Document:

FS Investment Corporation III 8-K

 

Exhibit 10.3

EXECUTION VERSION

 

 

INVESTMENT MANAGEMENT AGREEMENT

 

 

dated as of December 2, 2014

 

 

BY AND BETWEEN

 

 

DUNLAP FUNDING LLC,

a Delaware limited liability company

 

 

AND

 

 

FS INVESTMENT CORPORATION III,

a Maryland corporation

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	1.	General Duties of the Investment Manager.	 	1
	 	 	 	 
	2.	Duties and Obligations of the Investment Manager with Respect to the Administration of the Company.	 	3
	 	 	 	 
	3.	Authority to Bind the Company; No Joint Venture.	 	5
	 	 	 	 
	4.	Limitations Relating to Collateral Obligations.	 	6
	 	 	 	 
	5.	Brokerage.	 	7
	 	 	 	 
	6.	Compensation.	 	7
	 	 	 	 
	7.	Expenses.	 	7
	 	 	 	 
	8.	Services to Other Companies or Accounts; Conflicts of Interest.	 	7
	 	 	 	 
	9.	Duty of Care and Loyalty; Exculpation of Liability.	 	8
	 	 	 	 
	10.	Indemnification.	 	8
	 	 	 	 
	11.	Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms; Delegation.	 	11
	 	 	 	 
	12.	Power of Attorney; Further Assurances.	 	12
	 	 	 	 
	13.	Amendment of this Agreement; Assignment.	 	12
	 	 	 	 
	14.	Notices.	 	13
	 	 	 	 
	15.	Binding Nature of Agreement; Successors and Assigns.	 	13
	 	 	 	 
	16.	Entire Agreement.	 	13
	 	 	 	 
	17.	Costs and Expenses.	 	14
	 	 	 	 
	18.	Books and Records.	 	14
	 	 	 	 
	19.	Titles Not to Affect Interpretation.	 	14
	 	 	 	 
	20.	Provisions Separable.	 	14
	 	 	 	 
	21.	Governing Law.	 	14
	 	 	 	 
	22.	Execution in Counterparts.	 	14

 

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	23.	Third Party Rights; Benefits of Agreement.	 	14
	 	 	 	 
	24.	Representations and Warranties of the Investment Manager.	 	15
	 	 	 	 
	25.	Managing REO Assets.	 	17
	 	 	 	 
	26.	No Proceedings.	 	18
	 	 	 	 
	27.	Confidentiality.	 	19

 

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INVESTMENT MANAGEMENT AGREEMENT

 

This Investment Management
Agreement (the “Agreement”), dated as of December 2, 2014, is made by and between DUNLAP FUNDING LLC (the “Company”),
a Delaware limited liability company and FS INVESTMENT CORPORATION III (the “Investment Manager”), a Maryland
corporation. Reference is made to that certain Loan Financing and Servicing Agreement, dated as of the date hereof, among the Company,
the lenders (the “Lenders”) and agents (the “Agents”) referred to therein, Deutsche Bank
AG, New York Branch, as administrative agent and arranger (the “Administrative Agent”) and Wells Fargo Bank,
National Association, as collateral agent and collateral custodian (the “Collateral Agent”) (as the same may
be amended from time to time, the “LFSA”). Unless otherwise specified, capitalized terms used but not otherwise
defined in this Agreement shall have the meanings given to them in the Limited Liability Company Agreement of the Company dated
as of the date hereof (as the same may be amended from time to time, the “Operating Agreement”) or if not defined
therein, shall have the meanings given to them in the LFSA. References herein to the LFSA shall be applicable solely while it is
in effect.

 

1.        General Duties of
the Investment Manager.

 

Subject to the direction
and control of the Company and subject to and in accordance with the Investment Management Standard, the terms of the LFSA, the
Operating Agreement, the policies adopted or approved by the Company and the terms of this Agreement, the Investment Manager agrees
to supervise and direct the investment and reinvestment of the Collateral Obligations, manage, service, administer and make collections
on the Collateral Obligations and perform its duties set forth herein, and shall perform on behalf of the Company those investment
and leverage related duties and functions assigned to the Company or the Investment Manager in the LFSA, and shall have such other
powers with respect to the investment and leverage related functions of the Company as shall be delegated from time to time to
the Investment Manager by the Company. The Investment Manager shall endeavor to comply in all material respects with all applicable
federal and state laws and regulations. In addition to, and without limiting, the duties set forth in this Section 1, the Investment
Manager acknowledges that the Borrower is required or permitted to cause it to perform functions specified in the following sections
of the LFSA: Sections 1.2(e), 6.2(j), 6.3(b), 6.3(c), 7.2, 7.3, 7.5, 7.7, 7.9, 7.10(a)(ii), 8.1(a), 18.2(a)(i), 18.4(a), 18.5 and
18.8 (the “Specific LFSA Provisions”). The Investment Manager acknowledges that it has read and understands
the requirements of the Specific LFSA Provisions, and to the extent of its authority hereunder, hereby agrees to act in all material
respects in accordance with the Specific LFSA Provisions subject to and in accordance with the terms of this Agreement. Subject
to the foregoing, the other provisions of this Agreement and the terms of the LFSA, the Investment Manager is hereby appointed
as the Company’s agent and attorney-in-fact with authority to negotiate, execute and deliver all documents and agreements
on behalf of the Company and to do or take all related acts, with the power of substitution, to acquire, dispose of or otherwise
take action with respect to or affecting the Collateral Obligations, including, without limitation:

 

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(a)        identifying and originating
Collateral Obligations to be purchased by the Company, selecting the dates for such purchases, and purchasing or directing the
purchase of such Collateral Obligations on behalf of the Company;

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)        advising and assisting
the Company with respect to the valuation and rating of the Collateral Obligations;

 

(i)        retaining legal counsel
and other professionals (such as financial advisers) to assist in the structuring, negotiation, documentation, administration and
modification and restructuring of Collateral Obligations;

 

(j)        directing, or causing
to be directed, all Obligors to pay Collections directly to the Collection Account, depositing all Collections received directly
by it into the Collection Account within one (1) Business Day of receipt thereof and, within three (3) Business Day after receipt
into the Collection Account, identifying all available balances in the Collection Account as Interest Collections or Principal
Collections. Notwithstanding the foregoing, if the Investment Manager at any time thereafter receives any Collections or any other
proceeds of any Collateral Obligations constituting Interest Collections or Principal Collections, the Investment Manager shall
direct, or cause to be directed, the related Obligor to make such payments to the Collection Account and shall promptly, and in
any event no later than the Business Day after receipt thereof, deposit or cause to be deposited all such amounts into the Collection
Account (and shall identify such amounts as either Principal Collections or Interest Collections, as applicable);

 

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(k)        cooperating with the
Collateral Agent in connection with the preparation of the Monthly Reports and any supplement thereto and (i) supplying any information
maintained by it that the Collateral Agent may from time to time reasonably request with respect to the Collateral and reasonably
needs to complete the reports, calculations and certificates required to be prepared by the Collateral Agent hereunder or required
to permit the Collateral Agent to perform its obligations hereunder, (ii) providing the Collateral Agent the information required
for parts (a) through (c) of Exhibit D for such Monthly Report and (iii) reviewing and verifying (in accordance with the standard
set forth in Section 9.14 of the LFSA with respect to all information received from un-Affiliated third parties) the contents of
the aforesaid reports (including the Monthly Report), instructions, statements and certificates;

 

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

 

(m)        causing the Borrower
to pay, perform and discharge or cause to be paid, performed and discharged promptly all Charges payable by it, except where the
failure to so pay, discharge or otherwise satisfy such Charge would not, individually or in the aggregate, be expected to have
a Material Adverse Effect; and

 

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

 

For the avoidance of doubt,
the Investment Manager does not guarantee the performance of any obligations of any other Person under any Transaction Document.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)        determine the amounts
available for distribution as dividends and distributions to be paid by the Company to the Equityholder (its “Member”);

 

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

 

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

 

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

 

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

 

(n)        provide the following
notices:

 

(i)        to the
extent the Investment Manager has actual knowledge or has received notice of any Revaluation Event with respect to any Collateral
Obligation, the Investment Manager shall give prompt notice thereof to the Administrative Agent (but, in any event, not longer
than three (3) Business Days after it receives notice or gains actual knowledge thereof);

 

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(ii)        to
the Administrative Agent and the Collateral Agent, promptly after having obtained actual knowledge thereof, notice of any Investment
Manager Event of Default, Facility Termination Event or Material Modification;

 

(iii)        to
the Administrative Agent and the Collateral Agent, promptly after having obtained actual knowledge thereof, but in no event later
than three Business Days thereafter, written notice in an Officer’s Certificate of any Unmatured Investment Manager Event
of Default or Unmatured Facility Termination Event;

 

(iv)        to
the Administrative Agent and the Collateral Agent within five Business Days after a Responsible Officer of the Investment Manager
shall obtain actual knowledge that the senior unsecured debt rating of a Hedge Counterparty has been withdrawn or reduced by any
Rating Agency; and

 

(v)        from
time to time promptly following receipt thereof, forward to the Collateral Custodian (as identified on an accompanying Schedule
of Collateral Obligations supplement) additional documents evidencing any assumption, modification, consolidation or extension
of a Collateral Obligation.

 

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

 

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

 

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

 

(a)        Except as provided
in or pursuant to Sections 1, 4 and 12 hereof, the Investment Manager shall have no authority to bind or obligate the Company.
All acts of the Investment Manager (other than as provided in the LFSA, the Operating Agreement or in Section 1 or Section 12
hereof with respect to any Collateral Obligation) shall require the Company’s consent and approval to bind the Company. Nothing
in this Agreement shall be deemed to create a joint venture or partnership between the parties with respect to the arrangements
set forth in this Agreement. For all purposes hereof, the Investment Manager shall be deemed to be an independent contractor and,
unless otherwise provided herein or specifically authorized by the Company from time to time, shall have no authority to act for
or represent the Company.

 

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

 

4.         Limitations Relating
to Collateral Obligations.

 

(a)        Collateral Obligations.
Except as otherwise provided in this Section 4 and except in accordance with the Investment Management Standard, and
subject to the requirements of the LFSA, the Operating Agreement and applicable law, the Investment Manager may cause the Company
(which term shall include, for all purposes relating to the purchase and sale of Collateral Obligations and the duties and obligations
of the Investment Manager set forth in Section 1 hereof, the Company and its consolidated subsidiaries, if any) from time
to time to purchase Collateral Obligations.

 

(b)        Reserved.

 

(c)        Reserved.

 

(d)        Transaction,
Director, Consulting, Advisory, Closing and Break-up Fees. The Company shall receive its pro-rata share, measured by the
amount invested or proposed to be invested by the Company in any Collateral Obligation, of any transaction, director, consulting,
advisory, closing and break-up fees, or similar fees (“Additional Fees”) payable with respect to any Collateral
Obligation. Notwithstanding anything herein or in the Operating Agreement to the contrary, to the extent that any Additional Fees
with respect to the Company’s share of such investment are paid to the Investment Manager or any of its Affiliates, at the
election of the Investment Manager, such amount will first be applied to reimburse the Investment Manager or its Affiliates for
their out-of-pocket expenses in connection with the transaction giving rise to such fees and 100% of the balance will be applied
to reduce the subsequent installments of the Primary IM Fee and the Secondary IM Fee.

 

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5.        Brokerage.

 

The Investment Manager shall
use commercially reasonable efforts to effect all purchases and sales of securities in a manner consistent with the principles
of best execution, taking into account net price (including commissions) and execution capability and other services which the
broker or other intermediary may provide. In this regard, the Investment Manager may effect transactions which cause the Company
to pay a commission in excess of a commission which another broker or other intermediary would have charged; provided, however,
that the Investment Manager shall have first determined that such commission is reasonable in relation to the value of the brokerage
or research services performed by that broker or other intermediary or that the Company is the sole beneficiary of the services
provided.

 

6.        Compensation.

 

The Company agrees to pay
to the Investment Manager and the Investment Manager agrees to accept as compensation for all services rendered by the Investment
Manager as such, on each Distribution Date and to the extent not waived or deferred, the Primary IM Fee and the Secondary IM Fee
for the related Collection Period pursuant to Section 8.3(a) of the LFSA.

 

7.        Expenses.

 

Other than as set forth below,
the Company will be responsible for paying all of its expenses. On behalf of the Company, the Investment Manager may advance payment
of any expenses, and the Company shall, upon request, reimburse the Investment Manager therefor within 30 days following written
request from the Investment Manager. Nothing in this Section 7 shall limit the ability of the Investment Manager to be reimbursed
by any Person other than the Company (including issuers or obligors of securities, instruments or obligations owned by the Company)
for out-of-pocket expenses incurred by the Investment Manager in connection with the performance of services hereunder. The Investment
Manager shall maintain complete and accurate records with respect to costs and expenses and shall furnish the Company with receipts
or other written vouchers with respect thereto upon request of the Company. The Company shall bear the costs and expenses of all
audits and inspections permitted by Sections 7.9 and Section 18.6 of the LFSA.

 

8.         Services to Other
Companies or Accounts; Conflicts of Interest.

 

(a)        The Investment Manager
and its Affiliates, employees or associates are in no way prohibited from, and intend to, spend substantial business time in connection
with other businesses or activities, including, but not limited to, managing investments, advising or managing entities whose investment
objectives are the same as or overlap with those of the Company, participating in actual or potential investments of the Company,
providing consulting, merger and acquisition, structuring or financial advisory services, including with respect to actual, contemplated
or potential investments of the Company, or acting as a director, officer or creditors’ committee member of, advisor to,
or participant in, any corporation, company, trust or other business entity. The Investment Manager and its Affiliates may, and
expect to, receive fees or other compensation from third parties for any of these activities unrelated to the Company, which fees
will be for the benefit of their own account and not the Company.

 

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(b)        In addition, the Investment
Manager and its Affiliates may manage other investment vehicles and separate accounts (“Other Accounts”) that
invest in assets eligible for purchase by the Company. The Company may have the ability, under certain circumstances, to take certain
actions that would have an adverse effect on Other Accounts. In these circumstances, the Investment Manager and its affiliated
persons will act in a manner believed to be equitable to the Company and such Other Accounts, including co-investment in accordance
with applicable laws, including the conditions of any exemptive relief obtained by the Company and the Investment Manager. The
allocation of investment opportunities among the Company and Other Accounts will be made in good faith pursuant to the Investment
Manager’s written allocation policies. The Investment Manager may combine purchase or sale orders on behalf of the Company
with orders for Other Accounts, and allocate the assets so purchased or sold among such accounts in an equitable manner. The Company
may invest in portfolio companies in which Other Accounts have or are concurrently making the same investment or a different investment
(e.g., an investment that is junior to the Company’s investment). In such situations, the Company and the Other Accounts
may potentially have conflicting interests. If any matter arises that the Investment Manager determines in its good faith judgment
constitutes an actual conflict of interest, the Investment Manager may take such actions as may be necessary or appropriate to
ameliorate the conflict. These actions may include, by way of example and without limitation, disposing of the asset giving rise
to the conflict of interest, appointing an independent fiduciary, or delegating decisions relating to the asset giving rise to
the conflict of interest to a subcommittee of the Investment Manager.

 

9.        Duty of Care and
Loyalty; Exculpation of Liability.

 

The Investment Manager shall
exercise its discretion and authority in accordance with the Investment Management Standard.

 

10.      Indemnification.

 

(a)      To the fullest extent
permitted by applicable law, the Company shall be held harmless and indemnified by the Investment Manager against any claims, demands,
costs, liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties,
and counsel fees incurred by the Company (“Losses”) in connection with the defense or disposition of any action,
suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which the Company
may be or may have been involved as a party or otherwise or with which the Company may be or may have been threatened, while acting
in connection with the establishment, management or operations of the Company or the management of the Collateral Obligations,
provided, however, to the fullest extent permitted by applicable law, that the Company shall not be indemnified hereunder
if there has been a determination by a final decision on the merits by a court or other body of competent jurisdiction before whom
the issue of entitlement to indemnification was brought that such Losses have been primarily attributable to the Company’s
willful misfeasance, bad faith, gross negligence in performance, or reckless disregard, of its obligations; provided further,
that the Investment Manager will not be required to indemnify the Company with respect to any Losses (i) arising out of an action
or claim brought against the Company by the Investment Manager or its Affiliates, or (ii) resulting from the performance or non-performance
of the Collateral Obligations.

 

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Indemnification under this
Section 10(a) shall survive the termination of this Agreement and the resignation or removal of any Investment Manager Indemnified
Party and shall include reasonable fees and expenses of counsel and expenses of litigation.

 

If for any reason (other
than the exclusions set forth in the first paragraph of Section 10(a)) the indemnification provided above in Section 10(a) is unavailable
to an Investment Manager Indemnified Party or is insufficient to hold an Investment Manager Indemnified Party harmless, then the
Investment Manager agrees to contribute to the amount paid or payable by such Investment Manager Indemnified Party as a result
of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received
by such Investment Manager Indemnified Party, on the one hand, and the Investment Manager and its Affiliates, on the other hand,
but also the relative fault of such Investment Manager Indemnified Party, on the one hand, and the Investment Manager and its Affiliates,
on the other hand, as well as any other relevant equitable considerations.

 

(b)        

 

(i)        To the
fullest extent permitted by applicable law, each of the Investment Manager, and its Affiliates, or any officer, director, member,
manager, employee, stockholder, assign, representative or agent of any such Person (each an “Indemnified Person,”
and collectively, the “Indemnified Persons”) shall be held harmless and indemnified by the Company (solely out
of the Collateral Obligations and in accordance with Section 10(b)(v), and not (solely for the purposes of this Agreement) out
of the separate assets of any Member) against any claims, demands, costs, liabilities and expenses, including amounts paid in satisfaction
of judgments, in compromise or as fines and penalties, and counsel fees incurred by such Indemnified Person in connection with
the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative
or investigative body in which such Indemnified Person may be or may have been involved as a party or otherwise (other than as
authorized by the directors of the Member, as the plaintiff or complainant) or with which such Indemnified Person may be or may
have been threatened, while acting in such Person’s capacity as an Indemnified Person in connection with the establishment,
management or operations of the Company or the management of the Collateral Obligations, provided, however, that
an Indemnified Person shall not be indemnified hereunder if and to the extent resulting from such Indemnified Person’s bad
faith, willful misfeasance, gross negligence or reckless disregard; provided further, that the Company will not be
required to indemnify the Indemnified Persons with respect to any Losses (i) arising out of an action or claim brought against
any Indemnified Person by the Company or its Affiliates, or (ii) resulting from the performance or non-performance of the Collateral
Obligations.

 

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(ii)        Only
to the extent permitted pursuant to the terms of the LFSA, the Company shall make advance payments in connection with the expenses
of defending any action, suit or other proceeding with respect to which indemnification might be sought hereunder if the Company
receives a written affirmation by the Indemnified Person of the Indemnified Person’s good faith belief that the standards
of conduct necessary for indemnification have been met and a written undertaking to reimburse the Company unless it is subsequently
determined that the Indemnified Person is entitled to such indemnification and if a majority of the directors of the Member determine
that the applicable standards of conduct necessary for indemnification appear to have been met. In addition, at least one of the
following conditions must be met: (i) the Indemnified Person shall provide adequate security for its undertaking, (ii) the Company
shall be insured against losses arising by reason of any lawful advances, or (iii) independent legal counsel in a written opinion,
shall conclude, based on a review of readily available facts (as opposed to a full trial-type inquiry), that there is substantial
reason to believe that the Indemnified Person ultimately will be found entitled to indemnification. Any payments pursuant to this
Section 10(b)(ii) while the LFSA is in effect will be paid solely in accordance with Section 8.3 of the LFSA (subject to the
availability of funds and to the conditions set forth in the LFSA).

 

(iii)        The
rights accruing to any Indemnified Person under these provisions shall not exclude any other right to which such Indemnified Person
may be lawfully entitled.

 

(iv)        Each
Indemnified Person (other than the Investment Manager) shall, in the performance of its duties, be fully and completely justified
and protected with regard to any act or any failure to act resulting from reliance in good faith upon the books of account or other
records of the Company, upon an opinion of counsel, or upon reports made to the Company by any of the Company’s officers
or employees or by any advisor, administrator, manager, distributor, selected dealer, accountant, appraiser or other expert or
consultant selected with reasonable care by the directors of the Member, officers or employees of the Company, regardless of whether
such counsel or other person may also be a director of the Member. The Investment Manager shall, in the performance of its duties,
be fully and completely justified and protected with regard to any act or any failure to act resulting from reliance in good faith
upon any books of account or other records of the Company that were prepared by an agent or other third party, upon an opinion
of counsel, or upon reports made to the Company by any advisor, administrator, manager, distributor, selected dealer, accountant,
appraiser or other expert or consultant selected with reasonable care by the directors of the Member, officers or employees of
the Company, regardless of whether such counsel or other person may also be a director of the Member.

 

(v)        Any
payments pursuant to Section 10(b)(i) while the LFSA is in effect will be paid solely in accordance with Section 8.3 of the
LFSA (subject to the availability of funds and to the conditions set forth in the LFSA). All determinations that may be made to
make advance payments in connection with the expense of defending or settling any action, suit or other proceeding, whether civil
or criminal, shall be authorized and made (if so authorized and made) in accordance with paragraph (b)(ii) above.

 

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

 

(a)        This Agreement shall
become effective as of the date hereof and, unless sooner terminated by the Company or the Investment Manager as provided herein,
shall continue in effect for the term of the Company. Notwithstanding the foregoing, this Agreement may be terminated by the Company
without the payment of any penalty, upon the occurrence of a “cause” event. A “cause” event for purposes
of this Section 11(a) shall have occurred by reason of (i) the conviction (or plea of no contest) for a felony of the
Investment Manager, (ii) the conviction (or plea of no contest) for a felony of an officer or a member of the board of directors
of the Investment Manager, if the employment or other affiliation of such Person so convicted is not terminated by the Investment
Manager within 30 days of such conviction and the Member votes thereafter to invoke this termination provision, or (iii) the
Investment Manager or an officer or a member of the board of directors of the Investment Manager has engaged in gross negligence
or willful misconduct with respect to the Company that has resulted in a material adverse effect on the Company or the Collateral
Obligations, or has committed a knowing material violation of securities laws, each as determined by a final decision of a court
or binding arbitration decision unless, in the case of such natural persons, their employment or other affiliation with the Investment
Manager is terminated or suspended within 30 days after discovery by the Investment Manager. The Investment Manager shall promptly
provide written notice to the Member upon the occurrence of a “cause” event.

 

(b)        Notwithstanding anything
herein to the contrary, Sections 7 and 10 of this Agreement shall survive any termination hereof.

 

(c)        From and after the
effective date of termination of this Agreement, the Investment Manager and its Affiliates shall not be entitled to compensation
for further services hereunder, but shall be paid all compensation and reimbursement of expenses accrued to the date of termination.
Upon such termination, or upon the occurrence of an Investment Manager Event of Default and upon request by the Borrower, the Investment
Manager shall deliver as directed copies of its Records within five Business Days after demand therefor and a computer tape or
diskette (or any other means of electronic transmission acceptable to the successor investment manager) containing as of the close
of business on the date of demand all of the data maintained by the Investment Manager in computer format in connection with managing
the Collateral Obligations. The Investment Manager agrees to use reasonable efforts to cooperate with any successor investment
manager in the transfer of its responsibilities hereunder, and will, among other things, provide upon receipt of a written request
by such successor investment manager any information available to it regarding any Collateral Obligations. The Investment Manager
agrees that, notwithstanding any termination, it will reasonably cooperate in any proceeding arising in connection with this Agreement,
the LFSA or any Collateral Obligation (excluding any such proceeding in which claims are asserted against the Investment Manager
or any Affiliate of the Investment Manager) upon receipt of appropriate indemnification and expense reimbursement.

 

(d)        Until a successor
investment manager has commenced investment management activities in the place of FS Investment Corporation III, FS Investment
Corporation III shall not resign as Investment Manager hereunder. Notwithstanding anything contained herein to the contrary and
to the extent permitted by Applicable Law without causing the Investment Manager to have liability, the resignation of the Investment
Manager shall not become effective until an entity approved in accordance with Section 7.2(a) of the LFSA and shall have assumed
the responsibilities and obligations of the Investment Manager.

 

    	-11-

    	 

    

 

12.        Power of Attorney;
Further Assurances.

 

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

 

13.        Amendment of this
Agreement; Assignment.

 

No provision of this Agreement
may be amended, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which
enforcement of the amendment, waiver, discharge or termination is sought. If the Company has outstanding any securities rated by
a rating agency, the Company shall promptly provide a copy of any such amendment or waiver to such rating agency. The Investment
Manager may not, directly or indirectly, assign all or any part of its rights and duties under this Agreement to any Person without
the prior consent of the Company, the Administrative Agent and the Required Lenders. In accordance with the foregoing, the Investment
Manager may transfer this Agreement or its rights and duties under this Agreement without obtaining the prior consent of the Company
or providing prior notice to the Member in a transaction that does not result in an Investment Manager Event of Default, change
in control or management of the Investment Manager.

 

    	-12-

    	 

    

 

14.        Notices.

 

Unless expressly provided
otherwise herein, any notice, request, direction, demand or other communication required or permitted under this Agreement shall
be in writing and shall be deemed to have been duly given, made and received if sent by hand or by overnight courier, when personally
delivered, if sent by telecopier, when receipt is confirmed by telephone, or if sent by registered or certified mail, postage prepaid,
return receipt requested, when actually received if addressed as set forth below:

 

	 	(a)	If to the Company:
	 	 	 
	 	 	Dunlap Funding LLC
	 	 	c/o FS Investment Corporation III
	 	 	2929 Arch Street, Suite 675
	 	 	Philadelphia, PA 19104
	 	 	Attention: Gerald F. Stahlecker, Executive Vice President
	 	 	Tel: (215) 495-1169
	 	 	Fax: (215) 222-4649
	 	 	 
	 	(b)	If to the Investment Manager:
	 	 	 
	 	 	FS Investment Corporation III
	 	 	2929 Arch Street, Suite 675
	 	 	Philadelphia, PA 19104
	 	 	Attention: Gerald F. Stahlecker, Executive Vice President
	 	 	Tel: (215) 495-1169
	 	 	Fax: (215) 222-4649

 

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

 

Either party to this Agreement may alter the
address to which communications or copies are to be sent to it by giving notice of such change of address in conformity with the
provisions of this Section 14.

 

15.        Binding Nature
of Agreement; Successors and Assigns.

 

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

 

16.        Entire Agreement.

 

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

 

    	-13-

    	 

    

 

17.        Costs and Expenses.

 

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

 

18.        Books and Records.

 

In compliance with the requirements
of Rule 31a-3 under the 1940 Act, the Investment Manager hereby agrees that all records which it maintains for the Company are
the property of the Company and further agrees to surrender promptly to the Company any such records upon the Company’s request.
The Investment Manager further agrees to preserve for the periods prescribed by Rule 31a-2 under the 1940 Act the records maintained
by it in its capacity as Investment Manager that are required to be maintained by Rule 31a-1 under the 1940 Act.

 

19.        Titles Not to Affect
Interpretation.

 

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

 

20.        Provisions Separable.

 

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

 

21.        Governing Law.

 

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

 

22.        Execution in Counterparts.

 

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

 

23.        Third Party Rights;
Benefits of Agreement.

 

Other than as set forth in
this Section 23, none of the provisions of this Agreement shall be for the benefit of or enforceable by any creditor of the Company
or by any creditor of the Member.

 

The Investment Manager hereby
acknowledges that the Collateral Agent is the beneficiary of a collateral assignment of this Agreement pursuant to Section 12.1
of the LFSA and the Collateral Agent for the benefit of the Secured Parties shall be an express third party beneficiary of the
Company’s rights hereunder, including but not limited to the Company’s right to indemnification set forth in Section
10, subject, in each case, to each of the limitations, restrictions and conditions set forth in Section 12.1 of the LFSA with respect
to the collateral assignment of this Agreement, and for the avoidance of doubt, excluding any right of the Company to replace or
terminate the Investment Manager; provided that, such collateral assignment and such third party beneficiary rights shall
automatically terminate upon the irrevocable payment in full of the Obligations (other than contingent indemnity obligations as
to which no claim has been made) and the termination of the Commitments in full.

 

    	-14-

    	 

    

 

24.        Representations
and Warranties of the Investment Manager.

 

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

 

(a)        Organization and
Good Standing. It has been duly organized and is validly existing as a corporation in good standing under the laws of its jurisdiction
of organization, with power and authority to own its properties and to conduct its business as such properties are currently owned
and such business is currently conducted, and had at all relevant times;

 

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

 

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

 

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

 

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

 

    	-15-

    	 

    

 

(f)        No Proceedings.
There are no proceedings or investigations pending or, to the best of the Investment Manager’s knowledge, threatened against
it, before any Official Body having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the consummation of any of the transactions contemplated hereby or (C) seeking any determination or ruling that
would reasonably be expected to have a Material Adverse Effect;

 

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

 

(h)        Investment Company
Status. It is not required to be registered as an “investment company” within the meaning of the 1940 Act;

 

(i)      
  Information True and Correct. All information (other than any information provided to the Investment
Manager by an un-Affiliated third party) heretofore or hereafter furnished by or on behalf of the Investment Manager in
writing to any Lender, the Collateral Agent or the Administrative Agent in connection with this Agreement or any transaction
contemplated hereby is and will be (when taken as a whole) true and correct in all material respects. With respect to any
information received from any un-Affiliated third party, the Investment Manager (i) will not furnish (and has not furnished)
any such information to any Lender, the Collateral Agent or the Administrative Agent in connection with this Agreement or any
transaction contemplated hereby that it knows (or knew) to be incorrect at the time such information is (or was) furnished in
any material respect and (ii) has informed (or will inform) the applicable Lender, the Collateral Agent or the Administrative
Agent, as applicable, of any such information which it found to be incorrect in any material respect after such information
was furnished.

 

(j)       
 Reserved.

 

(k)        Eligibility of
Collateral Obligations. All Collateral Obligations included as Eligible Collateral Obligations in the calculation of the Borrowing
Base in the most recently delivered Monthly Report are, to the knowledge of the Investment Manager, Eligible Collateral Obligations;

 

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

 

    	-16-

    	 

    

 

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

 

25.       Managing REO Assets.

 

(a)        If, in the reasonable
business judgment of the Investment Manager, it becomes necessary to foreclose upon or repossess from the applicable Obligor any
real property securing any Collateral Obligation (each such Collateral Obligation, an “REO Asset”), the Investment
Manager shall first cause the Borrower to transfer and assign such Collateral Obligation (or the portion thereof owned by the Borrower)
to a special purpose vehicle meeting the requirements of Section 10.5 of the LFSA and wholly owned by the Borrower (the “REO
Asset Owner”) using a contribution agreement reasonably acceptable to the Administrative Agent. All equity interests
of the REO Asset Owner acquired by the Borrower shall immediately become a part of the Collateral and be subject to the grant of
a security interest under Section 12.1 of the LFSA and shall be promptly delivered to the Collateral Agent, each undated and duly
indorsed in blank. The REO Asset Owner shall be formed and operated pursuant to organizational documents reasonably acceptable
to the Administrative Agent. After execution thereof, the Investment Manager shall prevent the REO Asset Owner from agreeing to
any amendment or other modification of the REO Asset Owner’s organizational documents without first obtaining the written
consent of the Administrative Agent. The Investment Manager shall cause each REO Asset to be serviced (i) in accordance with applicable
laws, (ii) in accordance with the Investment Management Standard and (iii) in accordance with the applicable REO Asset Owner’s
limited liability company operating agreement (collectively, the “REO Investment Management Standard”). The
Investment Manager will cause all “Distributable Cash” (or comparable definition set forth in the REO Asset Owner’s
organization documents) to be deposited into the Collection Account within two (2) Business Days of receipt thereof.

 

(b)        In the event that
title to any Related Property is acquired on behalf of the REO Asset Owner for the benefit of its members in foreclosure, by deed
in lieu of foreclosure or upon abandonment or reclamation from bankruptcy, the deed or certificate of sale shall be taken in the
name of a REO Asset Owner. The Investment Manager shall cause the REO Asset Owner to manage, conserve, protect and operate each
REO Asset for its members solely for the purpose of its prompt disposition and sale.

 

(c)        Notwithstanding any
provision to the contrary contained in this Agreement, the Investment Manager shall not (and shall not permit the REO Asset Owner
to) obtain title to any Related Property as a result of or in lieu of foreclosure or otherwise, obtain title to any direct or indirect
partnership interest in any Obligor pledged pursuant to a pledge agreement and thereby be the beneficial owner of Related Property,
have a receiver of rents appointed with respect to, and shall not otherwise acquire possession of, or take any other action with
respect to, any Related Property if, as a result of any such action, the REO Asset Owner would be considered to hold title to,
to be a “mortgagee-in-possession” of, or to be an “owner” or “operator” of, such Related Property
within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to
time, or any comparable state or local environmental law, unless the Investment Manager has previously determined in accordance
with the REO Investment Management Standard, based on an updated Phase I environmental assessment report generally prepared in
accordance with the ASTM Phase I Environmental Site Assessment Standard E 1527-05, as may be amended or, with respect to residential
property, a property inspection and title report, that:

 

    	-17-

    	 

    

 

(i)        such
Related Property is in compliance in all material respects with applicable environmental laws, and

 

(ii)       there
are no circumstances present at such Related Property relating to the use, management or disposal of any hazardous materials for
which investigation, testing, monitoring, containment, clean-up or remediation would reasonably be expected to be required by the
owner, occupier or operator of the Related Property under applicable federal, state or local law or regulation.

 

(d)        In the event that
the Phase I or other environmental assessment first obtained by the Investment Manager with respect to Related Property indicates
that such Related Property may not be in compliance with applicable environmental laws or that hazardous materials may be present
but does not definitively establish such fact, the Investment Manager shall cause the Borrower to immediately sell the related
Loan in accordance with Section 7.10 of the LFSA to the extent permitted thereunder.

 

26.        No Proceedings.

 

(a)        The Investment Manager
hereby agrees that it will not institute against the Borrower, or join any other Person in instituting against the Borrower, any
insolvency proceeding (namely, any proceeding of the type referred to in the definition of Insolvency Event) so long as any Advances
or other amounts due from the Borrower hereunder shall be outstanding or there shall not have elapsed one year plus one day since
the last day on which any such Advances or other amounts shall be outstanding. The foregoing shall not limit the Investment Manager’s
right to file any claim in or otherwise take any action with respect to any insolvency proceeding that was instituted by any Person
other than the Investment Manager.

 

(b)        The Investment Manager
hereby agrees that it will not institute against, or join any other Person in instituting against any Conduit Lender, any insolvency
proceeding (namely, any proceeding of the type referred to in the definition of Insolvency Event) so long as any commercial paper
note issued by such applicable Conduit Lender shall be outstanding or there shall not have elapsed one year plus one day since
the last day on which any such commercial paper notes shall be outstanding.

 

    	-18-

    	 

    

 

27.        Confidentiality.

 

The Investment Manager shall
hold in confidence, and not disclose to any Person, the identity of any Lender or the terms of any fees payable in connection with
any Transaction Document except it may disclose such information (i) to its officers, directors, employees, agents, counsel, accountants,
auditors, advisors, prospective lenders, equity investors or representatives, (ii) with the consent of such Lender, (iii) to the
extent such information has become available to the public other than as a result of a disclosure by or through such Person, (iv)
to the extent the Investment Manager or any Affiliate deems disclosure reasonably prudent under, or should be required by, any
law or regulation applicable to it, or (v) as requested by any Official Body to disclose such information.

 

[Remainder of page intentionally left blank.]

 

    	-19-

    	 

    

 

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

 

		FS INVESTMENT CORPORATION III
	 	 	 
	 	By:	/s/ Gerald F. Stahlecker
	 	 	Name: Gerald F. Stahlecker
	 	 	Title: Executive Vice President
	 	 	 
	 	DUNLAP FUNDING LLC
	 	 	 
	 	By:	/s/ Gerald F. Stahlecker
	 	 	Name: Gerald F. Stahlecker
	 	 	Title: Executive Vice President

 

 

SPV, LLC

Investment Management
AgreementFS Investment Corporation III 8-K

 

Exhibit 10.4

EXECUTION VERSION

 

 

December 2, 2014

 

 

DUNLAP FUNDING LLC,

as Pledgor

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Secured Party

 

 

and

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Securities Intermediary

 

 

SECURITIES ACCOUNT CONTROL AGREEMENT

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE I	INTERPRETATION	 	1
	 	 	 	 
	ARTICLE II	APPOINTMENT OF SECURITIES INTERMEDIARY	 	1
	 	 	 	 
	ARTICLE III	THE SECURED ACCOUNTS	 	2
	 	 	 	 
	ARTICLE IV	THE SECURITIES INTERMEDIARY	 	4
	 	 	 	 
	ARTICLE V	INDEMNITY; LIMITATION ON DAMAGES; EXPENSES; FEES	 	8
	 	 	 	 
	ARTICLE VI	REPRESENTATIONS AND AGREEMENTS	 	9
	 	 	 	 
	ARTICLE VII	ADVERSE CLAIMS	 	10
	 	 	 	 
	ARTICLE VIII	TRANSFER	 	11
	 	 	 	 
	ARTICLE IX	TERMINATION	 	11
	 	 	 	 
	ARTICLE X	MISCELLANEOUS	 	11
	 	 	 	 
	ARTICLE XI	NOTICES	 	13
	 	 	 	 
	ARTICLE XII	GOVERNING LAW AND JURISDICTION	 	13
	 	 	 	 
	ARTICLE XIII	DEFINITIONS	 	14
	 	 	 	 
	ARTICLE XIV	LIMITED RECOURSE; NO BANKRUPTCY PETITION	 	15

 

    	-i-

    	 

    

 

SECURITIES ACCOUNT CONTROL
AGREEMENT (this “Agreement”), dated as of December 2, 2014, among DUNLAP FUNDING LLC (the “Pledgor”)
and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent on behalf of the Secured Parties (each as defined in the Loan
Agreement referred to below) (in such capacity, the “Secured Party”) and as securities intermediary (in such
capacity, the “Securities Intermediary”).

 

In consideration of the mutual
agreements hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

INTERPRETATION

 

Section 1.        (a)        Definitions.
The terms defined in Section 13 will have the meanings therein specified for the purpose of this Agreement. In addition,
all terms used herein which are defined in (i) the Loan Financing and Servicing Agreement, dated as of the date hereof, among the
Pledgor, as borrower, the agents and lenders party thereto from time to time, Wells Fargo Bank, National Association, as collateral
agent and collateral custodian, and Deutsche Bank AG, New York Branch, as administrative agent (the “Loan Agreement”)
or (ii) in Article 8 or Article 9 of the UCC and which are, in each case, not otherwise defined herein are used herein
as so defined.

 

(b)        Rules of Construction.
Unless the context otherwise clearly requires: (i) the definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined, (ii) whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms, (iii) the words “include,” “includes” and “including” shall
be deemed to be followed by the phrase “without limitation,” (iv) the word “will” shall be construed
to have the same meaning and effect as the word “shall,” (v) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time
to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein), (vi) any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (vii) the words “herein,” “hereof” and “hereunder,” and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, and (viii) all references
herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement.

 

ARTICLE
II

APPOINTMENT OF SECURITIES INTERMEDIARY

 

Section 2.        Each of the
Pledgor and the Secured Party hereby appoints the Securities Intermediary as securities intermediary hereunder. The Securities
Intermediary hereby accepts such appointment.

 

    	 

    	 

    

 

ARTICLE
III

THE SECURED ACCOUNTS

 

Section 3.        (a)        Establishment
of Secured Accounts. The Securities Intermediary acknowledges and agrees that, at the direction and on behalf of the Secured
Party, it has established and is maintaining on its books and records, in the name of the Pledgor, (i) the securities account
designated as the “Interest Collection Account” with account number 83447401, (ii) the securities account designated
as the “Principal Collection Account” with account number 83447402, (iii) the securities account designated as the
“Unfunded Exposure Account” with account number 83447403, (iv) the securities account designated as the “Payment
Subaccount” with account number 83447404 and (v) the securities account designated as the “Collection Account”
with account number 83447400 (such accounts, together with any sub-accounts, replacements thereof or substitutions therefor, the
“Secured Accounts”).

 

(b)        Status of Secured
Accounts; Treatment of Property as Financial Assets; Relationship of Parties. The Securities Intermediary hereby agrees with
the Pledgor and Secured Party that: (i) each Secured Account is a “securities account” (within the meaning of
Section 8-501(a) of the UCC) in respect of which the Securities Intermediary is a “securities intermediary” (within
the meaning of Section 8-102(a)(14) of the UCC), (ii) each item of property (whether cash, a security, an instrument
or any other property) credited to any Secured Account shall be treated as a “financial asset” (within the meaning
of Section 8-102(a)(9) of the UCC), and (iii) each Secured Account and any rights or proceeds derived therefrom are subject
to a security interest in favor of the Secured Party arising under the Loan Agreement. The Pledgor and Secured Party hereby direct
the Securities Intermediary, subject to the terms of this Agreement, to identify the Secured Party on its books and records as
the “entitlement holder” (as defined in Section 8-102(a)(7) of the UCC) with respect to each Secured Account and
the property held therein and the Securities Intermediary agrees to do the same.

 

(c)        Notwithstanding anything
herein to the contrary, it is hereby expressly acknowledged that (a) interests in Collateral Obligations may be acquired by the
Pledgor from time to time which are not evidenced by, or accompanied by delivery of, a security (as defined in Section 8-102 of
the UCC) or an instrument (as defined in Section 9-102(a)(47) of the UCC), and may be evidenced solely by delivery to the Securities
Intermediary of a facsimile copy of an assignment agreement (“Collateral Obligation Assignment Agreement”) in
favor of the Pledgor as assignee, (b) any such Collateral Obligation Assignment Agreement (and the registration of the related
Collateral Obligation on the books and records of the applicable obligor or bank agent) shall be registered in the name of the
Pledgor, and (c) any duty on the part of the Securities Intermediary with respect to such Collateral Obligation (including in respect
of any duty it might otherwise have to maintain a sufficient quantity of such Collateral Obligation for purposes of Section 8-504
of the UCC) shall be limited to the exercise of reasonable care by the Securities Intermediary in the physical custody of any such
Collateral Obligation Assignment Agreement that may be delivered to it. It is acknowledged and agreed that the Securities Intermediary
is not under a duty to examine Underlying Instruments to determine their validity or sufficiency (and shall have no responsibility
for the genuineness or completeness thereof), or for the Pledgor’s title to any related Collateral Obligation.

 

    	-2-

    	 

    

 

(d)        The Securities Intermediary
will, by book-entry notation, promptly credit to the applicable Secured Account all property to be credited thereto pursuant to
the Loan Agreement.

 

(e)        Form of Securities,
Instruments, etc. All securities and other financial assets credited to any Secured Account that are in registered form or
that are payable to or to the order of shall be (i) registered in the name of, or payable to or to the order of, the Securities
Intermediary, (ii) indorsed to or to the order of the Securities Intermediary or in blank or (iii) credited to another
securities account maintained in the name of the Securities Intermediary; and in no case will any financial asset credited to any
Secured Account be registered in the name of, or payable to or to the order of, the Pledgor or any other person or indorsed to
or to the order of the Pledgor or any other person, except to the extent the foregoing have been specially indorsed to or to the
order of the Securities Intermediary or in blank.

 

(f)        Securities Intermediary’s
Jurisdiction. The Securities Intermediary agrees that, for the purposes of the UCC, its “securities intermediary’s
jurisdiction” (within the meaning of Section 8-110(e) of the UCC) shall be the State of New York.

 

(g)        Conflicts with
other Agreements. The Securities Intermediary agrees that, if there is any conflict between this Agreement (or any portion
thereof) and any other agreement (whether now existing or hereafter entered into) relating to any Secured Account, the provisions
of this Agreement shall prevail.

 

(h)        No Other Agreements.
The Securities Intermediary hereby confirms and agrees that:

 

(i)        other
than the Loan Agreement, there are no other agreements entered into between the Securities Intermediary and the Pledgor with respect
to any Secured Account or any financial asset or security entitlement credited thereto;

 

(ii)        other
than the Loan Agreement, it has not entered into, and until the termination of this Agreement will not enter into, any other agreement
with any other Person (including the Pledgor) relating to any Secured Account and/or any financial asset or security entitlement
thereto (A) pursuant to which it has agreed or will agree to comply with entitlement orders (as defined in Section 8-102(a)(8)
of the UCC) of such other Person or (B) with respect to the creation or perfection of any other security interest in any Secured
Account or any financial asset or security entitlement credited thereto; and

 

(iii)        it
has not entered into, and until the termination of this Agreement will not enter into, any agreement with the Pledgor or the Secured
Party purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement orders as set forth
in Section 3(i).

 

(i)        Transfer Orders,
Standing Instructions.

 

(i)        The
Pledgor, the Secured Party and the Securities Intermediary each agree that if at any time a Responsible Officer of the Securities
Intermediary shall receive an “entitlement order” (within the meaning of Section 8-102(a)(8) of the New York
UCC) or any other order originated by the Secured Party and relating to any Secured Account or any financial assets or security
entitlements credited thereto (collectively, a “Transfer Order”), the Securities Intermediary shall comply with
such Transfer Order without further consent by the Pledgor or any other Person.

 

    	-3-

    	 

    

 

(ii)        At
any time prior to the delivery to and receipt by the Securities Intermediary of a Notice of Exclusive Control, the Securities Intermediary
shall comply with each Transfer Order it receives from the Pledgor or the Investment Manager on its behalf without the further
consent of the Secured Party or any other Person; provided that, in the event the Securities Intermediary receives conflicting
instructions from the Secured Party and the Pledgor, the Securities Intermediary shall follow the instructions received from the
Secured Party and not the instructions received from the Pledgor.

 

(iii)        Upon
the opening of business on the Business Day immediately following the Business Day on which a Notice of Exclusive Control is actually
received by the Securities Intermediary in accordance with the notice requirements hereunder, and until such Notice of Exclusive
Control is withdrawn or rescinded by the Secured Party in writing, the Securities Intermediary shall not comply with any Transfer
Order it receives from the Pledgor and shall act solely upon Transfer Orders received from the Secured Party.

 

(iv)        The
Secured Party hereby agrees with the Pledgor that it shall not deliver a Notice of Exclusive Control except after the occurrence
and during the continuation of a Facility Termination Event.

 

ARTICLE
IV

THE SECURITIES INTERMEDIARY

 

Section 4.        (a)        Performance
of Duties. The Securities Intermediary may execute any of the powers hereunder or perform any of its duties hereunder directly
or by or through agents, attorneys or employees. The Securities Intermediary shall be entitled to consult with counsel with a national
reputation in the applicable matter selected with due care and to act in reliance upon the advice or written opinion of such counsel
concerning matters pertaining to its duties hereunder, and shall not be liable for any action taken or omitted to be taken by it
in good faith in reliance upon and in accordance with the advice or written opinion of such counsel. Except as expressly provided
herein, the Securities Intermediary shall not be under any obligation to exercise any of the rights or powers vested in it by this
Agreement at the request or direction of the Secured Party.

 

(b)        No Change to Secured
Accounts. Without the prior written consent of the Pledgor and, so long as any Obligations remain unpaid, the Secured Party,
the Securities Intermediary will not change the account number or designation of any Secured Account.

 

    	-4-

    	 

    

 

(c)        Certain Information.
The Securities Intermediary shall promptly notify the Pledgor and the Secured Party if a Responsible Officer of the Securities
Intermediary with direct responsibility for administration of this Agreement has actual knowledge of or receives written notice
that any Person asserts or seeks to assert a lien, encumbrance or adverse claim against any portion or all of the property credited
to any Secured Account. The Securities Intermediary will send copies of all statements, confirmations and other correspondence
relating to each Secured Account (and/or any financial assets credited thereto) simultaneously to the Pledgor and the Secured Party.
The Securities Intermediary will furnish to the Secured Party and the Pledgor, upon reasonable request, an account statement with
respect to each Secured Account.

 

(d)        Subordination.
In the event that the Securities Intermediary has or subsequently obtains by agreement, by operation of law or otherwise a security
interest in any of the Secured Accounts, or any financial asset credited thereto, the Securities Intermediary hereby subordinates
any such security interest therein to the security interest of the Secured Party in the Secured Accounts, in all property credited
thereto and in all security entitlements with respect to such property. Without limitation of the foregoing, the Securities Intermediary
hereby waives to such security interest of the Secured Party any and all statutory, regulatory, contractual or other rights now
or hereafter existing in favor of the Securities Intermediary over or with respect to any Secured Account, all property credited
thereto and all security entitlements to such property (including (i) any and all contractual rights of set-off, lien or compensation,
(ii) any and all statutory or regulatory rights of pledge, lien, set-off or compensation, (iii) any and all statutory,
regulatory, contractual or other rights to put on hold, block transfers from or fail to honor instructions of the Pledgor with
respect to any Secured Account or (iv) any and all statutory or other rights to prohibit or otherwise limit the pledge, assignment,
collateral assignment or granting of any type of security interest in any Secured Account), except the Securities Intermediary
may set off (i) the face amount of any checks that have been credited to any Secured Account but are subsequently returned unpaid
because of uncollected or insufficient funds and (ii) reversals or cancellations of payment orders and other electronic fund transfers.

 

(e)        Limitation on Liability.
The Securities Intermediary shall not have any duties or obligations except those expressly set forth herein and shall satisfy
those duties expressly set forth herein so long as it acts without gross negligence, willful misconduct or bad faith. Without limiting
the generality of the foregoing, the Securities Intermediary shall not be subject to any fiduciary duty or other implied duties,
and the Securities Intermediary shall not have any duty to take any discretionary action or exercise any discretionary powers.
None of the Securities Intermediary, any Affiliate of the Securities Intermediary, or any officer, agent, stockholder, partner,
member, director or employee of the Securities Intermediary or any Affiliate of the Securities Intermediary shall have any liability,
whether direct or indirect and whether in contract, tort or otherwise (i) for any action taken or omitted to be taken by any
of them hereunder or in connection herewith unless such act or omission constituted gross negligence, willful misconduct or bad
faith, or (ii) for any action taken or omitted to be taken by the Securities Intermediary in accordance with the terms hereof
at the express direction of the Secured Party. In addition, the Securities Intermediary shall have no liability for making any
investment or reinvestment of any cash balance in any Secured Account, or holding amounts uninvested in such accounts, pursuant
to the terms of this Agreement. The liabilities of the Securities Intermediary shall be limited to those expressly set forth in
this Agreement. The Securities Intermediary shall not be liable for any action a Responsible Officer of the Securities Intermediary
takes or omits to take in good faith that it reasonably believes to be authorized or within its rights or powers hereunder. The
Securities Intermediary shall not be deemed to have notice or knowledge of any Facility Termination Event unless a Responsible
Officer of the Securities Intermediary has actual knowledge thereof or unless written notice thereof is received by a Responsible
Officer of the Securities Intermediary. With the exception of this Agreement (and relevant terms used herein and expressly defined
in the Loan Agreement), the Securities Intermediary is not responsible for or chargeable with knowledge of any terms or conditions
contained in any agreement referred to herein, including, but not limited to, the Loan Agreement.

 

    	-5-

    	 

    

 

(f)        Reliance. The
Securities Intermediary shall be entitled to conclusively rely upon, and shall not incur any liability for relying upon, any notice,
request, opinion, report, certificate, consent, statement, instrument, document or other writing including, but not limited to,
an electronic mail communication delivered to the Securities Intermediary under or in connection with this Agreement and in good
faith believed by it to be genuine and to have been signed or sent by the proper Person. The Securities Intermediary may consult
with legal counsel, independent accountants and other experts with a national reputation in the applicable matter selected by it
with due care, and shall not be liable for any action taken or not taken by the Securities Intermediary in good faith and in accordance
with the advice of any such counsel, accountants or experts. If at any time the Securities Intermediary reasonably requests instruction
with respect to any action or omission in connection with this Agreement, the Securities Intermediary shall be entitled (without
incurring any liability therefor to any person) to refrain from taking such action and continue to refrain from acting unless and
until the Securities Intermediary shall have received written instruction from the party from whom instruction was requested. The
reliances, protections, indemnities and immunities afforded to the Collateral Custodian in the Loan Agreement shall be afforded
to the Securities Intermediary as though fully set forth herein.

 

(g)        Court Orders, etc.
If at any time the Securities Intermediary is served with any judicial or administrative order, judgment, decree, writ or other
form of judicial or administrative process which in any way affects any Secured Account (including, but not limited to, orders
of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of any Secured Account or
any financial asset in any Secured Account), the Securities Intermediary is authorized to take such action as legal counsel of
its own choosing with a national reputation in the applicable matter advises appropriate to comply therewith; and if the Securities
Intermediary complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative
process, the Securities Intermediary will not be liable to any of the parties hereto or to any other person or entity even though
such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without
legal force or effect.

 

(h)        Successor Securities
Intermediary.

 

(i)        Merger.
Any Person into whom the Securities Intermediary may be converted or merged, or with whom it may be consolidated, or to whom it
may sell or transfer its trust or other business and assets as a whole or substantially as a whole, or any Person resulting from
any such conversion, sale, merger, consolidation or transfer to which the Securities Intermediary is a party, shall (provided
it is otherwise qualified to serve as the Securities Intermediary hereunder) be and become a successor Securities Intermediary
hereunder and be vested with all of the powers, immunities, privileges and other matters as was its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

 

    	-6-

    	 

    

 

(ii)        Resignation.
The Securities Intermediary and any successor thereto may at any time resign by giving sixty (60) days’ written notice
by registered, certified or express mail to the Secured Party and the Pledgor; provided that such resignation shall take
effect only upon the effective date of the appointment of a successor Securities Intermediary acceptable to the Secured Party and
the Pledgor, as evidenced by their written consent and the acceptance in writing by such successor Securities Intermediary of such
appointment and of its obligation to perform its duties hereunder in accordance with the provisions hereof. Subject to the preceding
sentence, if on the 90th day after written notice of resignation is delivered by a resigning party as described
above no successor party or temporary successor Securities Intermediary has been appointed in accordance herewith, the resigning
party may petition a court of competent jurisdiction in New York City for the appointment of a successor.

 

(i)        Compensation and
Reimbursement. The Pledgor agrees: (i) to pay to the Securities Intermediary its fees for all services rendered by it
hereunder; and (ii) without duplication of amounts payable under Section 5(b), to reimburse the Securities Intermediary
upon its request for all reasonable and documented out-of-pocket expenses, disbursements and advances incurred or made by the Securities
Intermediary in accordance with any provision of, or carrying out its duties and obligations under, this Agreement (including the
reasonable, documented and out-of-pocket compensation and fees and the expenses and disbursements of its agents, any Independent
Accountants and outside counsel).

 

(j)        Securities Intermediary
and its Affiliates. Wells Fargo Bank, National Association and any of its Affiliates providing services in connection with
the transactions contemplated in the Transaction Documents shall have only the duties and responsibilities expressly provided in
its various capacities and shall not, by virtue of it or any Affiliate acting in any other capacity be deemed to have duties or
responsibilities other than as expressly provided with respect to each such capacity. Wells Fargo Bank, National Association (or
its Affiliates), in its various capacities in connection with the transactions contemplated in the Transaction Documents, including
as Securities Intermediary, may enter into business transactions, including the acquisition of investment securities as contemplated
by the Transaction Documents, from which it and/or such Affiliates may derive revenues and profits in addition to the fees stated
in the various Transaction Documents, without any duty to account therefor.

 

(k)        Force Majeure.
In no event shall the Securities Intermediary be responsible or liable for any failure or delay in the performance of its obligations
hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes,
work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, it being
understood that the Securities Intermediary shall use reasonable best efforts which are consistent with accepted practices in the
banking industry to maintain performance and, if necessary, resume performance as soon as practicable under the circumstances.

 

    	-7-

    	 

    

 

(l)        Perfection.
The Securities Intermediary shall have no responsibility or liability for (i) preparing, recording, filing, re-recording or refiling
any financing statement, continuation statement, document, instrument or other notice in any public office at any time or times,
(ii) the correctness of any such financing statement, continuation statement, document or instrument or other such notice, (iii)
taking any action to perfect or maintain the perfection of any security interest granted to the Secured Party or otherwise, or
(iv) the validity or perfection of any such lien or security interest.

 

(m)        Facsimile and Electronic
Transmissions. The Securities Intermediary agrees to accept and act upon instructions or directions pursuant to this Agreement
sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, provided that any person
providing such instructions or directions shall provide to the Securities Intermediary an incumbency certificate listing such designated
persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing.
If the Pledgor elects to give the Securities Intermediary e-mail or facsimile instructions (or instructions by a similar electronic
method), the Securities Intermediary’s understanding of such instructions shall be deemed controlling. The Securities Intermediary
shall not be liable for any losses, costs or expenses arising directly or indirectly from the Securities Intermediary’s reliance
upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written
instruction. The Pledgor agrees to assume all risks arising out of the use of such electronic methods to submit instructions and
directions to the Securities Intermediary, including, without limitation, the risk of the Securities Intermediary acting on unauthorized
instructions, and the risk of interception and misuse by third parties.

 

ARTICLE
V

INDEMNITY; LIMITATION ON DAMAGES; EXPENSES; FEES

 

Section 5.        (a)        Indemnity.
(i) Subject to Section 5(a)(ii), the Pledgor hereby indemnifies and holds harmless the Securities Intermediary, its
Affiliates and their respective officers, directors, employees, representatives and agents (collectively referred to for the purposes
of this Section 5(a) only as the Securities Intermediary), against any loss, claim, damage, expense or liability (including
the costs and expenses of defending against any claim of liability), or any action in respect thereof, in each case to the extent
actually awarded or actually incurred by the Securities Intermediary, to which the Securities Intermediary may become subject,
whether commenced or threatened, insofar as such loss, claim, damage, expense, liability or action arises out of or is based upon
the execution, delivery or performance of this Agreement, but excluding any such loss, claim, damage, expense, liability or action
arising out of the bad faith, gross negligence or willful misconduct of the Securities Intermediary, and shall reimburse the Securities
Intermediary promptly upon demand for any reasonable and documented out-of-pocket legal or other expenses reasonably incurred by
the Securities Intermediary in connection with investigating or preparing to defend or defending against or appearing as a third
party witness in connection with any such loss, claim, damage, expense, liability or action as such expenses are incurred. No provision
of this Agreement shall require the Securities Intermediary to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured
to it. The obligations of the Pledgor under this clause (a) are referred to as the “Securities Intermediary Indemnity”.
The provisions of this section will survive the termination of this Agreement and the resignation or removal of the Securities
Intermediary.

 

    	-8-

    	 

    

 

(ii)        The
obligation of the Pledgor to pay any amounts in respect of the Securities Intermediary Indemnity shall be subject to the priority
of payments set forth in the Loan Agreement and shall survive the termination of this Agreement and the resignation or removal
of the Securities Intermediary and the Securities Intermediary shall be considered the Collateral Custodian for such purposes.

 

(b)        Expenses and Fees.
The Pledgor shall be responsible for, and hereby agrees to pay, all reasonable and documented out-of-pocket costs and expenses
incurred by the Securities Intermediary in connection with the establishment and maintenance of each Secured Account, including
the Securities Intermediary’s customary fees and expenses, any reasonable and documented out-of-pocket costs or expenses
incurred by the Securities Intermediary as a result of conflicting claims or notices involving the parties hereto, including the
reasonable fees and expenses of its external legal counsel, and all other reasonable costs and expenses incurred in connection
with the execution, administration or enforcement of this Agreement, including reasonable fees and costs of its external legal
counsel, whether or not such enforcement includes the filing of a lawsuit, in each case except any expenses as may be attributable
to gross negligence, bad faith or willful misconduct on the part of the Securities Intermediary. Notwithstanding anything to the
contrary provided herein, all amounts payable by the Pledgor to the Securities Intermediary under this Agreement shall be payable
only in accordance with, and subject to, Section 8.3 of the Loan Agreement and the Securities Intermediary shall be considered
the Collateral Custodian for such purposes.

 

(c)        No Consequential
Damages. Notwithstanding anything in this Agreement to the contrary, in no event shall the Pledgor or the Securities Intermediary
be liable for special, punitive, indirect or consequential loss or damage of any kind whatsoever (including, but not limited to,
lost profits), even if the Pledgor or the Securities Intermediary has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

ARTICLE
VI

REPRESENTATIONS AND AGREEMENTS

 

Section 6.        The Securities
Intermediary represents to and agrees with the Pledgor and the Secured Party that:

 

(a)        Status. It
is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant
under such laws, in good standing.

 

    	-9-

    	 

    

 

(b)        Powers. It
has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver
this Agreement and any other documentation relating to this Agreement that it is required by this Agreement to deliver and to perform
its obligations under this Agreement and has taken all necessary action to authorize such execution, delivery and performance;
and this Agreement has been, and each other such document will be, duly executed and delivered by it.

 

(c)        Obligations Binding.
Its obligations under this Agreement constitute its legal, valid and binding obligations, enforceable in accordance with their
respective terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement
is sought in a proceeding in equity or at law)).

 

(d)        Waiver of Setoffs.
The Securities Intermediary hereby expressly waives any and all rights of setoff that such party may otherwise at any time have
under Applicable Law with respect to any Secured Account except as set forth in Section 4(d).

 

(e)        Ordinary Course.
The Securities Intermediary, in the ordinary course of its business, maintains securities accounts for others and is acting in
such capacity in respect of any Secured Account.

 

(f)         Comply with Duties.
The Securities Intermediary will comply at all times with the duties of a “securities intermediary” under Article 8
of the UCC.

 

(g)        Participant of
the Federal Reserve Bank of New York. The Securities Intermediary is a member of the Federal Reserve System.

 

(h)        Consents. All
governmental and other consents that are required to have been obtained by the Secured Party with respect to the execution, delivery
and performance by the Secured Party of this Agreement have been obtained and are in full force and effect and all conditions of
any such consents have been complied with.

 

ARTICLE
VII

ADVERSE CLAIMS

 

Section 7.        Except for
the claims and interest set forth in this Agreement, no Responsible Officer of the Securities Intermediary actually knows of any
claim to, or interest in, any Secured Account or in any “financial asset” (as defined in Section 8-102(a)(9) of
the UCC) credited thereto. If a Responsible Officer of the Securities Intermediary has actual knowledge of or receives written
notice that any Person asserts or seeks to assert a lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against any Secured Account or in any financial asset carried therein, the
Securities Intermediary will promptly notify the Pledgor thereof (and the Pledgor shall promptly notify the Secured Party thereof).

 

    	-10-

    	 

    

 

ARTICLE
VIII

TRANSFER

 

Section 8.        Neither this
Agreement nor any interest or obligation in or under this Agreement may be transferred (whether by way of security or otherwise)
by any party without the prior written consent of each other party. Any purported transfer that is not in compliance with this
Section 8 will be void.

 

ARTICLE
IX

TERMINATION

 

Section 9.        The rights
and powers granted herein to the Secured Party have been granted in order to perfect its security interest in each Secured Account
and the financial assets credited thereto, are powers coupled with an interest and will be affected neither by the bankruptcy of
the Pledgor nor by the lapse of time. The obligations of the Securities Intermediary hereunder shall continue in effect until the
earlier of (a) that date upon which the security interest of the Secured Party in each Secured Account has been terminated,
and (b) that date on which the Secured Party releases or terminates its security interest in each Secured Account.

 

ARTICLE
X

MISCELLANEOUS

 

Section 10.        (a)        Entire
Agreement. This Agreement and the Loan Agreement constitutes the entire agreement and understanding of the parties with respect
to its subject matter and supersedes all oral communication and prior writings with respect thereto.

 

(b)        Amendments.
No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including a writing evidenced
by a facsimile transmission or e-mail correspondence), executed by each of the parties hereto.

 

(c)        Survival. All
representations and warranties made in this Agreement or in any certificate or other document delivered pursuant to or in connection
with this Agreement shall survive the execution and delivery of this Agreement or such certificate or other document (as the case
may be) or any deemed repetition of any such representation or warranty. In addition, the rights of the Securities Intermediary
under Sections 4 and 5, and the obligations of the Pledgor under Section 5, shall survive the
termination of this Agreement.

 

(d)        Benefit of Agreement.
Subject to Section 8, this Agreement shall be binding upon and inure to the benefit of the Pledgor, the Secured Party
and the Securities Intermediary and their respective successors and permitted assigns. The Securities Intermediary acknowledges
and consents to the assignment of this Agreement by the Pledgor to the Secured Party for the benefit of the Secured Parties under
the Loan Agreement.

 

    	-11-

    	 

    

 

(e)        Counterparts.
This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including
by facsimile transmission and e-mail correspondence), each of which will be deemed an original.

 

(f)        No Waiver of Rights.
A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as
a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or
further exercise, of that right, power or privilege or the exercise of any other right, power or privilege.

 

(g)        Headings. The
headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken
into consideration in interpreting this Agreement.

 

(h)        Severability.
If any provision of this Agreement, or the application thereof to any party or any circumstance, is held to be unenforceable, invalid
or illegal (in whole or in part) for any reason (in any jurisdiction), the remaining terms of this Agreement, modified by the deletion
of the unenforceable, invalid or illegal portion (in any relevant jurisdiction), will continue in full force and effect, and such
unenforceability, invalidity, or illegality will not otherwise affect the enforceability, validity or legality of the remaining
terms of this Agreement so long as this Agreement, as so modified, continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the deletion of such portion of this Agreement will not substantially
impair the respective expectations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties.

 

(i)        No Agency.
Notwithstanding anything that may be construed to the contrary, it is understood and agreed that the Securities Intermediary is
not, nor shall it be considered to be, an agent of the Secured Party. In addition, the Securities Intermediary shall not act or
represent itself, directly or by implication, as an agent of the Secured Party or in any manner assume or create any obligation
whatsoever on behalf of, or in the name of, the Secured Party.

 

(j)        Payments by Pledgor.
Any amounts required to be paid pursuant to this Agreement by the Pledgor shall be paid or caused to be paid by the Pledgor to
the applicable Person on the Distribution Date following such Person’s demand therefor in accordance with Section 8.3
of the Loan Agreement, provided that such demand is made no later than two (2) Business Days prior to the applicable Distribution
Date, and the Securities Intermediary shall be considered the Collateral Custodian for such purposes.

 

    	-12-

    	 

    

 

(k)        Taxes. For
all U.S. federal tax reporting purposes, all income earned on the funds invested and allocable to the Secured Accounts is legally
owned by the Pledgor (and beneficially owned by such Pledgor or the equity Pledgor or owners of such entity as documented in the
IRS forms and other documentation described below). Such Pledgor is required to provide to Wells Fargo, in its capacity as Securities
Intermediary (i) an IRS Form W-9 or appropriate IRS Form W-8 no later than the date hereof, and (ii) any additional IRS forms (or
updated versions of any previously submitted IRS forms) or other documentation at such time or times required by applicable law
or upon the reasonable request of the Securities Intermediary as may be necessary (i) to reduce or eliminate the imposition of
U.S. withholding taxes and (ii) to permit the Securities Intermediary to fulfill its tax reporting obligations under applicable
law with respect to the Secured Accounts or any amounts paid to Company. The Pledgor is further required to report to the Securities
Intermediary comparable information upon any change in the legal or beneficial ownership of the income allocable to the Secured
Accounts. Wells Fargo, both in its individual capacity and in its capacity as Securities Intermediary, shall have no liability
to Pledgor or any other person in connection with any tax withholding amounts paid, or retained for payment, to a governmental
authority from the Secured Accounts arising from Company’s failure to timely provide an accurate, correct and complete IRS
Form W-9, an appropriate IRS Form W-8 or such other documentation contemplated under this paragraph. For the avoidance of doubt,
no funds shall be invested with respect to such Secured Accounts absent the Securities Intermediary having first received (i) instructions
with respect to the investment of such funds, and (ii) the forms and other documentation required by this paragraph.

 

ARTICLE
XI

NOTICES

 

Section 11.        (a)        Effectiveness.
Any notice or other communication in respect of this Agreement may be given in any manner set forth in Section 17.3 of the Loan
Agreement.

 

(b)        Change of Addresses.
Any party hereto may by written notice to each other party hereto, change the address or facsimile number at which notices or other
communications are to be given to it hereunder.

 

ARTICLE
XII

GOVERNING LAW AND JURISDICTION

 

Section 12.        (a)        Governing
Law. This Agreement, each Secured Account and any matter arising among the parties under or in connection with this Agreement
or any Secured Account, will be governed by and construed in accordance with the laws of the State of New York.

 

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

 

    	-13-

    	 

    

 

(c)        Waiver of Jury
Trial Right. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING. Each party hereby (i) certifies that no representative, agent
or attorney of any other party has represented, expressly or otherwise, that any other party would not, in the event of a Proceeding,
seek to enforce the foregoing waiver, and (ii) acknowledges that it has been induced to enter into this Agreement by, among
other things, the mutual waivers and certifications in this Section 12(c).

 

ARTICLE
XIII

DEFINITIONS

 

Section 13.        As used in
this Agreement:

 

“Affiliate”
of any Person means any other Person that directly or indirectly Controls, is Controlled by or is under common Control with such
Person (excluding any trustee under, or any committee with responsibility for administering, any employee benefit plan). For the
purposes of this definition, “Control” shall mean the possession, directly or indirectly (including through
affiliated entities), of the power to direct or cause the direction of the management or policies of a Person, whether through
the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled”
shall have meanings correlative thereto.

 

“Agreement”
has the meaning specified in the Recitals.

 

“consent”
includes a consent, approval, action, authorization, exemption, notice, filing, registration or exchange control consent.

 

“law”
means any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental
revenue authority) and “lawful” and “unlawful” will be construed accordingly.

 

“Loan Agreement”
has the meaning specified in Section 1(a).

 

“Notice of Exclusive
Control” means a notice delivered to and received by the Securities Intermediary by the Secured Party in accordance with
Section 11(a) stating that the Secured Party is exercising exclusive control over the Secured Accounts.

 

“Person”
means any natural person or legal entity, including, without limitation, any corporation, partnership, limited liability company,
statutory or common law trust, or governmental entity or unit.

 

“Pledgor”
has the meaning specified in the Recitals.

 

“Proceeding”
has the meaning specified in Section 12(b).

 

    	-14-

    	 

    

 

“Responsible Officer”
means any officer within the corporate trust office of the Securities Intermediary, including any director, vice president, assistant
vice president or associate, having direct responsibility, for the administration of this Agreement, who at the time shall be such
officers, respectively, or to whom any matter is referred because of his or her knowledge of and familiarity with the particular
subject.

 

“Secured Accounts”
has the meaning specified in Section 3(a).

 

“Secured Party”
has the meaning specified in the Recitals.

 

“Securities Intermediary”
has the meaning specified in the Recitals.

 

“Securities Intermediary
Indemnity” has the meaning specified in Section 5(a).

 

“UCC”
means the Uniform Commercial Code as in effect in the State of New York.

 

ARTICLE
XIV

LIMITED RECOURSE; NO BANKRUPTCY PETITION

 

Section 14.        The obligations
of the Pledgor are solely corporate obligations of the Pledgor and no action shall be taken against the members or officers of
the Pledgor in connection with such obligations. The parties hereto agree that they shall not institute against, or join any other
Person in instituting against the Pledgor, any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings
or other proceedings under U.S. federal or state bankruptcy laws or any similar laws until at least one year and one day after
payment in full of the Advances. This Section 14 shall survive the expiration or termination of this Agreement.

 

    	-15-

    	 

    

 

IN WITNESS WHEREOF the parties have executed
this Agreement on the date first set forth above with effect from such date.

 

	 	Pledgor:
	 	 
	 	DUNLAP FUNDING LLC, as Pledgor
	 	 	 
		By:	/s/ Gerald F. Stahlecker
	 	 	Name: Gerald F. Stahlecker
	 	 	Title: Executive Vice President

 

 

Securities Account Control Agreement

    	 

    	 

    

 

	 	Secured Party:
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Secured Party
	 	 	 
		By:	/s/ José M. Rodríguez
	 	 	Name: José M. Rodríguez
	 	 	Title: Vice President

 

 

Securities Account Control Agreement

    	 

    	 

    

 

	 	Securities Intermediary:
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Securities Intermediary
	 	 	 
		By:	/s/ José M. Rodríguez
	 	 	Name: José M. Rodríguez
	 	 	Title: Vice President

 

 

Securities Account Control Agreement

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