall be
administered by a Committee of at least two Directors who are appointed by the Board. Unless otherwise determined by the Board, the Compensation Committee shall serve as the Committee. 

(b) The Committee has the power and authority to grant Awards pursuant to the terms of this Plan to officers, employees, consultants and
Eligible Directors. 
 (c) The Committee has the sole and exclusive authority, subject to any limitations specifically set forth
in this Plan, to: 
  

	 	(i)	select the officers, employees, consultants and Eligible Directors to whom Awards are granted; 

 

	 	(ii)	determine the types of Awards granted and the timing of such Awards; 

  

	 	(iii)	determine the number of Shares to be covered by each Award granted hereunder; 

 

	 	(iv)	determine whether an Award is, is intended to be, or shall remain, “performance-based compensation” within the meaning of Section 162(m) of the Code;

  

	 	(v)	determine the other terms and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder; such terms and conditions include, but are not
limited to, the Exercise Price, the time or times when Options or Stock Appreciation Rights may be exercised (which may be based on performance objectives), any Vesting, acceleration or waiver of forfeiture restrictions, any performance criteria
(including any performance criteria as described in Section 162(m)(4)(C) of the Code) applicable to an Award, and any restriction or limitation regarding any Option or Stock Appreciation Right or the Common Shares relating thereto, based in
each case on such factors as the Committee, in its sole discretion, shall determine; 

  

	 	(vi)	determine whether any conditions or objectives related to Awards have been met, including any such determination required for compliance with Section 162(m) of the
Code; 

  

	 	(vii)	subsequently modify or waive any terms and conditions of Awards, not inconsistent with the terms of this Plan; 

 

	 	(viii)	adopt, alter and repeal such administrative rules, guidelines and practices governing this Plan as it deems advisable from time to time; 

 

	 	(ix)	promulgate such administrative forms as they from time to time deem necessary or appropriate for administration of the Plan; 

 

	 	(x)	construe, interpret, administer and implement the terms and provisions of this Plan, any Award and any related agreements; 

 

	 	(xi)	correct any defect, supply any omission and reconcile any inconsistency in or between the Plan, any Award and any related agreements; 

 

	 	(xii)	prescribe any legends to be affixed to certificates representing Shares or other interests granted or issued under the Plan; and 

  

	 	(xiii)	otherwise supervise the administration of this Plan. 

 (d) All decisions made by the Committee pursuant to the provisions of this Plan are final and binding on all persons, including the Company, its Stockholders and participants, but may be made by their
terms subject to ratification or approval by, the Board, another committee of the Board of Directors or Stockholders. 
 (e) The
Company shall furnish the Committee and its delegates with such clerical and other assistance as is necessary for the performance of the Committee’s duties under the Plan. 

2.2 Delegation of Duties. The Committee may delegate ministerial duties to any other person or persons, and it may employ
attorneys, consultants, accountants or other professional advisers for purposes relating to plan administration at the expense of the Company. 
 2.3 Limitation of Liability. Members of the Board, members of the Committee and Company employees who are their designees acting under this Plan shall be fully protected in relying in good faith
upon the advice of counsel and shall incur no liability except for grossly negligent or willful misconduct in the performance of their duties hereunder. 
 ARTICLE 3 
 Stock Subject to Plan 

3.1 Total Shares Limitation. Subject to the provisions of this Article, the maximum number of Shares that may be issued pursuant
to Awards granted under this Plan is 400,000, which may be treasury Shares or unissued Shares. 
 3.2 Other Limitations.

 (a) Stock Option Limitations. The maximum number of Shares available with respect to all Stock Options granted under
this Plan is 250,000 Shares. The maximum number of Shares available with respect to ISOs granted under this Plan is 50,000 Shares. 
 (b) Full-Value Limitations. The maximum number of Shares available with respect to Full-Value Awards granted under this Plan is 150,000 Shares. 

(c) Participant Limitation. The aggregate number of Shares underlying Awards granted under this Plan to any participant in any
Plan Year (including but not limited to Awards of Options and SARs), regardless of whether such Awards are thereafter canceled, forfeited or terminated, shall not exceed 40,000 Shares. The foregoing annual limitation is intended to include the grant
of all Awards including, but not limited to, Awards representing “performance-based compensation” as described in Section 162(m)(4)(C) of the Code. 
 3.3 Awards Not Exercised; Effect of Receipt of Shares. If any outstanding Award, or portion thereof, expires, or is terminated, canceled or forfeited, the Shares that would otherwise be issuable
with respect to the unexercised portion of such expired, terminated, canceled or forfeited 

 
Award shall be available for subsequent Awards under this Plan. If the Exercise Price of a Stock Option is paid in Shares, Shares underlying the exercised portion of an SAR are not issued upon
exercise of the SAR, Shares are withheld to satisfy an individual participant’s tax obligations or Shares are repurchased by the Company on the open market with respect to Awards under this Plan, the Shares received, not issued, withheld or
repurchased by the Company in connection therewith shall not be added to the maximum aggregate number of Shares which may be issued under Section 3.1. 
 3.4 Dilution and Other Adjustments. If the Committee determines that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization,
stock split, reverse stock split, reorganization, re-designation, reclassification, merger, consolidation, liquidation, split-up, reverse split, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company or other similar corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available under this Plan, then the Committee may, in such manner as it deems equitable, adjust any or all of (i) the number and type of Shares (or other securities or
other property) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other securities or other property) subject to outstanding Awards, (iii) the limitations set forth above and (iv) the purchase
or exercise price or any performance objective with respect to any Award; provided, however, that the number of Shares or other securities covered by any Award or to which such Award relates is always a whole number. Notwithstanding the
foregoing, the foregoing adjustments shall be made in conformity with: (i) Sections 422 and 424 of the Code with respect to ISOs; (ii) Treasury Department Regulation Section 1.424-1 (and any successor) with respect to NQSOs, applied
as if the NQSOs were ISOs; (iii) Section 409A of the Code, to the extent necessary to avoid its application or avoid adverse tax consequences thereunder; and (iv) Section 162(m) of the Code with respect to Awards granted to
Section 162(m) Persons that are intended to be “performance-based compensation,” unless specifically determined otherwise by the Committee. 
 ARTICLE 4 
 Participants 

4.1 Eligibility. Officers, all other active common law employees of the Company or any of its Affiliates, consultants and Outside
Directors (each an “Eligible Director”) who are selected by the Committee in its sole discretion are eligible to participate in this Plan. 
 4.2 Award Agreements. Awards are contingent upon the participant’s execution of a written agreement in a form prescribed by the Committee. Execution of an Award agreement shall constitute the
participant’s irrevocable agreement to, and acceptance of, the terms and conditions of the Award set forth in such agreement and of the terms and conditions of the Plan applicable 

 
to such Award. Award agreements may differ from time to time and from participant to participant. 
 ARTICLE 5 
 Stock Option Awards 

5.1 Option Grant. Each Stock Option granted under this Plan will be evidenced by minutes of a meeting, or by a unanimous written
consent without a meeting, of the Committee, and by a written agreement dated as of the Date of Grant and executed by the Company and by the appropriate participant. 
 5.2 Terms and Conditions of Grants. Stock Options granted under this Plan are subject to the following terms and conditions and may contain such additional terms, conditions, restrictions and
contingencies with respect to exercisability and with respect to the Shares acquired upon exercise as may be provided in the relevant agreement evidencing the Stock Options, as the Committee deems desirable, so long as such terms and conditions are
not inconsistent with the terms of this Plan: 
 (a) Exercise Price. Subject to Section 3.4, the Exercise Price will
never be less than 100% of the Fair Market Value of the Shares on the Date of Grant. Except as otherwise provided in Section 3.4, no subsequent amendment of an outstanding Stock Option may reduce the Exercise Price to less than 100% of the Fair
Market Value of the Shares on the Date of Grant. Stock Options shall not be repriced. 
 (b) Option Term. Any unexercised
portion of a Stock Option granted hereunder shall expire at the end of the stated term of the Stock Option. The Committee shall determine the term of each Stock Option at the time of grant, which term shall not exceed ten years from the Date of
Grant. The Committee may extend the term of a Stock Option, in its discretion, but not beyond the date immediately prior to the tenth anniversary of the original Date of Grant. If a definite term is not specified by the Committee at the time of
grant, then the term is deemed to be ten years. 
 (c) Vesting. Stock Options, or portions thereof, are exercisable at
such time or times and on such conditions as determined by the Committee in its discretion at or after grant. If the Committee provides that any Stock Option becomes Vested over a period of time or on conditions, in its entirety or in installments,
the Committee may waive or accelerate those Vesting provisions at any time. 
 (d) Method of Exercise. Vested portions of
any Stock Option may be exercised in whole or in part at any time during the option term by giving written notice of exercise to the Company specifying the number of Shares to be purchased. The notice must be given by or on behalf of a person
entitled to exercise the Stock Option, accompanied by payment in full of the Exercise Price, along with any tax withholding pursuant to Article 16. Subject to the approval of the Committee, the Exercise Price may be paid: 

  

	 	(i)	in cash in any manner satisfactory to the Committee; 

  

	 	(ii)	by tendering (by either actual delivery of Shares or by attestation) unrestricted Shares that are owned on the date of exercise by the person entitled to exercise the
Stock Option having an aggregate Fair Market Value on the date of exercise equal to the applicable Exercise Price; 

  

	 	(iii)	by a combination of cash and unrestricted Shares that are owned on the date of exercise by the person entitled to exercise the Stock Option; 

 

	 	(iv)	by delivery of irrevocable instructions to a broker to sell Shares obtained upon exercise of the Stock Option and to deliver promptly to the Company an amount out of
the proceeds of such sale equal to the Exercise Price for the Shares being purchased; and 

  

	 	(v)	by another method permitted by law and affirmatively approved by the Committee which assures full and immediate payment or satisfaction of the Exercise Price.

 The Committee may withhold its approval for any method of payment for any reason, in its sole discretion,
including but not limited to concerns that the proposed method of payment will result in adverse financial accounting treatment, adverse tax treatment for the Company or a participant or a violation of the Sarbanes-Oxley Act of 2002, as amended from
time to time, and lawful regulations and guidance promulgated thereunder. 
 (e) Issuance of Shares. The Company will
issue or cause to be issued Shares as soon as practicable after exercise of a Stock Option and receipt of full payment of the Exercise Price. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the Shares, in certificated or uncertificated form, no right to vote or receive dividends or any other rights as a Stockholder will exist with respect to the Shares, notwithstanding the exercise of the
Stock Option. 
 (f) Form. Unless the grant of a Stock Option is designated at the time of grant as an ISO, it is deemed
to be an NQSO. ISOs are subject to the additional terms and conditions in Article 6. 
 (g) Special Limitations on Stock
Option Awards. Unless an Award agreement approved by the Committee expressly provides otherwise, Stock Options awarded under this Plan are intended to meet the requirements for exclusion from coverage under Section 409A of the Code and all
Stock Option Awards shall be construed and administered accordingly. 

 ARTICLE 6 
 Special Rules Applicable to Incentive Stock Options 
 6.1
Eligibility. Notwithstanding any other provision of this Plan to the contrary, an ISO may only be granted to employees (including officers and Directors who are also employees) of the Company or an Affiliate which is also a Parent or
Subsidiary. 
 6.2 Special ISO Rules. 
 (a) Term. No ISO may be exercisable on or after the tenth anniversary of the Date of Grant, and no ISO may be granted under this Plan on or after the tenth anniversary of the effective date of this
Plan. 
 (b) Ten Percent Stockholder. If a grantee owns (at the time of the Award and after application of the rules
contained in Section 424(d) of the Code) equity securities possessing more than 10% of the total combined voting power of all classes of equity securities of the Company, its Parent or any Subsidiary, the Exercise Price of the ISO will be at
least 110% of the Fair Market Value of the Shares as of the Date of Grant and such ISO shall not be exercisable on or after the fifth anniversary of the Date of Grant. 
 (c) Limitation on Grants. The aggregate Fair Market Value (determined with respect to each ISO at the time of grant) of the Shares with respect to which ISOs are exercisable for the first time by
an optionee during any calendar year (under this Plan or any other plan adopted by the Company or a Parent or a Subsidiary) shall not exceed $100,000. If such aggregate Fair Market Value shall exceed $100,000, such number of ISOs as shall have an
aggregate Fair Market Value equal to the amount in excess of $100,000 shall be treated as NQSOs. 
 (d)
Non-Transferability. Notwithstanding any other provision herein to the contrary, no ISO (and, if applicable, related Stock Appreciation Right) may be transferred except by will or by the laws of descent and distribution, nor may an ISO (or
related Stock Appreciation Right) be exercisable during an optionee’s lifetime other than by him or her (or his or her guardian or legal representative to the extent permitted by applicable law). 

(e) Termination of Employment. No ISO may be exercised more than three months following termination of employment for any reason
(including retirement) other than death or disability, nor more than one year following termination of employment due to death or disability (as defined in Section 422 of the Code), or such option will no longer qualify as an ISO and shall
thereafter be, and receive the tax treatment applicable to, an NQSO. For this purpose, a termination of employment is cessation of employment such that no employment relationship exists between the participant and the Company, a Parent or a
Subsidiary. 
 (f) Fair Market Value. For purposes of any ISO granted hereunder (or, if applicable, related Stock
Appreciation Right), the Fair Market Value of Shares shall be determined in the manner required by Section 422 of the Code. 

 6.3 Subject to Code Amendments. The foregoing limitations are designed to comply with
the requirements of Section 422 of the Code and shall be automatically amended or modified to comply with changes to Section 422 of the Code. Any ISO which fails to meet the requirements of Section 422 of the Code is automatically
treated as an NQSO appropriately granted under this Plan provided that it otherwise meets the Plan’s requirements for being an NQSO. 
 ARTICLE 7 
 Stock Appreciation Rights 

7.1 SAR Grant and Agreement. Stock Appreciation Rights may be granted under this Plan, either independently or in conjunction with
the grant of a Stock Option. Each SAR granted under this Plan will be evidenced by minutes of a meeting, or by a unanimous written consent without a meeting, of the Committee, and by a written agreement dated as of the Date of Grant and executed by
the Company and by the appropriate participant. 
 7.2 SARs Granted in Conjunction with Option. Stock Appreciation Rights
may be granted in conjunction with all or part of any Stock Option granted under this Plan, at the same time as the grant of the Stock Option, and will be subject to the following terms and conditions: 

(a) Term. Each Stock Appreciation Right, or applicable portion thereof, granted with respect to a given Stock Option or portion
thereof terminates and is no longer exercisable upon the termination or exercise of the related Stock Option, or applicable portion thereof. 
 (b) Exercisability. A Stock Appreciation Right is exercisable only at such time or times and to the extent that the Stock Option to which it relates is Vested and exercisable in accordance with the
provisions of Article 5 or otherwise as the Committee may determine. 
 (c) Method of Exercise. A Stock Appreciation
Right may be exercised by the surrender of the applicable portion of the related Stock Option. Stock Options which have been so surrendered, in whole or in part, are no longer exercisable to the extent the related Stock Appreciation Rights have been
exercised and are deemed to have been exercised for the purpose of the limitation set forth in Article 3 on the number of Shares to be issued under this Plan. Upon the exercise of a Stock Appreciation Right, subject to satisfaction of tax
withholding requirements, the holder of the Stock Appreciation Right is entitled to receive cash or Shares equal in value to the excess of the Fair Market Value of a Share on the exercise date over the Exercise Price per Share specified in the
related Stock Option, multiplied by the number of Shares in respect of which the Stock Appreciation Right is exercised. Any fractional Shares shall be paid in cash or, if the Committee determines, rounded downward to the next whole Share. At any
time the Exercise Price per Share of the related Stock Option exceeds the Fair Market Value of one Share, the holder of the Stock Appreciation Right shall not be permitted to exercise such right. 

 7.3 Independent SARs. Stock Appreciation Rights may be granted without related Stock
Options, and independent Stock Appreciation Rights will be subject to the following terms and conditions: 
 (a) Term.
Any unexercised portion of an independent Stock Appreciation Right granted hereunder shall expire at the end of the stated term of the Stock Appreciation Right. The Committee shall determine the term of each Stock Appreciation Right at the time of
grant, which term shall not exceed ten years from the Date of Grant. The Committee may extend the term of a Stock Appreciation Right, in its discretion, but not beyond the date immediately prior to the tenth anniversary of the original Date of
Grant. If a definite term is not specified by the Committee at the time of grant, then the term is deemed to be ten years. 

(b) Exercisability. A Stock Appreciation Right is exercisable, in whole or in part, at such time or times as determined by the
Committee at or after the time of grant. 
 (c) Method of Exercise. A Stock Appreciation Right may be exercised in whole
or in part during the term by giving written notice of exercise to the Company specifying the number of Shares in respect of which the Stock Appreciation Right is being exercised. The notice must be given by or on behalf of a person entitled to
exercise the Stock Appreciation Right. Upon the exercise of a Stock Appreciation Right, subject to satisfaction of tax withholding requirements, the holder of the Stock Appreciation Right is entitled to receive cash or Shares equal in value to the
excess of the Fair Market Value of a Share on the exercise date over the Fair Market Value of a Share on the Date of Grant (the “Base Value”) multiplied by the number of Stock Appreciation Rights being exercised. Any fractional Shares
shall be paid in cash or, if the Committee determines, rounded downward to the next whole Share. At any time the Fair Market Value of a Share on a proposed exercise date does not exceed the Base Value, the holder of the Stock Appreciation Right
shall not be permitted to exercise such right. 
 7.4 Other Terms and Conditions of SAR Grants. Stock Appreciation Rights
are subject to such other terms and conditions, not inconsistent with the provisions of this Plan, as are determined from time to time by the Committee. 
 7.5 Special Limitations on SAR Awards. Unless an Award agreement approved by the Committee expressly provides otherwise, Stock Appreciation Rights awarded under this Plan are intended to meet the
requirements for exclusion from coverage under Section 409A of the Code and all Stock Appreciation Rights Awards shall be construed and administered accordingly. 
 ARTICLE 8 
 Restricted Share and Restricted Share Unit Awards

 8.1 Restricted Share Grants and Agreements. Restricted Share Awards consist of Shares which are issued by the
Company to a participant at no cost or at a purchase price determined by the Committee which may be below their Fair Market Value but which are subject to forfeiture and restrictions on their sale or other transfer by the participant. Each
Restricted Share Award 

 
granted under this Plan will be evidenced by minutes of a meeting, or by a unanimous written consent without a meeting, of the Committee, and by a written agreement dated as of the Date of Grant
and executed by the Company and by the participant. The timing of Restricted Share Awards and the number of Shares to be issued (subject to Section 3.4) are to be determined by the Committee in its discretion. By accepting a grant of Restricted
Shares, the participant consents to any tax withholding. 
 8.2 Terms and Conditions of Restricted Share Grants.
Restricted Shares granted under this Plan are subject to the following terms and conditions, which, except as otherwise provided herein, need not be the same for each participant, and may contain such additional terms, conditions, restrictions and
contingencies not inconsistent with the terms of this Plan, as the Committee deems desirable: 
 (a) Purchase Price. The
Committee shall determine the prices, if any, at which Restricted Shares are to be issued to a participant, which may vary from time to time and from participant to participant and which may be below the Fair Market Value of such Restricted Shares
at the Date of Grant. 
 (b) Restrictions. All Restricted Shares issued under this Plan will be subject to such
restrictions as the Committee may determine, which may include, without limitation, the following: 
  

	 	(i)	a prohibition against the sale, transfer, pledge or other encumbrance of the Restricted Shares, such prohibition to lapse at such time or times as the Committee
determines (whether in installments, at the time of the death, Disability or Retirement of the holder of such shares, or otherwise, but subject to the Change in Control provisions in Article 12 and the applicable Award agreements);

  

	 	(ii)	a requirement that the participant forfeit such Restricted Shares in the event of termination of the participant’s employment or directorship with the Company or
its Affiliates prior to Vesting; 

  

	 	(iii)	a prohibition against employment or retention of the participant by any competitor of the Company or its Affiliates, or against dissemination by the participant of any
secret or confidential information belonging to the Company or an Affiliate; 

  

	 	(iv)	any applicable requirements arising under the Securities Act of 1933, as amended, other securities laws, the rules and regulations of The Nasdaq Stock Market or any
other stock exchange or transaction reporting system upon which 

	 	 
such Restricted Shares are then listed or quoted and any state laws, rules and regulations, including “blue sky” laws; and 

 

	 	(v)	such additional restrictions as are required to avoid adverse tax consequences under Section 409A of the Code. 

The Committee may at any time waive such restrictions or accelerate the date or dates on which the restrictions will lapse. However, if
the Committee determines that restrictions lapse upon the attainment of specified performance objectives, then the provisions of Sections 9.2 and 9.3 will apply. If the written agreement governing an Award to a Section 162(m) Person provides
that such Award is intended to be “performance-based compensation,” the applicable provisions of Article 9 implementing Section 162(m) of the Code will also apply. 

(c) Delivery of Shares. Restricted Shares will be certificated and registered in the name of the participant and deposited,
together with a Stock Power, with the Company. Each such certificate will bear a legend in substantially the following form: 

“The transferability of this certificate and the Common Shares represented by it are subject to the terms and conditions (including
conditions of forfeiture) contained in the Global-Tech Advanced Innovations Inc. Omnibus Equity Plan and an agreement entered into between the registered owner and the Company. A copy of this Plan and agreement are on file in the office of the
Secretary of the Company.” 
 At the end of any time period during which the Restricted Shares are subject to forfeiture
and restrictions on transfer, and after any tax withholding, such Shares will be delivered free of all restrictions (except for any pursuant to Section 15.2) to the participant or other appropriate person and with the foregoing legend removed.

 (d) Forfeiture of Shares. If a participant who holds Restricted Shares fails to satisfy the restrictions, Vesting
requirements and other conditions relating to the Restricted Shares prior to the lapse, satisfaction or waiver of such restrictions and conditions, except as may otherwise be determined by the Committee, the participant shall forfeit the Shares and
transfer them back to the Company in exchange for a refund of any consideration paid by the participant or such other amount which may be specifically set forth in the Award agreement. A participant shall execute and deliver to the Company one or
more Stock Powers with respect to Restricted Shares granted to such participant. 
 (e) Voting and Other Rights. Except
as otherwise required for compliance with Section 162(m) of the Code and the terms of the applicable Restricted Share Agreement, during any period in which Restricted Shares are subject to forfeiture and restrictions on transfer, the
participant holding such Restricted Shares shall have all the rights of a Stockholder with respect to such Shares, including, without limitation, the right to vote such Shares and the right to receive any dividends paid with respect to such Shares;
provided that if restrictions lapse upon 

 
the attainment of specified performance objectives, then the participant will receive any dividends only to the extent performance objectives are achieved. 

8.3 Restricted Share Unit Awards and Agreements. Restricted Share Unit Awards consist of Shares that will be issued to a
participant at a future time or times at no cost or at a purchase price determined by the Committee which may be below their Fair Market Value if continued employment, continued directorship and/or other terms and conditions specified by the
Committee are satisfied. Each Restricted Share Unit Award granted under this Plan will be evidenced by minutes of a meeting, or by a unanimous written consent without a meeting, of the Committee, and by a written agreement dated as of the Date of
Grant and executed by the Company and the Plan participant. The timing of Restricted Share Unit Awards and the number of Restricted Share Units to be awarded (subject to Section 3.2) are to be determined by the Committee in its sole discretion.
By accepting a Restricted Share Unit Award, the participant agrees to remit to the Company when due any tax withholding as provided in Article 16. 
 8.4 Terms and Conditions of Restricted Share Unit Awards. Restricted Share Unit Awards are subject to the following terms and conditions, which, except as otherwise provided herein, need not be the
same for each participant, and may contain such additional terms, conditions, restrictions and contingencies not inconsistent with the terms of this Plan, as the Committee deems desirable: 

(a) Purchase Price. The Committee shall determine the prices, if any, at which Shares are to be issued to a participant after
Vesting of Restricted Share Units, which may vary from time to time and among participants and which may be below the Fair Market Value of Shares at the Date of Grant. 
 (b) Restrictions. All Restricted Share Units awarded under this Plan will be subject to such restrictions as the Committee may determine, which may include, without limitation, the following:

  

	 	(i)	a prohibition against the sale, transfer, pledge or other encumbrance of the Restricted Share Unit; 

 

	 	(ii)	a requirement that the participant forfeit such Restricted Share Unit in the event of termination of the participant’s employment or directorship with the Company
or its Affiliates prior to Vesting; 

  

	 	(iii)	a prohibition against employment of the participant by, or provision of services by the participant to, any competitor of the Company or its Affiliates, or against
dissemination by the participant of any secret or confidential information belonging to the Company or an Affiliate; 

  

	 	(iv)	any applicable requirements arising under the Securities Act of 1933, as amended, other securities laws, the rules and regulations of The Nasdaq Stock Market or any
other stock exchange or transaction reporting system upon which the Common Shares are then listed or quoted and any state laws, rules and interpretations, including “blue sky” laws; and 

 

	 	(v)	such additional restrictions as are required to avoid adverse tax consequences under Section 409A of the Code. 

The Committee may at any time waive such restrictions or accelerate the date or dates on which the restrictions will lapse. 

(c) Performance-Based Restrictions. The Committee may, in its sole discretion, provide restrictions that lapse upon the attainment
of specified performance objectives. In such case, the provisions of Sections 9.2 and 9.3 will apply (including, but not limited to, the enumerated performance objectives). If the written agreement governing an Award to a Section 162(m) Person
provides that such Award is intended to be “performance-based compensation,” the applicable provisions of Article 9 implementing Section 162(m) of the Code will also apply. 

(d) Voting and Other Rights. A participant holding Restricted Share Units shall not be deemed to be a Stockholder solely because
of such units. Such participant shall have no rights of a Stockholder with respect to such units; provided, however, that an Award agreement may provide for payment of an amount of money (or Shares with a Fair Market Value equivalent to such
amount) equal to the dividends paid from time to time on the number of Common Shares that would become payable upon vesting of a Restricted Share Unit Award but if restrictions lapse upon the attainment of specified performance objectives, then such
dividend equivalents shall be paid only to the extent performance objectives are achieved. 
 (e) Lapse of Restrictions.
If a participant who holds Restricted Share Units satisfies the restrictions and other conditions relating to the Restricted Share Units prior to the lapse or waiver of such restrictions and conditions, the Restricted Share Units shall be converted
to, or replaced with, Shares which are free of all restrictions except for any restrictions pursuant to Section 15.2. 

(f) Forfeiture of Restricted Share Units. If a participant who holds Restricted Share Units fails to satisfy the restrictions,
Vesting requirements and other conditions relating to the Restricted Share Units prior to the lapse, satisfaction or waiver of such restrictions and conditions, except as may otherwise be determined by the Committee, the participant shall forfeit
the Restricted Share Units. 
 (g) Termination. A Restricted Share Unit Award or unearned portion thereof will terminate
without the issuance of Shares on the termination date specified on the Date of 

 
Grant or upon the termination of Employment or directorship of the participant during the time period or periods specified by the Committee during which any performance objectives must be met
(the “Performance Period”). If a participant’s Employment or directorship with the Company or its Affiliates terminates by reason of his or her death, Disability or Retirement, the Committee in its discretion at or after the Date of
Grant may determine that the participant (or the heir, legatee or legal representative of the participant’s estate) will receive a distribution of Shares in an amount which is not more than the number of Shares which would have been earned by
the participant if 100% of the performance objectives for the current Performance Period had been achieved prorated based on the ratio of the number of months of active employment in the Performance Period to the total number of months in the
Performance Period. However, with respect to Awards intended to be performance-based compensation (as described in Section 9.4(d)), distribution of the Shares shall not be made prior to attainment of the relevant performance objectives.

 (h) Special Limitations on Restricted Share Unit Awards. Restricted Share Units awarded under this Plan are intended
to be compliant with, or exempt from, Section 409A of the Code and all Restricted Share Unit Awards shall be construed and administered accordingly. 
 8.5 Time Vesting of Restricted Share and Restricted Share Unit Awards. Restricted Shares or Restricted Share Units, or portions thereof, are exercisable at such time or times as determined by the
Committee in its discretion at or after grant, subject to the restrictions on time Vesting set forth in this Section. If the Committee provides that any Restricted Shares or Restricted Share Unit Awards become Vested over time (with or without a
performance component), the Committee may waive or accelerate such Vesting provisions at any time, subject to the restrictions on time Vesting set forth in this Section. 
 ARTICLE 9 
 Performance Share Awards 

9.1 Performance Share Awards and Agreements. A Performance Share Award is a right to receive Shares in the future conditioned upon
the attainment of specified performance objectives and such other conditions, restrictions and contingencies as the Committee may determine. Each Performance Share Award granted under this Plan will be evidenced by minutes of a meeting, or by a
unanimous written consent without a meeting, of the Committee, and by a written agreement dated as of the Date of Grant and executed by the Company and by the Plan participant. The timing of Performance Share Awards and the number of Shares covered
by each Award (subject to Section 3.2) are to be determined by the Committee in its discretion. By accepting a grant of Performance Shares, the participant agrees to remit to the Company when due any tax withholding as provided in Article 16.

 9.2 Performance Objectives. At the time of grant of a Performance Share Award, the
Committee will specify the performance objectives which, depending on the extent to which they are met, will determine the number of Shares that will be distributed to the participant. The Committee will also specify the time period or periods (the
“Performance Period”) during which the performance objectives must be met. With respect to Awards to Section 162(m) Persons intended to be “performance based compensation,” the Committee may use performance objectives based
on one or more of the following: (i) earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization or earnings before interest and taxes); (ii) net income; (iii) operating income;
(iv) earnings per share; (v) book value per share; (vi) return on stockholders’ equity; (vii) expense management; (viii) return on investment; (ix) improvements in capital structure or capital expenses;
(x) profitability of an identifiable business unit or product; (xi) maintenance or improvement of profit margins; (xii) stock price; (xiii) market share; (xiv) costs; (xv) liquidity or cash flow; (xvi) working
capital and working capital metrics; (xvii) return on assets; (xviii) assets, debt or net debt; (xix) total return; (xx) customer satisfaction survey performance; (xxi) quality improvement performance;
(xxii) manufacturing productivity performance; and (xxiii) such other objective performance criteria as determined by the Committee in its sole discretion. The Committee may designate a single goal criterion or multiple goal criteria for
performance measurement purposes. Performance measurement may be based on absolute Company, business unit or divisional performance and/or on performance as compared with that of other publicly-traded companies. The performance objectives and
periods need not be the same for each participant nor for each Award. 
 9.3 Adjustment of Performance Objective and
Evaluations. The Committee may modify, amend or otherwise adjust the performance objectives specified for outstanding Performance Share Awards if it determines that an adjustment would be consistent with the objectives of this Plan and taking
into account the interests of the participants and the public Stockholders of the Company and such adjustment complies with the requirements of Section 162(m) of the Code for Section 162(m) Persons, to the extent applicable, unless the
Committee indicates a contrary intention. The types of events which could cause an adjustment in the performance objectives include, without limitation, accounting changes which substantially affect the determination of performance objectives,
changes in applicable laws or regulations which affect the performance objectives, and divisive corporate reorganizations, including spin-offs and other distributions of property or stock. The Committee may also appropriately adjust any performance
evaluation under a performance objective or objectives to reflect any of the following events that may occur during the Performance Period: (1) asset gains or losses; (2) litigation, claims, judgments or settlements; (3) the effect of
changes in tax law, accounting principles or other such laws or provisions affecting reported results; (4) accruals for reorganization and restructuring programs; and (5) any extraordinary, unusual, non-recurring or non-cash items.

 9.4 Other Terms and Conditions. Performance Share Awards granted under this Plan are
subject to the following terms and conditions and may contain such additional terms, conditions, restrictions and contingencies not inconsistent with the terms of this Plan as the Committee deems desirable: 

(a) Delivery of Shares. As soon as practicable after the applicable Performance Period has ended, the participant will receive a
distribution of the number of Shares earned during the Performance Period, depending upon the extent to which the applicable performance objectives were achieved. Such Shares will be registered in the name of the participant and will be free of all
restrictions except for any restrictions pursuant to Section 15.2. 
 (b) Termination. A Performance Share Award or
unearned portion thereof will terminate without the issuance of Shares on the termination date specified at the time of grant or upon the termination of employment or directorship of the participant during the Performance Period. If a
participant’s employment or directorship with the Company or its Affiliates terminates by reason of his or her death, Disability or Retirement (except with respect to Section 162(m) Persons), the Committee in its discretion at or after the
time of grant may determine, notwithstanding any Vesting requirements under Section 9.4(a), that the participant (or the heir, legatee or legal representative of the participant’s estate) will receive a distribution of a portion of the
participant’s then-outstanding Performance Share Awards in an amount which is not more than the number of shares which would have been earned by the participant if 100% of the performance objectives for the current Performance Period had been
achieved prorated based on the ratio of the number of months of active employment in the Performance Period to the total number of months in the Performance Period. However, with respect to Awards intended to be “performance-based
compensation” (as described in Section 9.4(d)), distribution of the Shares shall not be made prior to attainment of the relevant performance objective. 
 (c) Voting and Other Rights. Awards of Performance Shares do not provide the participant with voting rights or rights to dividends prior to the participant becoming the holder of record of Shares
issued pursuant to an Award; provided, however, that an Award agreement may provide for payment of an amount of money (or Shares with a Fair Market Value equivalent to such amount) equal to the dividends paid from time to time on the number
of Common Shares that would become payable upon vesting of a Performance Share Award but such dividend equivalents shall be paid only to the extent performance objectives are achieved. Prior to the issuance of Shares, Performance Share Awards may
not be sold, transferred, pledged, assigned or otherwise encumbered. 
 (d) Performance-Based Compensation. The Committee
may designate Performance Share Awards as being “remuneration payable solely on account of the attainment of one or more performance goals” as described in Section 162(m)(4)(C) of the Code. Such Awards shall be automatically amended
or modified to comply with amendments to Section 162 of the Code to the extent applicable, unless the Committee indicates a contrary intention. 

 9.5 Time Vesting of Performance Share Awards. Performance Share Awards, or portions
thereof, are exercisable at such time or times as determined by the Committee in its discretion at or after grant, subject to the restrictions on time Vesting set forth in this Section. If the Committee provides that any Performance Shares become
Vested over time (accelerated by a performance component), the Committee may waive or accelerate such Vesting provisions at any time, subject to the restrictions on time Vesting set forth in this Section. 

9.6 Special Limitations on Performance Share Awards. Unless an Award agreement approved by the Committee provides otherwise,
Performance Shares awarded under this Plan are intended to meet the requirements for exclusion from coverage under Section 409A of the Code and all Performance Share Awards shall be construed and administered accordingly. 

ARTICLE 10 

Common Share Awards 
 10.1 Eligibility. Notwithstanding any other provision of this Plan to the contrary, a Common Share may only be granted to an employee or Eligible Director. 

10.2 Terms and Conditions of Common Share Awards. 
 (a) Purpose. Common Shares may be granted in consideration of services rendered to the Company by employees or Eligible Directors in their capacity as Directors. 

(b) Vesting. Common Shares shall be fully-vested. 
 ARTICLE 11 
 Transfers and Leaves of Absence 

11.1 Transfer of Participant. For purposes of this Plan, the transfer of a participant among the Company and its Affiliates is
deemed not to be a termination of employment. 
 11.2 Effect of Leaves of Absence. For purposes of this Plan, the
following leaves of absence are deemed not to be a termination of employment: 
 (a) a leave of absence, approved in writing by
the Company, for military service, sickness or any other purpose approved by the Company, if the period of such leave does not exceed 90 days; 
 (b) a leave of absence in excess of 90 days, approved in writing by the Company, but only if the employee’s right to reemployment is guaranteed either by a statute or by contract, and provided that,
in the case of any such leave of absence, the employee returns to work within 30 days after the end of such leave; and 
 (c)
any other absence determined by the Committee in its discretion not to constitute a termination of employment. 

 ARTICLE 12 
 Effect of Change in Control 
 12.1 Change in Control Defined.
“Change in Control” means the occurrence of any of the following: (i) the sale or disposition, in one or a series of related transactions, of all or substantially all, of the assets of the Company to any Person or “group”
(as such term is defined in Sections 13(d)(3) or 14(d)(2) of the Exchange Act) other than the Permitted Holders; (ii) any Person or group other that the Permitted Holders is or becomes the Beneficial Owner (except that a Person shall be
deemed to have “beneficial ownership” of all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 30% of the total
voting power of the voting stock of the Company (or any entity which controls the Company or which is a successor to all or substantially all of the assets of the Company), including by way of merger, consolidation, tender or exchange offer or
otherwise; or (iii) during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board (together with any new directors whose election by such Board or whose nomination for election by the
stockholders of the Company was approved by a vote of a majority of the Directors of the Company, then still in office, who were either Directors at the beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board, then in office. Notwithstanding the foregoing, the Committee may specify a different definition of “Change in Control” as necessary to prevent adverse taxation under
Section 409A of the Code. 
 12.2 Acceleration of Award. Except as otherwise provided in this Plan or an Award
agreement, immediately upon the occurrence of a Change in Control: 
 (a) all outstanding Stock Options automatically become
fully exercisable; 
 (b) all Restricted Share Awards automatically become fully Vested; 

(c) subject to Section 409A of the Code, all Restricted Share Unit Awards automatically become fully Vested (or, if such Restricted
Share Unit Awards are subject to performance-based restrictions, they shall become Vested on a pro-rated basis as described in Section 12.2(d)) and, to the extent Vested, convertible to Shares at the election of the holder; 

(d) all participants holding Performance Share Awards become entitled to receive a partial payout in an amount which is the number of
Shares which would have been earned by the participant if 100% of the performance objectives for the current Performance Period had been achieved pro-rated based on the ratio of the number of months of active employment in the Performance Period to
the total number of months in the Performance Period; and 
 (e) Stock Appreciation Rights automatically become fully Vested and
fully exercisable. 
 12.3 Treatment of Awards. If the Committee determines that it would not trigger adverse taxation
under Section 409A of the Code, upon the occurrence of a Change in Control, the 

 
Committee may, but shall not be obligated to, (A) cancel Awards for fair value, which, in the case of Stock Options and Stock Appreciation Rights, shall equal the excess, if any, of the
value of the consideration to be paid in the Change in Control transaction to holders of the same number of Shares subject to such Stock Options or Stock Appreciation Rights (or, if no consideration is paid in any such transaction, the Fair Market
Value of the Shares subject to such Stock Options or Stock Appreciation Rights as of the date of the Change in Control) over the aggregate Exercise Price or Base Value (as applicable) of such Stock Options or Stock Appreciation Rights or
(B) provide for the issuance of substitute Awards that will substantially preserve the otherwise applicable terms and value of any affected Awards previously granted hereunder as determined by the Committee or (C) provide that for a period
of at least 15 days prior to the Change in Control, such Awards shall be exercisable, to the extent applicable, as to all Shares subject thereto and the Committee may further provide that upon the occurrence of the Change in Control, such Awards
shall terminate and be of no further force and effect. 
 ARTICLE 13 

Transferability of Awards 
 13.1 Awards Are Non-Transferable. Except as provided in Sections 13.2 and 13.3, Awards are non-transferable and any attempts to assign, pledge, hypothecate or otherwise alienate or encumber
(whether by operation of law or otherwise) any Award shall be null and void. 
 13.2 Inter-Vivos Exercise of Awards.
During a participant’s lifetime, Awards are exercisable only by the participant or, as permitted by applicable law and notwithstanding Section 13.1 to the contrary, the participant’s guardian or other legal representative. 

13.3 Limited Transferability of Certain Awards. Notwithstanding Section 13.1 to the contrary, Awards may be transferred by
will and by the laws of descent and distribution. Moreover, the Committee, in its discretion, may allow at or after the time of grant the transferability of Awards which are Vested, provided that the permitted transfer is made (a) if the Award
is an Incentive Stock Option, consistent with Section 422 of the Code; (b) to the Company (for example in the case of forfeiture of Restricted Shares), an Affiliate or a person acting as the agent of the foregoing or which is otherwise
determined by the Committee to be in the interests of the Company; or (c) by a participant for no consideration to Immediate Family Members or to a bona fide trust, partnership or other entity controlled by and for the benefit of one or more
Immediate Family Members. “Immediate Family Members” means the participant’s spouse, children, stepchildren, parents, stepparents, siblings (including half brothers and sisters), in-laws and other individuals who have a relationship
to the participant arising because of a legal adoption. No transfer may be made to the extent that transferability would cause Form S-8 or any successor form thereto not to be available to register Shares related to an Award. The Committee in its
discretion may impose additional terms and conditions upon transferability. 

 ARTICLE 14 
 Amendment and Discontinuation 
 14.1 Amendment or Discontinuation of
this Plan. The Board of Directors may amend, alter, or discontinue this Plan at any time, provided that no amendment, alteration, or discontinuance may be made: 
 (a) which would materially and adversely affect the rights of a participant under any Award granted prior to the date such action is adopted by the Board of Directors without the participant’s
written consent thereto; and 
 (b) without Stockholder approval, if Stockholder approval is required under applicable laws,
regulations or exchange requirements (including Section 422 of the Code with respect to ISOs, and for the purpose of qualification as “performance-based compensation” under Section 162(m) of the Code). 

Notwithstanding the foregoing, this Plan may be amended without affecting participants’ consent to: (i) comply with any law;
(ii) preserve any intended favorable tax effects for the Company or participants; or (iii) avoid any unintended unfavorable tax effects for the Company or participants. 

14.2 Amendment of Grants. The Committee may amend, prospectively or retroactively, the terms of any outstanding Award, provided
that no such amendment may be inconsistent with the terms of this Plan (specifically including the prohibition on granting Stock Options with an Exercise Price less than 100% of the Fair Market Value of the Common Shares on the Date of Grant) or
would materially and adversely affect the rights of any holder without his or her written consent. 
 ARTICLE 15

 Share Certificates 
 15.1 Delivery of Share Certificates. The Company is not required to issue or deliver any Shares issuable with respect to Awards under this Plan prior to the fulfillment of all of the following
conditions: 
 (a) payment in full for the Shares and for any tax withholding; 

(b) completion of any registration or other qualification of such Shares under any Federal or state laws or under the rulings or
regulations of the Securities and Exchange Commission or any other regulating body which the Committee in its discretion deems necessary or advisable; 
 (c) admission of such Shares to listing on The Nasdaq Stock Market or any stock exchange on which the Shares are listed; 
 (d) in the event the Shares are not registered under the Securities Act of 1933, qualification as a private placement under said Act; 

 (e) obtaining of any approval or other clearance from any Federal or state governmental
agency which the Committee in its discretion determines to be necessary or advisable; and 
 (f) the Committee is fully
satisfied that the issuance and delivery of Shares under this Plan is in compliance with applicable Federal, state or local law, rule, regulation or ordinance or any rule or regulation of any other regulating body, for which the Committee may seek
approval of counsel for the Company. 
 Notwithstanding the foregoing, with respect to any Award that is or becomes subject to
Section 409A of the Code, a payment may only be delayed where the Company or any Affiliate reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law and provided that the payment is made
at the earliest date at which the Company or Affiliate reasonably anticipates that the making of the payment will not cause such violation. 
 15.2 Applicable Restrictions on Shares. Shares issued with respect to Awards may be subject to such stock transfer orders and other restrictions as the Committee may determine necessary or
advisable under any applicable Federal or state securities law rules, regulations and other requirements, the rules, regulations and other requirements of The Nasdaq Stock Market or any stock exchange upon which the Shares are then-listed, and any
other applicable Federal or state law and will include any restrictive legends the Committee may deem appropriate to include. 

15.3 Book Entry. In lieu of the issuance of stock certificates evidencing Shares, the Company or its transfer agent may use a
“book entry” system in which a computerized or manual entry is made in the records of the Company or the transfer agent to evidence the issuance of such Shares. Such Company records are, absent manifest error, binding on all parties.

 ARTICLE 16 
 Tax Withholding 
 16.1 In General. The Committee shall cause the
Company or its Affiliate to withhold any taxes which it determines it is required by law or required by the terms of this Plan to withhold in connection with any payments incident to this Plan. The participant or other recipient shall provide the
Committee with such Stock Powers and additional information or documentation as may be necessary for the Committee to discharge its obligations under this Section. 
 16.2 Delivery of Withholding Proceeds. The Company or its Affiliate shall deliver withholding proceeds to the Internal Revenue Service and/or other taxing authority. 

 ARTICLE 17 
 General Provisions 
 17.1 No Implied Rights to Awards, Employment or
Directorship. No potential participant has any claim or right to be granted an Award under this Plan, and there is no obligation of uniformity of treatment of participants under this Plan. Neither this Plan nor any Award thereunder shall be
construed as giving any individual any right to continued employment or continued directorship with the Company or any Affiliate. The Plan does not constitute a contract of employment or for services, and the Company and each Affiliate expressly
reserve the right at any time to terminate employees or service providers free from liability, or any claim, under this Plan, except as may be specifically provided in this Plan or in an Award agreement. 

17.2 Other Compensation Plans. Nothing contained in this Plan prevents the Board of Directors from adopting other or additional
compensation arrangements, subject to Stockholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only in specific cases. 

17.3 Rule 16b-3 Compliance. The Plan is intended to comply with all applicable conditions of Rule 16b-3 under the Exchange Act, as
such rule may be amended from time to time (“Rule 16b-3”). All transactions involving any participant subject to Section 16(b) of the Exchange Act shall be subject to the conditions set forth in Rule 16b-3, regardless of whether such
conditions are expressly set forth in this Plan. Any provision of this Plan that is contrary to Rule 16b-3 does not apply to such participants. 
 17.4 Code Section 162(m) Compliance. The Plan is intended to comply with all applicable requirements of Section 162(m) of the Code with respect to “performance-based
compensation” for Section 162(m) Persons. Unless the Committee expressly determines otherwise, any provision of this Plan that is contrary to such requirements does not apply to such “performance-based compensation.” 

17.5 Compliance with Section 409A. The parties intend that this Plan and Awards be, at all relevant times, in compliance with
(or exempt from) Section 409A of the Code and all other applicable laws, and this Plan shall be so interpreted and administered. In addition to the general amendment rights of the Company with respect to the Plan, the Company specifically
retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Plan or any related document as it deems necessary or desirable to more fully address issues in connection with compliance with (or
exemption from) Section 409A of the Code and other laws. In no event, however, shall this section or any other provisions of this Plan be construed to require the Company to provide any gross-up for the tax consequences of any provisions of, or
payments under, this Plan. The Company and its Affiliates shall have no responsibility for tax or legal consequences to any Participant (or beneficiary) resulting from the terms or operation of this Plan. 

 ARTICLE 18 
 18.1 Successors. All obligations of the Company with respect to Awards granted under this Plan are binding on any successor to the Company, whether as a result of a direct or indirect purchase,
merger, consolidation or otherwise of all or substantially all of the business and/or assets of the Company. 
 18.2
Severability. In the event any provision of this Plan, or the application thereof to any person or circumstances, is held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, or
other applications, and this Plan is to be construed and enforced as if the illegal or invalid provision had not been included. 

18.3 Governing Law. This Plan and all Award agreements pursuant thereto are construed in accordance with and governed by the
internal laws of the State of Delaware. This Plan is not intended to be governed by the Employee Retirement Income Security Act and shall be so construed and administered. 
 ARTICLE 19 
 Effective Date; Expiration 

19.1 Effective Date. The effective date of this Global-Tech Advanced Innovations Inc. Omnibus Equity Plan is the date on which the
stockholders of the Company approve it at a duly held stockholders’ meeting. No Awards may be granted under this Plan after the tenth anniversary of such date, but Awards granted before such tenth anniversary may remain outstanding under this
Plan until they expire according to their terms and the other terms of this Plan.

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