Document:

Exhibit 10.4

 

Execution Version

 

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of November 3, 2016, by and between (i) QUADRANT 4 SYSTEM CORPORATION, an Illinois corporation (“Borrower”), (ii) immediately upon the consummation of the California Acquisition, STRATITUDE, INC., a California corporation (the “Guarantor”, and together with Borrower, collectively referred to herein as the “Loan Parties” and individually each referred to herein as a “Loan Party”), and (iii) BMO HARRIS BANK N.A, a national banking association, as (“Bank”).

RECITALS:

WHEREAS, Bank and the Borrower have entered into that certain Credit Agreement, dated as of July 1, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which Bank, subject to the terms and conditions of the Loan Documents, has made available to the Borrower a term loan, a revolving credit facility and the CapEx Software loans; and

WHEREAS, each Loan Party has requested that the Bank amend certain provisions of the Credit Agreement, and Bank is willing to do so subject to the terms and conditions of this Amendment.

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties hereto, intending to be bound, hereby agree as follows:

1.          Capitalized Terms.  All capitalized terms which are not defined in this Amendment shall have the same meanings as set forth in the Credit Agreement after giving effect to the amendments to the Credit Agreement set forth herein.

2.          Amendments to the Credit Agreement.  Subject to the terms and conditions of this Amendment, the Credit Agreement is amended as follows:

(a)          The following definitions are added to Section 1.1 of the Credit Agreement in alphabetical order, to read as follows:

“Agama Acquisition” means the Acquisition by Stratitude of all or substantially all of the assets of Agama Solutions Inc. pursuant to the terms and conditions of the Agama Purchase Agreement.

“Agama Purchase Agreement” means that certain Asset Purchase Agreement, dated as of November 3, 2016, by and among Stratitude, as purchaser, and Agama Solutions Inc., as seller.

“Agama Purchase Documents” means, collectively, (a) the Agama Purchase Agreement and (b) all other agreements, instruments and documents executed and delivered in connection therewith.

 “BIP Warrant” means that certain warrant by Borrower in favor of Second Lien Lender to purchase 3,000,000 shares of common stock of Borrower substantially in the form of Exhibit A attached to the applicable Second Lien Loan Document on the terms and conditions set forth therein.

“Brainchild Earn-Out” means the “Earn Out” payable to the Brainchild Seller pursuant to Section 1.2.3 of the Brainchild Purchase Agreement.

“Brainchild Put Right” means the put right payable to the Brainchild Seller pursuant to Section 1.2.2 of the Brainchild Purchase Agreement.

“Brainchild Seller” means Jeffrey Cameron and Beverly Cameron, former stockholders of Brainchild Corporation.

“Brainchild Purchase Agreement” means that certain Stock Purchase Agreement, by and between Borrower and Brainchild Seller, dated as of January 1, 2015.

“California Acquisition” means the Acquisition by Borrower of all or substantially all of the capital stock of Stratitude, Inc. pursuant to the terms and conditions of the California Purchase Agreement (it being understood that Stratitude will be consummating the Agama Acquisition immediately prior to the California Acquisition).

“California Acquisition Subordination Agreement” means that certain Subordination Agreement dated as of November 3, 2016 by and among Borrower, Bank and the California Purchase Agreement Seller.

“California Purchase Agreement” means that certain Stock Purchase Agreement, dated as of November 3, 2016, by and among Borrower, Stratitude, Inc., a California corporation, and the California Purchase Agreement Seller.

 “California Purchase Agreement Earn-Out” means the “Earnout Consideration” payable to the California Purchase Agreement Seller pursuant to Section 1.5 and Exhibit B of the California Purchase Agreement.

“California Purchase Agreement Seller” means, individually and collectively, the shareholders listed on Exhibit A to the California Purchase Agreement.

2

“California Purchase Documents” means, collectively, (a) the California Purchase Agreement and (b) all other agreements, instruments and documents executed and delivered in connection therewith.

“DialedIn Earn-Out” means the “General Revenue Earnout” (as defined in the DialedIn Merger Agreement) and the “HP Earnout” (as defined in the DialedIn Merger Agreement) payable to the Shareholders (as defined in the DialedIn Merger Agreement) pursuant to Section 2.4(ii) and (iii) of the DialedIn Merger Agreement.

“DialedIn EO Recipients” means Shareholders and officers and employees of DialedIn, Inc. receiving payments of the DialedIn Earn-Out.

“DialedIn General Sales Commission” means the “General Sales Commission” (as defined in the DialedIn Sales Commission Agreement) payable to the former shareholders of DialedIn Inc. pursuant to the DialedIn Sales Commission Agreement.

“DialedIn HP Sales Commission” means the “HP Sales Commission” (as defined in the DialedIn Sales Commission Agreement) payable to the former shareholders of DialedIn Inc. pursuant to the DialedIn Sales Commission Agreement.

“DialedIn Merger Agreement” means that certain Agreement and Plan of Merger, by and among DialedIn, Inc., Q-Dial Corp. and Borrower, dated as of November __, 2015.

“DialedIn Sales Commission Agreement” means that certain Sales Commission Agreement between Borrower and the former shareholders of DialedIn Inc. dated effective as of the later of January 8, 2016 or the date fully executed by both parties.

“Distributions” by a Person means (a) dividends or other distributions on any now or hereafter outstanding capital stock of such Person; (b) the redemption, repurchase, defeasance or acquisition of such capital stock or of warrants, rights or other options to purchase such capital stock; and (c) any loans or advances (other than salaries or reimbursement of employee expenses in the ordinary course of business), to any stockholder(s), partner(s) or member(s) of such Person.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.

3

“First Amendment Effective Date” means November 3, 2016.

“GPA Learn Acquisition” means the Acquisition by Borrower of the “Purchased Assets” (as such term is defined in the GPA Learn Purchase Agreement) pursuant to the GPA Learn Purchase Agreement.

“GPA Learn Purchase Agreement” means that certain Asset Purchase Agreement, dated as of November 3, 2016, by and between Borrower, as purchaser, and the GPA Learn Seller.

“GPA Learn Purchase Documents” means, collectively, (a) the GPA Learn Purchase Agreement and (b) all other agreements, instruments and documents executed and delivered in connection therewith.

“GPA Learn Royalties” means, collectively, the “Royalty Payments” (as defined in the GPA Learn Royalty Agreement) payable to the GPA Learn Seller.

“GPA Learn Royalty Agreement” means that certain Royalty Agreement dated as of November 3, 2016 by and between the GPA Learn Seller and Borrower.

“GPA Learn Seller” means Great Parents Academy, LLC, a Georgia limited liability company.

“Related Agreements” means, collectively, (a) the Agama Purchase Documents, (b) the GPA Learn Purchase Documents and (c) California Purchase Documents.

“Related Transaction” means, collectively, (a) the Agama Acquisition, (b) the GPA Learn Acquisition and (c) the California Acquisition.

“Reporting Company” means a Person that has a class of securities registered under the Exchange Act or is otherwise required to file reports with the SEC under the Exchange Act.

“Sandton” means Sandton Credit Opportunities Fund I, LP, together with any of its Affiliates and their respective successors and assigns.

“SEC” means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations thereunder as the same shall be in effect at the time.

4

“Specified GPA Learn Loss Reserve” means from the First Amendment Effective Date and at all times thereafter, a reserve established by Bank against the Borrowing Base in respect of the GPA Learn Loss in an amount equal to $50,000 (or such lesser or greater amount as Bank may elect in its sole discretion from time to time).

“Stratitude” means Stratitude, Inc., a California corporation, and Wholly-owned Subsidiary of Borrower that became a Guarantor immediately following the California Acquisition on the First Amendment Effective Date.

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:  the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, OTCQB, or OTCQX (or any successors to any of the foregoing).

(b)          The following definitions set forth in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“Borrowing Base” means , as of any time it is to be determined, the sum of:

(a)          80% of the then outstanding unpaid amount of Eligible Receivables; minus

(b)          the Specified Asset Sale Lien Reserve; minus

(c)          the Specified GPA Learn Loss Reserve; minus

(d)          the amount of other reserves imposed from time to time on the Borrowing Base by Bank acting in its Permitted Discretion;

provided that (i) Bank shall have the right upon five (5) Business Days’ notice to Borrower to reduce the advance rates against Eligible Receivables in its reasonable discretion based on results from any field audit or appraisal of the Collateral and (ii) the Borrowing Base shall be computed only as against and on so much of such Collateral as is included on the Borrowing Base Certificates furnished from time to time by Borrower pursuant to this Agreement and, if required by Bank pursuant to any of the terms hereof or any Collateral Document, as verified by such other evidence reasonably required to be furnished to Bank pursuant hereto or pursuant to any such Collateral Document.”

5

“Change of Control” means any of (a) the acquisition by any “person” or “group” (as such terms are used in sections 13(d) and 14(d) of the Exchange Act) at any time of beneficial ownership of 20% or more of the outstanding capital stock or other equity interests of Borrower on a fully diluted basis, (b) the failure of individuals who are members of the board of directors (or similar governing body) of Borrower on the Closing Date (together with any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the Closing Date or previously so approved) to constitute a majority of the board of directors (or similar governing body) of Borrower, (c) any “Change of Control” (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness for Borrowed Money of Borrower or any Subsidiary shall occur, including, without limitation, the Second Lien Debt, (d) a sale, assignment, lease, conveyance, exchange, transfer, sale-leaseback or other disposition of more than 30% of the assets of Borrower and its Subsidiaries, taken as a whole, whether in one or a series of related transactions (excluding normal inventory sales and financing arrangements associated with inventory or receivables), (e) Borrower ceases to own and control 100% of the capital stock of each Guarantor, (f) approval by the board of directors (or equivalent governing body) of Borrower or any Subsidiary of a liquidation or dissolution of Borrower or such Subsidiary other than, as it relates to any such Subsidiary, the liquidation or dissolution of such Subsidiary shall not be deemed a Change of Control if the assets of such Subsidiary are transferred to Borrower or another Guarantor prior to, or concurrently with, such dissolution or liquidation or (g) a transaction or series of transaction with a controlling stockholder or other affiliated person(s) or third parties that terminates Borrower’s public company status and related reporting obligations under the Exchange Act (for the avoidance of doubt, any event, circumstance or change that results in Borrower’s cessation of reporting under the Exchange Act without also terminating Borrower’s public company status shall not be deemed a Change of Control).

“Earn Out Obligations” means and includes any earn out obligations, performance payments or similar obligations of the Borrower or any Subsidiary arising out of or in connection with a Permitted Acquisition or otherwise, including, without limitation, the Brainchild Earn-Out, the DialedIn Earn-Out and the California Purchase Agreement Earn-Out.

“Fixed Charges” means, with reference to any period for any Person, the sum of (a) all payments of principal due within 12 calendar months on and after the last day of such period with

6

respect to Indebtedness for Borrowed Money of such Person (including, without limitation, any and all payments anticipated to be made (whether contingent or non-contingent at the time) in respect of Earn Out Obligations), (b) Interest Expense of such Person for such period, (c) federal, state, and local income taxes paid or payable by such Person during such period and (d) any Distributions made in cash during such period.  Notwithstanding the foregoing, clause (b) set forth above (the “Applicable Item”) shall be calculated as follows solely for each of the following fiscal quarters then ended:

(i)          for the fiscal quarter ending on September 30, 2016, the Applicable Item shall be calculated as:  actual Applicable Item for the period beginning on July 1, 2016 and ending on September 30, 2016 multiplied by four (4);

(ii)          for the fiscal quarter ending on December 31, 2016, the Applicable Item shall be calculated as:  actual Applicable Item for the period beginning on July 1, 2016 and ending on December 31, 2016 multiplied by two (2);

(iii)          for the fiscal quarter ending on March 31, 2017, the Applicable Item shall be calculated as:  actual Applicable Item for the period beginning on July 1, 2016 and ending on March 31, 2017 multiplied by one and one-third (1 1/3).

“GPA Learn Loss” is defined in Section 6.5(d).

“Guarantor” and “Guarantors” each is defined in Section 6.12(a), and includes, without limitation, Stratitude.

“Second Lien Debt” means the Indebtedness for Borrowed Money evidenced by the Second Lien Promissory Note and the other Second Lien Loan Documents in an aggregate principal amount of $5,075,000 as of the date of initial incurrence thereof.

“Second Lien Intercreditor Agreement” means that certain Intercreditor Agreement dated as of November 3, 2016 between the Second Lien Lender and Bank, which is acknowledged and agreed to by Borrower and Stratitude, as the same may be amended, restated, supplemented or otherwise modified from time to time as permitted thereunder.

 “Second Lien Lender” means, collectively, BIP Lender, LLC, as collateral agent, and BIP Quadrant 4 Debt Fund I, LLC, as lender, under the Second Lien Loan Documents.

7

“Security Agreement” means each general security agreement or similar agreement delivered to Bank in connection with this Agreement or any other Loan Document, including, without limitation, (a) that certain General Security Agreement dated the date of this Agreement between Borrower and Bank, and (b) that certain General Security Agreement dated the date of this Agreement between Stratitude and Bank, in each case as the same may be amended, restated, supplemented, or otherwise modified from time to time.

“Subordination Agreements” means, collectively, (a) the Second Lien Intercreditor Agreement, (b) the California Acquisition Subordination Agreement and (c) all other subordination agreements executed by a holder of Subordinated Debt in favor of Bank from time to time on or after the Closing Date in form and substance and on terms and conditions satisfactory to Bank.

“Warrants” means, collectively, any and all warrants of any kind issued by Borrower at any time and from time to time, including, without limitation, the BIP Warrant.

(c)          The definitions of “Specified Convertible Debentures”, “Specified Convertible Debentures Reserve”, “Specified Convertible Debentures Reserve Removal Date”, “Specified Tax Lien Reserve” and “Specified Tax Lien Reserve Removal Date” set forth in Section 1.1 of the Credit Agreement are hereby deleted in their entirety.

(d)          The definition of “EBITDA” set forth in Section 1.1 of the Credit Agreement is hereby revised to add the following at the end of such definition:

“Notwithstanding the foregoing, “EBITDA” shall be calculated as follows solely for each of the following fiscal quarters:

	
Fiscal Quarter Ending

	 	
EBITDA

	 
	
March 31, 2016

	 	
$

	
1,076,202

	 
	
June 30, 2016

	 	
$

	
3,180,975

	 
	
September 30, 2016

	 	
$

	
2,250,000

	 

(e)          (i) The phrase “means any Acquisition by Borrower or any domestic Wholly-owned Subsidiary thereof where:” at the beginning of the definition of “Permitted Acquisition” set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:  “means (x) the Related Transaction and (y) any Acquisition by Borrower or any domestic Wholly-owned Subsidiary thereof where:”; (ii) the word “and” at the

8

end of clause (p) of the definition of “Permitted Acquisition” set forth in Section 1.1 of the Credit Agreement is hereby deleted in its entirety; (iii) clause (q) of the definition of “Permitted Acquisition” is hereby amended and restated in its entirety to read as follows: “(q) Borrower and its Subsidiaries shall not assume or acquire any Indebtedness for Borrowed Money in connection with such Acquisition to the extent such Indebtedness would not be permitted under Section 7.1 hereof; and”; and (iv) a new clause (r) is hereby inserted at the end of such definition immediately following clause (q) thereof to read as follows: “to the extent readily available to Borrower or any domestic Wholly-owned Subsidiary, Borrower or such Subsidiary shall have provided Bank with such other information with respect to such Acquisition as reasonably requested by Bank.”.

(f)          Section 4.2(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(a)          (i) with respect to any initial Credit Event made on the Closing Date, each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all respects as of said time, except to the extent the same expressly relate to an earlier date, in which case such representations and warranties shall be and remain true and correct in all respects as of such earlier date; and (ii) with respect to any Credit Event made after the Closing Date, each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (except (x) to the extent that such representation or warranty is qualified by materiality or Material Adverse Effect, in which case such representations and warranties shall be and remain true and correct in all respects, and (y) to the extent the same expressly relate to an earlier date, in which case such representations and warranties shall be and remain true and correct in all respects as of such earlier date);”

(g)          Section 5.5 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 5.5          Financial Reports.  (a) The consolidated balance sheet of Borrower as at December 31, 2015, and the related consolidated statements of income, retained earnings and cash flows of Borrower for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit report of Schulman, Lobel, Zand, Katzen, Williams & Blackman LLP, independent public accountants, and the unaudited interim consolidated balance sheet of Borrower as at April 30, 2016, and the related consolidated statements of income, retained earnings and cash flows of Borrower for the three (3) months then ended, heretofore furnished to Bank, fairly present the consolidated financial condition of

9

Borrower as at said dates and the consolidated results of their operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis.  Borrower has no contingent liabilities which are material to it other than as indicated on such financial statements and, with respect to future periods, neither Borrower nor any Subsidiary has any contingent liabilities which are material to it other than as indicated on the financial statements furnished pursuant to Section 6.5.

(b)          The balance sheet of each of Agama Solutions Inc. and Stratitude as at December 31, 2014 and December 31, 2015, and the related statements of income, retained earnings and cash flows of each of Agama Solutions Inc. and Stratitude for the fiscal years then ended, and accompanying notes thereto, which financial statements are accompanied by a quality of earnings report, the unaudited interim income statement of each of Agama Solutions Inc. and Stratitude for each of the calendar months ending as of July 31, 2016 and August 31, 2016, and the unaudited interim consolidated income statement of Borrower and its Subsidiaries as at August 31, 2016, heretofore furnished to Bank, fairly present the consolidated financial condition of Agama Solutions Inc., Stratitude and/or Borrower and its Subsidiaries, as applicable, as at said dates and the consolidated results of their operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis.  Neither Borrower nor any Subsidiary has any contingent liabilities which are material to it other than as indicated on such financial statements and, with respect to future periods, neither Borrower nor any Subsidiary has any contingent liabilities which are material to it other than as indicated on the financial statements furnished pursuant to Section 6.5.

(h)          Section 5.14 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 5.14          Affiliate Transactions.  Neither Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates (other than as set forth on Schedule 5.14 hereto) on terms and conditions which are less favorable to Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other.”

(i)          New Sections 5.24, 5.25, 5.26, 5.27, 5.28, 5.29 and 5.30 are hereby added to the Credit Agreement immediately following Section 5.23 thereof to read as follows:

“Section 5.24          Related Agreements.  (a)  Borrower has heretofore furnished Bank a true and correct copy of the Related Agreements.

10

(b)          Borrower and each of its Subsidiaries and, to Borrower’s knowledge, each other party to the Related Agreements, has duly taken all necessary corporate, partnership or other organizational action to authorize the execution, delivery and performance of the Related Agreements and the consummation of transactions contemplated thereby.

(c)          The Related Transaction will comply in all material respects with all applicable legal requirements, and all necessary governmental, regulatory, creditor, shareholder, partner and other material consents, approvals and exemptions required to be obtained by Borrower and each of its Subsidiaries and, to Borrower’s knowledge, each other party to the Related Agreements in connection with the Related Transaction will be, prior to consummation of the Related Transaction, duly obtained and will be in full force and effect.  As of the date of the Related Agreements, all applicable waiting periods with respect to the Related Transaction will have expired without any action being taken by any competent governmental authority which restrains, prevents or imposes material adverse conditions upon the consummation of the Related Transaction.

(d)          The execution and delivery of the Related Agreements did not, and the consummation of the Related Transaction will not, violate any statute or regulation of the United States (including any securities law) or of any state or other applicable jurisdiction, or any order, judgment or decree of any court or governmental body binding on Borrower and/or any of its Subsidiaries or, to Borrower’s knowledge, any other party to the Related Agreements, or result in a breach of, or constitute a default under, any material agreement, indenture, material instrument or other material document, or any judgment, order or decree, to which Borrower and/or any of its Subsidiaries is a party or by which Borrower and/or any of its Subsidiaries is bound or, to Borrower’s knowledge, to which any other party to the Related Agreements is a party or by which any such party is bound.

(e)          No statement or representation made in the Related Agreements by Borrower and/or any of its Subsidiaries or, to Borrower’s knowledge, any other Person, contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading.

Section 5.25          Collective Enterprise.  Borrower and its Subsidiaries are engaged in the businesses of providing cloud

11

based Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) products to the health insurance, media and education verticals as of the First Amendment Effective Date, as well as in certain other related businesses.  These operations require financing on a basis such that the credit supplied can be made available from time to time to Borrower, as required for the continued successful operation of Borrower and its Subsidiaries taken as a whole.  Borrower and its Subsidiaries have requested Bank to make credit available hereunder to Borrower primarily for the purposes of Section 6.11 and generally for the purposes of financing the operations of Borrower and its Subsidiaries.  Each of Borrower and each of its Subsidiaries expects to derive benefit (and the Board of Directors of each of Borrower and each of its Subsidiaries has determined that Borrower and such Subsidiary may reasonably be expected to derive benefit), directly or indirectly, from a portion of the credit extended by Bank hereunder, both in its separate capacity and as a member of the group of companies, since the successful operation and condition of Borrower and each of its Subsidiaries (collectively, the “Obligors”) is dependent on the continued successful performance of the functions of the group as a whole.  Borrower acknowledges, on behalf of itself and each of its Subsidiaries, that, but for the agreement of each of the other Obligors to execute and deliver this Agreement and the other Loan Documents, Bank would not have made available the credit facilities established hereby on the terms set forth herein.

Section 5.26          Labor Relations.  Neither Borrower nor any Subsidiary has committed or is engaged in any unfair labor practice (as defined in the National Labor Relations Act of 1947 and the regulations thereunder, in each case, as amended).  There is (a) no material unfair labor practice complaint pending or threatened against Borrower or any Subsidiary before the National Labor Relations Board and no material grievance or arbitration proceeding arising out of or under collective bargaining agreements is so pending or, to the knowledge of Borrower and/or any Subsidiary, threatened, (b) no strike, labor dispute, slowdown or stoppage pending or, to the knowledge of Borrower and/or any Subsidiary, threatened against Borrower or any Subsidiary, and (c) no union representation question existing with respect to the employees of Borrower or any Subsidiary, and, no union organizing activities are taking place.  Except as set forth on Schedule 5.26, there is no employment contract with any employee of Borrower or any Subsidiary and the employment of all employees of Borrower or any Subsidiary are terminable at will without penalty or severance obligation of any kind.  Borrower and each of its Subsidiaries is in compliance in all material respects

12

with all federal, state or other applicable laws respecting employment and employment practices, terms and conditions of employment and wages and hours.  Neither Borrower nor any Subsidiary is a party to any collective bargaining agreement.

Section 5.27          Potential Conflicts of Interest.  Except as set forth on Schedule 5.27, no officer, director or manager (or equivalent Person) or member, stockholder or other security holder of Borrower or any Subsidiary: (a) is an officer, director, manager, employee or consultant of, any Person that is, or is engaged in business as, a competitor, lessor, lessee, supplier, distributor, sales agent or customer of, or lender to or borrower from, Borrower or any Subsidiary; (b) owns, directly or indirectly, in whole or in part, any tangible or intangible property that Borrower or any Subsidiary uses or contemplates using in the conduct of business; or (c) has any cause of action or other claim whatsoever against, or owes or has advanced any amount to Borrower or any Subsidiary, except for advances in the ordinary course of business such as for accrued vacation pay, accrued benefits under employee benefit plans, and reasonable and customary expense reimbursements existing on the date hereof.

Section 5.28          SEC Reports.  Except as disclosed to Bank with respect to any filings required prior to the First Amendment Effective Date which would not reasonably be expected to result in a Material Adverse Effect, Borrower and each of its Subsidiaries has filed all reports, schedules, forms, statements and other documents required to be filed by such Person under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as Borrower was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  Borrower has never been an issuer subject to Rule 144(i) under the Securities Act.  The financial statements of Borrower and its Subsidiaries included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.

Section 5.29          Listing and Maintenance Requirements.  The common stock of Borrower is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and Borrower has taken no action designed to, or which to its knowledge is likely to have the effect

13

of, terminating the registration of the common stock of Borrower under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.  Borrower has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the common stock of Borrower is or has been listed or quoted to the effect that Borrower is not in compliance with the listing or maintenance requirements of such Trading Market. Borrower is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The common stock of Borrower is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

Section 5.30          Amended SEC Reports.  All filings made by Borrower and its Subsidiaries, as amended (if applicable), comply in all material respects with the requirements of the Exchange Act.”

(j)          The reference to “Section 6.5(b) or (c)” set forth in Section 2.8(b)(v) of the Credit Agreement is hereby amended and restated in its entirety to “Section 6.5(d) or (e)”.

(k)          The references to “Section 6.5(b)” set forth in Section 5.23 of the Credit Agreement are hereby amended and restated in their entirety to “Section 6.5(d)”.

(l)          Section 6.5 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 6.5          Financial Reports.  Borrower shall, and shall cause each Subsidiary to, maintain a standard system of accounting in accordance with GAAP and shall furnish to Bank and its duly authorized representatives such information respecting the business and financial condition of Borrower and each Subsidiary as Bank may reasonably request; and without any request, shall furnish to Bank:

(a)          if requested by Bank, as soon as available, and in any event no later than three (3) days after the last day of each calendar week of Borrower (other than the calendar week ending on the last day of the fiscal year of Borrower), a copy of a report of the revenue of Borrower and its Subsidiaries attributable to the GPA Learn software platform for such calendar week and the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period

14

in the previous fiscal year, prepared by Borrower in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to Bank;

(b)          as soon as available, and in any event no later than fifteen (15) days after the last day of each calendar month, a Borrowing Base Certificate showing the computation of the Borrowing Base in reasonable detail as of the close of business on the last day of such month, together with an accounts receivable and accounts payable aging, prepared by Borrower and certified to by its chief financial officer or another officer of Borrower acceptable to Bank;

(c)          if requested by Bank, as soon as available, and in any event no later than thirty (30) days after the last day of each calendar month of Borrower (other than the calendar month ending on the last day of the fiscal year of Borrower), a copy of a report of the revenue of Borrower and its Subsidiaries attributable to the GPA Learn software platform for such calendar month and the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by Borrower in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to Bank;

(d)          as soon as available, and in any event no later than the earlier of (i) the date Borrower files such documents with the SEC (if Borrower is then a Reporting Company) or (ii) forty-five (45) days after the last day of each fiscal quarter of Borrower, including the fiscal quarter ending on the last day of the fiscal year of Borrower, (i) a copy of the consolidated and consolidating balance sheet of Borrower and its Subsidiaries as of the last day of such period and the consolidated and consolidating statements of income, retained earnings, and cash flows of Borrower and its Subsidiaries for such fiscal quarter and the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by Borrower in accordance with GAAP, reviewed pursuant to Statement on Auditing Standards No. 116 (or any successor statement) and certified to by Borrower’s chief financial officer or such other officer acceptable to Bank, together with a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” covering the periods referred to above and, if Borrower is then a Reporting Company, the disclosures required by Item 307 and 308 of Regulation S-K under the Exchange Act (all of the foregoing financial information to be prepared on a basis consistent with applicable SEC requirements if Borrower then has a class of

15

securities registered under the Exchange Act) and (ii) following consummation of the GPA Learn Acquisition, a company prepared income statement showing the performance in respect of the assets acquired pursuant to the GPA Learn Acquisition (it being understood and agreed that any negative EBITDA generated in connection with such assets as of the end of any fiscal year of Borrower (any such amount, each a “GPA Learn Loss”) shall constitute a GPA Learn Loss hereunder);

(e)          as soon as available, and in any event no later than the earlier of (i) the date Borrower files such documents with the SEC for each Fiscal Year (if the Borrower is then a Reporting Company) or (ii) ninety (90) days after the last day of each fiscal year of Borrower, (1) a copy of the consolidated balance sheet of Borrower and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of Borrower and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal year, accompanied by an unqualified opinion thereon of LJ Soldinger Associates, LLC or another firm of independent public accountants of recognized national standing, selected by Borrower and satisfactory to Bank, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances, together with a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” covering the periods referred to above and, if Borrower is then a Reporting Company, the disclosures required by Item 307 and 308 of Regulation S-K under the Exchange Act (all of the foregoing financial information to be prepared on a basis consistent with applicable SEC requirements if Borrower then has a class of securities registered under the Exchange Act), and (2) a copy of the company prepared consolidating balance sheet of Borrower and its Subsidiaries as of the close of such period and the consolidating statements of income, retained earnings, and cash flows of Borrower and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal year;

16

(f)          with each of the financial statements delivered pursuant to subsections (d) and (e) above, (i) if Borrower is then a Reporting Company, certifications of each of Borrower’s chief executive officer and chief financial officer in the form required by 601(b)(31) of Regulation S-K under the Exchange Act and (ii) a written certificate in the form attached hereto as Exhibit C signed by the chief financial officer of Borrower or another officer of Borrower acceptable to Bank to the effect that to the best of such officer’s knowledge and belief no Default or Event of Default has occurred during the period covered by such statements or, if any such Default or Event of Default has occurred during such period, setting forth a description of such Default or Event of Default and specifying the action, if any, taken by Borrower or any Subsidiary to remedy the same.  Such certificate shall also set forth the calculations supporting such statements in respect of Section 7.12 (Financial Covenants);

(g)          with each of the financial statements delivered pursuant to subsection (e) above, the written statement of the accountants who certified the audit report thereby required that in the course of their audit they have obtained no knowledge of any Default or Event of Default, or, if such accountants have obtained knowledge of any such Default or Event of Default, they shall disclose in such statement the nature and period of the existence thereof;

(h)          as soon as available, and in any event no later than ninety (90) days after the end of each fiscal year of Borrower, a copy of Borrower’s consolidated and consolidating business plan for the following fiscal year, such business plan to show Borrower’s projected consolidated and consolidating revenues, expenses and balance sheet on a quarter by quarter/month by month basis, such business plan to be in reasonable detail prepared by Borrower and in form satisfactory to Bank (which shall include a summary of all assumptions made in preparing such business plan);

(i)          promptly after receipt thereof, any additional written reports, management letters or other detailed information contained in writing concerning significant aspects of Borrower’s or any Subsidiary’s operations and financial affairs given to it by its independent public accountants;

(j)          promptly after the sending or filing thereof, copies of each financial statement, report, notice or proxy statement sent by Borrower or any Subsidiary to its stockholders or other equity holders, and copies of each regular, periodic or special report, registration statement or prospectus (including all Form 10-K, Form 10-Q and Form 8-K reports) filed by Borrower or any

17

Subsidiary with any securities exchange or the SEC or any successor agency;

(k)          promptly after receipt thereof, a copy of each audit made by any regulatory agency of the books and records of Borrower or any Subsidiary or of notice of any material noncompliance with any applicable law, regulation or guideline relating to Borrower or any Subsidiary, or its business;

(l)          promptly after knowledge thereof shall have come to the attention of any responsible officer of Borrower or any Subsidiary, written notice of (i) any threat, notice, development or action of any kind received from, or taken by, Sandton in respect of any claimed Lien of any kind on or with respect to the assets or other Property of Borrower or any Subsidiary, (ii) any investigation by any Governmental Authority or any material development with respect thereto, (iii) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy against Borrower or any Subsidiary or any of their Property or any other event which, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (iv) (x) the occurrence of any Default or Event of Default hereunder and what action Borrower is taking (and proposed to take) with respect thereto and (y) any development or other information outside the ordinary course of business of the Borrower and its Subsidiaries which could reasonably be expected to have a Material Adverse Effect;

(m)          promptly upon receipt by Borrower or any Subsidiary, written notice of any default notice given to any such Person in writing by any creditor to which Borrower or any of its Subsidiaries has material debt or other obligations; and

(n)          such other information (including non-financial information) as Bank may from time to time reasonably request.

(m)          The following sentence is hereby added to the end of Section 6.13 of the Credit Agreement to read as follows:

“Notwithstanding the foregoing, a control agreement shall not be required for deposit accounts for petty cash supporting local operations so long as the amounts on deposit in such deposit accounts do not at any time exceed $10,000 in the aggregate for all such accounts.”

(n)          Section 6.17 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

18

“Section 6.17          [Reserved].”

(o)          A new Section 6.19 is hereby added to the Credit Agreement immediately following Section 6.18 thereof to read as follows:

“Section 6.19          Reporting.  Borrower will file complete and correct SEC Reports within the time period required by the SEC or any other applicable self-regulatory authority therefor, as applicable.”

(p)          Clauses (c) and (e) of Section 7.1 of the Credit Agreement are hereby amended and restated in their entirety to read as follows, respectively:

“(c)          [reserved];”

“(e)          the Second Lien Debt; provided, however, that (i) the indebtedness and the payment of such indebtedness shall at all times be subordinated to the Obligations pursuant to the Second Lien Intercreditor Agreement, (ii) the aggregate outstanding principal amount of the Second Lien Promissory Note shall not at any time exceed $5,075,000 (plus any paid-in-kind interest added to the principal thereon in accordance with the terms of the Second Lien Intercreditor Agreement) and all other terms and conditions shall be pursuant to the Second Lien Loan Documents, and (iii) the Lien related to the Second Lien Debt shall at all times be subordinated to the Lien related to the Obligations pursuant to the Second Lien Intercreditor Agreement;”

(q)          Clause (h) of Section 7.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(h)          the MGL Seller Note; provided, however, that (i) such indebtedness shall either (x) upon the prior written consent of Bank, be paid in full (it being understood and agreed that any such prior written consent of Bank shall require at a minimum that (A) no more than $500,000 of any Revolving Loan be used to consummate any such payment in full and (B) after giving effect to any such payment in full, Borrower shall have Minimum Availability of no less than $1,000,000) or (y) no later than 60 days following the First Amendment Effective Date and at all times thereafter be subordinated to the Obligations pursuant to a Subordination Agreement, (ii) the aggregate outstanding principal amount of the MGL Seller Note shall not at any time exceed $1,600,000, and (iii) such indebtedness shall at all times be unsecured;”

(r)          Clause (i) of Section 7.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

19

“(i)          [reserved];”

(s)          The period (“.”) at the end of Section 7.1(j) of the Credit Agreement is hereby replaced with “; and” (a semicolon and the word “and”).

(t)          New sub-sections (k), (l), (m), (n) and (o) are hereby added at the end of Section 7.1 of the Credit Agreement immediately following subsection (j) thereof to read as follows:

“(k)          effective as of July 1, 2016, the Brainchild Earn-Out; provided, however, that (i) the maximum amount payable in respect of such indebtedness shall not exceed $175,000 and (ii) such indebtedness shall at all times be unsecured;

(l)          effective as of July 1, 2016, the Brainchild Put Right; provided, however, that (i) the maximum amount payable in respect of such indebtedness shall not exceed $500,000 and (iii) such indebtedness shall at all times be unsecured;

(m)          effective as of July 1, 2016, the DialedIn Earn-Out; provided, however, that (i) the maximum amount payable in respect of such indebtedness shall not exceed $50,000 and (ii) such indebtedness shall at all times be unsecured;

(n)          effective as of July 1, 2016, the DialedIn General Sales Commission; provided, however, that (i) the maximum amount payable in respect of such indebtedness shall not exceed $50,000 and (ii) such indebtedness shall at all times be unsecured; and

(o)          effective as of July 1, 2016, the DialedIn HP Sales Commission; provided, however, that (i) the maximum amount payable in respect of such indebtedness shall not exceed $50,000 and (ii) such indebtedness shall at all times be unsecured.”

(u)          Section 7.6 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 7.6          Dividends and Certain Other Restricted Payments.  Borrower shall not, nor shall it permit any Subsidiary to, (a) declare or pay any dividends on or make any other distributions in respect of any class or series of its capital stock or other equity interests or any warrants (including, without limitation, the Warrants and the BIP Warrant), options, or similar instruments to acquire the same (other than dividends or distributions payable solely in its capital stock or other equity interests), (b) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its capital stock or other equity interests or any warrants (including, without limitation, the Warrants and the BIP Warrant),

20

options, or similar instruments to acquire the same, (c) directly or indirectly pay management, consulting or similar fees to any Affiliate of Borrower or a Subsidiary, or (d) make any payment in respect of the Brainchild Earn-Out, the Brainchild Put Right, the DialedIn Earn-Out, the DialedIn General Sales Commission or the DialedIn HP Sales Commission, as applicable (collectively referred to herein as “Restricted Payments”); provided that the foregoing shall not operate to prevent the making of dividends or distributions by any Subsidiary to Borrower; provided further that,

(i) Borrower may pay to the Brainchild Seller the Brainchild Earn-Out, in accordance with the terms and conditions of Section 1.2.3 of the Brainchild Purchase Agreement in effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof;

(ii) Borrower may pay to the Brainchild Seller the Brainchild Put Right, in accordance with the terms and conditions of Section 1.2.2 of the Brainchild Purchase Agreement in effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof and (C) Borrower shall have Minimum Availability of no less than $1,000,000;

(iii)  Borrower may pay to the DialedIn EO Recipients the DialedIn Earn-Out, in accordance with the terms and conditions of Section 2.4 of the DialedIn Merger Agreement as in effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof;

(iv) Borrower may pay to the DialedIn EO Recipients the DialedIn General Sales Commission, in accordance with the terms and conditions of the DialedIn Sales Commission Agreement as in

21

effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof;

(v) Borrower may pay to the DialedIn EO Recipients the DialedIn HP Sales Commission, in accordance with the terms and conditions of the DialedIn Sales Commission Agreement as in effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof; and

(vi) Borrower may pay to the GPA Learn Seller the GPA Learn Royalties (including, but not limited to, any payments of the GPA Learn Royalties previously prohibited by the terms hereof), in accordance with the terms and conditions of the GPA Learn Royalty Agreement as in effect on the date hereof, so long as with respect to any proposed payment prior to and after giving effect to such proposed payment, (A) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (B) Borrower shall be in pro forma compliance with the financial covenants contained in Section 7.12 hereof as of the most recent fiscal quarter for which Borrower has delivered financial statements pursuant to Section 6.5(d) hereof.”

(v)          Section 7.7 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 7.7          Burdensome Contracts With Affiliates.  Borrower shall not, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates (other than as set forth on Schedule 5.14 hereto) on terms and conditions which are less favorable to Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other.  Borrower shall provide a copy to Bank of any contract, agreement or business arrangement entered into

22

between Borrower or any of its Subsidiaries and any Affiliate thereof.”

(w)          Section 7.11 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Section 7.11          Constituent Documents, Related Documents and Subordinated Debt.  Borrower shall not, nor shall it permit any Subsidiary to, (a) amend or modify its Constituent Documents in any manner materially adverse to Bank, (b) amend or modify, or waive any rights under, any Related Agreement, other than immaterial amendments, modifications and waivers not adverse to the interests of the Bank, or (c)(i) amend or modify any of the terms or conditions relating to Subordinated Debt (except to the extent permitted pursuant to the applicable Subordination Agreement), (ii) make any voluntary prepayment of Subordinated Debt or effect any voluntary redemption thereof, or (iii) make any payment on account of Subordinated Debt which is prohibited under the terms of any instrument or agreement subordinating the same to the Obligations, including, without limitation, any Subordination Agreement.  Notwithstanding the foregoing, Borrower may agree to a decrease in the interest rate applicable to Subordinated Debt or to a deferral of repayment of any of the principal of or interest on the Subordinated Debt beyond the current due dates therefor.”

(x)          The following new Sections 7.13, 7.14, 7.15 and 7.16 are hereby added to the Credit Agreement immediately following Section 7.12 thereof to read as follows:

“Section 7.13          Rate Management Arrangements.  Neither Borrower nor any of its Subsidiaries will enter into Rate Management Agreements or become liable for liabilities arising from Rate Management Agreements except as approved by Bank or as required under Section 6.14 of this Agreement.

Section 7.14          Real Property.  Neither Borrower nor any of its Subsidiaries shall acquire any real property except as permitted by Bank.  As soon as reasonably practical after any permitted acquisition of real property, Borrower or the applicable Subsidiary acquiring such real property shall deliver a perfected first priority mortgage Lien in favor of Bank (and in form and substance acceptable to Bank) on any after-acquired real property of Borrower or any of its Subsidiaries.

Section 7.15          Use of Bank’s Name.  Neither Borrower nor any of its Subsidiaries shall use Bank’s name in connection with any of its business operations other than disclosing the lending arrangement

23

among the Borrower and its Subsidiaries and the Bank or as otherwise required by applicable law or regulation including, without limitation, as required by reporting requirements under the Exchange Act.  Nothing herein contained is intended to permit or authorize Borrower or any of its Subsidiaries to make any contract on behalf of Bank.

Section 7.16          Material Impairment.  Neither Borrower nor any of its Subsidiaries shall become or be a party to any contract or agreement which, in the reasonable business judgment of such Person, materially impairs such Person's ability to perform under this Agreement.”

(y)          Clause (b) of Section 8.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(b)          default in the observance or performance of any covenant set forth in Sections 6.1, 6.4, 6.5, 6.6, 6.11, 6.13, 6.14, 6.15, 6.16, 6.18, 6.19 and Section 7 or of any provision in any Loan Document dealing with the use, disposition or remittance of the proceeds of Collateral or requiring the maintenance of insurance thereon;”

(z)          Clause (m) of Section 8.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(m)          any subordination provision in any document or instrument governing Subordinated Debt, or any subordination provision in any subordination agreement that relates to any Subordinated Debt, or any subordination provision in any guaranty by Borrower or any Subsidiary of any Subordinated Debt, shall cease to be in full force and effect or enforceable; or Borrower, any Subsidiary or any other Person (including the holder of any applicable Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision or breach any provision in any such subordination agreement;”

(aa)          New clauses (n) and (o) are hereby added to Section 8.1 of the Credit Agreement immediately following clause (m) thereof to read as follows:

“(n)          any court, government or Governmental Authority shall condemn, seize or otherwise appropriate, or take custody or control of, all or any material portion of the Property of Borrower and/or any one or more of its Subsidiaries; or

(o)          any investigation or proceeding before or by any Governmental Authority could reasonably be expected to have a Material Adverse Effect.”

24

(bb)          Section 9.10(a) of the Credit Agreement is hereby amended by adding the following at the end thereof:

“Borrower for itself and all endorsers, guarantors and sureties and their heirs, legal representatives, successors and assigns, hereby further specifically waives any rights that it may have under Section 1542 of the California Civil Code (to the extent applicable), which provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR,” and further waives any similar rights under applicable laws.”

(cc)          Section 9.18 of the Credit Agreement is hereby amended by adding the following at the end thereof:

“IN THE EVENT ANY SUCH ACTION OR PROCEEDING IS BROUGHT OR FILED IN ANY UNITED STATES FEDERAL COURT SITTING IN THE STATE OF CALIFORNIA OR IN ANY STATE COURT OF THE STATE OF CALIFORNIA, AND THE WAIVER OF JURY TRIAL SET FORTH IN SECTION 19.8 HEREOF IS DETERMINED OR HELD TO BE INEFFECTIVE OR UNENFORCEABLE, THE PARTIES HERETO AGREE THAT ALL ACTIONS OR PROCEEDINGS SHALL BE RESOLVED BY REFERENCE TO A PRIVATE JUDGE SITTING WITHOUT A JURY, PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, BEFORE A MUTUALLY ACCEPTABLE REFEREE OR, IF THE PARTIES HERETO CANNOT AGREE, A REFEREE SELECTED BY THE PRESIDING JUDGE OF SAN FRANCISCO COUNTY, CALIFORNIA.  SUCH PROCEEDING SHALL BE CONDUCTED IN SAN FRANCISCO COUNTY, CALIFORNIA, WITH CALIFORNIA RULES OF EVIDENCE AND DISCOVERY APPLICABLE TO SUCH PROCEEDING.  IN THE EVENT ANY ACTIONS OR PROCEEDINGS ARE TO BE RESOLVED BY JUDICIAL REFERENCE, ANY PARTY MAY SEEK FROM ANY COURT HAVING JURISDICTION THEREOVER ANY PREJUDGMENT ORDER, WRIT OR OTHER RELIEF AND HAVE SUCH PREJUDGMENT ORDER, WRIT OR OTHER RELIEF ENFORCED TO THE FULLEST EXTENT PERMITTED BY LAW NOTWITHSTANDING THAT ALL ACTIONS OR PROCEEDINGS ARE OTHERWISE SUBJECT TO RESOLUTION BY JUDICIAL REFERENCE.”

25

(dd)          Exhibit C (Compliance Certificate) attached to the Credit Agreement is hereby amended and restated and replaced in its entirety with Exhibit C attached hereto as Exhibit A.

(ee)          The Schedules (other than Schedule 6.16) attached to the Credit Agreement are hereby updated with the Schedules attached hereto as Exhibit B.

(ff)          Schedule 6.16 attached to the Credit Agreement is hereby amended and restated with Schedule 6.16 attached hereto as Exhibit C (it being understood and agreed that (x) subject to the terms and conditions of this Amendment, any Events of Default that exist as a result of the Borrower failing to comply with any post-closing obligations set forth on Schedule 6.16 of the Credit Agreement as in effect prior to giving effect to the amendment and restatement of Schedule 6.16 are hereby waived by the Bank, (y) the foregoing waiver of such Events of Default is solely limited to the specific events and the specific period(s) referenced above, as applicable, and shall not affect any breach of any of the other provisions of the Credit Agreement or any of the provisions of the Credit Agreement for any other period, as applicable, and shall not be deemed or otherwise construed to constitute a waiver of the subject provisions for any other event, any other period (as applicable) or of any Default or Event of Default arising out of any other failure of any Loan Party to comply with any of the other provisions of the Credit Agreement or Loan Documents, and (z) the Bank has granted the foregoing waiver of the such Events of Default in this particular instance and in light of the facts and circumstances that presently exist, and the grant of such waiver shall not constitute a course of dealing or impair the Bank’s right to withhold a waiver of any similar Defaults or Events of Default in the future).

3.          Conditions Precedent.  The amendments set forth in Section 2 shall be effective upon the satisfaction of all of the following conditions precedent, each to the satisfaction of Bank in its sole discretion:

(a)          receipt by Bank from each party hereto of a counterpart of this Amendment signed on behalf of such party;

(b)          receipt by Bank from each party thereto of a counterpart of the California Acquisition Subordination Agreement;

(c)          receipt by Bank of one or more counterparts of each other agreement, document and instrument set forth on the Closing Document Checklist attached hereto as Annex I, each in form and substance satisfactory to Bank;

(d)          evidence in form and substance acceptable to Bank of the receipt by Borrower of the proceeds of the Second Lien Debt from the Second Lien Lender in an amount no less than $5,075,000;

(e)          evidence, reasonably satisfactory to Bank, that Borrower has completed, or concurrently with the initial credit extension under Second Lien Loan Documents will complete, the Related Transaction in accordance with the terms of the Related Agreements (without any amendment thereto or waiver thereunder unless consented to by the Bank);

26

(f)          evidence, reasonably satisfactory to Bank, that the aggregate cash portion of the purchase price for the Agama Acquisition and the California Acquisition due at closing shall not be greater than $4,430,740.76;

(g)          copies of all Related Agreements, each duly executed and dated as of the First Amendment Effective Date (or such earlier date as shall be satisfactory to Bank), in form and substance reasonably satisfactory to Bank;

(h)          evidence in form and substance acceptable to Bank that no less than $400,000.00 of principal of the MGL Seller Note will be paid from the proceeds provided by the Second Lien Lender on the First Amendment Effective Date;

(i)          evidence reasonably satisfactory to Bank that Borrower has completed the Related Transaction in accordance with the terms of the Related Agreements (without any amendment thereto or waiver thereunder unless consented to by Bank); and

(j)          receipt by Bank of such other documents, certificates, opinions and financing statements as Bank shall request.

4.          Representations, Covenants and Warranties; No Default.  The covenants set forth in the Credit Agreement and the other Loan Documents shall be deemed remade as of the date hereof by each Loan Party.  Each Loan Party hereby represents and warrants both before and after giving effect to the Related Transaction that (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects with the same effect as if made on the date hereof (except for those that are qualified by “materiality” or “Material Adverse Effect”, in which case such representations and warranties shall have been true and correct in all respects) except to the extent stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all respects as of such earlier date, (b) no Default or Event of Default has occurred and is continuing as of the date of this Amendment and no Default or Event of Default will result from the transactions contemplated hereby, (c) the Recitals hereto are true and correct, and (d) the execution, delivery and performance by Borrower of this Amendment and each related Loan Document to which it is a party, and the consummation of the transactions described herein and the transactions related hereto, do not and will not (i) require any consent or approval of any governmental agency or authority (other than any consent or approval which has been obtained and is in full force and effect), (ii) conflict with (x) any provision of law, (y) the charter, by-laws or other organizational documents of each Loan Party or (z) any agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon each Loan Party or any of their respective properties, or (iii) require, or result in, the creation or imposition of any Lien on any asset of each Loan Party (other than Liens in favor of Bank created pursuant to the Collateral Documents).

5.          Updated Schedules.  Each Loan Party hereby represents and warrants to Bank that (a) the information set forth on the updated Schedules to the Credit Agreement attached hereto as Exhibit B is true and correct as of the date of this Amendment (notwithstanding that any related representation and warranty only requires that such information be true and correct as of an earlier date), and (b) the information set forth on the updated Schedules to each of the Security

27

Agreements attached thereto respectively is true and correct as of the date of this Amendment (notwithstanding that any related representation and warranty only requires that such information be true and correct as of an earlier date).

6.          Ratification; Claims.  Except as expressly amended hereby, the Credit Agreement and the other Loan Documents are hereby ratified and confirmed by the parties hereto and remain in full force and effect in accordance with the terms thereof.  Without limiting the generality of the foregoing, each Loan Party hereby acknowledges and agrees that the Security Agreement remains in full force and effect, and each Loan Party hereby acknowledges, reaffirms, confirms and ratifies all of its obligations under the Security Agreement.  Each Loan Party hereby acknowledges, confirms, reaffirms and ratifies its grant to Bank of a continuing security interest in all of its right, title and interest in all currently existing and hereafter acquired or arising Collateral.  Each Loan Party hereby represents and warrants that as of the date hereof, there are no defenses, setoffs, claims or counterclaims which could be asserted against Bank arising from or in connection with the Credit Agreement or any other Loan Document.

7.          No Waiver or Novation.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in Section 3 of this Amendment, operate as a waiver of any right, power or remedy of Bank or Lenders, nor constitute a waiver of any provision of the Credit Agreement or the Loan Documents.  Except as expressly provided in Section 3 herein, nothing herein is intended or shall be construed as a waiver of any existing Defaults or Events of Default under the Credit Agreement or other Loan Documents.  This Amendment (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Credit Agreement or any of the Loan Documents.

8.          Fees and Expenses.  The Loan Parties jointly and severally agree to pay on demand all costs and expenses of or incurred by Bank in connection with the evaluation, negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents executed and/or delivered in connection with the transactions described herein, including, but not limited to, the fees and expenses of counsel for Bank.

9.          Release.  Each Loan Party, on behalf of itself and its predecessors, advisors, agents, Affiliates, directors, employees, officers, parents, representatives and subsidiaries, together with its successors and assigns (collectively, the “Releasors” and individually each a “Releasor”), knowingly, voluntarily, and intentionally releases and forever discharges Bank, its respective predecessors, advisors, agents, Affiliates, directors, employees, officers, parents, representatives and subsidiaries, together with its successors and assigns (collectively, the “Released Parties” and individually each a “Released Party”) from all possible claims, counterclaims, demands, actions, causes of action, damages, costs, expenses and liability whatsoever, known or unknown, anticipated or unanticipated, suspected or unsuspected, at law or in equity, originating in whole or in part on or before the date hereof, which any Releasor may now or hereafter have against any Released Party, if any (collectively, the “Released Claims”), and irrespective of whether any such Released Claims arise out of contract, tort, equity, violation of law or regulations, or otherwise.

28

10.          Reference to the Effect on the Credit Agreement; Loan Document.  Upon the effectiveness of this Amendment, (a) each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended by this Amendment, and (b) each reference in the other Loan Documents to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.

11.          GOVERNING LAW.  THIS AMENDMENT, AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT, TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT, AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS.

12.          Headings.  Section headings in this Amendment are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

13.          Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile or by “.PDF” shall be equally as effective as delivery of an original executed counterpart of this Amendment.

14.          Loan Document.  This Amendment shall constitute a “Loan Document” for purposes of the Credit Agreement and all other Loan Documents.

[SIGNATURE PAGES FOLLOW]

 

 

29

(Signature Page to First Amendment to Credit Agreement)

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

	
BORROWER:

	
QUADRANT 4 SYSTEM CORPORATION, an Illinois corporation

 

By: /s/ Nandu Thondavadi                     

           Dr. Nandu Thondavadi

President & Chief Executive Officer

 

 

 

 

 

 

(Signature Page to First Amendment to Credit Agreement)

	
GUARANTOR:

	
STRATITUDE, INC., a California corporation

 

By:  /s/ Nandu Thondavadi                    

           Dr. Nandu Thondavadi

President & Chief Executive Officer

 

 

  

 

(Signature Page to First Amendment to Credit Agreement)

	
BANK:

	
BMO HARRIS BANK N.A.

 

By:/s/ Joseph G. Dillon                           

Joseph G. Dillon

Managing Director

 

 

 

  

EXHIBIT A

Compliance Certificate

Exhibit C

Quadrant 4 System Corporation

Compliance Certificate

	To:	
BMO Harris Bank N.A.

This Compliance Certificate is furnished to BMO Harris Bank N.A. (“Bank”) pursuant to that certain Credit Agreement dated as of July 1, 2016, between Quadrant 4 System Corporation and Bank (the “Credit Agreement”).  Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

The Undersigned hereby certifies, that:

1.          I am the duly elected _____________________________________ of Borrower;

2.          I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

3.          The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth below;

4.          The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this certificate are, to the best of my knowledge, true, correct and complete as of the dates and for the periods covered thereby; and

5.          The Attachment hereto sets forth financial data and computations evidencing Borrower’s compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

 ______________________________________________________________________

The foregoing certifications, together with the computations set forth in the Attachment hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this _________ day of __________________, ___.

QUADRANT 4 SYSTEM CORPORATION

By                                                                       

Name                                                            

Title                                                              

 

-2-

 

Schedule I

 to Compliance Certificate

Quadrant 4 System Corporation

Compliance Calculations

 for Credit Agreement dated as of __________

Calculations as of _____________, _______

	
A.          Total Funded Debt/EBITDA Ratio (Section 7.12(a))

	 
	
1.          Total Funded Debt

	
$___________

	
2.          Net Income for past 4 quarters

	
___________

	
3.          Interest Expense for past 4 quarters

	
___________

	
4.          Income taxes for past 4 quarters

	
___________

	
5.          Depreciation and Amortization Expense for past 4 quarters

	
___________

	
6.          Add-Backs Specified in the definition of EBITDA

	
___________

	
7.          Sum of Lines A2, A3, A4, A5 and A6 (“EBITDA”)

	
___________

	
8.          Ratio of Line A1 to A7

	
____:1.0

	
9.          Line A8 ratio must not exceed

	
____:1.0

	
10.          Borrower is in compliance (circle yes or no)

	
yes/no

	
B.          Fixed Charge Coverage Ratio (Section 7.12(b))

	 
	
1.          Sum of lines A2, A3, A4, A5, and A6 (“EBITDA”)

	
$___________

	
2.          Unfinanced Capital Expenditures for past 4 quarters

	
$___________

	
3.          Unfinanced Software Development Costs for past 4 quarters

	
$___________

	
4.          Lines B1 minus the sum of B2 and B3 (“EBITDA”)

	
$___________

	
5.          Principal payments due within next 4 quarters, including anticipated Earn Out Obligations that could become due within the next 4 quarters

	
$___________

	
6.          Interest Expense for past 4 quarters (or as annualized)

	
$___________

	
7.          Income taxes for past 4 quarters

	
$___________

	
8.          Distributions for past 4 quarters

	
$___________

	
9.          Sum of Lines B5, B6, B7 and B8

	
$___________

	
10.          Ratio of Line B4 to Line B9

	
____:1.0

	
11.          Line B10 ratio must not be less than

	
____:1.0

	
12.          Borrower is in compliance (circle yes or no)

	
yes/no

	
C.          Software Development Costs (Section 7.12(c))

	 
	
1.          Software Development Costs to date for the applicable twelve (12) month period

	
$___________

	
2.          Maximum permitted amount

	
$___________

	
3.          Borrower is in compliance (circle yes or no)

	
yes/no

	
D.          Operating Leases (Section 7.12(d))

	 
	
1.          Year-to-date Operating Leases

	
$___________

	
2.          Maximum permitted amount

	
$___________

	
3.          Borrower is in compliance (circle yes or no)

	
yes/no

 

 

  

-2-

EXHIBIT B

Updated Schedules

(See attached.)

 

 

 

 

EXHIBIT C

Schedule 6.16

(See attached.)

 

 

 

 

 

 

ANNEX I

Closing Document Checklist

(See attached.)QuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.56    
    

 Goldman Sachs Bank USA | 200 West Street | New York, New York 10282-2198 | Tel: +1 212 902
1000 | Fax: +1 212 428 9189  

SECOND AMENDED AND RESTATED MASTER CONFIRMATION 

 

 
 

			
	DATE:	 	September 11, 2014 (as amended and restated as of December 15, 2014 and as further amended and restated on September 21, 2016)
	
TO:	
 	
Strafford Funding LLC ("Counterparty")
	
FROM:	
 	
Goldman Sachs Bank USA ("GS")
	
SUBJECT:	
 	
Repurchase Facility
	
REF. NO.:	
 	
SDB4064875388

 

 

  

        The
purpose of this second amended and restated communication (this "Confirmation") is to set forth the terms and conditions of the
above-referenced Repurchase Facility entered into on the Trade Date specified below between GS and Counterparty (the "Facility"). This communication
constitutes a "Confirmation" as referred to in the Master Repurchase Agreement specified below. This communication supersedes and replaces all prior communications between the
parties hereto with respect to the Facility and Transactions described below.

        This
Confirmation shall supplement, form a part of, and be subject to, the Master Repurchase Agreement (including the Annexes thereto) dated as of September 11, 2014 and
amended and restated as of September 21, 2016, each as further amended or replaced from time to time (collectively, the "Master Repurchase
Agreement"), between GS and Counterparty. This Confirmation shall be read and construed as one with the executed Master Repurchase Agreement and all other outstanding
confirmations between the parties, so that all such confirmations, this Confirmation and the executed Master Repurchase Agreement constitute a single Agreement between the parties. Except as expressly
modified hereby, all provisions contained in, or incorporated by reference into, the Master Repurchase Agreement shall govern each Transaction hereunder. In the event of any inconsistencies between
the Master Repurchase Agreement and this Confirmation, this Confirmation will govern with respect to the Transactions covered hereby (and the last sentence of Paragraph 3(b) of the Master
Repurchase Agreement shall not apply to any such Transaction). In the event of any inconsistencies between Annex A hereto and this Confirmation with respect to any Transaction, the terms of
Annex A with respect to such Transaction will govern. System-generated confirmations of trade may be generated by GS that set forth the trade terms of the individual repurchase transactions
described in this Confirmation; and, if any such system-generated confirmation of trade are generated and there is any inconsistency between such system-generated confirmations of trade and this
Confirmation or the Master Repurchase Agreement, then the terms of this Confirmation or the Master Repurchase Agreement, as the case may be, shall prevail. Capitalized terms not defined herein have
the meaning ascribed to them in the Master Repurchase Agreement. 

 

        This Confirmation evidences a separate transaction with respect to each Purchased Security specified in Annex A from time to time (each, a
"Transaction") as if the details specified in Annex A with respect to that Purchased Security were set out in the Confirmation in full. Each such
Transaction will have a unique Transaction Number as is set out in Annex A. The terms of the Facility and each particular Transaction to which this Confirmation relates are as follows: 

 

 
 

									
	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  (A)    Terms Related to the Facility
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  1.    Basic Terms
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Buyer
	 	

 	 	GS	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Seller
	 	

 	 	Counterparty	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Trade Date
	 	

 	 	September 11, 2014	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Facility Commencement Date
	 	

 	 	September 15, 2014	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  First Ramp-up Period End Date
	 	

 	 	December 15, 2014	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Second Ramp-up Period End Date
	 	

 	 	March 15, 2015	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Restatement Date
	 	

 	 	September 21, 2016	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Facility End Date
	 	

 	 	September 15, 2018	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Maximum Purchased Security Notional Amount
	 	

 	 	USD 577,750,000.00	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Aggregate Purchased Security Notional Amount
	 	

 	 	At any time, the sum of the Purchased Security Notional Amounts under all Transactions for which a Purchase Date has occurred at or prior to such time.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  First Floor Amount
	 	

 	 	USD 225,000,000.00	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Maximum Aggregate Facility Size
	 	

 	 	USD 325,000,000.00	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Eligible Security
	 	

 	 	Gladwyne Funding LLC Floating Rate Notes due November 15, 2025	 	

 
	 

 
	 	  
	 	

 	 	 CUSIP No. 376769 AA3
	 	

 
	 

 
	 	  
	 	

 	 	 For the avoidance of doubt, the Purchased Security for each Transaction under this Master Confirmation shall be the Eligible Security
identified above.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Security Issuer
	 	

 	 	Gladwyne Funding LLC	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Restatement Date Collateral Obligations
	 	

 	 	Counterparty represents, warrants and covenants to GS that the Collateral Obligations specified in Annex D hereto represent a complete and accurate list of all the Collateral Obligations the Security Issuer owns or
has Committed to acquire, in each case as of the Restatement Date.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Haircut Percentage
	 	

 	 	43.75%	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Business Days
	 	

 	 	London and New York.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Business Day Convention
	 	

 	 	Modified Following	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Calculation Agent
	 	

 	 	GS	 	

 
	 

 
	 	  
	 	

 	 	 Unless otherwise expressly stated herein, all determinations by the Calculation Agent hereunder shall be made in its sole and absolute
discretion exercised in good faith and in a manner generally consistent with its then-current practices.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

2	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​

 

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  2.    Conditions Precedent to Effectiveness of the Facility
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Conditions
	 	

 	 	It shall be a condition to the effectiveness of this Confirmation, and to the entry of the first Transaction hereunder, that the following conditions shall have been satisfied (or waived by GS), in form and substance
satisfactory to GS in its sole and absolute discretion:	 	

 
	

 

 
	
 	

  
	
 	

 	
 	

 (a)
	
 	

 GS shall have received the documents and certificates referred to in paragraph 6 to Annex I to the Master Repurchase Agreement, all in form and substance
satisfactory to GS and its counsel in its sole discretion;
	
 	

 
	

 

 
	
 	

  
	
 	

 	
 	

 (b)
	
 	

 GS shall have received the Master Repurchase Agreement and this Confirmation duly executed by Counterparty, and shall have received executed copies of the Security
Indenture (including the schedules and exhibits thereto) and all documents, certificates and opinions delivered pursuant thereto, all in form and substance satisfactory to GS in its sole discretion; and
	
 	

 
	

 

 
	
 	

  
	
 	

 	
 	

 (c)
	
 	

 no default or event of default with respect to Counterparty has occurred under the Master Repurchase Agreement and is then continuing.
	
 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

  

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  3.    Additions of Transactions; Post-Ramp-up Period Transaction Combination
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Additions
	 	

 	 	Subject to the satisfaction of the conditions precedent set forth herein, on any Business Day during the period from and including the Facility Commencement Date to but excluding the Second Ramp-Up Period End Date,
Counterparty may, by delivery to GS of an Addition Notice with a Notice Date not less than five Business Days prior to the proposed Purchase Date for such Transaction, elect to enter into a Transaction (an "Addition") with GS with respect to the Eligible Security (and GS agrees to enter into such Transaction on the terms and conditions specified herein), provided in each
case that:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 after giving effect to such Transaction, the sum of the Initial Purchase Prices of all Transactions for which a Purchase Date shall have
occurred shall not exceed the Maximum Aggregate Facility Size;
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 the terms of such Transaction are in compliance with the terms and conditions set forth in this Confirmation and the Master Repurchase
Agreement; and
	 	

 
	 

 
	 	  
	 	

 	 	 (c)
	 	 the Conditions to Effectiveness with respect to such Transaction are satisfied.
	 	

 
	 

 
	 	  
	 	

 	 	 In connection with each Transaction, GS shall notify Counterparty of the Purchase Date (which shall be a Business Day) and the related Purchase
Price.
	 	

 
	 

 
	 	  
	 	

 	 	 On or reasonably promptly following the Restatement Date, GS shall remit USD 15,625 to Counterparty (which Counterparty shall remit to the
Security Issuer) in immediately available funds, constituting an adjustment of the Purchase Price in connection with the immediately prior Increase, so that, after giving effect to such payment, the sum of the Purchase Prices of all Transactions
hereunder will be equal to USD 325,000,000.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

3	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Addition Notice
	 	

 	 	A notice in substantially the form attached as Annex B duly completed and executed by Counterparty and setting forth (among other information) the proposed Purchase Date and the proposed Purchased Security Notional
Amount, or a notice otherwise in form and substance satisfactory to GS.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Notice Date
	 	

 	 	With respect to any Addition Notice, the date on which such Addition Notice is received by GS (or, if any such day is not a Business Day, the next succeeding Business Day).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Combination of Transactions
	 	

 	 	On the Business Day immediately following each of the First Ramp-Up Period End Date and the Second Ramp-up Period End Date, all Transactions outstanding hereunder on such date shall (automatically and without action by any
Person) be deemed combined into a single Transaction hereunder having (for the avoidance of doubt):	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 a Purchased Security Notional Amount equal to the sum of the Purchased Security Notional Amounts of each individual Transaction hereunder
immediately prior to such combination; and
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 a Purchase Price (and an Initial Purchase Price) equal to the sum of the Purchase Prices (or Initial Purchase Prices) of each individual
Transaction hereunder immediately prior to such combination.
	 	

 
	 

 
	 	  
	 	

 	 	 GS shall prepare and deliver to Counterparty a revised Annex A (or another form setting forth information corresponding to that set forth
on Annex A), reflecting the terms of the Transaction after giving effect to such combination, reasonably promptly following the occurrence thereof.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

  

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  (B)    Terms Relating to Each Transaction
	 	

  
	

 ​

 	​

	​

 	​

 	​

 	​

	​

 	​

	​

 	​

 	​

 
	 

 
	 	 1.    General Terms
	 	 	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Terms Specified in Annex A
	 	

 	 	The following terms in relation to each Transaction will be specified in Annex A (by the Calculation Agent):	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Transaction Number (to be assigned by the Calculation Agent)
	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Security Issuer (which shall be Gladwyne Funding LLC)
	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Purchased Security (which shall be the Eligible Security)
	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Purchase Date (which shall be the Business Day on which the Conditions to Effectiveness for such Transaction are satisfied)
	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Initial Purchase Price
	 	

 
	 

 
	 	  
	 	

 	 	

    •
 
	 	 Purchased Security Notional Amount
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Purchased Security Notional Amount
	 	

 	 	For each Transaction, the original par amount of the Eligible Security that is purchased hereunder in such Transaction (determined without regard to paydowns on the Eligible Security occurring at any time).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Purchase Price
	 	

 	 	For each Transaction, an amount equal to the product of:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 the Purchased Security Notional Amount for such Transaction; and
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 one minus the Haircut Percentage.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

4	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Initial Purchase Price
	 	

 	 	For each Transaction, the Purchase Price for such Transaction on the Purchase Date for such Transaction.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Repurchase Date
	 	

 	 	In relation to the Purchased Security in each Transaction, the earliest to occur of:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 the Scheduled Repurchase Date for such Purchased Security;
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 the date on which the non-defaulting party exercises its option to declare an Event of Default pursuant to Section 11 of the Master
Repurchase Agreement;
	 	

 
	 

 
	 	  
	 	

 	 	 (c)
	 	 the date (if any) on or following the occurrence of a Credit Event with respect to such Purchased Security specified in writing by GS to
Counterparty;
	 	

 
	 

 
	 	  
	 	

 	 	 (d)
	 	 the date (if any) on or following the occurrence of a Regulatory Change specified in writing by GS to Counterparty;
	 	

 
	 

 
	 	  
	 	

 	 	 (e)
	 	 the Assignment-Related Repurchase Date (if any) specified in writing by Counterparty to GS; and
	 	

 
	 

 
	 	  
	 	

 	 	 (f)
	 	 the date (if any) specified in writing by Counterparty to GS, provided that a Dispute-Related
Repurchase Right has occurred and is continuing on the date of such notice from Counterparty (the occurrence of the Repurchase Date under this clause (f), a "Dispute-Related Repurchase Date Acceleration").
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Scheduled Repurchase Date
	 	

 	 	For each Transaction, the Facility End Date.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Regulatory Change
	 	

 	 	Any enactment or establishment of or supplement or amendment to, or change in any law, regulation, rule, policy or guideline (including any accord or standard of the Basel Committee on Banking Supervision, the Federal
Reserve Board or any state banking regulator) or in the application or official interpretation of any such law, regulation, rule, policy or guideline that, in each case, becomes effective on or after the Facility Commencement Date and is binding on
or otherwise has an effect on GS and, as a result of which, in the reasonable determination of GS, for reasons outside GS's control, GS will (either by voluntary submission or by applicable law) no longer be permitted to enter into or maintain any
Transaction hereunder or be subject to materially less favorable regulatory capital treatment with respect to the Transactions by comparison to the regulatory capital treatment applicable as a result of the entry into this Facility on the Facility
Commencement Date.	 	

 
	 

 
	 	  
	 	

 	 	 Before declaring a Repurchase Date due to the occurrence of a Regulatory Change, GS agrees to take commercially reasonable measures to
eliminate or mitigate the impact of such Regulatory Change (which, for the avoidance of doubt, includes but is not limited to GS using commercially reasonable efforts to restructure the Transactions under this Confirmation with Counterparty to make
them compliant (in the case of any such changes that would restrict entry into or maintenance of Transactions) or more efficient from a regulatory perspective (in the case of any such changes that would result in less favorable regulatory capital
treatment), provided that Counterparty is under no obligation to agree to any such restructuring or any other changes to the terms of this Confirmation or the Master Repurchase Agreement.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

5	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Market Value
	 	

 	 	With respect to the Purchased Security (in its entirety) as of any date, an amount equal to lesser of (a) the Look-Through Market Value of the Purchased Security at such date and (b) the Maximum Purchased Security
Notional Amount.	 	

 
	 

 
	 	  
	 	

 	 	 If on any date the sum of the Purchased Security Notional Amounts for all Transactions hereunder at such time is for any reason less than the
full par amount of the Purchased Security that has been issued under the Security Indenture (determined without regard to paydowns on the Purchased Security), then the Calculation Agent will pro-rate the Look-Through Market Value to reflect the
portion of the Purchased Security that is then the subject of Transactions hereunder.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Look-Through Market Value
	 	

 	 	With respect to the Eligible Security (in its entirety) as of any date, the sum of:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 the aggregate Asset Market Related Amounts in respect of all Underlying Assets and Unsettled Purchase Assets in the Underlying Portfolio on
such date; plus
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 the Cash Value as at such date.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

													
	 

 
	 	  Asset Market Related Amount
	 	

 	 	As of any date:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 in respect of an Underlying Asset in the Underlying Portfolio as of such date or an Unsettled Purchase Asset as of such date (but excluding
all Unsettled Sale Assets and all Zero Value Assets), the product of:
	 	

 
	 

 
	 	  
	 	

 	 	  
	 	 (1)
	 	 the Asset Amortized Amount therefor as of such date; and
	 	

 
	 

 
	 	  
	 	

 	 	  
	 	 (2)
	 	 the Asset Current Price (expressed as a percentage) therefor as of such date;
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 in respect of an Unsettled Sale Asset in the Underlying Portfolio as of such date that is not a Zero Value Asset, the Settlement Value of such
Unsettled Sale Asset as of such date; and
	 	

 
	 

 
	 	  
	 	

 	 	 (c)
	 	 in respect of a Zero Value Asset in the Underlying Portfolio as of such date, zero.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

											
	 

 
	 	  Asset Amortized Amount
	 	

 	 	In respect of an Underlying Asset or Unsettled Purchase Asset on any day, an amount equal to the principal amount outstanding under such Underlying Asset or Unsettled Purchase Asset on such day (after giving effect on a
pro-rata basis to any repurchase, repayment or tender offer in respect of that Underlying Asset or Unsettled Purchase Asset).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Asset Current Price
	 	

 	 	In respect of an Underlying Asset or Unsettled Purchase Asset on any date, the bid side market value of that Underlying Asset or Unsettled Purchase Asset (expressed as a percentage of par of the Underlying Asset Notional
Amount) but excluding any accrued interest, as determined by the Calculation Agent and notified to the parties by the Calculation Agent on each Business Day.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Underlying Asset Notional Amount
	 	

 	 	In respect of any Underlying Asset or any Unsettled Purchase Asset, the full principal amount of the Underlying Asset or Unsettled Purchase Asset, as applicable, owned by the Security Issuer or Committed to be owned by the
Security Issuer, as the case may be.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

6	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Cash Value
	 	

 	 	As of any date, an amount, determined by the Calculation Agent, equal to:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 the aggregate amount of cash standing to the credit of the Security Issuer Account (excluding any accrued and unpaid interest); minus
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 the aggregate Settlement Value for all Unsettled Purchase Assets as at such date (if any).
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Security Issuer Account
	 	

 	 	The "Principal Collection Account", as defined in the Security Indenture.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Underlying Asset
	 	

 	 	Each loan or bond that is owned by the Security Issuer from time to time and is identified in the Schedule of Collateral Obligations (as defined in the Security Indenture) set forth on Schedule A to the Security
Indenture and amended from time to time.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Private Underlying Asset
	 	

 	 	Each Underlying Asset or Proposed Underlying Asset that has been designated a "Private Collateral Obligation" pursuant to Section 12.2(a)(ii) of the Security Indenture.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Non-Private Underlying Asset
	 	

 	 	Each Underlying Asset and Proposed Underlying Asset that is not a Private Underlying Asset.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Underlying Portfolio
	 	

 	 	The portfolio of Underlying Assets or Unsettled Purchase Assets, as applicable, owned by the Security Issuer or Committed to be owned by the Security Issuer from time to time.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Collateral Manager
	 	

 	 	The Collateral Manager as defined in the Security Indenture.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Proposed Underlying Asset
	 	

 	 	A loan or bond that the Collateral Manager has proposed to be acquired by the Security Issuer that satisfies the Reinvestment Criteria at the time of such proposal.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Unsettled Purchase Asset
	 	

 	 	As of any date, an asset that the Security Issuer has Committed to acquire and in respect of which the purchase by the Security Issuer has not yet settled.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Unsettled Sale Asset
	 	

 	 	As of any date, an Underlying Asset that the Security Issuer has Committed to sell and in respect of which the sale by the Security Issuer has not yet settled.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

													
	 

 
	 	  Zero Value Asset
	 	

 	 	An Underlying Asset at any time:	 	

 
	 

 
	 	  
	 	

 	 	 (a)
	 	 in respect of which there has occurred a Zero Value Event;
	 	

 
	 

 
	 	  
	 	

 	 	 (b)
	 	 that did not satisfy the Reinvestment Criteria at the time the Security Issuer Committed to acquire such Underlying Asset (unless such
Underlying Asset, after such date, subsequently satisfies the Reinvestment Criteria);
	 	

 
	 

 
	 	  
	 	

 	 	 (c)
	 	 that has been the subject of a Restructuring or a Material Modification if, in either case:
	 	

 
	 

 
	 	  
	 	

 	 	  
	 	 (1)
	 	 immediately following such Restructuring or Material Modification, such Underlying Asset fails to satisfy the Reinvestment Criteria (unless
such Underlying Asset, after such date, subsequently satisfies the Reinvestment Criteria); or
	 	

 
	 

 
	 	  
	 	

 	 	  
	 	 (2)
	 	 the GS Consent Condition is not satisfied with respect to such Restructuring or Material Modification;
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

7	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 

 

 
 

															
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	(d)	 	with respect to which Escrowed Assignment Agreement Documents have not been delivered to the Trustee under the Security Indenture to be held by the Trustee thereunder, all in form and substance satisfactory to GS in its
sole and absolute discretion; or	 	

 
	 

 
	 	 	 	

 	 	 (e)
	 	 that is not a Transferable bond, an Assignable Loan or a Consent Required Loan (or as to which any rights of first refusal, rights of first
offer, last looks or other material restrictions or conditions to the transfer or assignment of such obligation (whether in the underlying instruments governing such obligation, in any intercreditor agreement or agreement among lenders relating to
such obligation or otherwise) exist in favor of any other holder of such obligation or any other Person), all as determined by GS in its sole and absolute discretion.
	 	

 
	 

 
	 	 	 	

 	 	 For purposes of clauses (d) and (e) above, with respect to the Underlying Assets identified in Annex C hereto (each, a
"Specified Transfer Asset"), GS may, in its sole and absolute discretion, deem them to be Zero Value Assets if such Specified Transfer Assets do not cease to be Specified Transfer Assets within
30 days after the Restatement Date.
	 	

 
	 

 
	 	 	 	

 	 	 A Specified Transfer Asset will cease to be a Specified Transfer Asset when:
	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	 the Security Issuer delivers to the Trustee under the Security Indenture Escrowed Assignment Agreement Documents for such Specified Transfer
Asset and a Cooperation Agreement to be held by the Trustee under the Security Indenture, all in form and substance satisfactory to GS in its sole and absolute discretion, provided that GS in its sole
discretion may waive the requirements to deliver Escrowed Assignment Agreement Documents and/or a Cooperation Agreement for such Specified Transfer Asset; and
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  GS determines, in its sole and absolute discretion, that it is satisfied with the transferability of such Specified Transfer
Asset.
	 	

 
	 

 
	 	 	 	

 	 	  For purposes of the definition of "Zero Value Asset", GS may, in its sole and absolute discretion, deem amounts in excess of $25,000,000 of
the Asset Amortized Amount of a Synergy Asset to be a Zero Value Asset (such portion, the "Synergy Zero Value Component", and the remainder of such Synergy Asset, the "Synergy
Non-Zero Value Component") if, on or after the Restatement Date, Synergy incurs Material Synergy Debt (the date of such event, a "Synergy Zero Value Event Date"), whether or not
such Synergy Asset could otherwise be determined to be a Zero Value Asset; provided that the amount of the Synergy Zero Value Component shall not exceed the amount of such Material Synergy Debt. The
foregoing is without prejudice to the rights of GS to determine that the Synergy Non-Zero Value Component of such Synergy Asset constitutes a Zero Value Asset on the terms and conditions set forth herein.
	 	

 
	 

 
	 	 	 	

 	 	  If the Asset Amortized Amount of such Synergy Asset is reduced at any time after a Synergy Zero Value Event Date, the amount of such reduction
shall be applied first to reduce the Synergy Zero Value Component and then to reduce the Synergy Non-Zero Value Component.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

8	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	As used herein:	 	

 
	 

 
	 	 	 	

 	 	 "Assignable Loan" shall mean a Loan that is capable of being assigned or novated to, at a
minimum, commercial banks or financial institutions (irrespective of their jurisdiction of organization) that are not then a lender or a member of the relevant lending syndicate, without the consent of the borrower or the guarantor, if any, of such
Loan or any agent.
	 	

 
	 

 
	 	 	 	

 	 	 "Assignment Agreement" shall mean, for any Underlying Asset, an assignment and assumption
agreement in the form required, pursuant to the related Reference Instruments, for the transfer by the Security Issuer of all or a portion of the legal and beneficial interest in such Underlying Asset. If no form of assignment and assumption
agreement is required, pursuant to the related Reference Instruments, for the transfer by the Security Issuer of all or a portion of the legal and beneficial interest in such Underlying Asset, then the "Assignment Agreement" for such Underlying Asset
shall be a reference to the form of assignment and assumption agreement, and any related documents, that are customary in the relevant market for the transfer of the legal and beneficial interest in such Underlying Asset.
	 	

 
	 

 
	 	 	 	

 	 	 "Consent Required Loan" shall mean a Loan that is capable of being assigned or novated solely
with the consent of the borrower and/or the guarantor, if any, of such Loan and/or any agent. For the avoidance of doubt, if the assignment or novation of a Loan requires the consent of any lender or any other party to such Loan other than the
borrower, guarantor or agent of such loan, it shall not satisfy the definition of Consent Required Loan.
	 	

 
	 

 
	 	 	 	

 	 	 "Cooperation Agreement" shall mean, with respect to any Underlying Asset for which the
provisions of the Reference Instruments require the consent of any Specified Person for the transfer of all or any portion of such Underlying Asset by the Security Issuer, an agreement in form and substance reasonably acceptable to GS pursuant to
which each such Specified Person agrees to provide such consent when and as required under the terms of such agreement; it being understood and agreed that the Cooperation Agreements in respect of the Underlying Assets issued by Altus Power America,
 Inc., Horn Intermediate Holdings, Inc., Sunnova Asset Portfolio 5 Holdings, LLC, Swift Worldwide Resources US Holdings Corp. and Vantage Energy II, LLC and attached as Annex E hereto are acceptable to GS in all
respects.
	 	

 
	 

 
	 	 	 	

 	 	  "Escrowed Assignment Agreement Documents" shall mean, with respect to each Underlying Asset,
three Assignment Agreements, each executed in blank by (a) the Security Issuer, as assignor, and (b) if the signature of any affiliate of the Security Issuer (whether as administrative agent, servicer, registrar or in any other capacity) is
or could be required on such Assignment Agreement for the transfer of all or any portion of such Underlying Asset by the Security Issuer, each such affiliate.
	 	

 
	 

 
	 	 	 	

 	 	  "Material Synergy Debt" shall mean, as to any Synergy Asset, indebtedness that is senior to or
pari passu with such Synergy Asset (other than revolving indebtedness or pari passu debt that does not adversely affect the creditworthiness of Synergy, as
determined by GS in its sole and absolute discretion).
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

9	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	"Reference Instruments" shall mean the indenture, credit agreement or other agreement pursuant to which an Underlying Asset has been issued or created, each other agreement
that governs the terms of or secures the obligations represented by such Underlying Asset or of which the holders of such Underlying Asset are the beneficiaries and all related closing documents.	 	

 
	 

 
	 	 	 	

 	 	  "Specified Person" shall mean any Person:
	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  that is an affiliate of the Security Issuer;
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  whose investment advisor or investment sub-advisor is, or is an affiliate of, the investment advisor or investment sub-advisor of FS Energy
and Power Fund (including, for the avoidance of doubt, any Person that is a fund sponsored by Franklin Square Holdings, L.P.); or
	 	

 
	 

 
	 	 	 	

 	 	 (c)
	 	  that is a subsidiary of any Person described in clause (a) or (b) above.
	 	

 
	 

 
	 	 	 	

 	 	  "Synergy" shall mean, collectively, Synergy Resources Corp. or any affiliates
thereof.
	 	

 
	 

 
	 	 	 	

 	 	  "Synergy Asset" shall mean an Underlying Asset in the Underlying Portfolio issued by
Synergy.
	 	

 
	 

 
	 	 	 	

 	 	  "Transferable" shall mean an obligation that is transferable to institutional investors without
any contractual, statutory or regulatory restriction, provided that none of the following shall be considered contractual, statutory or regulatory restrictions:
	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  contractual, statutory or regulatory restrictions that provide for eligibility for resale pursuant to Rule 144A or Regulation S
promulgated under the United States Securities Act of 1933, as amended (and any contractual, statutory or regulatory restrictions promulgated under the laws of any jurisdiction having a similar effect in relation to the eligibility for resale of an
obligation);
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  restrictions on permitted investments such as statutory or regulatory investment restrictions on insurance companies and pension funds;
or
	 	

 
	 

 
	 	 	 	

 	 	 (c)
	 	  restrictions in respect of blocked periods on or around payment dates or voting periods.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Restructuring
	 	

 	 	With respect to an Underlying Asset:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  if such Underlying Asset is a Non-Private Underlying Asset, a "Restructuring" (as defined in Section 4.7 of the Credit Definitions) has
occurred in respect of the Underlying Asset; and
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  if such Underlying Asset is a Private Underlying Asset, a "Restructuring" (as defined in Section 4.7 of the Credit Definitions) has
occurred in respect of the Underlying Asset (except that, for such purposes, Section 4.7(a)(iv) of the Credit Definitions shall be amended to include the following at the end thereof "; or a release of liens or other credit support for the
Obligation; or any other change that materially reduces the level of subordination enhancing the Obligation").
	 	

 
	 

 
	 	 	 	

 	 	  For purposes of this Confirmation, "Multiple Holder Obligation" will not be applicable in determining whether any such Restructuring
occurs.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

10	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Material Modification
	 	

 	 	A "Specified Change" (as defined in the Security Indenture) to an Underlying Asset.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Settlement Value
	 	

 	 	As of any date:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  in respect of any Unsettled Purchase Asset, the aggregate consideration to be paid by the Security Issuer to acquire such Unsettled Purchase
Asset; and
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  in respect of any Unsettled Sale Asset, the contractual sale price for such Unsettled Sale Asset (expressed in USD) to be received by the
Security Issuer from the purchaser of such Underlying Asset; provided that:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	  if the sale of such Unsettled Sale Asset remains unsettled for more than 30 calendar days, then:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 	 	 (x)
	 	 from time to time upon request from GS Counterparty shall provide to GS all information known to Counterparty concerning the facts and
circumstances causing such delay in settlement and cooperate with GS in discussing with the Security Issuer and the Collateral Manager strategies for accelerating settlement of such sale; and
	 	

 
	 

 
	 	 	 	

 	 	 	 	 	 	 (y)
	 	 if the purchaser of such Unsettled Sale Asset is an affiliate of Counterparty and such delay in settlement is not solely a result of
operational or logistical issues, Counterparty and GS shall work together in good faith to determine the Settlement Value for such Unsettled Purchase Asset; and
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (2)
	 	  if the sale of such Unsettled Sale Asset continues to remain unsettled for more than 90 calendar days, then the Settlement Value for such
Unsettled Sale Asset will be determined by the Calculation Agent.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Credit Event
	 	

 	 	Defaulted Asset Sale Failure	 	

 
	 

 
	 	 	 	

 	 	  Security Event of Default
	 	

 
	 

 
	 	 	 	

 	 	  As used herein:
	 	

 
	 

 
	 	 	 	

 	 	  "Defaulted Asset Sale Failure" shall mean the Security Issuer's failure to Commit to sell any
Defaulted Obligation (as defined in the Security Indenture) within 30 days of such Underlying Asset becoming a Defaulted Obligation, provided that the failure to Commit to sell any Defaulted
Obligation within 30 days of such Underlying Asset becoming a Defaulted Obligation shall not result in a Defaulted Asset Sale Failure for so long as the Security Issuer continues to use commercially reasonable efforts to continue to sell such
Defaulted Obligation after such 30 day period.
	 	

 
	 

 
	 	 	 	

 	 	  "Security Event of Default" shall mean, with respect to any Purchased Security, an event of
default (however designated) in the Security Indenture.
	 	

 
	 

 
	 	 	 	

 	 	  "Security Indenture" shall mean the indenture or other underlying instruments governing the
Purchased Security.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

11	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Zero Value Event
	 	

 	 	In respect of any Underlying Asset, the occurrence of any one or more of the following:	 	

 
	 

 
	 	 	 	

 	 	  Bankruptcy
	 	

 
	 

 
	 	 	 	

 	 	  Failure to Pay
	 	

 
	 

 
	 	 	 	

 	 	  As used herein:
	 	

 
	 

 
	 	 	 	

 	 	  "Bankruptcy" with respect to an Underlying Asset shall mean a "Bankruptcy" (as defined in the
2003 ISDA Credit Derivatives Definitions as published by the International Swap and Derivatives Association, Inc. (the "Credit Definitions")) with respect to the related obligor.
	 	

 
	 

 
	 	 	 	

 	 	  "Failure to Pay" with respect to an Underlying Asset shall mean, after the expiration of any
applicable grace period (however defined under the terms of the Underlying Asset), the occurrence of a non-payment of a payment of interest Scheduled to be Due or principal on the Underlying Asset when due, in accordance with the terms of the
Underlying Asset at the time of such failure.
	 	

 
	 

 
	 	 	 	

 	 	  "Scheduled to be Due" shall mean, in the case of an interest payment, that such interest
payment would accrue during the related calculation period for the Underlying Asset.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Commitment
	 	

 	 	A binding commitment pursuant to FSEP's and/or the Collateral Manager's then current policies and procedures to purchase or sell an Underlying Asset between the buyer and seller of such Underlying Asset entered into
pursuant to customary documents in the relevant market. The terms "Commit" and "Committed" have correlative meanings.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Reinvestment Criteria
	 	

 	 	The criteria set forth in the Security Indenture (including, without limitation, the criteria set forth in the definition of "Collateral Obligation" set forth therein) that, pursuant to the terms set forth in the Security
Indenture are required to be satisfied as a condition to the purchase of an Underlying Asset (other than any consent of one or more holders of the Eligible Security).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  GS Consent Condition
	 	

 	 	For any Underlying Asset proposed to be acquired by the Security Issuer or any Underlying Asset subject to a Restructuring or Material Modification after it was acquired by the Security Issuer, a condition satisfied if GS
consents to such acquisition, Restructuring or Material Modification, as applicable (which GS may withhold in its sole and absolute discretion).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

													
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	   2. Conditions to Effectiveness
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Conditions to Effectiveness
	 	

 	 	The effectiveness of each Transaction shall be subject to the satisfaction of each of the conditions precedent for such Transaction specified in the Master Repurchase Agreement and the satisfaction of each of the following
additional conditions:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  a valid Addition Notice has been timely delivered to GS;
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  in the case of the first Transaction hereunder:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	 the "Closing Date" under and as defined in the Security Indenture shall have occurred, and the Seller shall have acquired a portion of the
Eligible Security in an amount equal to the Purchased Security Notional Amount for such Transaction; and
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

12	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

													
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	 	 	(2)	 	Counterparty shall have initiated the transfer to GS of a par amount of the Eligible Securities equal to the Purchased Security Notional Amount for such Transaction pursuant to Paragraph 3(a) of the Master Repurchase
Agreement for scheduled settlement substantially in accordance with the then-current market practice in the principal market for such Security;	 	

 
	 

 
	 	 	 	

 	 	 (c)
	 	  in the case of each subsequent Transaction hereunder, the related "Increase" under the Security Indenture shall have occurred, and
Counterparty shall have initiated the transfer to GS of a par amount of the Eligible Securities equal to the Purchased Security Notional Amount for such Transaction pursuant to Paragraph 3(a) of the Master Repurchase Agreement for scheduled
settlement substantially in accordance with the then-current market practice in the principal market for such Security;
	 	

 
	 

 
	 	 	 	

 	 	 (d)
	 	  no default or event of default with respect to Counterparty has occurred under the Master Repurchase Agreement and is then continuing;
and
	 	

 
	 

 
	 	 	 	

 	 	 (e)
	 	  no Margin Deficit exists under the Master Repurchase Agreement.
	 	

 
	 

 
	 	 	 	

 	 	  GS shall prepare and deliver to Counterparty a revised Annex A (or another form setting forth information corresponding to that set forth
on Annex A), reflecting the terms of such Transaction, reasonably promptly following the satisfaction of the Conditions to Effectiveness for such Transaction.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	   3.    Financing Fees
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Ramp-Up Period Financing Fee Payments
	 	

 	 	In lieu of accrual and payment of Price Differential in respect of the Transactions, on the first Financing Fee Payment Date, Counterparty shall pay to GS an amount in USD (the first "Financing Fee
Payment") equal to the sum of:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  for each Transaction entered into on or prior to the First Ramp-Up Period End Date:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	 the Initial Purchase Price for each Transaction; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (2)
	 	 the sum of (x) the Floating Rate as of the Financing Fee Reset Date for the initial Financing Fee Period for such Transaction
plus (y) the Spread; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (3)
	 	 the Financing Fee Day Count Fraction for the initial Financing Fee Period for such Transaction; and
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

13	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

													
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	(b)	 	for all Transactions (collectively) outstanding during the Financing Fee Period commencing on December 15, 2014:	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	 the Average Fee Basis Amount; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (2)
	 	 the sum of (x) the Floating Rate as of the Financing Fee Reset Date for the Financing Fee Period commencing on December 15, 2014
plus (y) the Spread; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (3)
	 	 the Financing Fee Day Count Fraction for the Financing Fee Period commencing on December 15, 2014.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Average Fee Basis Amount
	 	

 	 	(a)	 	The sum, for each day in the Financing Fee Period commencing on December 15, 2014, of the greater of:	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	 the First Floor Amount; and
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (2)
	 	 the aggregate Purchase Prices for all Transactions on such day; divided by
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  the number of days in such Financing Fee Period.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Pre-Restatement Date Spread
	 	

 	 	2.75% per annum.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Post-Restatement Date Spread
	 	

 	 	3.38% per annum.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Spread
	 	

 	 	(a)	 	For each day from, and including, the prior Financing Fee Period End Date to, but excluding, the Restatement Date, the Pre-Restatement Date Spread; and	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  for each day from, and including, the Restatement Date, the Post-Restatement Date Spread.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Post-Second Ramp-Up Period Financing Fee Payments
	 	

 	 	In lieu of accrual and payment of Price Differential in respect of all of the Transactions collectively (and without duplication of any Financing Fees theretofore paid as part of the Repurchase Price of any Purchased
Securities), on each Financing Fee Payment Date (other than the initial Financing Fee Payment Date), Counterparty shall pay to GS an amount in USD (the subsequent "Financing Fee Payments") equal
to:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	  the Maximum Aggregate Facility Size; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  the sum of (1) the Floating Rate as of the Financing Fee Reset Date for such Financing Fee Period plus (2) the Average Applicable Margin for such Financing Fee Period; multiplied by
	 	

 
	 

 
	 	 	 	

 	 	 (c)
	 	  the Financing Fee Day Count Fraction.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Financing Fee Payment Dates
	 	

 	 	Each date that is 2 Business Days after each Financing Fee Period End Date (commencing with the Financing Fee Period End Date in March 2015).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Financing Fee Period End Dates
	 	

 	 	(a)	 	Each three-month anniversary of the Facility Commencement Date to, but excluding, the Repurchase Date; and	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	  the Repurchase Date.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

14	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 

 

 
 

															
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Financing Fee Period
	 	

 	 	(a)	 	For each Transaction having a Purchase Date prior to the Second Ramp-Up Period End Date, initially, the period from, and including, the Purchase Date for such Transaction to, but excluding, the Financing Fee Period End Date
following such Purchase Date; and	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	 for each Transaction (including those having an initial Financing Fee Period under clause (a) above), each period from, and including, the
prior Financing Fee Period End Date to, but excluding, the current Financing Fee Period End Date.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Floating Rate
	 	

 	 	For any Financing Fee Period, three-month USD LIBOR, except that linear interpolation will apply for Financing Fee Periods commencing prior to the Second Ramp-Up Period End Date.	 	

 
	 

 
	 	 	 	

 	 	 "USD LIBOR" for any Financing Fee Period shall be the rate for deposits in U.S. Dollars which
appears on the Reuters Screen LIBOR01 (or a successor page) at 11:00 a.m. London time on the date that is two London Business Days prior to the first day of such Financing Fee Period (or, if such rate does not appear thereon, the arithmetic mean
of the offered quotations of four major banks in London designated by the Buyer to prime banks in the London interbank market for U.S. Dollar deposits in Europe) having a maturity of three months.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  London Business Day
	 	

 	 	Any day on which commercial banks are open for general business in London.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  New York Business Day
	 	

 	 	Any day on which commercial banks are open for general business in New York.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Average Applicable Margin
	 	

 	 	For any Financing Fee Period, the sum of the Applicable Margin for each day in such Financing Fee Period divided by the number of days in such Financing Fee Period.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Applicable Margin
	 	

 	 	For any day, the higher of:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	 the product of:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (1)
	 	 the Spread for such day; and
	 	

 
	 

 
	 	 	 	

 	 	 	 	 (2)
	 	 the ratio on such day of:
	 	

 
	 

 
	 	 	 	

 	 	 	 	 	 	 (x)
	 	 the Aggregate Purchased Security Notional Amount minus the Adjusted Aggregate Reduction Amount
as of such day; to
	 	

 
	 

 
	 	 	 	

 	 	 	 	 	 	 (y)
	 	 the Aggregate Purchased Security Notional Amount as of such day; and
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	 1.49%.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Financing Fee Day Count Fraction
	 	

 	 	Actual/360	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Financing Fee Reset Dates
	 	

 	 	For each Transaction, the first day of each Financing Fee Period for such Transaction	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Adjusted Aggregate Reduction Amount
	 	

 	 	

 For any day, the lesser of:    (a)    the Aggregate Reduction Amount in effect on such day; and  
  (b)    the Cash Value as of such day.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

15	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Reduction Amounts
	 	

 	 	If after the Second Ramp-Up Period End Date the Collateral Manager proposes a Proposed Underlying Asset for which at least two Pricing Sources are available and GS notifies Counterparty (including by telephone or email)
that:	 	

 
	 

 
	 	 	 	

 	 	 (x)
	 	 GS has determined (in its sole and absolute discretion) that such Proposed Underlying Asset is a Non-Private Underlying Asset; and
	 	

 
	 

 
	 	 	 	

 	 	 (y)
	 	 the GS Consent Condition is not satisfied with respect to such Proposed Underlying Asset,
	 	

 
	 

 
	 	 	 	

 	 	 such event will constitute a "Rejection Event" and the Proposed Underlying Asset will constitute
a "Rejected Underlying Asset" unless the GS Consent Condition is subsequently satisfied with respect to such Proposed Underlying Asset within three Business Days after GS receives a Reduction Notice for
the related Reduction Event as described below.
	 	

 
	 

 
	 	 	 	

 	 	 If the GS Consent Condition is not satisfied with respect to any Restructuring or any Material Modification of an Underlying Asset, such event
will constitute a "Rejection Event" and the Underlying Asset will also constitute a "Rejected Underlying Asset" unless the GS Consent Condition is
subsequently satisfied with respect to such Restructuring or Material Modification within three Business Days after GS receives a Reduction Notice for the related Reduction Event as described below.
	 	

 
	 

 
	 	 	 	

 	 	 Each time three unique and consecutive Rejection Events occur (each with respect to Underlying Assets or Proposed Underlying Assets issued by
obligors unaffiliated with one another), such occurrence will constitute a "Reduction Event", whereupon Counterparty may, by written notice to GS (each such notice, a "Reduction
Notice"), declare a "Reduction Amount" (with effect from the date of such Reduction Notice, each such date a "Reduction Date") with
respect to such Reduction Event equal to the average of the Reduction Calculation Amounts of the Rejected Underlying Assets relating to such Reduction Event (determined, for the avoidance of doubt, taking into account the portion of such Rejected
Underlying Asset that is or would have been acquired by the Security Issuer), provided that the Reduction Amount related to such Reduction Event shall be deemed reduced to zero (with effect from the date
of the related Reduction Notice) if, within three Business Days following the related Reduction Date, the GS Consent Condition is subsequently satisfied with respect to one or more of the Rejected Underlying Assets related to such Reduction
Event.
	 	

 
	 

 
	 	 	 	

 	 	 For the avoidance of doubt, multiple Reduction Events may occur during the term of this Agreement entitling Counterparty to declare Reduction
Amounts with respect to each such Reduction Event (the sum of all Reduction Amounts at any time, the "Aggregate Reduction Amount" at such time).
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

16	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

															
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 	 	

 	 	If (at any time after any Reduction Event) the Collateral Manager proposes a Proposed Underlying Asset and GS notifies Counterparty (including by telephone or email) that the GS Consent Condition is satisfied with respect
to such Proposed Underlying Asset (each such date, an "Acceptance Date"), or the GS Consent Condition is satisfied with respect to a related Restructuring or Material Modification, the Aggregate
Reduction Amount will be reduced (but not below zero) (with effect from such Acceptance Date) by an amount equal to the Reduction Calculation Amount of such Proposed Underlying Asset or Underlying Asset (determined, for the avoidance of doubt, taking
into account the portion of such Proposed Underlying Asset or Underlying Asset, as the case may be, that is or would have been acquired by the Security Issuer).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Reduction Calculation Amount
	 	

 	 	For any Rejection Event relating to a Proposed Underlying Asset that is a Rejected Underlying Asset, the proposed purchase price of such Rejected Underlying Asset.	 	

 
	 

 
	 	 	 	

 	 	 For any Rejection Event relating to a Restructuring or Material Modifications, the then-prevailing market value of the related Rejected
Underlying Asset.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Pricing Source
	 	

 	 	For any Underlying Asset or Proposed Underlying Asset, a market maker in the relevant market, LoanX or other pricing sources reasonably acceptable to GS.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

  

 

 
 

									
	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	 4.    Make-Whole Payment
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Make-Whole Payment Requirement
	 	

 	 	If the Repurchase Date for the Transactions is accelerated for any reason (other than the occurrence of a Regulatory Change, the occurrence of an Assignment-Related Repurchase Date Acceleration or the occurrence of a
Dispute-Related Repurchase Date Acceleration) (a "Repurchase Date Acceleration"), then Counterparty shall pay to GS, within five Business Days of the date on which such acceleration occurs, an amount
equal to the Make-Whole Amount.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Make-Whole Amount
	 	

 	 	In connection with a Repurchase Date Acceleration (if any), an amount equal to the aggregate amount of Financing Fee Payments that would be payable to GS hereunder during the period from and including the date on which
such Repurchase Date Acceleration occurs to but excluding the Scheduled Repurchase Date (determined as if the Floating Rate were equal to zero), discounted to present value, all as calculated by the Calculation Agent.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  5.    Application of Principal Payments.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Cash Principal Payment Provisions
	 	

 	 	On each date on which GS receives a payment (other than a payment of interest) on the Purchased Security in cash and in immediately available funds (each, a "Cash Principal Payment"), GS shall reduce the Repurchase Price for such Purchased Security by an amount equal to the related Repurchase Price Reduction Amount.	 	

 
	 

 
	 	 	 	

 	 	 On or reasonably promptly following the second Business Day after GS's receipt of a Cash Principal Payment GS shall use commercially reasonable
efforts to remit to Counterparty an amount equal to the related Counterparty Application Amount.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

17	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Repurchase Price Reduction Amount
	 	

 	 	With respect to any Cash Principal Payment, an amount equal to the product of:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	 such Cash Principal Payment; and
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	 one minus the Haircut Percentage.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Counterparty Application Amount
	 	

 	 	With respect to any Cash Principal Payment, an amount equal to the product of:	 	

 
	 

 
	 	 	 	

 	 	 (a)
	 	 such Cash Principal Payment; minus
	 	

 
	 

 
	 	 	 	

 	 	 (b)
	 	 the Repurchase Price Reduction Amount for such Cash Principal Payment.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

  

 

 
 

									
	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  6.    Dispute Resolution, Etc.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Dispute Resolution
	 	

 	 	If Counterparty in good faith disputes the Asset Market Related Amounts of one or more Underlying Assets as determined by the Calculation Agent as of any Business Day and, accordingly, Counterparty wishes to dispute the
calculation of a Margin Deficit or an Excess Cure Collateral Refund Amount (each, a "Dispute"), then for so long as such Dispute is continuing (and provided
that no Event of Default, Monetary Default or Other Material Default with respect to Counterparty occurs or is then continuing), upon the request of Counterparty, GS and Counterparty will work together in good faith to resolve such Dispute, it being
understood that Counterparty shall at all times during the pendency of each Dispute be required to comply with its obligations under Paragraph 4 of the Master Repurchase Agreement based upon the determinations of the Asset Market Related Amounts
of the Underlying Assets as determined by the Calculation Agent.	 	

 
	 

 
	 	 	 	

 	 	 GS agrees that, if any Dispute continues unresolved for more than five Business Days, a "Dispute-Related Repurchase
Right" shall be deemed to exist until the earlier to occur (if any) of (a) the resolution of such Dispute by the parties and (b) the occurrence of an Event of Default, a Monetary Default or an Other Material Default
with respect to Counterparty.
	 	

 
	 

 
	 	 	 	

 	 	 The provisions set forth in this Dispute Resolution section supersede all inconsistent provisions in the Master Repurchase
Agreement.
	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Monetary Default
	 	

 	 	A default by a party in the payment of money hereunder or under the Master Repurchase Agreement when due (determined without regard to any grace period otherwise specified), or a default by such party in the performance
or observance of any other obligation hereunder or under the Master Repurchase Agreement (determined without regard to any grace period otherwise specified) that by its terms can be cured solely by the payment of money.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	 

 
	 	  Other Material Default
	 	

 	 	A default by a party in the performance or observance of any material obligation of that party hereunder or under the Master Repurchase Agreement that, with the giving of notice or lapse of time or both, would become an
Event of Default with respect to such party.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

18	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​

 

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 7.    Additional Provisions	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Restriking Terms	 	

 	 	If for any period of five or more consecutive Business Days the net amount of cash margin held by GS under Paragraph 4 of the Master Repurchase Agreement exceeds 10% of the sum of the then-current Repurchase Prices
hereunder, then for so long as such condition is continuing (and provided that no Event of Default or event that, with the giving of notice or lapse of time or both, would become an Event of Default with
respect to Counterparty occurs or is then continuing), upon the request of Counterparty, GS and Counterparty will work together in good faith to restrike one or more of the economic terms of the Transactions under the Master Repurchase Agreement with
a view to reducing or eliminating the amount of cash margin then required to be posted to GS thereunder, it being understood that, in connection with any such restriking, GS may require that changes to other economic terms of the Transactions be made,
 and that changes to the terms of the Purchased Securities be made, in order to preserve the overall economic effect of the Transactions for GS.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Limit on Optional Redemptions	 	

 	 	GS agrees that, for so long as any Transaction is outstanding under this Confirmation (unless an Event of Default with respect to Counterparty has occurred and is then continuing), it will not give the Security Issuer or
the Trustee under the Security Indenture any direction to effect a redemption (in whole or in part) of the Purchased Securities.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Counterparty Note Restriction	 	

 	 	Counterparty agrees that, for so long as any Transaction is outstanding under this Confirmation, it shall not at any time (1) hold any portion of the Purchased Securities or (2) transfer any portion of the
Purchased Securities (other than pursuant to the provisions hereof and of the Master Repurchase Agreement).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 No Substitution Rights	 	

 	 	Seller may not substitute other Securities for the Purchased Security, unless otherwise agreed to by Purchaser in writing in its sole and absolute discretion.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Indemnity	 	

 	 	Counterparty shall indemnify GS and each Related Party (as defined below) (each such person being referred to herein as an "Indemnitee") against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees and reasonable out-of-pocket expenses of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of,
 in connection with, or as a result of (i) the execution or delivery of the Master Repurchase Agreement, this Confirmation or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the Transaction or any other transactions contemplated hereby or thereby or (ii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
 liabilities or related expenses have resulted from the bad faith, gross negligence or willful misconduct of any Indemnitee or a breach of the Master Repurchase Agreement or this Confirmation by GS.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

19	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 	 	

 	 	Notwithstanding the foregoing, in no event shall Counterparty be liable for any indirect, consequential, incidental, exemplary or punitive damages, opportunity cost or lost profits (other than as set forth in
Paragraph 11 of the Master Repurchase Agreement).	 	

 
	

 	
 	
 	
 	

 	
 	
The obligations of Counterparty in this Indemnity section shall survive termination of the Transaction and any termination of the Master Repurchase Agreement.	
 	

 
	

 	
 	
 	
 	

 	
 	
As used herein "Related Party" means GS's affiliates and the respective directors, officers, employees, agents and advisors of GS and GS's affiliates.	
 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Taxes	 	

 	 	Each of the parties hereto intends and agrees to treat the Transaction, for United States income tax purposes, as a secured loan made by Buyer to Seller. Consistent with the Transaction being treated for U.S. federal income
tax purposes as a secured loan made by Buyer to Seller, Buyer agrees to provide Seller with a Form 1099-INT (or any successor form) with respect to interest paid to Buyer and passed on to Seller pursuant to Paragraph 5 of the Master
Repurchase Agreement.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Certain Voting Rights	 	

 	 	If GS has the right to exercise any Specified Voting Right in relation to any consent, vote, direction proposal or resolution arising at any time while this Transaction is outstanding, then:	 	

 
	

 	
 	
 	
 	

 	
 	
(a)	
 	
GS shall notify Counterparty thereof in writing after its receipt of notice thereof or GS otherwise becomes aware thereof;	
 	

 
	

 	
 	
 	
 	

 	
 	
(b)	
 	
GS shall not exercise such Specified Voting Right unless and until directed to do so by Counterparty; and	
 	

 
	

 	
 	
 	
 	

 	
 	
(c)	
 	
GS shall either (x) follow Counterparty's written instructions as to the manner and timing of exercising such Specified Voting Right or (y) procure that Counterparty may exercise such Specified Voting Right
directly,	
 	

 
	

 	
 	
 	
 	

 	
 	
 provided that, without prejudice to clause (b), GS shall have no obligation to take any action in relation to any direction from Counterparty with respect to the exercise of any
Specified Voting Right if doing so could expose GS to liability, could violate any rule or regulation applicable to GS or any interpretation thereof (whether or not having the force of law), could cause reputational damage to GS or otherwise cause GS
to otherwise incur any expenses not paid by Counterparty in a manner satisfactory to GS.	
 	

 
	

 	
 	
 	
 	

 	
 	
Notwithstanding the foregoing, GS may exercise at any time and from time to time all other rights given to it as a holder of the Purchased Security as if this Transaction were not outstanding (including, without
limitation, all rights to exercise remedies upon the occurrence of an event of default or an acceleration event, all rights to give or refrain from giving consents to amendments, modifications, supplements and waivers to the Security Indenture and
the other documents executed and delivered thereunder or in connection therewith, all rights to consent or refrain from giving consent to changes to the assets purchased or sold by the Security Issuer, and all rights to otherwise give directions or
refrain from giving directions under the Purchased Security), in each case other than the Specified Voting Rights.	
 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

20	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 
 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Specified Voting Right	 	

 	 	The right of a holder of the Purchased Security (in its capacity as such) to participate in the selection or removal of a general partner, managing member, member of the board of directors or trustees, investment manager,
investment adviser, or commodity trading advisor of the Security Issuer (excluding the rights of a creditor to exercise remedies upon the occurrence of an event of default or an acceleration event).	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Expense Reimbursement	 	

 	 	GS agrees to reimburse Counterparty for payment of out-of-pocket costs incurred by Counterparty in connection with Additions hereunder through the Second Ramp-up Period End Date, promptly following presentation of an
invoice therefor, in an amount equal to USD 40,000.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 

 
 

											
	 
	 	 
	 	 
	 	 
	 	 
	 	 

	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 8.    Payment Details, Etc.	 	

 	 	 	 	 	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Payments to GS	 	

 	 	In accordance with GS's prior written instructions as set forth below or as otherwise delivered to Counterparty.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 GS Payment Details	 	

 	 	In accordance with GS's written instructions as delivered to Counterparty.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 GS Inquiries	 	

 	 	Goldman Sachs Bank USA	 	

 
	

 	 	 	 	

 	 	Facsimile:	 	+1 212 428 4534	 	

 
	

 	 	 	 	

 	 	Email:	 	gs-sctabs-reporting@ny.email.gs.com	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 GS Notices	 	

 	 	Goldman Sachs Bank USA	 	

 
	

 	 	 	 	

 	 	Facsimile:	 	+1 212 428 4534	 	

 
	

 	 	 	 	

 	 	Email:	 	gs-pfi-mo-confidential@gs.com and	 	

 
	

 	 	 	 	

 	 	 	 	gs-sct-compliance-delivery@ny.email.gs.com	 	

 
	

 	
 	
 	
 	

 	
 	
With a copy to:	
 	

 
	

 	
 	
 	
 	

 	
 	
Attention:	
 	
SCT Legal, Derivatives	
 	

 
	

 	 	 	 	

 	 	 	 	Address: 200 West Street, 6th Floor

New York, NY 10282	 	

 
	

 	
 	
 	
 	

 	
 	
With respect to Disputes, with a copy to:	
 	

 
	

 	
 	
 	
 	

 	
 	
Email:	
 	
gs-repo-disputes@gs.com	
 	

 
	

 	 	 	 	

 	 	Attention:	 	GS Credit	 	

 
	

 	
 	
 	
 	

 	
 	
and	
 	
 	
 	

 
	

 	
 	
 	
 	

 	
 	
Facsimile:	
 	
+1 212 428 4534	
 	

 
	

 	 	 	 	

 	 	Email:	 	gs-sctabs-reporting@ny.email.gs.com	 	

 
	

 	 	 	 	

 	 	Attention:	 	PFI Middle Office	 	

 
	

 	
 	
 	
 	

 	
 	
All correspondence shall include the GS Reference Number: SDB4064875388	
 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Payments to Counterparty	 	

 	 	In accordance with Counterparty's written instructions as set forth below or otherwise delivered to GS. GS shall make no payments (and have no obligation to make any payment hereunder) without having received (i) such
written instructions and (ii) a fully executed facsimile copy of this Confirmation or other written acceptance of the terms hereof.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Counterparty Payment Details	 	

 	 	In accordance with Counterparty's written instructions as delivered to GS.	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 
	

 	 	 Counterparty Inquiries	 	

 	 	In accordance with Counterparty's written instructions as delivered to GS	 	

  
	

 ​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 	​

	​

 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

21	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​

 

(C)  Miscellaneous.  

	1.
	Amendments, Etc.    Except as otherwise expressly stated herein, this Confirmation may not be amended except
in writing signed by both parties.

	2.
	Execution.    This Confirmation may be executed in counterparts (including by facsimile or electronic
transmission), each of which counterpart, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one and the same agreement.

	3.
	Legal Requirements.    Buyer shall not be required to purchase the Purchased Security if any such purchase
shall result in any violation of applicable rules or regulations, including, but not limited to, rules applicable to new issuances of securities. 

(D)  Additional Acknowledgements, Representations and Agreements: 

	1.
	Counterparty
hereby represents to and acknowledges and agrees with GS that:

	(i)
	It
has consulted with its own tax advisors to the extent that it has deemed necessary, and it has made its own decisions regarding entering into the Facility based
upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by GS or any of its affiliates or agents.

	(ii)
	The
fair value of the assets of Counterparty will exceed the debt and liabilities, subordinated, contingent and otherwise of Counterparty, and Counterparty will not
have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

	2.
	Each
party acknowledges and agrees that:

	(i)
	Unless
identified as an underwriter or arranger in an offering document relating to a Purchased Security, Underlying Asset or Unsettled Purchase Asset (each, an
"Instrument"), GS and its affiliates have played no role in structuring or arranging any Instrument or in negotiating or establishing the terms of such
Instrument. Whether or not GS or its affiliates are identified as an underwriter or arranger in any offering document relating to an Instrument, any and all information that may have been or is in the
future provided by GS to Counterparty with respect to any Instrument is not being furnished by GS in the capacity of an underwriter or arranger in relation to the Instrument in connection with the
relevant Transaction, and GS accepts no responsibility or liability therefor.

	(ii)
	The
contents of this Confirmation and the other agreements relating to the Facility are confidential and shall not be disclosed to any third party, and neither
party shall make any public announcement relating to the Facility without consent of the other party; except that disclosure of this Confirmation and the terms of the Facility is permitted
(A) where required or appropriate in response to any summons, subpoena, or otherwise in connection with any litigation or regulatory inquiry or to comply with any applicable law, order,
regulation, ruling, or disclosure requirement, including without limitation, any requirement of any regulatory body or stock exchange where the shares of such disclosing party are listed, as
determined by the disclosing party in good faith following consultation with the other party hereto, (B) to officers, directors, employees, attorneys, accountants and advisors of the parties or
their affiliates who are subject to a duty of confidentiality to the disclosing party or such affiliate and otherwise have a need to know such information, (C) to rating agencies and
(D) where the information has otherwise become public (other than as a result of a breach of this subparagraph). Notwithstanding the foregoing or any other provision in this Confirmation or any
other document, GS and Counterparty (and each employee, representative, or other agent of GS or Counterparty) may each disclose to any and all persons, without limitation of any kind, the U.S. tax
treatment and U.S. tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such U.S. tax treatment and U.S. tax
structure (as those terms are used in Treasury Regulations under Sections 6011, 6111 and 6112 of the U.S. Internal Revenue Code of 1986, as amended (the 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

22	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 

"Code")), other than any information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws. 

	(iii)
	As
of the Facility Commencement Date and so long as either party has or may have any obligation under any Transaction, it is not and will not be an "employee
benefit plan" (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")), subject to Title I of
ERISA, a "plan" (as defined in Section 4975(e) of the Code), subject to Section 4975 of the Code or an entity whose underlying assets include the assets of any such plan by reason of 29
CFR 2510.3-101, Section 3(42) of ERISA or otherwise.

	(iv)
	GS
and any of its affiliates may deal in any Instrument and may accept deposits from, make loans or otherwise extend credit to, and generally engage in any kind of
commercial or investment banking or other business with any issuer of or obligor on any Instrument, any affiliate thereof, any other person or entity having obligations relating to any Security Issuer
or any such issuer or obligor and may act with respect to such business in the same manner as if any Transaction did not exist and may originate, purchase, sell, hold or trade, and may exercise
consensual or remedial rights in respect of, obligations, securities or other financial instruments of, issued by or linked to the Security Issuer or any such issuer or obligor, regardless of whether
any such action might have an adverse effect on such Security Issuer, such issuer or such obligor, the value of the related Instrument or the position of the other party to such Transaction or
otherwise.

	(v)
	Except
as otherwise expressly provided herein, each party and its affiliates and the Calculation Agent may, whether by virtue of the types of relationships described
herein or otherwise, at the date hereof or at any time hereafter, be in possession of information regarding any Security Issuer or any issuer of or obligor on any Instrument, or any affiliate thereof,
that is or may be material in the context of such Transaction and that may or may not be publicly available or known to the other party. In addition, except as expressly provided herein, this
Confirmation does not create any obligation on the part of such party and its affiliates to disclose to the other party any such relationship or information (whether or not confidential). 

[remainder
of page intentionally blank] 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

23	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

 

        Counterparty
hereby agrees (a) to check this Confirmation (Reference No.: SDB4064875388) carefully upon receipt so that errors or discrepancies can be promptly identified and
rectified and (b) to confirm that the foregoing correctly sets forth the terms of the agreement between the parties with respect to the particular Transaction to which this Confirmation
relates, by manually signing this Confirmation and providing the other information requested herein and returning an executed copy to SCT Compliance, facsimile No. +1 212 428
4534. 

 

 
 

							
	 	 	Very truly yours,
	

 	
 	
 GOLDMAN SACHS BANK USA
	

 	
 	
By:	
 	
/s/ ALI MELI

 
	 	 	 	 	Name:	 	Ali Meli
	 	 	 	 	Title:	 	 Managing Director

 

 

 
 

							
	 AGREED AND ACCEPTED BY:	 	 
	
 STRAFFORD FUNDING LLC	
 	
 
	
 By:	
 	
/s/ GERALD F. STAHLECKER

 	
 	
 
	 	 	Name:	 	Gerald F. Stahlecker	 	 
	 	 	Title:	 	 Executive Vice President	 	 

 

 ​
 

	
​

	
​

	
​

	
​

	
​

	
​

 	
​

 	
​

24	
​

 	
​

 STRAFFORD
FUNDING
LLC

 ​
 

QuickLinks

Exhibit 10.56

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]