Document:

Exhibit 10.2

 

EXECUTION VERSION

 

SALE AND CONTRIBUTION AGREEMENT

 

 

between

 

 

CAREY CREDIT INCOME FUND,
 as Seller

 

 

and

 

 

HAMILTON FINANCE LLC,
 as Purchaser

 

 

Dated as of December 17, 2015

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I.   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1.
    	
Definitions
    	
1
    
	
Section 1.2.
    	
Other Terms
    	
3
    
	
Section 1.3.
    	
Computation of Time   Periods
    	
3
    
	
Section 1.4.
    	
Interpretation
    	
3
    
	
Section 1.5.
    	
In this Agreement, unless   a contrary intention appears:
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE II.   CONVEYANCES OF TRANSFERRED ASSETS
    	
4
    
	
 
    	
 
    	
 
    
	
Section 2.1.
    	
Conveyances
    	
4
    
	
Section 2.2.
    	
Indemnification
    	
6
    
	
Section 2.3.
    	
Assignments
    	
7
    
	
Section 2.4.
    	
Delivery of Underlying   Instruments
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE III.   CONSIDERATION AND PAYMENT; REPORTING
    	
7
    
	
 
    	
 
    	
 
    
	
Section 3.1.
    	
Purchase Price
    	
7
    
	
Section 3.2.
    	
Payment of Purchase   Price
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV.   REPRESENTATIONS AND WARRANTIES
    	
8
    
	
 
    	
 
    	
 
    
	
Section 4.1.
    	
Seller’s   Representations and Warranties
    	
8
    
	
Section 4.2.
    	
Reaffirmation of   Representations and Warranties by the Seller; Notice of Breach
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE V.   COVENANTS OF THE SELLER
    	
13
    
	
 
    	
 
    	
 
    
	
Section 5.1.
    	
Covenants of the Seller
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VI.   CONDITIONS PRECEDENT
    	
16
    
	
 
    	
 
    	
 
    
	
Section 6.1.
    	
Conditions Precedent
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE VII.   MISCELLANEOUS PROVISIONS
    	
17
    
	
 
    	
 
    	
 
    
	
Section 7.1.
    	
Amendments, Etc.
    	
17
    
	
Section 7.2.
    	
Governing Law:   Submission to Jurisdiction
    	
17
    
	
Section 7.3.
    	
Notices
    	
17
    
	
Section 7.4.
    	
Severability of   Provisions
    	
18
    
	
Section 7.5.
    	
Further Assurances
    	
18
    
	
Section 7.6.
    	
No Waiver; Cumulative   Remedies
    	
19
    
	
Section 7.7.
    	
Counterparts
    	
19
    
	
Section 7.8.
    	
Binding Effect;   Third-Party Beneficiaries
    	
19
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 7.9.
    	
Merger and Integration
    	
19
    
	
Section 7.10.
    	
Headings
    	
19
    
	
Section 7.11.
    	
Non-Petition
    	
20
    

 

ii

 

This SALE AND CONTRIBUTION AGREEMENT, dated as of December 17, 2015 (as amended, supplemented or otherwise modified and in effect from time to time, this “Agreement”), between Carey Credit Income Fund, a Delaware statutory trust, as seller (in such capacity, the “Seller”) and Hamilton Finance LLC, a Delaware limited liability company, as purchaser (in such capacity, the “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, the Purchaser desires to purchase and receive substitutions of certain loans and related assets existing on the Effective Date and from time to time thereafter;

 

WHEREAS, the Seller may also wish to contribute certain loans and related contracts to the capital of the Purchaser on the Effective Date and from time to time on each Purchase Date;

 

WHEREAS, the Seller desires to sell, assign and contribute such loans and related contracts to the Purchaser upon the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by and between the Purchaser and the Seller as follows:

 

ARTICLE I.

 

DEFINITIONS

 

Section 1.1.                                 Definitions. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined). All capitalized terms used herein but not defined herein shall have the respective meanings specified in, or incorporated by reference into, the Loan Agreement, dated as of the date hereof (as amended, supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”), by and among the Purchaser, as borrower, JPMorgan Chase Bank, National Association, as administrative agent, U.S. Bank National Association., as collateral agent, as securities intermediary and as collateral administrator, and the agents and lenders party from time to time thereto.

 

“Agreement” has the meaning set forth in the preamble hereto.

 

“Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. § 101, et seq., as amended.

 

“Collection Account” means, collectively, each of the Euro Interest Collection Account, the Euro Principal Collection Account, the GBP Interest Collection Account, the GBP Principal Collection Account, the USD Interest Collection Account and the USD Principal Collection Account.

 

“Convey” means to sell, transfer, assign, contribute, substitute or otherwise convey assets hereunder.

 

 

“Conveyance” means, as the context may require, the Initial Conveyance or a Subsequent Conveyance.

 

“Excluded Amounts” means (i) any amount deposited into the Collection Account with respect to any Portfolio Investment, which amount is attributable to the reimbursement of payment by or on behalf of the Purchaser or Seller, as applicable, of any Taxes, fee or other charge imposed by any Governmental Authority on such Portfolio Investment or on any Related Security, (ii) any interest or fees (including origination, agency, structuring, management or other up-front fees) that are for the account of the Seller, (iii) any reimbursement of insurance premiums, (iv) any escrows relating to Taxes, insurance and other amounts in connection with Portfolio Investments which are held in an escrow account for the benefit of the obligor and the secured party pursuant to escrow arrangements under the related underlying instruments, (v) to the extent paid using amounts other than Interest Proceeds, Principal Proceeds and proceeds of Advances, any amount paid in respect of reimbursement for expenses owed in respect of any Portfolio Investment pursuant to the related underlying instrument or (vi) any amount deposited into the Collection Account in error (including any amounts relating to any portion of an asset sold by the Purchaser and occurring after the date of such sale).

 

“Indorsement” has the meaning specified in Section 8-102(a)(11) of the UCC, and “Indorsed” has a corresponding meaning.

 

“Initial Conveyance” has the meaning set forth in Section 2.1(a).

 

“Payment Date” means each Subsequent Conveyance Date and the date of the Initial Conveyance.

 

“Purchase Date” means each Subsequent Conveyance Date, the date of the Initial Conveyance and the date of each Substitution.

 

“Purchase Notice” has the meaning set forth in Section 2.1(b).

 

“Purchase Price” has the meaning set forth in Section 3.1.

 

“Purchaser” has the meaning set forth in the preamble hereto.

 

“Related Security” means, with respect to each Portfolio Investment:

 

(a)                                 any property or other assets designated and pledged or mortgaged as collateral to secure repayment of a Portfolio Investment, all payments paid in respect thereof and all monies due, to become due and paid in respect thereof accruing after the date of the applicable Purchase and all liquidation proceeds thereof;

 

(b)                                 all guaranties, indemnities and warranties, insurance policies, financing statements and other agreements or arrangements of whatever character from time to time supporting or securing payment of any such indebtedness;

 

(c)                                  all Interest Proceeds and Principal Proceeds with respect to such Portfolio Investment and any of the foregoing;

 

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(d)                                 any guarantees or similar credit enhancement for an obligor’s obligations under any Portfolio Investment, all UCC financing statements or other filings relating thereto, including all rights and remedies, if any, against any Related Security, including all amounts due and to become due to the Purchaser thereunder and all rights, remedies, powers, privileges and claims of the Purchaser thereunder (whether arising pursuant to the terms of such agreement or otherwise available to the Purchaser at law or in equity);

 

(e)                                  all records with respect to such Portfolio Investment and any of the foregoing; and

 

(f)                                   all recoveries and proceeds of the foregoing.

 

“Repurchase Amount” has the meaning set forth in Section 5.1(n).

 

“Schedule of Portfolio Investments” has the meaning set forth in Section 2.1(a).

 

“Seller” has the meaning set forth in the preamble hereto.

 

“Subsequent Conveyance” has the meaning set forth in Section 2.1(b).

 

“Subsequent Conveyance Date” has the meaning set forth in Section 2.1(b).

 

“Substitution” has the meaning set forth in Section 5.1(n)(ii).

 

“Transferred Assets” means, collectively, the Transferred Portfolio Investments and Related Security Conveyed by the Seller to the Purchaser hereunder.

 

“Transferred Portfolio Investment” means each Portfolio Investment Conveyed from the Seller to the Purchaser pursuant to the terms of this Agreement.

 

“Transfer Supplement” means the supplement to this Agreement between the Seller and the Purchaser substantially in the form attached hereto as Exhibit A.

 

Section 1.2.                                 Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles. All terms used in Article 9 of the UCC, and not specifically defined herein, are used herein as defined in such Article 9. The term “including” when used in this Agreement means “including without limitation.”

 

Section 1.3.                                 Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding.”

 

Section 1.4.                                 Interpretation. In this Agreement, unless a contrary intention appears:

 

(i)                                     reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by the Loan Documents;

 

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(ii)                                  reference to any gender includes each other gender;

 

(iii)                               reference to day or days without further qualification means calendar days;

 

(iv)                              unless otherwise stated, reference to any time means New York time;

 

(v)                                 references to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible form;

 

(vi)                              reference to any agreement (including any Loan Document or underlying instrument), document or instrument means such agreement, document or instrument as amended, modified, supplemented, replaced, restated, waived or extended and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Loan Documents, and reference to any promissory note includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor;

 

(vii)                           reference to any requirement of law means such requirement of 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 requirement of law means that provision of such requirement of law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such Section or other provision; and

 

(viii)                        references to “including” means “including, without limitation”.

 

ARTICLE II.

 

CONVEYANCES OF TRANSFERRED ASSETS

 

Section 2.1.                                 Conveyances.

 

(a)                                 On the terms and subject to the conditions set forth in this Agreement, the Seller agrees to Convey to the Purchaser, without recourse (except to the extent specifically provided herein) on the Effective Date, and the Purchaser agrees to accept such Conveyance from the Seller on the Effective Date (the “Initial Conveyance”), all of the Seller’s right, title and interest in and to each Portfolio Investment listed on Schedule A to this Agreement (as such schedule may be amended, supplemented, updated or otherwise modified from time to time, the “Schedule of Portfolio Investments”) (the Schedule of Portfolio Investments, as amended, supplemented, updated or otherwise modified in connection with an Approval Request, Subsequent Conveyance (as defined below), or otherwise, shall become part of the Schedule of Portfolio Investments), together with all other Related Security and all proceeds of the foregoing.

 

(b)                                 In the event the Purchaser agrees, from time to time after the Effective Date, to acquire additional Portfolio Investments (including Related Security) from the Seller, the Purchaser shall deliver an Approval Request to the Administrative Agent in accordance with the Loan Agreement and designating the date of the proposed Conveyance (a “Subsequent

 

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Conveyance Date”) and including a Transfer Supplement which shall include a Schedule of Portfolio Investments identifying the Transferred Assets proposed to be Conveyed. On the terms and subject to the conditions set forth in this Agreement and the Loan Documents, the Seller shall Convey to the Purchaser, without recourse (except to the extent specifically provided herein) and the Purchaser shall accept such Conveyance, on the applicable Subsequent Conveyance Date (each such Conveyance being herein called a “Subsequent Conveyance”), all of the Seller’s right, title and interest in and to each Portfolio Investment then reported by the Seller on the Schedule of Portfolio Investments attached to the related Approval Request together with all other Related Security and all proceeds of the foregoing.

 

(c)                                  It is the express intent of the Seller and the Purchaser that each Conveyance of Transferred Assets by the Seller to the Purchaser pursuant to this Agreement be construed as an absolute sale and/or contribution of such Transferred Assets by the Seller to the Purchaser. Further, it is not the intention of the Seller and the Purchaser that any Conveyance be deemed a grant of a security interest in the Transferred Assets 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 Conveyances hereunder shall be characterized as loans and not as sales and/or contributions, then (i) this Agreement also shall be deemed to be, and hereby is, a security agreement within the meaning of the UCC and other applicable law and (ii) the Conveyances by the Seller provided for in this Agreement shall be deemed to be, and the Seller hereby grants to the Purchaser, a security interest in, to and under all of the Seller’s right, title and interest in, to and under, whether now owned or hereafter acquired, such Transferred Assets and all proceeds of the foregoing. The Purchaser and its assignees shall have, with respect to such Transferred Assets and other related rights, in addition to all the other rights and remedies available to the Purchaser and its assignees and under the other Loan Documents, all the rights and remedies of a secured party under any applicable UCC.

 

The Seller and the Purchaser shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Transferred Assets to secure a debt or other obligation, such security interest would be deemed to be a perfected security interest in favor of the Purchaser under applicable law and will be maintained as such throughout the term of this Agreement. The Seller represents and warrants that the Transferred Assets are being transferred with the intention of removing them from the Seller’s estate pursuant to Section 541 of the Bankruptcy Code.  The Purchaser assumes all risk relating to nonpayment or failure by the obligors to make any distributions owed by them under the Transferred Assets.  Except with respect to breach of representations, warranties and covenants expressly stated in this Agreement, the Seller assigns each Transferred Asset “as is,” and makes no covenants, representations or warranties regarding the Transferred Assets.

 

(d)                                 In connection with the Initial Conveyance, the Seller agrees to file (or cause to be filed) on or prior to the Effective Date, at its own expense, a financing statement or statements with respect to the Transferred Assets Conveyed by the Seller hereunder from time to time meeting the requirements of applicable state law in the jurisdiction of the Seller’s organization to perfect and protect the interests of the Purchaser created hereby under the UCC against all creditors of, and purchasers from, the Seller, and to deliver a file-stamped copy of

 

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such financing statements or other evidence of such filings to the Purchaser as soon as reasonably practicable after its receipt thereof.

 

(e)                                  The Seller agrees that from time to time, at its expense, it will promptly execute and deliver all instruments and documents and take all actions as may be reasonably necessary or as the Purchaser may reasonably request, in order to perfect or protect the interest of the Purchaser in the Transferred Assets Conveyed hereunder or to enable the Purchaser to exercise or enforce any of its rights hereunder. Without limiting the foregoing, the Seller will, in order to accurately reflect the Conveyances contemplated by this Agreement, execute and file such financing or continuation statements or amendments thereto or assignments thereof (as permitted pursuant hereto) or other documents or instruments as may be reasonably requested by the Purchaser and mark its master computer records (or related sub-ledger) noting the Conveyance by the Purchaser of the Transferred Assets and the Lien of the Collateral Agent (and, if applicable, the Collateral Trustee (as defined in the Loan Agreement) pursuant to the Loan Documents. The Seller hereby authorizes the Purchaser to file and, to the fullest extent permitted by applicable law the Purchaser shall be permitted to file initial financing statements, continuation statements and amendments thereto and assignments thereof without the Seller’s further action; provided that the description of collateral contained in such financing statements shall be limited to only Transferred Assets. Carbon, photographic or other reproduction of this Agreement or any financing statement shall be sufficient as a financing statement.

 

(f)                                   Each of the Seller and the Purchaser agree that prior to the time of Conveyance of any Portfolio Investment hereunder, the Purchaser has no rights to or claim of benefit from any Portfolio Investment (or any interest therein) owned by the Seller.

 

(g)                                  The Transferred Assets acquired, transferred to and assumed by the Purchaser from the Seller shall include the Seller’s entitlement to any surplus or responsibility for any deficiency that, in either case, arises under, out of, in connection with, or as a result of, the foreclosure upon or acceleration of any such Transferred Assets (other than Excluded Amounts).

 

Section 2.2.                                 Indemnification. Without limiting any other rights which any such Person may have hereunder or under applicable law, the Seller agrees to indemnify on a net after-tax basis (including, for example, taking into account the deductibility of an applicable underlying damage, loss, liability or related cost and expense) the Purchaser and its successors, transferees, and assigns (including each Secured Party) and all trustees, officers, directors, shareholders, controlling persons, employees and agents of any of the foregoing (each of the foregoing Persons being individually called an “Indemnified Party”), forthwith on demand, from and against any and all actual and direct damages, losses, claims, liabilities and related reasonable and documented out-of-pocket costs and expenses, including reasonable and documented attorneys’ fees and disbursements for external counsel (all of the foregoing being collectively called “Indemnified Amounts”) awarded against or incurred by any of them arising out of any breach by the Seller of any of its obligations hereunder or arising as a result of the failure of any representation or warranty of the Seller herein to be true and correct on the date such representation or warranty was made, excluding, however, (a) Indemnified Amounts in respect of any Transferred Asset due to such obligor’s creditworthiness, (b) Indemnified Amounts payable to an Indemnified Party to the extent determined by a court of competent jurisdiction to have

 

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resulted from gross negligence, bad faith, willful misconduct, fraud or reckless disregard on the part of any Indemnified Party or its agent or subcontractor, (c) except as otherwise specifically provided herein, non-payment by any obligor of an amount due and payable with respect to a Transferred Asset, (d) any Excluded Taxes and any Taxes indemnifiable under the Loan Agreement,  (e) Indemnified Amounts resulting from the performance or non-performance of the Portfolio Investments and (f) any punitive, indirect, consequential, special damages, lost profits or other similar damages.

 

Section 2.3.                                 Assignments. The Seller and the Purchaser acknowledge and agree that, solely for administrative convenience, any transfer document or assignment agreement required to be executed and delivered in connection with the transfer of a Transferred Asset in accordance with the terms of the related underlying instruments may reflect that (i) the Seller (or any Affiliate or third party from whom the Seller or the applicable Affiliate may purchase Transferred Asset) is assigning such Transferred Asset directly to the Purchaser or (ii) the Purchaser is acquiring such Transferred Asset at the closing of such Transferred Asset.

 

Section 2.4.                                 Delivery of Underlying Instruments.  With respect to each Portfolio Investment Conveyed hereunder as part of the Transferred Assets, within the time period required for delivery thereof under the Loan Agreement, the Seller will deliver or cause to be delivered to the Purchaser or will deliver, on behalf of the Purchaser, or cause to be delivered to the Collateral Agent each underlying instrument required to be delivered for such Portfolio Investment.

 

ARTICLE III.

 

CONSIDERATION AND PAYMENT; REPORTING

 

Section 3.1.                                 Purchase Price. The purchase price (the “Purchase Price”) with respect to each Transferred Asset that is Conveyed on each Purchase Date shall be a dollar amount equal to the fair market value (as agreed upon between the Seller and the Purchaser at the time of such Conveyance) of such Transferred Asset as of such date.

 

Section 3.2.                                 Payment of Purchase Price. The Purchase Price for the Transferred Assets Conveyed shall be paid on the related Purchase Date at the option of the Seller (a) by payment in cash in immediately available funds in an amount not greater than the sum of (i) the proceeds of Advances made to the Purchaser with respect to such Portfolio Investments to be Conveyed on such Purchase Date and (ii) amounts constituting Principal Proceeds in the Collection Account that may be utilized for reinvestment pursuant to the Loan Agreement or (b) by the Seller making a capital contribution to the Purchaser in an amount equal to the unpaid portion of the Purchase Price, or (c) any combination of the foregoing (a) and (b).  With respect to Substitutions, the Seller shall make on the related Substitution Date a capital contribution to the Purchaser in an amount equal to the excess of the Purchase Price of the Substitute Portfolio Investments over the fair market value of the replaced Portfolio Investments.

 

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ARTICLE IV.

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.1.                                 Seller’s Representations and Warranties. The Seller represents and warrants to the Purchaser as of the Effective Date and as of each Purchase Date (or, if such representation or warranty is limited to a specific date, such specific date):

 

(a)                                 Organization and Good Standing. The Seller is a Delaware statutory trust duly formed, validly existing and in good standing under the laws of the State of Delaware and is duly qualified to do business, and is in good standing, in every jurisdiction in which the nature of its business and the performance of its obligations hereunder and under the other Loan Documents to which it is a party requires it to be so qualified, except where the failure to be so qualified or in good standing would not reasonably be expected to have a material adverse effect on (i) its ability to perform its obligations under this Agreement, (ii) the validity or enforceability of the Transferred Assets and the Related Security or (iii) its ability to perform its obligations under the other Loan Documents to which it is a party.

 

(b)                                 Power and Authority. The Seller has the power and authority to own, pledge, mortgage, operate and convey the Transferred Assets, to conduct its business as now, or proposed to be, conducted and to execute and deliver this Agreement and the Loan Documents to which it is a party and to perform the transactions contemplated hereby and thereby.

 

(c)                                  Authorization; Contravention. The execution, delivery and performance by the Seller of this Agreement, each other Loan Document to which it is a party and all other agreements, instruments and documents which may be delivered by it pursuant hereto or thereto and the transactions contemplated hereby and thereby (i) have been duly authorized by all necessary action on the part of the Seller and (ii) except where such violation would not reasonably be expected to have a material adverse effect, will not violate any provisions of applicable law or regulation or any applicable order of any court or regulatory body and will not result in the breach of, or constitute a default, or require any consent, under any material agreement, instrument or document to which it is a party or by which it or any of its property may be bound or affected.

 

(d)                                 Execution and Delivery. This Agreement and each other Loan Document to which the Seller is a party have been duly executed and delivered by the Seller.

 

(e)                                  Governmental Authorization. No approval, consent of, notice to, filing with or permits, licenses, qualifications or other action by any Governmental Authority having jurisdiction over it or its properties is required or necessary (i) for the conduct of the Seller’s business as currently conducted, for the ownership, use, operation or maintenance of its properties and for the due execution, delivery and performance by the Seller of this Agreement or any of the Loan Documents to which it is a party, (ii) for the perfection of or the exercise by each of the Company and the Administrative Agent of any of its rights or remedies under the Loan Documents or hereunder, or (iii) to ensure the legality, validity, or enforceability of this Agreement in any jurisdiction in which the Seller does business, in each case other than (A) consents, notices, filings and other actions which have been obtained or made (or will be

 

8

 

obtained or made substantially simultaneously with the Effective Date), and continuation statements and renewals in respect thereof and (B) where the lack of such consent, notice, filing or other action would not have a material adverse effect on its ability to perform its obligations hereunder and under the Loan Documents to which it is a party.

 

(f)                                   Legality; Validity; Enforceability. Assuming due authorization, execution and delivery by each other party hereto and thereto, this Agreement and each other Loan Document to which it is a party is the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its respective terms, except as such enforceability may be limited by (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally, (B) equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law and (C) implied covenants of good faith and fair dealing.

 

(g)                                  No Litigation. There are no proceedings or investigations pending or, to its knowledge, threatened against the Seller, before any court or Governmental Authority having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement or any of the other Loan Documents, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any of the other Loan Documents, (C) seeking any determination or ruling that might materially and adversely affect the performance by the Purchaser of its obligations under, or the validity or enforceability of, this Agreement or any of the other Loan Documents, (D) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on any of the Transferred Assets or (E) seeking to impose any excise, franchise, transfer or similar tax upon the conveyance of the Transferred Assets hereunder.

 

(h)                                 Legal Compliance. The Seller has complied and will comply in all material respects with all Applicable Laws, judgments, agreements with governmental authorities, decrees and orders with respect to its business and properties and the Transferred Assets.

 

(i)                                     Taxes. The Seller has timely filed all federal and other material Tax returns (foreign, federal, state, local and otherwise) required to be filed by it relating to the Transferred Assets and has paid all federal and other material Taxes due and payable by it relating to the Transferred Assets (other than any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Seller). It is not liable for taxes with respect to the Transferred Assets payable by any other Person. No Tax lien or similar Adverse Claim has been filed, and no claim has been filed or is being asserted, with respect to any Tax relating to the Transferred Assets. Any taxes, fees and other governmental charges payable by the Seller in connection with the transactions contemplated by this Agreement and the execution and delivery of this Agreement have been paid or shall have been paid if and when due.

 

(j)                                    Place of Business. The principal place of business and chief executive office of the Seller, and the offices where the Seller keeps all its records, are located at its address specified in Section 7.3, or such other locations notified to the Purchaser in accordance

 

9

 

with this Agreement in jurisdictions where all action required by the terms of this Agreement has been taken and completed. There are currently no, and during the past four months (or such shorter time as the Seller has been in existence) there have not been, any other locations where the Seller is located (as that term is used in the UCC of the jurisdiction where such principal place of business is located).

 

(k)                                 Ownership; Security Interest.

 

(i)                                     In the event that, notwithstanding the intent of the parties, the Conveyances hereunder shall be characterized as loans and not as sales and/or contributions, then this Agreement creates a valid and continuing Lien on the Transferred Assets in favor of the Purchaser and the Collateral Agent, as assignee, for the benefit of the Secured Parties, which security interest is validly perfected under Article 9 of the UCC (to the extent such security interest may be perfected under such article), and is enforceable as such against creditors of and purchasers from the Company; the Transferred Assets are comprised of Instruments, Security Entitlements, General Intangibles, Certificated Securities, Uncertificated Securities, Securities Accounts, Investment Property and Proceeds and such other categories of collateral under the applicable UCC as to which the Seller has complied with its obligations as set forth herein; the Seller has received all consents and approvals required by the terms of any Portfolio Investment to the sale and granting of a security interest in the Portfolio Investments hereunder to the Purchaser and the Collateral Agent, as assignee on behalf of the Secured Parties; the Seller has taken all necessary steps to file or authorize 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 Transferred Assets in which a security interest may be perfected by filing pursuant to Article 9 of the UCC as in effect in New York; all original executed copies of each underlying promissory note constituting or evidencing any Transferred Asset have been or, subject to the delivery requirements contained in the Loan Documents, will be delivered to the Purchaser or its designee; none of the underlying promissory notes that constitute or evidence the Portfolio Investments has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Purchaser and the Collateral Agent, as assignee on behalf of the Secured Parties; with respect to a Transferred Asset that constitutes a Certificated Security, such certificated security has been delivered to the Purchaser or its designee and, if in registered form, has been specially Indorsed (within the meaning of the UCC) to the Securities Intermediary or in blank by an effective Indorsement or has been registered in the name of the Securities Intermediary upon original issue or registration of transfer by the Seller of such Certificated Security; in the case of an Uncertificated Security, by causing the Securities Intermediary or its designee to become the registered owner of such uncertificated security; and, in the case of Euro Investments and GBP Investments, such Portfolio Investment has been delivered in accordance with the requirements of the Security Deed.

 

(l)                                     Fair Consideration; No Avoidance for Portfolio Investment Payments. With respect to each Transferred Portfolio Investment sold, substituted or contributed hereunder, the Seller sold, substituted or contributed such Transferred Portfolio Investment to the Purchaser in exchange for payment, made in accordance with the provisions of this Agreement, in an amount which constitutes fair consideration and reasonably equivalent value. Each such Conveyance referred to in the preceding sentence shall not have been made for or on account of

 

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an antecedent debt owed by the Seller to the Purchaser. In addition, no such Conveyance shall have been made with the intent to hinder or delay payment to or defraud any creditor of the Seller.

 

(m)                             Eligibility of Transferred Portfolio Investments. Each Transferred Portfolio Investment Conveyed hereunder, at the time of such Conveyance, meets all of the Eligibility Criteria and shall not cause the Concentration Limitations to not be satisfied (in each case, unless otherwise consented to by the Administrative Agent in accordance with the Loan Agreement). As of each Purchase Date, Schedule A is an accurate and complete listing of all the Transferred Portfolio Investments and other Transferred Assets hereunder as of such Purchase Date.

 

(n)                                 Adequate Capitalization; No Insolvency. The Seller is adequately capitalized and will not become insolvent after giving effect to the transactions contemplated by this Agreement and the Loan Documents. The Seller is adequately capitalized for its business as proposed to be conducted in the foreseeable future and does not expect the commencement of any insolvency, bankruptcy or similar proceedings or the appointment of a receiver, liquidator or similar official in respect of its assets. The Seller executed and delivered each of the Loan Documents to which it is a party for fair consideration and without the intent to hinder, delay or defraud any of its creditors or any other Person.

 

(o)                                 True and Complete Information. All information heretofore or hereafter furnished by or on behalf of the Seller in writing to any Lender, the Collateral Agent or the Administrative Agent in connection with this Agreement, the other Loan Documents, the Transferred Assets, or any transaction contemplated hereby is and will be (when taken as a whole) true, correct and complete in all material respects; provided that, to the extent any such information was furnished to the Seller by any third party or was not prepared by or under the direction of the Seller, such information is as of its delivery date true, correct and complete in all material respects to the knowledge of the Seller.

 

(p)                                 Payment in Full. The Seller had no actual knowledge at the time of Conveyance of a Transferred Asset of any fact which leads it to expect that any payments on such Transferred Asset will not be paid in full when due or to expect any other material adverse effect on (A) the performance by the Seller of its obligations under this Agreement or any of the Loan Documents to which it is a party, (B) the validity or enforceability of this Agreement or any of the Loan Documents to which it is a party, or (C) the Transferred Assets or the interests of the Seller therein.

 

(q)                                 No Brokers or Finders. No broker or finder acting on behalf of the Seller was employed or utilized in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby and the Seller has no obligation to any Person in respect of any finder’s or brokerage fees in connection therewith.

 

(r)                                    Restricted Payments. The Seller shall not cause or permit the Purchaser to make any payments or distributions which would be in violation of the Loan Documents.

 

11

 

(s)                                   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 and the other Secured Parties are entering into the transactions contemplated by the Loan Documents 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 all steps that the Purchaser or the Administrative 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 from each other 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 and not just a division of the Seller or any such other Affiliate, including ensuring that each of the Seller and the Purchaser respectively will pay from its funds and assets all obligations and indebtedness incurred by it.

 

(t)                                    Set—Off, etc. At the time of Conveyance of a Transferred Asset and to the knowledge of the Seller after reasonable inquiry, such Transferred Asset has not been compromised, adjusted, extended, satisfied, subordinated, rescinded, set—off or modified by the Seller or by the obligor thereof, and at such time such Transferred Asset is not subject to compromise, adjustment, extension, satisfaction, subordination, rescission, set—off, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification, whether arising out of transactions concerning such Transferred Asset or otherwise, by the Seller or by the obligor with respect thereto, except, in each case, for amendments, extensions and modifications, if any, to such Transferred Asset otherwise permitted under the Loan Documents.

 

(u)                                 No Fraud. Each Portfolio Investment Conveyed hereunder was originated without any fraud or material misrepresentation by the Seller or, to the Seller’s knowledge, on the part of the related obligor.

 

(v)                                 Good Title to Transferred Assets.  The Seller has not assigned, pledged, or otherwise conveyed or encumbered any interest in the Transferred Assets to any other person, which assignment, pledge, conveyance or encumbrance remains effective as of the applicable Purchase Date.  Immediately prior to the purchase of any of the Transferred Assets by the Purchaser from the Seller, such Transferred Assets are free and clear of any lien, encumbrance or impediment to transfer created by Seller (including any “adverse claim” as defined in Section 8-102(a)(1) of the Uniform Commercial Code), and the Seller is the sole record and beneficial owner of and has good and marketable title to and the right to sell and transfer such Transferred Assets to the Purchaser and, upon transfer of such Transferred Asset to the Purchaser, the Purchaser shall be the sole owner of such Transferred Assets free of any adverse claim created by the Seller.

 

(w)                               No Default.  Except as otherwise permitted by the Loan Agreement, no default shall have occurred and be continuing with respect to any Transferred Asset as of the applicable Purchase Date.

 

Section 4.2.                                 Reaffirmation of Representations and Warranties by the Seller; Notice of Breach. On the Effective Date and on each Purchase Date, the Seller, by accepting the proceeds of such Conveyance, shall be deemed to have certified that all representations and warranties

 

12

 

described in Section 4.1 are true and correct (in the case of clauses (a), (b), (c), (e), (g), (h), (i), (j) and (o), in all material respects) on and as of such day as though made on and as of such day (or, if such representation or warranty is limited to a specific date, such specific date). The representations and warranties set forth in Section 4.1 shall survive (i) the Conveyance of the Transferred Assets to the Purchaser, (ii) the termination of the rights and obligations of the Purchaser and the Seller under this Agreement and (iii) the termination of the rights and obligations of the Purchaser under the Loan Agreement. Upon discovery by an officer of the Purchaser or the Seller of a breach of any of the foregoing representations and warranties in any material respect, the party discovering such breach shall give prompt written notice to the other and to the Administrative Agent.

 

ARTICLE V.

 

COVENANTS OF THE SELLER

 

Section 5.1.                                 Covenants of the Seller. The Seller hereby covenants and agrees with the Purchaser that, from the date hereof, and until all amounts owed by the Seller pursuant to this Agreement have been paid in full (other than as expressly survive the termination of this Agreement), unless the Purchaser otherwise consents in writing:

 

(a)                                 Compliance with Agreements and Applicable Laws. The Seller shall perform each of its obligations under this Agreement and the other Loan Documents to which it is a party and comply with all Applicable Laws, including those applicable to the Transferred Portfolio Investments and all proceeds thereof, except to the extent that the failure to so comply would not reasonably be expected to have a material adverse effect on (i) its ability to perform its obligations under the Loan Documents to which it is a party, (ii) its assets, operations, properties, financial condition, or business or (iii) the validity or enforceability of this Agreement or any of the other Loan Documents.

 

(b)                                 Maintenance of Existence and Conduct of Business. The Seller shall: (i) do or cause to be done all things necessary to (A) preserve and keep in full force and effect its existence as a corporation and maintain its rights and franchises in its jurisdiction of formation and (B) qualify and remain qualified as a foreign corporation in good standing and preserve its rights and franchises in each jurisdiction in which the failure to so qualify and remain qualified and preserve its rights and franchises would reasonably be expected to have a material adverse effect on its assets, operations, properties, financial condition, or business; (ii) continue to conduct its business substantially as now conducted or as otherwise permitted hereunder and under its organizational documents; and (iii) at all times maintain, preserve and protect all of its licenses, permits, charters and registrations in each case except where the failure to maintain such liens, permits, charters and registrations would not reasonably be expected to have a material adverse effect on its assets, operations, properties, financial condition, or business.

 

(c)                                  Cash Management Systems: Deposit of Collections. The Seller shall transfer, or cause to be transferred, all Interest Proceeds and Principal Proceeds received by the Seller to the appropriate Account by the close of business on the Business Day following the date such amounts are received.

 

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(d)                                 Books and Records. The Seller shall keep proper books of record and account in which full and correct entries shall be made of all transactions with the Purchaser and the assets and business of the Seller related to its obligations under this Agreement or any Transferred Assets or assets proposed to be transferred in accordance with GAAP, maintain and implement administrative and operating procedures necessary to fulfill its obligations hereunder; and keep and maintain all documents, books, records and other information necessary or reasonably advisable and relating to the Transferred Assets prior to their Conveyance hereunder for the collection of all Transferred Assets.

 

(e)                                  Accounting of Purchases. Other than for tax and accounting purposes, the Seller will not account for or treat the transactions contemplated hereby in any manner other than as a sale or contribution of the Transferred Assets by the Seller to the Purchaser; provided that, solely for federal income tax reporting purposes, the Purchaser is treated as a “disregarded entity” and, therefore, the Conveyance of Transferred Assets by the Seller to the Purchaser hereunder will not be recognized.

 

(f)                                   Taxes. The Seller will file on a timely basis all federal and other material Tax returns required to be filed and will pay all federal and other material Taxes due and payable by it (other than any amount the validity of which is contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP are provided on the books of the Seller).

 

(g)                                  ERISA. The Seller shall not, and shall not cause or permit any of its Affiliates to, cause or permit to occur an event that results in the imposition of a Lien on its interest, if any, in any Transferred Asset under Section 412 of the IRC or Section 303(K) or 4068 of ERISA.

 

(h)                                 Liens. The Seller shall not create, incur, assume or permit to exist any Lien on or with respect to any of its rights under any of the Loan Documents (other than the Lien covering this Agreement and existing on the Effective Date, which has been disclosed to the Administrative Agent) or on or with respect to any of its rights in the Transferred Assets, in each case other than Permitted Liens. For the avoidance of doubt, this Section 5.1(h) shall not apply to any property retained by the Seller and not Conveyed or purported to be Conveyed hereunder.

 

(i)                                     Change of Name, Etc. The Seller shall not change its name, or name under which it does business, in any manner that would make any financing statement or continuation statement filed by the Seller or the Purchaser pursuant hereto (or by the Administrative Agent on behalf of the Seller or Purchaser) in accordance with Section 2.1(c) seriously misleading or change its jurisdiction of organization, unless the Seller shall have given the Purchaser at least 10 days prior written notice thereof, and shall promptly file appropriate amendments to all previously filed financing statements and continuation statements.

 

(j)                                    Sale Characterization. The Seller shall not make statements or disclosures, or treat the transactions contemplated by this Agreement (other than for tax or accounting purposes) in any manner other than as a true sale, contribution or absolute assignment of the title to and sole record and beneficial ownership interest of the Transferred Portfolio Investments Conveyed or purported to be Conveyed hereunder; provided that the Seller may consolidate the

 

14

 

Purchaser and/or its properties and other assets for accounting purposes in accordance with GAAP.

 

(k)                                 Commingling. The Seller shall not, and shall not permit any of its Affiliates to, deposit or permit the deposit of any funds that do not constitute Collections or other proceeds of any Portfolio Investments into the Collection Account or permit its assets to be commingled with those of any subsidiary of the Seller or such Affiliate.

 

(l)                                     Nonconsolidation & True Sale Opinion. The Seller shall not take any action contrary to the “Assumptions and Facts” section in the opinions of Dechert LLP, delivered in connection with the Loan Agreement, relating to certain nonconsolidation and true sale matters.

 

(m)                             Obligations with Respect to Transferred Assets.  The Seller hereby retains and undertakes to perform, pay or discharge in accordance with the terms and conditions under such Portfolio Investments all of the obligations of the holder of the Transferred Asset to the extent such obligations arose or accrued prior to the effectiveness of such transfer.  Except as may otherwise have been agreed to between the parties with respect to any particular Transferred Asset, (i) the Seller hereby represents, warrants and agrees that any amounts received by it with respect to any Transferred Asset and which accrue from and after the effectiveness of the transfer of such Transferred Asset shall be held in trust for the benefit of and shall be promptly remitted to the Purchaser upon receipt thereof, and (ii) the Purchaser hereby represents, warrants and agrees that any amounts received by it with respect to a Transferred Asset which accrue with respect to the period prior to the effectiveness of such transfer of such Transferred Asset shall be held in trust for the benefit of and shall be promptly remitted to the Seller upon receipt thereof.

 

(n)                                 Repurchase; Substitution; Repurchase Limits.

 

(i)                                     Each party to this Agreement shall give notice to the other party promptly, in writing, upon the discovery of any breach of the Seller’s representations and warranties with respect to any Transferred Asset made pursuant to Section 4.1(k), Section 4.1(l), Section 4.1(m), Section 4.1(p), Section 4.1(t), Section 4.1(u), Section 4.1(v) or Section 4.1(w) hereof on the date of any Conveyance or Subsequent Conveyance Date, as applicable, which has a material adverse effect on the interest of the Purchaser in such Transferred Portfolio Investment (each such Transferred Portfolio Investment, a “Warranty Portfolio Investment”).  In the event of such a material breach, the Seller shall, no later than 30 days after knowledge of such breach on the part of Seller, (x) repurchase any affected Transferred Portfolio Investment from the Purchaser at an amount equal to (i) the purchase price paid by the Purchaser for such Transferred Portfolio Investment (excluding purchased accrued interest and original issue discount) less all payments of principal received in connection with such Transferred Portfolio Investment since the applicable Purchase Date and (ii) all accrued and unpaid interest thereon (the “Repurchase Amount”) or (y) substitute for such affected Transferred Portfolio Investment one or more Portfolio Investments with a Market Value at least equal to the Repurchase Amount of the Transferred Portfolio Investment being replaced; provided that, no such repayment or substitution shall be required to be made if such breach of Seller’s representations and warranties relating to such Transferred Portfolio Investment shall have been cured before the expiration of such 30 day period.

 

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(ii)                                  The Seller shall have the right, but not the obligation, subject to the prior written consent of the Administrative Agent and the Purchaser, in each case, in its sole discretion, to substitute one or more Portfolio Investments (a “Substitute Portfolio Investment”) for a Portfolio Investment (each such act, a “Substitution”), in each case pursuant to and in accordance with the Loan Agreement.

 

(iii)                               Notwithstanding anything to the contrary in this Agreement, in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 20% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution; provided further that, in no event shall the aggregate outstanding balance of Portfolio Investments in the Portfolio that are in default and subject to a Substitution, together with the aggregate outstanding balance of Portfolio Investments that are in default and sold to the Parent or its Affiliates by the Company (in each case other than in connection with the sale or Substitution of a Warranty Portfolio Investment), exceed 10% of the Net Purchased Loan Balance measured as of the date of such sale or Substitution.

 

ARTICLE VI.

 

CONDITIONS PRECEDENT

 

Section 6.1.                                 Conditions Precedent. The obligations of the Purchaser to pay the Purchase Price for the Transferred Assets sold on the Effective Date and any Purchase Date shall be subject to the satisfaction of the following conditions:

 

(a)                                 All representations and warranties of the Seller contained in this Agreement shall be true and correct in all material respects on such Purchase Date;

 

(b)                                 All information concerning the Transferred Assets provided to the Purchaser and the Administrative Agent shall be true and correct, when taken as a whole, in all material respects as of such Purchase Date; provided that, to the extent any such information was furnished to the Seller by any third party or was not prepared by or under the direction of the Seller, such information is as of its delivery date true, correct and complete in all material respects to the knowledge of the Seller as of such Purchase Date;

 

(c)                                  The Seller shall have performed in all material respects all other obligations required to be performed by the provisions of this Agreement and the other Loan Documents to which it is a party;

 

(d)                                 The Seller shall have either filed or caused to be filed the financing statement(s) required to be filed pursuant to Section 2.1(c);

 

(e)                                  All organizational and legal proceedings, and all instruments in connection with the transactions contemplated by this Agreement and the other Loan Documents shall be reasonably satisfactory in form and substance to the Purchaser, and the Purchaser shall have

 

16

 

received from the Seller copies of all documents (including records of corporate proceedings) relevant to the transactions herein contemplated as the Purchaser may reasonably have requested;

 

(f)                                   The applicable Transfer Supplement shall be duly executed by the Seller and the Purchaser; and

 

(g)                                  The Portfolio Investments constituting the Transferred Assets and any applicable transfer documents that are requested by the Administrative Agent shall be delivered to the Administrative Agent (or otherwise at the direction of the Purchaser).

 

ARTICLE VII.

 

MISCELLANEOUS PROVISIONS

 

Section 7.1.                                 Amendments, Etc. This Agreement and the rights and obligations of the parties hereunder may not be amended, supplemented, waived or otherwise modified except in an instrument in writing signed by the Purchaser and the Seller and consented to in writing by the Administrative Agent. Any Conveyance executed in accordance with the provisions hereof shall not be considered an amendment or modification to this Agreement.

 

Section 7.2.                                 Governing Law: Submission to Jurisdiction.

 

(a)                                 THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

(b)                                 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 the Loan Documents, 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.

 

Section 7.3.                                 Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including by electronic mail or other electronic messaging system). All such notices and other communications shall be deemed to have been duly given when transmitted by facsimile, electronic mail or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as set forth below:

 

(a)                                 in the case of the Purchaser:

 

Hamilton Finance LLC

c/o Carey Credit Income Fund

50 Rockefeller Plaza

 

17

 

New York, New York 10020

Attention: Chief Financial Officer

Telephone: (212) 492-8990

Facsimile: (212) 492-8922

Email: psaintpierre@wpcarey.com and bwilliams@wpcarey.com

 

(b)                                 in the case of the Seller:

 

Carey Credit Income Fund

50 Rockefeller Plaza

New York, New York 10020

Attention: Chief Financial Officer

Telephone: (212) 492-8990

Facsimile: (212) 492-8922

Email: psaintpierre@wpcarey.com and bwilliams@wpcarey.com

 

(in each case, with a copy to the Administrative Agent at the address for notice provided under the Loan Agreement).

 

Either party to this Agreement may alter the address to which communications or copies are to be sent to it by giving notice of such change of address in conformity with the provisions of this Section 7.3.

 

Section 7.4.                                 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement.

 

Section 7.5.                                 Further Assurances.

 

(a)                                 The Purchaser and the Seller each agree that at any time and from time to time, at its expense and upon reasonable request of the Administrative Agent or the Collateral Agent, it shall promptly execute and deliver all further instruments and documents, and take all reasonable further action, that is necessary or desirable to perfect and protect the Conveyances and security interests granted or purported to be granted by this Agreement or to enable the Collateral Agent or any of the Secured Parties to exercise and enforce its rights and remedies under this Agreement with respect to any Collateral.

 

(b)                                 The Purchaser and the Seller agree to do and perform, from time to time, any and all acts and to execute any and all further instruments reasonably requested by the other party more fully to effect the purposes of this Agreement and the other Loan Documents, including the execution of any financing statements or continuation statements or equivalent documents relating to the Transferred Portfolio Investments for filing under the provisions of the UCC or other laws of any applicable jurisdiction.

 

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(c)                                  The Purchaser and the Seller hereby severally authorize the Collateral Agent, upon receipt of written direction from the Administrative Agent, to file one or more financing or continuation statements, and amendments thereto, relating to all or any part of the Transferred Assets.

 

(d)                                 The Seller shall furnish to the Collateral Agent and the Administrative Agent from time to time such statements and schedules further identifying and describing the Related Security and such other reports in connection with the Transferred Assets as the Collateral Agent (acting solely at the Administrative Agent’s request) or the Administrative Agent may reasonably request, all in reasonable detail.

 

Section 7.6.                                 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Purchaser, the Seller or the Administrative Agent, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privilege provided by law.

 

Section 7.7.                                 Counterparts. This Agreement may be executed in two or more counterparts including telecopy transmission thereof (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute 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 7.8.                                 Binding Effect; Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

 

The Seller hereby acknowledges that (a) the Collateral Agent is the beneficiary of a collateral assignment of this Agreement pursuant to Section 8.02 of the Loan Agreement, and (b) the Collateral Agent for the benefit of the Secured Parties shall be an express third party beneficiary of the Purchaser’s rights hereunder, including but not limited to the Purchaser’s right to indemnification set forth in Section 2.2, subject to each of the limitations, restrictions and conditions set forth in Article VIII of the Loan Agreement with respect to the collateral assignment of this Agreement; provided that, such collateral assignment and such third party beneficiary rights shall automatically terminate upon the irrevocable payment in full of the Secured Obligations (other than contingent indemnity obligations as to which no claim has been made) and the termination of the Financing Commitments in full.

 

Section 7.9.                                 Merger and Integration.  Except as specifically stated otherwise herein, this Agreement sets 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.

 

Section 7.10.                          Headings.  The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

 

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Section 7.11.                          Non-Petition. The Seller hereby agrees not to commence, or join in the commencement of, any proceedings in any jurisdiction for the bankruptcy, winding-up or liquidation of the Purchaser or any similar proceedings, in each case prior to the date that is one year and one day (or if longer, any applicable preference period plus one day) after the payment in full of all amounts owing to the Secured Parties under the Loan Documents.  The Purchaser may seek and obtain specific performance of such restrictions (including injunctive relief), including, without limitation, in any bankruptcy, winding-up, liquidation or similar proceedings.  The Purchaser shall promptly object to the institution of any bankruptcy, winding-up, liquidation or similar proceedings against it and take all necessary or advisable steps to cause the dismissal of any such proceeding; provided that such obligation shall be subject to the availability of funds therefor.  Nothing in this Section 7.11 shall limit the right of any party hereto to file any claim or otherwise take any action with respect to any proceeding of the type described in this Section that was instituted against the Purchaser by any Person other than a party hereto.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

20

 

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

 

	
 
    	
CAREY   CREDIT INCOME FUND,
    
	
 
    	
as Seller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Saint-Pierre
    
	
 
    	
 
    	
Name: Paul Saint-Pierre
    
	
 
    	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HAMILTON   FINANCE LLC,
    
	
 
    	
as Purchaser
    
	
 
    	
 
    
	
 
    	
By: Carey Credit Income Fund, its Designated Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Saint-Pierre
    
	
 
    	
 
    	
Name: Paul Saint-Pierre
    
	
 
    	
 
    	
Title: Chief Financial Officer
    

 

Signature Page to the Sale and Contribution Agreement

 

 

Schedule A

 

SCHEDULE OF PORTFOLIO INVESTMENTS

 

	
Issuer
   Description
    	
 
    	
Security Description
    	
 
    	
Par
   Amount
    	
 
    	
Market
   Value
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT A

 

FORM OF TRANSFER SUPPLEMENT

 

THIS TRANSFER SUPPLEMENT TO THE SALE AND CONTRIBUTION AGREEMENT (this “Transfer Supplement”), dated as of [INSERT DATE], by and between Carey Credit Income Fund (the “Seller”) and Hamilton Finance LLC (the “Purchaser”).  Except as otherwise expressly provided herein or unless the context otherwise requires, all capitalized terms used herein shall have the meanings attributed to them in the Sale and Contribution Agreement, dated as of December 17, 2015, as amended from time to time (the “Sale Agreement”), between the Seller and the Purchaser.

 

Section 1.               Transferred Assets

 

(a)                                 The Transferred Assets to which this Transfer Supplement applies are described on the Schedule of Portfolio Investments attached as Schedule A hereto.

 

(b)                                 Purchase Date:          [                 ].

 

(c)                                  Purchase Price of Transferred Assets:               $[                                 ].

 

Section 2.                                          Representations, Warranties and Covenants of the Seller.  The representations, warranties and covenants of the Seller set forth in Section 4 of the Sale Agreement shall be true in all material respects as of the Purchase Date (or such other date specifically provided in the particular representation or warranty).

 

Section 3.                                          Effect of Supplement.  Except as specifically supplemented herein, the Sale Agreement shall continue in full force and effect in accordance with its original terms.  Reference to this specific Transfer Supplement need not be made in the Sale Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Sale Agreement, any reference in any of such items to the Sale Agreement being sufficient to refer to the Sale Agreement as supplemented hereby.

 

Section 4.                                          Counterparts.  This Transfer Supplement may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement.  Any of the parties hereto may execute this Transfer Supplement by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original.  This Transfer Supplement shall be governed by the internal laws of the State of New York.

 

*  *  *  *  *

 

 

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

 

 

	
 
    	
CAREY CREDIT INCOME FUND
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HAMILTON FINANCE LLC
    
	
 
    	
 
    
	
 
    	
By: Carey Credit Income Fund, its Designated Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit 10.3

 

EXECUTION VERSION

 

INVESTMENT MANAGEMENT AGREEMENT

 

dated as of December 17, 2015

 

BY AND BETWEEN

 

HAMILTON FINANCE LLC,
  a Delaware limited liability company

 

AND

 

CAREY CREDIT INCOME FUND,
  a Delaware statutory trust

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
General Duties of the   Investment Manager
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Duties and Obligations   of the Investment Manager with Respect to the Administration of the Company
    	
4
    
	
 
    	
 
    	
 
    
	
3.
    	
Authority to Bind the   Company; No Joint Venture
    	
5
    
	
 
    	
 
    	
 
    
	
4.
    	
Limitations Relating to   Portfolio Investments
    	
6
    
	
 
    	
 
    	
 
    
	
5.
    	
Compensation
    	
7
    
	
 
    	
 
    	
 
    
	
6.
    	
Expenses
    	
8
    
	
 
    	
 
    	
 
    
	
7.
    	
Non-Exclusivity
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
Standard of Care
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
Limitation of   Liability; Indemnification
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
Term of Agreement;   Events Affecting the Investment Manager; Survival of Certain Terms
    	
10
    
	
 
    	
 
    	
 
    
	
11.
    	
Power of Attorney;   Further Assurances
    	
11
    
	
 
    	
 
    	
 
    
	
12.
    	
Amendment of this   Agreement; Assignment; Delegation
    	
12
    
	
 
    	
 
    	
 
    
	
13.
    	
Notices
    	
12
    
	
 
    	
 
    	
 
    
	
14.
    	
Binding Nature of   Agreement; Successors and Assigns
    	
13
    
	
 
    	
 
    	
 
    
	
15.
    	
Entire Agreement
    	
13
    
	
 
    	
 
    	
 
    
	
16.
    	
Costs and Expenses
    	
14
    
	
 
    	
 
    	
 
    
	
17.
    	
Books and Records
    	
14
    
	
 
    	
 
    	
 
    
	
18.
    	
Titles Not to Affect   Interpretation
    	
14
    
	
 
    	
 
    	
 
    
	
19.
    	
Provisions Separable
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
Governing Law
    	
14
    
	
 
    	
 
    	
 
    
	
21.
    	
Execution in   Counterparts
    	
14
    
	
 
    	
 
    	
 
    
	
22.
    	
Third Party Rights;   Benefits of Agreement
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
Representations and   Warranties of the Investment Manager
    	
15
    
	
 
    	
 
    	
 
    
	
24.
    	
Conflict with the Loan   Agreement
    	
17
    
	
 
    	
 
    	
 
    
	
25.
    	
Subordination
    	
17
    
	
 
    	
 
    	
 
    
	
26.
    	
No Proceedings
    	
17
    
	
 
    	
 
    	
 
    
	
27.
    	
Limited Recourse
    	
18
    

 

i

 

INVESTMENT MANAGEMENT AGREEMENT

 

This Investment Management Agreement (the “Agreement”), dated as of December 17, 2015, is made by and between HAMILTON FINANCE LLC, a Delaware limited liability company (the “Company”), and CAREY CREDIT INCOME FUND, a Delaware statutory trust (in its capacity as investment manager to the Company appointed pursuant to the Agreement, the “Investment Manager”).  Reference is made to that certain Loan Agreement, dated as of the date hereof, among the Company, the lenders (the “Lenders”) and agents (the “Agents”) referred to therein, JPMorgan Chase Bank, National Association, as administrative agent (the “Administrative Agent”), U.S. Bank National Association, as collateral agent (the “Collateral Agent”), as securities intermediary (the “Securities Intermediary”) and as collateral administrator (the “Collateral Administrator”) (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). Unless otherwise specified, capitalized terms used but not otherwise defined in this Agreement shall have the meanings given to them in the Amended and Restated Limited Liability Company Agreement of the Company dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “LLC Agreement”) or if not defined therein, shall have the meanings given to them in the Loan Agreement. References herein to the Loan Agreement shall be applicable solely while it is in effect.

 

1.             General Duties of the Investment Manager.

 

Subject to the direction and control of the Company and subject to and in accordance with the terms of the Loan Agreement, the LLC Agreement and the terms of this Agreement, the Investment Manager agrees to (or shall cause (x) Carey Credit Advisors, LLC or its Affiliates as investment advisor to the Investment Manager or (y) Guggenheim Partners Investment Management, LLC or its Affiliates as the investment sub-advisor of the Investment Manager, each an “Advisor” and collectively, the “Advisors”, subject to Section 12(c)) to supervise and direct the investment and reinvestment of the Portfolio Investments, manage, service, administer and make collections on the Portfolio Investments and perform its duties set forth herein, and shall perform on behalf of the Company those investment and leverage related duties and functions of the Company as shall be assigned to the Company or the Investment Manager in the Loan Documents or as delegated from time to time to the Investment Manager by the Company.  The Investment Manager shall comply in all material respects with all applicable federal and state laws and regulations.  In addition to, and without limiting, the duties set forth in this Section 1, the Investment Manager acknowledges that the Company is required or permitted to cause it to perform functions specified in the following sections of the Loan Agreement:  Sections 1.02(a), 1.04, 2.03(d), 4.01, 4.02. 4.05(b), 6.03(y), 6.03(jj), and 8.03(b), (the “Specific Loan Agreement Provisions”).  The Investment Manager acknowledges that it has read and understands the requirements of the Specific Loan Agreement Provisions, and to the extent of its authority hereunder, hereby agrees to act in all material respects in accordance with the Specific Loan Agreement Provisions subject to and in accordance with the terms of this Agreement.  Subject to the foregoing, the other provisions of this Agreement and the terms of the Loan Agreement, each of the Investment Manager and the Advisors is hereby appointed as the Company’s agent and attorney-in-fact with power of attorney and authority to negotiate, execute and deliver all documents and agreements on behalf of the Company and to do or take all related

 

 

acts, with the power of substitution, to acquire, dispose of or otherwise take action with respect to or affecting the Portfolio Investments, including, without limitation:

 

(a)           identifying and originating Portfolio Investments to be purchased or substituted by the Company, selecting the dates for such purchases or substitutions, and purchasing, substituting or directing the purchase or substitution of such Portfolio Investments on behalf of the Company;

 

(b)           identifying Portfolio Investments owned by the Company to be sold by the Company, selecting the dates for such sales, and selling such Portfolio Investments on behalf of the Company;

 

(c)           negotiating and entering into, on behalf of the Company, documentation providing for the purchase, substitution and sale of Portfolio Investments, including without limitation, confidentiality agreements and commitment letters;

 

(d)           structuring the terms of, and negotiating, entering into and/or consenting to, on behalf of the Company, documentation relating to Portfolio Investments to be purchased, held, exchanged or sold by the Company, including any amendments, modifications or supplements with respect to such documentation;

 

(e)           exercising, on behalf of the Company, rights and remedies associated with Portfolio Investments, including without limitation, rights to petition to place an obligor or issuer in bankruptcy proceedings, to vote to accelerate the maturity of a Portfolio Investment, to waive any default, including a payment default, with respect to a Portfolio Investment and to take any other action which the Investment Manager deems necessary or appropriate in its discretion in connection with any restructuring, reorganization or other similar transaction involving an obligor or issuer with respect to a Portfolio Investment, including without limitation, initiating and pursuing litigation;

 

(f)            responding to any offer in respect of Portfolio Investments by tendering the affected Portfolio Investments, declining such offer, or taking such other actions as the Investment Manager may determine;

 

(g)           exercising all voting, consent and similar rights of the Company on its behalf and advising the Company with respect to matters concerning the Portfolio Investments;

 

(h)           advising and assisting the Company with respect to the valuation and rating of the Portfolio Investments;

 

(i)            retaining legal counsel and other professionals (such as the Advisors, other investment advisors to the Investment Manager and other financial advisers) to assist in the structuring, negotiation, documentation, administration and modification and restructuring of Portfolio Investments;

 

(j)            directing, or causing to be directed, all obligors to pay Interest Proceeds and Principal Proceeds (collectively, “Collections”) directly to the appropriate Account, depositing all Collections received directly by it into the appropriate Account within one (1)

 

2

 

Business Day of receipt thereof and, within three (3) Business Days after receipt into the appropriate Account, identifying all Collections received by it as Interest Proceeds or Principal Proceeds.  Without limitation to the foregoing, the Investment Manager shall assist the Company and the Collateral Agent in connection with each transfer of funds from any Euro Account or GBP Account to the applicable USD Account required pursuant to the Loan Agreement.  If, notwithstanding the foregoing, the Investment Manager at any time thereafter receives any Collections or any other proceeds of any Portfolio Investments constituting Interest Proceeds or Principal Proceeds, the Investment Manager shall direct or cause to be directed, the related obligor to make such payments to the Accounts and shall promptly, and in any event no later than the Business Day after receipt thereof, deposit or cause to be deposited all such amounts into the appropriate Account;

 

(k)           cooperating with the Collateral Administrator in connection with the preparation of the Position Reports and the Cash Flow Reports and any supplement thereto and (i) supplying any information maintained by it that the Collateral Agent or the Collateral Administrator may from time to time reasonably request with respect to the Collateral and reasonably needs to complete the reports, calculations and certificates required to be prepared by the Collateral Agent or the Collateral Administrator hereunder or under any applicable Loan Document or required to permit the Collateral Agent or the Collateral Administrator to perform its obligations hereunder or thereunder, and (ii) reviewing and verifying the contents of the aforesaid reports (including the Position Reports and the Cash Flow Report), instructions, statements and certificates;

 

(l)            undertaking the obligations in the Specific Loan Agreement Provisions in accordance with such provisions;

 

(m)          causing the Company to pay, perform and discharge or cause to be paid, performed and discharged promptly all (i) all federal, state, county, city, municipal, local, foreign or other governmental taxes; (ii) all levies, assessments, charges, or claims of any governmental entity or any claims of statutory lienholders, the nonpayment of which could give rise by operation of law to a Lien on the Portfolio Investments or any other property of the Company and (iii) any such taxes, levies, assessment, charges or claims which constitute a lien or encumbrance on any property of the Company (collectively, “Charges”) payable by it, except where the failure to so pay, discharge or otherwise satisfy such Charge would not, individually or in the aggregate, be expected to have a Material Adverse Effect; and

 

(n)           in the Investment Manager’s discretion, performing such actions on behalf of the Company as permitted in the Loan Documents and making such determinations as necessary (in the Investment Manager’s discretion) to carry out the Company’s business under the Loan Documents.

 

In no event whatsoever shall there be recourse to the Investment Manager or any of its Affiliates for any amounts payable on the Advances or the other payment obligations of the Company under the Loan Agreement or any of the other documents executed and delivered by the Company in connection with the transactions contemplated by the Loan Documents.  For the avoidance of doubt, the Investment Manager does not guarantee the performance of any obligations of any other Person under any Loan Document.

 

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2.             Duties and Obligations of the Investment Manager with Respect to the Administration of the Company.

 

The Investment Manager agrees to furnish office facilities and equipment and clerical, bookkeeping and administrative services (other than such services, if any, provided by the Company’s custodian and other service providers) to the Company.  To the extent requested by the Company, the Investment Manager agrees to provide the following administrative services:

 

(a)           maintain or oversee the maintenance of the books and records of the Company and maintain (or oversee maintenance by other persons) such other books and records required by law or for the proper operation of the Company;

 

(b)           to the extent prepared or filed by the Company, oversee the preparation and filing, and in all events review and ensure the timely filing, of all federal, state and local income Tax returns required to be filed by the Company and any other required Tax returns or reports;

 

(c)           review the appropriateness of and arrange for payment of the Company’s expenses;

 

(d)           prepare for review and approval by officers and other authorized persons of the Company (collectively, the “Authorized Signatories”) financial information for any financial statements prepared for the Company (if the Company prepares separate financial statements) and such other reports, forms and filings, as may be mutually agreed upon or as may be required by law or the Loan Documents;

 

(e)           prepare reports relating to the business and affairs of the Company as may be mutually agreed upon and not otherwise prepared by others;

 

(f)            make recommendations to the Company concerning the performance and fees of any of the Company’s service providers as the Company may reasonably request or deem appropriate;

 

(g)           oversee and review calculations of fees paid to the Company’s service providers;

 

(h)           consult with the Authorized Signatories, and the Company’s independent accountants, legal counsel, custodian and other service providers in establishing the accounting policies of the Company and monitor financial accounting services;

 

(i)            determine the amounts available for distribution as dividends and distributions to be paid by the Company to Carey Credit Income Fund, as the initial member of the Company (the “Member”);

 

(j)            prepare such information and reports as may be required under the Loan Documents;

 

4

 

(k)           provide such assistance to the Company’s custodian, counsel, auditors and other service providers as generally may be required to properly carry on the business and operations of the Company;

 

(l)            respond to, or refer to the Company’s officers or Authorized Signatories, inquiries relating to the Company;

 

(m)          supervise any other aspects of the Company’s administration as may be agreed to by the Company and the Investment Manager;

 

(n)           provide the following notices:

 

(i)            to the Administrative Agent and the Collateral Agent, promptly after having obtained actual knowledge thereof, notice of any Event of Default or Amendment;

 

(ii)           to the Administrative Agent and the Collateral Agent, promptly after having obtained actual knowledge thereof, but in no event later than three Business Days thereafter, written notice of any Default; and

 

(iii)          from time to time promptly following receipt thereof, forward to the Collateral Administrator (as identified on an accompanying Schedule of Portfolio Investments supplement) additional documents evidencing any assumption, modification, consolidation or extension of a Portfolio Investment.

 

All services are to be furnished through the medium of any officers, Authorized Signatories, the Advisors or employees of the Investment Manager or its affiliates as the Investment Manager deems appropriate in order to fulfill its obligations hereunder.

 

The Company shall, upon demand, reimburse the Investment Manager or its affiliates for all out-of-pocket expenses incurred by them in connection with the performance of the administrative services described in this Section 2.

 

3.             Authority to Bind the Company; No Joint Venture.

 

(a)           Except as provided in or pursuant to Sections 1, 4 and 11 hereof, the Investment Manager shall have no authority to bind or obligate the Company.  All acts of the Investment Manager (other than as provided in the Loan Documents, the LLC Agreement or in Section 1 or Section 11 hereof with respect to any Portfolio Investment) shall require the Company’s consent and approval to bind the Company.  Nothing in this Agreement shall be deemed to create a joint venture or partnership between the parties with respect to the arrangements set forth in this Agreement.  For all purposes hereof, the Investment Manager shall be deemed to be an independent contractor and, unless otherwise provided herein or specifically authorized by the Company from time to time, shall have no authority to act for or represent the Company.

 

(b)           The Investment Manager shall act in conformity with the written instructions and directions of the Company delivered in accordance with the terms and

 

5

 

conditions hereof, except to the extent that authority has been delegated to the Investment Manager pursuant to the terms of this Agreement or the LLC Agreement.  The Investment Manager will not be bound to follow any amendment to the LLC Agreement until it has received written notice thereof and until it has received a copy of the amendment from the Company or the Administrative Agent; provided that if any such amendment materially affects the rights or duties of the Investment Manager, the Investment Manager shall not be obligated to respect or comply with the terms of such amendment unless it consents thereto.  The Company agrees that it shall not permit any amendment to the Loan Documents or the LLC Agreement that materially affects the rights or duties of the Investment Manager to become effective unless the Investment Manager has been given prior written notice of such amendment and has consented thereto in writing. The Investment Manager may, with respect to the affairs of the Company, consult with such legal counsel, accountants and other advisors as may be selected by the Investment Manager.  The Investment Manager shall be fully protected, to the extent permitted by applicable law, in acting or failing to act hereunder if such action or inaction is taken or not taken in good faith by the Investment Manager in accordance with the advice or opinion of such counsel, accountants or other advisors.  The Investment Manager shall be fully protected in relying upon any writing signed in the appropriate manner with respect to any instruction, direction or approval of the Company and may also rely on opinions of the Investment Manager’s counsel with respect to such instructions, directions and approvals.  The Investment Manager shall also be fully protected when acting upon any instrument, certificate or other writing the Investment Manager believes in good faith to be genuine and to be signed or presented by the proper person or persons.  The Investment Manager shall be under no duty to make any investigation or inquiry as to any statement contained in any such writing and may accept the same as conclusive evidence of the truth and accuracy of the statements therein contained if the Investment Manager in good faith believes the same to be genuine.

 

4.             Limitations Relating to Portfolio Investments.

 

(a)           Portfolio Investments.  Except as otherwise provided in this Section 4 and subject to the requirements of the Loan Documents, the LLC Agreement and applicable law, the Investment Manager may cause the Company (which term shall include, for all purposes relating to the purchase, substitution and sale of Portfolio Investments and the duties and obligations of the Investment Manager set forth in Section 1 hereof, the Company and its consolidated subsidiaries, if any) from time to time to purchase or substitute Portfolio Investments.

 

(b)           Other Agreements of the Investment Manager.  The Investment Manager agrees to the following:

 

(i)            the Investment Manager shall cause any purchase, substitution or sale of any Portfolio Investment to be conducted in accordance with the Loan Documents and the Sale Agreement (as defined in the Loan Agreement);

 

(ii)           the Investment Manager shall provide to the Collateral Administrator all reports, data and other information (including, without limitation, any letters of representations) that the Collateral Administrator may reasonably request in connection with its duties under the Loan Documents, to the extent reasonably available to the Investment Manager; and

 

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(iii)          the Investment Manager shall notify the Company of any change in control of the Advisors or the Investment Manager within a reasonable time after such change in control occurs.

 

(c)           Other Obligations of the Investment Manager.  Subject to the terms of the Loan Documents and to Section 9 hereof, the Investment Manager shall use commercially reasonable efforts to ensure that no action is taken by it, and shall not willfully or in a grossly negligent manner take any action which would (a) violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company, including, without limitation, actions which would violate any U.S. federal, state or other applicable securities law the violation of which would adversely affect, in any material respect, any Lender, the business, operations, assets or financial condition of the Company, or the ability of the Investment Manager to perform its obligations hereunder, (b) require registration of the Company or the pool of Collateral as an “investment company” under the Investment Company Act, (c) adversely affect the Administrative Agent in any material respect, (d) result in the Company violating the terms of any Loan Document, (e) adversely affect the interests of the Secured Parties in the pool of Collateral in any material respect (other than actions (i) permitted hereunder or under any Loan Document or (ii) taken in the ordinary course of business of the Investment Manager in accordance with its fiduciary duties to its clients) or (f) cause (i) the Company to take any action or make an election to classify itself as an association taxable as a corporation for federal, state or any applicable tax purposes or (ii) otherwise cause adverse tax consequences to the Company, it being understood that, in all circumstances, (x) the Investment Manager and its Affiliates and their respective trustees, members, managers, directors, officers, stockholders, shareholders, employees and agents shall not be liable to the Company except as provided in Section 9 and (y) in connection with the foregoing, the Investment Manager shall not be required to make any independent investigation of any facts or laws not otherwise known to it in connection with its obligations under this Agreement and the Loan Documents or the conduct of its business generally. If the Investment Manager is ordered to take any such action on behalf of the Company, the Investment Manager shall promptly notify the Company and the Administrative Agent of the Investment Manager’s judgment that such action would, in its reasonable business judgment, have one or more of the consequences set forth above and need not take such action, unless the Company again requests the Investment Manager to do so and the Administrative Agent has consented thereto in writing.  Notwithstanding any such request, the Investment Manager need not take such action unless arrangements satisfactory to it are made to insure or indemnify the Investment Manager from any liability it may incur as a result of such action. Notwithstanding anything contained in this Agreement to the contrary, any indemnification of the Investment Manager provided for in this Section 4 shall be payable by the Company in accordance with the Loan Agreement. The Investment Manager covenants that it shall comply in all material respects with applicable laws and regulations relating to its performance under this Agreement.

 

5.             Compensation.

 

The Investment Manager hereby acknowledges that it is an Affiliate of the Company and will receive a valuable benefit from its entry into this Agreement, notwithstanding that no fees shall be payable to the Investment Manager for the performance of its obligations under this Agreement.

 

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6.             Expenses.

 

Other than as set forth below, the Company will be responsible for paying all of its expenses. On behalf of the Company, the Investment Manager may advance payment of any expenses, and the Company shall, upon request, reimburse the Investment Manager therefor within 30 days following written request from the Investment Manager.  Nothing in this Section 6 shall limit the ability of the Investment Manager to be reimbursed by any Person other than the Company (including issuers or obligors of securities, instruments or obligations owned by the Company) for out-of-pocket expenses incurred by the Investment Manager in connection with the performance of services hereunder.  The Investment Manager shall maintain complete and accurate records with respect to costs and expenses and shall furnish the Company with receipts or other written vouchers with respect thereto upon request of the Company.  The Company shall bear the reasonable costs and expenses of all audits and inspections permitted by Section 6.03 of the Loan Agreement.

 

7.             Non-Exclusivity.

 

The services of the Investment Manager to the Company are not to be deemed exclusive, and the Investment Manager shall be free to render asset management or management services to other Persons (including Affiliates, other investment companies, and clients having objectives similar to those of the Company).  It is understood and agreed that the trustees, officers or directors of the Investment Manager may engage in any other business activity or render services to any other Person or serve as partners, trustees, officers or directors of any other firm or corporation.  Notwithstanding the foregoing, it is understood and agreed that the Investment Manager will at no time render any services to, or in any way participate in the organization or operation of, any investment company or other entity if such actions would require the Company to register as an “investment company” under the Investment Company Act.  Subject to Sections 5 and 27 hereof, it is understood and agreed that information or advice received by the Investment Manager and trustees, officers or directors of the Investment Manager hereunder shall be used by such organization or such persons to the extent permitted by applicable law.

 

8.             Standard of Care.

 

The Investment Manager shall exercise its discretion and authority in accordance with Applicable Law, the terms of the Loan Documents, all customary and usual servicing practices for loans similar to the Portfolio Investments and, to the extent consistent with the foregoing, (i) with reasonable care, using a degree of skill and diligence not less than that with which the Company or Investment Manager, as applicable, services and administers loans for its own account or for the account of its Affiliates having similar lending objectives and restrictions, and (ii) to the extent not inconsistent with clause (i), in a manner consistent with the customary standards, policies and procedures followed by institutional managers of national standing relating to assets of the nature and character of the Portfolio Investments and without regard to any relationship that the Investment Manager or any Affiliate thereof may have with any underlying obligor or any Affiliate of an obligor.

 

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9.             Limitation of Liability; Indemnification.

 

(a)           The Investment Manager assumes no responsibility under this Agreement other than to render the services called for hereunder and under the terms of the Loan Documents made applicable to it pursuant to the terms of this Agreement applicable to it in good faith.  The Investment Manager shall not be responsible for any action or inaction of the Company in declining to follow any advice, recommendation, or direction of the Investment Manager.  The Investment Manager shall have no liability to the Administrative Agent or the Company’s other creditors, for any act, omission, error of judgment, mistake of law, or for any claim, loss, liability, damage, judgment, settlement, cost or other expense (including attorney’s fees and expenses) arising out of or with respect to any investment, or for any other act or omission in the performance of its obligations to the Company, except for any liability to which it would be subject by reason of willful misfeasance, bad faith, gross negligence in performance, or reckless disregard, of its obligations hereunder. The Investment Manager shall not be liable for any consequential, special, punitive, exemplary or treble damages or lost profits hereunder or under the Loan Documents.

 

(b)           The Company shall reimburse, indemnify and hold harmless the trustees, directors, officers, stockholders, shareholders, agents and employees of the Investment Manager and any of its Affiliates from any and all actual and reasonable out-of-pocket expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred in investigating, preparing, pursuing or defending any claim, action, proceeding or investigation with respect to any pending or threatened litigation caused by, or arising out of or in connection with, any acts or omissions of the Investment Manager, its trustees, directors, officers, stockholders, shareholders, agents and employees made in good faith and in the performance of the Investment Manager’s duties under this Agreement or the Loan Documents except to the extent resulting from such person’s bad faith, willful misfeasance, gross negligence or reckless disregard of its duties hereunder or thereunder.  The Investment Manager, its trustees, directors, officers, stockholders, shareholders, agents and employees may consult with counsel and accountants with respect to the affairs of the Company and shall be fully protected and justified, to the extent allowed by law, in acting, or failing to act, if such action or failure to act is taken or made in good faith and is in accordance with the advice or opinion of such counsel or accountants.  Notwithstanding anything contained herein to the contrary, the obligations of the Company under this Section 9(b) shall be payable from the Company’s assets and are subject to the availability of funds and to the conditions set forth in the Loan Agreement.

 

(c)           The Investment Manager shall reimburse, indemnify and hold harmless the Company and its directors, officers, managers, members, agents and employees from any and all actual and reasonable out-of-pocket expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred in investigating, preparing, pursuing or defending any claim, action, proceeding or investigation with respect to any pending or threatened litigation caused by, or arising out of or in connection with, any acts or omissions of the Investment Manager in the performance of the Investment Manager’s duties under this Agreement or the Loan Documents to the extent resulting from the Investment Manager’s bad faith, willful misfeasance, gross negligence or reckless disregard of its duties hereunder or thereunder.

 

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10.          Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms.

 

(a)           This Agreement shall become effective as of the date hereof and, unless sooner terminated by the Company or the Investment Manager as provided herein, shall continue in effect during the existence of the Company. Notwithstanding the foregoing, this Agreement may be terminated by the Company without the payment of any penalty, upon the occurrence of a “cause” event.  A “cause” event for purposes of this Section 10(a) shall have occurred by reason of:

 

(i)            the Investment Manager’s breach, in any material respect, of any provision of this Agreement or the Loan Documents applicable to it and the Investment Manager’s failure to cure such breach within 30 days of its becoming aware of, or receiving notice of, the occurrence of such breach;

 

(ii)           the Investment Manager’s intentional breach of any material provision of this Agreement or the Loan Documents applicable to it (not including a willful and intentional breach that results from a good faith dispute regarding reasonable alternative courses of action or interpretation of instructions);

 

(iii)          the failure of any representation, warranty, certification or statement made or delivered by the Investment Manager in or pursuant to this Agreement to be correct in any material respect when made which failure (a) could reasonably be expected to have a material adverse effect on the Company, the Secured Parties or the Collateral and (b) if capable of being cured, is not corrected by the Investment Manager within 30 days of its becoming aware of, or receiving notice of, such failure;

 

(iv)          the Investment Manager (1) is dissolved (other than pursuant to a consolidation, amalgamation or merger), (2) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (3) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due, (4) makes a general assignment, arrangement or composition with or for the benefit of its creditors, (5) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property or (6) is subject to an involuntary bankruptcy or insolvency proceeding, or a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Investment Manager, or appointing a receiver, liquidator, assignee, or sequestrator (or other similar official) of the Investment Manager or of any substantial part of its property, and the continuance of any such proceeding or order unstayed and in effect for a period of 60 consecutive days; or

 

(v)           the occurrence of an act by the Investment Manager that constitutes fraud or criminal activity in the performance of its obligations under this Agreement, or the Investment Manager being indicted for a criminal offense materially related to its business of providing asset management services;

 

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(vi)          the occurrence of any event specified in clause (a) of the definition of Event of Default in the Loan Agreement which default is primarily the result of any act or omission of the Investment Manager resulting from a breach of its duties under this Agreement or under the Loan Agreement (but not as a result of any default of any Collateral Obligation).

 

The Investment Manager shall promptly provide written notice to the Member upon the occurrence of a “cause” event.

 

(b)           This Agreement shall be automatically terminated in the event that the Company determines in good faith that the Company or the Company’s asset portfolio has become required to be registered under the provisions of the Investment Company Act.

 

(c)           Within 30 days of the resignation or removal of the Investment Manager, the Company may appoint a successor investment manager.  No such resignation or removal will be effective until the date as of which a successor investment manager has assumed in writing the Investment Manager’s duties and obligations as specified herein.

 

(d)           Notwithstanding anything herein to the contrary, Sections 6 and 9 of this Agreement shall survive any termination hereof.

 

11.          Power of Attorney; Further Assurances.

 

In addition to the power of attorney granted to the Investment Manager in Section 1 of this Agreement, the Company hereby makes, constitutes and appoints the Investment Manager, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, in accordance with the terms of this Agreement (a) to sign, execute, certify, swear to, acknowledge, deliver, file, receive and record any and all documents which the Investment Manager reasonably deems necessary or appropriate in connection with its investment management duties under this Agreement and (b) to (i) subject to any policies adopted by the Member or the Company with respect thereto, exercise in its discretion any voting or consent rights associated with any securities, instruments or obligations included in the Company’s assets, (ii) execute proxies, waivers, consents and other instruments with respect to such securities, instruments or obligations, (iii) endorse, transfer or deliver such securities, instruments and obligations and (iv) participate in or consent (or decline to consent) to any modification, work-out, restructuring, bankruptcy proceeding, class action, plan of reorganization, merger, combination, consolidation, liquidation or similar plan or transaction with regard to such securities, instruments and obligations.  To the extent permitted by applicable law, this grant of power of attorney is irrevocable and coupled with an interest, and it shall survive and not be affected by the subsequent dissolution or bankruptcy of the Company; provided that this grant of power of attorney will expire, and the Investment Manager will cease to have any power to act as the Company’s attorney-in-fact, upon termination of this Agreement in accordance with its terms.  The Company shall execute and deliver to the Investment Manager all such other powers of attorney, proxies, dividend and other orders, and all such instruments, as the Investment Manager may reasonably request for the purpose of enabling the Investment Manager to exercise the rights and powers which it is entitled to exercise pursuant to this Agreement.  Each of the Investment Manager and the Company shall take such other actions,

 

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and furnish such certificates, opinions and other documents, as may be reasonably requested by the other party hereto in order to effectuate the purposes of this Agreement and to facilitate compliance with applicable laws and regulations and the terms of this Agreement.

 

12.          Amendment of this Agreement; Assignment; Delegation.

 

(a)           No provision of this Agreement may be amended, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the amendment, waiver, discharge or termination is sought and, with respect to Sections 5, 6, 9, 10, 12, 22, 26 and 27, consented to by the Administrative Agent in writing. Neither the failure nor any delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

(b)           The Investment Manager may not, directly or indirectly, assign all or any part of its rights and duties under this Agreement to any Person without the prior consent of the Company, the Administrative Agent and the Required Financing Providers; provided that no such consent shall be required in connection with (x) changes in ownership of Carey Credit Income Fund resulting from sales of shares to, or redemptions of shares held by, feeder funds of Carey Credit Income Fund, (y) a merger of Carey Credit Income Fund with another business development company sponsored by W.P. Carey Inc. and Guggenheim Partners Investment Management, LLC or (z) other fundamental change transaction the result of which effectively combines the ownership and/or assets of Carey Credit Income Fund and a business development company sponsored by W.P. Carey Inc. and Guggenheim Partners Investment Management, LLC, or merges or consolidates their respective collateral advisors or sub-advisors.  In accordance with the foregoing, the Investment Manager may transfer this Agreement or its rights and duties under this Agreement without obtaining the prior consent of the Company or providing prior notice to the Member in a transaction that does not result in a Change of Control.

 

(c)           In providing services hereunder, the Investment Manager may, without the consent of any party, delegate to third parties (including without limitation its Advisors and/or Affiliates) the duties assigned to the Investment Manager under this Agreement and the Loan Documents, and employ third parties (including without limitation its Advisors and/or Affiliates) to render advice (including investment advice), to provide services to arrange for trade execution and otherwise provide assistance to the Company, and to perform any of the Investment Manager’s duties under this Agreement; provided that the Investment Manager shall not be relieved of any of its duties hereunder regardless of the performance of any services by third parties, including Advisors or Affiliates.

 

13.          Notices.

 

Unless expressly provided otherwise herein, any notice, request, direction, demand or other communication required or permitted under this Agreement shall be in writing

 

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(including by electronic mail or other electronic messaging system). All such notices and other communications shall be deemed to have been duly given when transmitted by facsimile, electronic mail or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as set forth below:

 

(a)           If to the Company:

 

Hamilton Finance LLC
 c/o Carey Credit Income Fund
 50 Rockefeller Plaza
 13th Floor
 New York, New York 10020
 Attention: Chief Financial Officer
 Telephone: (212) 492-8990
 Facsimile: (212) 492-8922
 Email: psaintpierre@wpcarey.com and bwilliams@wpcarey.com

 

(b)           If to the Investment Manager:

 

Carey Credit Income Fund
 50 Rockefeller Plaza
 13th Floor
 New York, New York 10020
 Attention: Chief Financial Officer
 Telephone: (212) 492-8990
 Facsimile: (212) 492-8922
 Email: psaintpierre@wpcarey.com and bwilliams@wpcarey.com

 

(c)           If to the Administrative Agent, the Collateral Agent, the Collateral Administrator or any Lender under the Loan Agreement, as provided in the Loan Agreement, as may be amended therein.

 

Either party to this Agreement may alter the address to which communications or copies are to be sent to it by giving notice of such change of address in conformity with the provisions of this Section 13.

 

14.          Binding Nature of Agreement; Successors and Assigns.

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns as provided herein.

 

15.          Entire Agreement.

 

This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The express

 

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terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

 

16.          Costs and Expenses.

 

The costs and expenses (including the fees and disbursements of counsel and accountants) incurred in connection with the negotiation, preparation and execution of this Agreement, and all matters incident thereto, shall be borne equally by each party hereto.

 

17.          Books and Records.

 

In compliance with the requirements of Rule 31a-3 under the Investment Company Act, the Investment Manager hereby agrees that all records which it maintains for the Company are the property of the Company and further agrees to surrender promptly to the Company any such records upon the Company’s request. The Investment Manager further agrees to preserve for the periods prescribed by Rule 31a-2 under the Investment Company Act the records maintained by it in its capacity as Investment Manager that are required to be maintained by Rule 31a-1 under the Investment Company Act.

 

18.          Titles Not to Affect Interpretation.

 

The titles of sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

19.          Provisions Separable.

 

The provisions of this Agreement are independent of and separable from each other, and, to the extent permitted by applicable law, no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

20.          Governing Law.

 

This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

21.          Execution in Counterparts.

 

This Agreement may be executed in separate counterparts, each of which shall be an original and all of which taken together shall constitute 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.

 

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22.          Third Party Rights; Benefits of Agreement.

 

Other than as set forth in this Section 22, none of the provisions of this Agreement shall be for the benefit of or enforceable by any creditor of the Company or by any creditor of the Member.

 

The Investment Manager hereby acknowledges that the Collateral Agent is the beneficiary of a collateral assignment of this Agreement pursuant to Section 8.02 of the Loan Agreement and the Collateral Agent for the benefit of the Secured Parties shall be an express third party beneficiary of the Company’s rights hereunder, including but not limited to the Company’s right to indemnification set forth in Section 9, subject, in each case, to each of the limitations, restrictions and conditions set forth in the Loan Agreement with respect to the collateral assignment of this Agreement, and for the avoidance of doubt, excluding any right of the Company to replace or terminate the Investment Manager; provided that, such collateral assignment and such third party beneficiary rights shall automatically terminate upon the irrevocable payment in full of the Secured Obligations (other than contingent indemnity obligations as to which no claim has been made) and the termination of the Financing Commitments in full.  In addition, the Administrative Agent is an express third party beneficiary of Section 12(a) hereof; provided that such third party beneficiary rights shall automatically terminate upon the irrevocable payment in full of the Secured Obligations (other than contingent indemnity obligations as to which no claim has been made) and the termination of the Financing Commitments in full).

 

23.          Representations and Warranties of the Investment Manager.

 

The Investment Manager represents, warrants and covenants as of the Effective Date and the date of each Advance as to itself:

 

(a)           Organization and Good Standing.  It has been duly organized and is validly existing as a statutory trust in good standing under the laws of the State of Delaware, with power and authority to own 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;

 

(b)           Due Qualification.  It is duly qualified to do business as a Delaware statutory trust in good standing and has obtained all necessary licenses and approvals in all jurisdictions where the failure to do so would have a Material Adverse Effect;

 

(c)           Power and Authority.  It has the power, authority and legal right to execute and deliver this Agreement and to perform its obligations hereunder; and the execution, delivery and performance of this Agreement has been duly authorized by the Investment Manager by all necessary trust action;

 

(d)           Binding Obligations.  This Agreement has been executed and delivered by the Investment Manager and, assuming due authorization, execution and delivery by the Company, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally, (B) equitable limitations on the availability of specific remedies, regardless of whether such

 

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enforceability is considered in a proceeding in equity or at law and (C) implied covenants of good faith and fair dealing;

 

(e)           No Violation.  The execution, delivery and performance of this Agreement by the Investment Manager, the Investment Manager’s consummation of the transactions contemplated hereby and the Investment Manager’s fulfillment of the terms hereof do not (A) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, its trust agreement, or any material indenture, agreement, mortgage, deed of trust or other material instrument to which it is a party or by which it or its properties are bound, (B) result in the creation or imposition of any Adverse Claim upon any of its properties pursuant to the terms of any such material indenture, agreement, mortgage, deed of trust or other material instrument (except as may be created pursuant to this Agreement or any other Transaction Document), or (C) violate in any material respect any Applicable Law except, in the case of this subclause (C), to the extent that such conflict or violation would not reasonably be expected to have a Material Adverse Effect;

 

(f)            No Proceedings.  There are no proceedings or investigations pending or, to the best of the Investment Manager’s knowledge, threatened against it, before any Governmental Authority having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement, (B) seeking to prevent the consummation of any of the transactions contemplated hereby or (C) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect.  Except as otherwise disclosed, there is no charge, investigation, action, suit or proceeding before or by any court pending or, to the best knowledge of the Investment Manager, threatened that, if determined adversely to the Investment Manager, would have a material adverse effect upon the performance by the Investment Manager of its duties under, or on the validity or enforceability of, this Agreement;

 

(g)           No Consents.  No consent, license, approval, authorization or order of, or registration, declaration or filing with, any Governmental Authority having jurisdiction over it or any of its properties is required to be made in connection with the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby, in each case other than (A) consents, licenses, approvals, authorizations, orders, registrations, declarations or filings which have been obtained or made and continuation statements and renewals in respect thereof and (B) where the lack of such consents, licenses, approvals, authorizations, orders, registrations, declarations or filings would not have a Material Adverse Effect;

 

(h)           Investment Company Status.  It is not required to be registered as an “investment company” within the meaning of the Investment Company Act;

 

(i)            Information True and Correct.  All information (other than any information provided to the Investment Manager by an un-Affiliated third party) heretofore or hereafter furnished by or on behalf of the Investment Manager in writing to any Lender, the Collateral Agent, the Collateral Administrator or the Administrative Agent in connection with this Agreement or any transaction contemplated hereby is and will be (when taken as a whole) true and correct in all material respects. With respect to any information received from any un-Affiliated third party, the Investment Manager (i) will not furnish (and has not furnished) any

 

16

 

such information to any Lender, the Collateral Agent, the Collateral Administrator or the Administrative Agent in connection with this Agreement or any transaction contemplated hereby that it knows (or knew) to be incorrect at the time such information is (or was) furnished in any material respect and (ii) has informed (or will inform) the applicable Lender, the Collateral Agent, the Collateral Administrator or the Administrative Agent, as applicable, of any such information which it found to be incorrect in any material respect after such information was furnished;

 

(j)            Eligibility of Portfolio Investments.  All Portfolio Investments included in the calculation of the Net Asset Value in the most recently delivered Position Report, to the knowledge of the Investment Manager, satisfy the Eligibility Criteria;

 

(k)           Collections.  The Investment Manager acknowledges that all Collections received by it or its Affiliates with respect to the Collateral are held and shall be held in trust for the benefit of the Secured Parties until deposited into the applicable Account; and

 

(l)            Allocation of Charges.  There is not any agreement or understanding between the Investment Manager and the Company (other than as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

 

24.          Conflict with the Loan Agreement.

 

In the event that this Agreement requires any action to be taken with respect to any matter and the Loan Agreement requires that a different action be taken with respect to such matter, and such actions are mutually exclusive, the provisions of the Loan Agreement in respect thereof shall control.

 

25.          Subordination.

 

The Investment Manager agrees that the payment of all amounts to which it is entitled pursuant to this Agreement shall be subordinated to the extent set forth in, and the Investment Manager agrees to be bound by the provisions of, the Loan Agreement and each of the Investment Manager and the Company hereby consents to the assignment of this Agreement as provided in Section 8.02 of the Loan Agreement.

 

26.          No Proceedings.

 

The Investment Manager hereby agrees not to commence, or join in the commencement of, any proceedings in any jurisdiction for the bankruptcy, winding-up or liquidation of the Company or any similar proceedings, in each case prior to the date that is one year and one day (or if longer, any applicable preference period plus one day) after the payment in full of all amounts owing to the Secured Parties under the Loan Documents.  The Company may seek and obtain specific performance of such restrictions (including injunctive relief), including, without limitation, in any bankruptcy, winding-up, liquidation or similar proceedings.  The Company shall promptly object to the institution of any bankruptcy, winding-up, liquidation or similar proceedings against it and take all necessary or advisable steps to cause the dismissal

 

17

 

of any such proceeding; provided that such obligation shall be subject to the availability of funds therefor.  Nothing in this Section 26 shall limit the right of any party hereto to file any claim or otherwise take any action with respect to any proceeding of the type described in this Section that was instituted against the Company by any Person other than a party hereto.

 

27.          Limited Recourse.

 

Notwithstanding any other provision of this Agreement, no recourse under any obligation, covenant or agreement of the Company, the Member or the Investment Manager contained in this Agreement shall be had against any incorporator, stockholder, shareholder, partner, officer, director, trustee, member, manager, employee or agent of Company, the Investment Manager or any of their respective Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of the Company, the Member and/or the Investment Manager, and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, shareholder, officer, director, trustee, member, manager, employee or agent of the Company, the Member, the Investment Manager or any of their respective Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of the Company, the Member or the Investment Manager contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by the Company, the Member or the Investment Manager of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder, shareholder, officer, director, trustee, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; provided however, the foregoing shall not be construed so as to exonerate or exculpate the Company, the Member or the Investment Manager from any liability by reason of a breach by such party of any of its obligations, covenants or agreements contained in the Loan Documents or its willful misconduct or gross negligence.

 

[Remainder of page intentionally left blank.]

 

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

 

	
 
    	
CAREY CREDIT INCOME FUND
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Saint-Pierre
    
	
 
    	
 
    	
Name: Paul Saint-Pierre
    
	
 
    	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HAMILTON FINANCE LLC
    
	
 
    	
 
    
	
 
    	
By: Carey Credit Income   Fund, its Designated Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Saint-Pierre
    
	
 
    	
 
    	
Name: Paul Saint-Pierre
    
	
 
    	
 
    	
Title: Chief Financial   Officer
    

 

Hamilton Finance LLC

Investment Management Agreement

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