Document:

Blueprint

  Exhibit 10.8

INTERNATIONAL MANUFACTURING and SALES AGREEMENT

 

	

Date. November 6th, 2015

	

Revised:
June 8, 2016

Between:

Cambridge Towel
Company Inc., a corporation organized under the laws of Canada,
having its office at 450 Dobbie Drive Cambridge, Ontario N1T 1S7
(hereinafter referred to as “CTC”),

and:

Sterling Sports
LLC, a limited liability company organized under the laws of the
State of Florida having its office at 6632 Telegraph Rd. #371
Bloomfield Hills, Michigan 48301 (hereinafter referred to as
“the Company”) (and collectively
“parties”). EIN Number 47-5229537.

It
is agreed as follows:

1. 

APPOINTMENT

1.1 

The Company
appoints CTC to exclusively manufacture the products set forth on
Exhibit 1 (the “Products”), except in the case of
circumstances outlined in 1.2 below, for purchase by the Company
for re-sale to professional and collegiate athletics program
customers in the United States and other customers as mutually
agreed between CTC and the Company, at prices to be mutually
determined by the parties and as adjusted periodically for
manufacturing cost changes as required. The Products will include
Silver Anti-Microbial yarn designed to retard the advance of
bacteria, and which is manufactured and prepaid by the Company (the
“Materials”) and delivered to CTC for
manufacture.

1.2 

In the event that
the Company acquires a significant customer that specifically
requires Products “Made in the United States” using the
Materials, such that CTC is therefore precluded from manufacturing
the Products for such customer, the Company may, with the
reasonable assistance of CTC, select an alternate US manufacturer
for such customer order. Should this occur, the Company, in
addition to paying CTC any reasonable out-of-pocket expenses
incurred in assisting with the alternate manufacturer facilitation,
if applicable, will pay CTC a fee of [omitted, provided separately
to the S.E.C.]% using the “Towel Cost from CTC” amount from
Exhibit 2 herein for derivation, payable according to the
provisions of 8.3 herein.

 

 

1.3 

The Company also
agrees to deliver Materials to CTC, prepaid by the Company, for
inclusion in Products which CTC will have the right to market and
sell to hotels, the retail trade, healthcare facilities, other
traditional and non-traditional users of terry products in Canada
and the United States (the “Territory”) and
additionally, to professional and collegiate athletics program
customers in the United States as mutually agreed with the Company.
The parties agree to share customer call intentions and details on
a frequent basis (ie. Bi-weekly) in order to ensure that potential
customer opportunities are pursued by only one of CTC or the
Company; the one selected being the party with the highest
potential of securing the business.

1.4 

The Company will
provide purchase orders for Products in form acceptable to CTC;
purchase orders that CTC has the right to accept or reject based on
credit, legal or other reasons. CTC’s normal shipping terms
are FOB Hamilton or Cambridge Ontario. In preparing such purchase
orders, the Company will coordinate delivery dates of Products for
its customers based on information provided by CTC and CTC will use
reasonable efforts to deliver Products by the dates set forth in
such purchase orders. CTC will keep the Company apprised of
estimated delivery dates and will promptly notify the Company of
any expected delays. The Company will endeavour to provide CTC with
a rolling ninety (90) day forecast of its requirements of Products
realizing its significance to ensuring Product availability
according to expectations. Similarly, giving due consideration to
customer order commitments accepted by both the Company and CTC,
CTC’s Material requirements will be provided to the Company
on a similar basis.

1.5 

This Agreement
shall commence on the date written above and continue for an
initial period of 60 months (the “Term”) unless
terminated for cause as defined in Section 11. The parties must
mutually agree to any extension of the Term.

1.6 

The parties agree
that CTC will be the exclusive manufacturer of Products including
processing of the Materials and that all Products will carry
labelling in form acceptable by both parties,
subject to any approval required by the ultimate purchaser of the
Products.

2. 

OBLIGATIONS
OF CTC

2.1 

CTC shall maintain
adequate product liability and general liability insurance and, if
requested, shall provide evidence of same to the
Company.

2.2 

All Products
must:

2.2.1 

Fully comply with
the order and with any specification, samples or patterns comprised
in the order.

2.2.2 

Be of high quality,
comprise only suitable materials and be fit for the purposes for
which they are supplied.

 

 

2

 

2.2.3 

Comply with all
applicable laws, regulations and standards including
but not limited to fire,
health and safety regulations.

3. 

OBLIGATIONS
OF THE COMPANY

3.1 

The Company shall
maintain adequate product liability and general liability insurance
and if requested, shall provide evidence of same to
CTC.

3.2 

The Company
represents and covenants that it has the authority to enter into
this Agreement relating to the technology and intellectual property
of the Materials (referred to as IP rights below) by virtue of a
binding agreement with Noble Biomaterials, Inc. and that
CTC’s use of the Materials in the manner contemplated in this
Agreement will not violate any agreement, law, regulation or
infringe on the rights of any other party. The Company will
indemnify and hold CTC harmless from any damages, costs or expenses
from a breach of this provision.

3.3 

The Company
appreciates the importance of marketing the Product features in
order to optimize both its sales and sales by CTC in the Territory.
The Company therefore commits to promoting features and benefits of
the Materials with marketing materials including the use of
brochures, magazines, media and television as appropriate. These
promotional materials will be coordinated by the Company along with
the marketing campaign and will closely coincide with the
commencement of this Agreement and continue while this Agreement is
in force.

3.4 

The Company is
solely responsible for the quality and performance of the Materials
and any claim that is set forth concerning the impact of the
Materials on the performance of the Products provided Products have
been manufactured according to company specifications and have
passed all compliance testing.

3.5 

The Company
realizes that as part of the normal manufacturing of first quality
Products by CTC, certain Products will be classified as non-firsts
(“seconds”) as part of the normal quality checking
process done by CTC. Both the Company and CTC will take
responsibility for the sale of such seconds, selling at prices
below normal first quality sell prices however considerate of the
high quality nature and image of the first quality
Products.

3.5 

The Company will
indemnify and hold CTC harmless from any costs, damages or expenses
relating to or arising from any failure of the Materials (and thus
the Products) to attain any standard of performance or other metric
as claimed by the Company.

4. 

INSPECTION
AND TESTING

Each
party shall be given access to the location where the Materials are
used and Products manufactured respectively, during ordinary
working hours [8.30 am. to 3:00pm.] on any working day, on 3
working days’ notice to enable it to inspect and attend tests
of the Products during manufacture. Inspection will not constitute
acceptance of any Products or Materials by the Company or CTC,
respectively.

 

 

3

 

5. 

DELIVERY
TERMS

5.1 

All Products sold
to the Company shall be freight-delivered in accordance with the
details specified in the order; the standard shipping terms being
FOB Hamilton or Cambridge, Ontario. When the delivery address is
not known by the Company at the date of the order, or is changed,
relevant details will be supplied to CTC as soon as reasonably
practicable.

5.2 

CTC will ensure
that all Products are inspected before dispatch and that they are
adequately and safely packaged to the best of their ability so as
to avoid any damage or loss while in transit. A detailed packing
list will accompany each delivery of Products to the Company.
Reasonable advance notice of each delivery of Company’s
orders shall be given in writing by CTC to the Company. The Company
will be responsible for all Products from the time they are
dispatched by CTC from its plant according to the freight
instructions provided by the Company.

5.3 

Shipment shall not
constitute acceptance of any defect in any Product or relieve CTC
of any of its obligations under this contract

6. 

REJECTION
OF PRODUCTS

6.1 

The Company may
reject any Products which are not in accordance with the order and
the terms set out in this agreement by giving written notice
specifying its reasons within 7 working days of
delivery.

6.2 

Company may cancel
the order with respect to rejected Products or, at its option,
require CTC to replace any rejected Products to Company’s
reasonable satisfaction. Failure to replace within 60 working days
shall entitle the Company to cancel the order for the rejected
Products and recover its costs and losses from CTC under the terms
of the indemnity set out at Clause 7 of this contract.

7. 

WARRANTY
AND INDEMNITY

7.1 

CTC shall at
Company’s written request, replace or repair to
Company’s reasonable satisfaction, all Products in which any
defect appears, within 60 working days from delivery.

7.2 

CTC will keep the
Company fully indemnified but only for the costs of the Products.
CTC will not be responsible for any indirect, incidental or
consequential damages or any costs or expenses of the
Company.

8. 

PRICES
AND PAYMENT TERMS

8.1 

The prices payable
by the Company for Products under this contract shall be agreed in
writing between the parties annually or at other agreed intervals.
These prices are exclusive of sales and other taxes which may be
payable in accordance with the Tax Laws in the countries where the
Company and CTC are based.

 

 

 

4

 

8.2 

The prices payable
by Company are FOB 1817 Burlington Street East, Hamilton, Ontario,
L8H 3L5 or FOB 450 Dobbie Drive Cambridge Ontario. These prices do
not however reflect any Materials cost which are borne by the
Company, special packaging which promotes the anti-microbial
marketing aspects of the Product (ie. clam shell) nor do they
include any provision for licensing fees payable to Noble
Biomaterials, Inc. (“Noble”), the costs of which are
the exclusive obligation of the Company.

8.3 

CTC shall submit
invoices before delivery dispatch of Products and, unless otherwise
agreed in writing based on Company’s financial information
provided to CTC and CTC’s ability to approve an adequate
credit line for the Company, all Products shall be paid for prior
to shipping dispatch by wire transfer. If a credit line is
approved, the Company will pay CTC on a net 45 days basis including
in-transit mail time.

8.4 

For Products sold
by CTC in accordance with paragraph 1.3 above, CTC will pay the
Company a USD fee calculable and invoiced as outlined in 8.5 herein
and in accordance with Exhibit 2 attached. Exhibit 2 will be
updated periodically as required, but the fee for each of the
Products gives consideration to a number of factors as outlined
thereon including a Materials cost per pound as provided to CTC by
the Company as well as prices as outlined in 8.1
above.

8.5 

In order to pay the
fee contemplated in 8.4 above, within ten days of each of its
fiscal month ends, CTC will send the Company a summary detailing
all of its prior month sales of Products and the calculation of the
fee payable by CTC to the Company using the fee schedule per
Appendix 2. The Company will use the summary and send an invoice to
CTC that CTC will pay the Company by wire transfer within 20 days
of the fiscal month-end date in which such sales occurred unless
amounts are oweing and overdue by the Company to CTC, in which case
the parties will resolve the issue expeditiously to allow payments
by both parties accordingly.

9. 

INTELLECTUAL
PROPERTY

9.1 

CTC acknowledges
that all designs, specifications, trademarks, copyright, patents,
know-how and other intellectual property rights in the Materials,
(together referred to as “IP Rights”) are the property
of Noble Biomaterials, Inc. and CTC shall not acquire any rights or
benefit in such IP Rights under this contract, except a licence to
use the IP Rights for the purpose of this contract.

9.2 

CTC shall not
either during this contract or at any time after its termination
use or permit the use of any of the designs, brand, branding or
other IP Rights of the Company for the manufacture of any Products,
acknowledging ownership of same as that of the Company
exclusively.

9.3     

This Clause 9 shall
survive the termination of this Agreement.

10.      

CONFIDENTIALITY

10.1 

All information
supplied by either party to the other and identified as
confidential shall be kept strictly confidential by the recipient
and shall not be disclosed to any third party without
the other’s prior written consent. Each party shall use its
best efforts to ensure that all employees, consultants or other
parties that are required to have access to any such information
will be bound similarly.

 

 

5

 

10.2 

All confidential
information and documents supplied to either party shall be
returned promptly to the supplying party on termination of this
Agreement.

10.3 

The obligations of
confidentiality in this Agreement shall remain in force after
expiry or termination of the Agreement however, they will not apply
to information which becomes public knowledge through no fault of
the disclosing party or are required to be disclosed by a court of
competent jurisdiction or arbitrator.

11. 

TERMINATION

11.1 

Either party may
terminate this contract by written notice to the other at any time
if the other party:

11.1.1 

Commits a breach of
this Agreement and, in the case of a breach capable of remedy, it
fails to remedy the breach within 60 working days of being
requested to do so in writing.

11.1.2 

Becomes insolvent,
enters into a composition with its creditors or has an
administrative receiver or liquidator appointed.

11.2 

Upon termination of
this Agreement, if applicable, the Company shall pay any and all
monies then owing for its purchase of Products to CTC within 30
working days.

11.3 

On termination of
this Agreement, the Company shall be obliged to purchase at the
prices then in effect, all stock of Products that it has ordered or
forecasted including any work in process which CTC shall be
permitted to convert into finished Products for similar purchase by
the Company. Any Materials not required by CTC to complete any
orders, forecasts or work in process shall be returned to the
Company and any related purchase costs incurred by CTC for such
Materials will be repaid by Company to CTC accordingly. The Company
shall pay CTC for any amounts owing under this Section 11.3 within
60 days of the termination of the Agreement.

12. 

NOTICES

All
notices or submissions to be made or delivered by either party will
be sent by U.S. first class mail, postage prepaid, overnight
delivery service, or personally delivered to the appropriate party
at its respective address set forth below;

 

	
 

	

The
Company

	
 

	

Sterling
Sports LLC

	
 

	
 

	
 

	

6632
Telegraph Rd #371

Bloomfield
Hills

Michigan,
48301

	
 

	
 

	
 

	

Attention
Edward Suydam, Managing Partner

Fax #
1-248-737-7849

Email;
hoghead74@aol.com

 

 

6

 

 

	

CTC

	

Cambridge
Towel Company Inc

450
Dobbie Drive

Cambridge,
Ontario N1R 5X9

Canada

Attention
Hugh Thompson, President and CEO

Fax #
1-519-623-0449

Email;
hugh thompson@cambridgetowel.com

 

13.            

SUBCONTRACTING

Neither
party shall sub-contract or assign this Agreement or any
responsibility or duty hereunder without the consent of the other
party.

14.            

FORCE
MAJEURE

Neither
party shall be liable for default on the obligations derived from
the present contract, nor shall be bound to compensate for damages,
when such default is caused by proven Force Majeure.

15.            

RESOLUTION
OF DISAGREEMENT

Should
any disagreement arise under this Agreement, the parties shall
endeavour to reach an amicable agreement. Should an amicable
solution not be reached, the parties may request that the matter be
referred to persons of higher rank within their own organizations,
with whom they shall meet at least once in order to analyze the
disagreement and possible means of resolving it.

16.            

APPLICABLE
LAW AND COMPETENT JURISDICTION

The
parties agreed to binding arbitration of any dispute according to
the rules of the American Arbitration Association as in effect from
time to time and shall hold such arbitration in New York City,
NY

17.            

LANGUAGE

The
whole text of the present Agreement, as well as the documents
derived from it, including those in the Exhibits, have been written
in English and are therefore considered to be the only authentic
text for all legal effects.

Both
parties declare their conformity to the present contract, which is
signed in 2 copies, each of which shall be considered an
original.

In
Witness whereof, the parties hereto have caused this Agreement to
be executed as of the date first above written

	

For and
on behalf of the Company

	

For and
on behalf of CTC

	
 

	
 

	
 

	

STERLING
SPORTS LLC

	

CAMBRIDGE
TOWEL COMPANY INC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

	
 

	

By:

	

	

	

(Signature)

	
 

	
 

	(Signature)

 

 

7

 

 

	

Name:

	
 

	
 

	

Name:

	

DENNIS
MORGAN

	

Title:

	
 

	
 

	

Title:

	

SR. VP.
& CFO

	

Date:

	
 

	
 

	

Date:

	

June 8,
2016

 

EXHIBIT
1.   

DESCRIPTION
OF PRODUCTS TO BE MANUFACTURED BY CTC

(CLAUSE
1)

 

	

Products

	

Description

	

AntiMicrobial
Towel Products and Bath Mats

	

All
towels will be 100% Cotton Loops with Anti Microbial Yarn supplied
to CTC, prepaid for by Sterling Sports.

Products
will include the following as well as others added by mutual
agreement between CTC and the Company.

Bathroom
Towels

Kitchen
Towels

Workout
towels

Pet
towels

Golf
towels

Sports
towels

EXHIBIT
2. 

USD
FEE SCHEDULE FOR PRODUCT SOLD BY CTC TO NON-COMPANY CUSTOMERS,
PAYABLE TO THE COMPANY

(CLAUSE
8.4, 8.5)

See
attached.

 

8

 

 

International Manufacturing and Sales Agreement

Exhibit 2 - USD Fee Schedule for Product Sold by CTC to Non-Company
Customers, Payable to the Company

Updated
5/27/16

 

	
Description

	
 
 
Style

 

	
 
Size

 

	
 
lbs per Dozen

 

	
 
Units per lb
Silver (1sts and 2nds)

 

	
 
Silver Cost
perUnit using $***lb Note 2

 

	
 
Towel Cost from
CTC (Note 1)

 

	
 
Total Raw Cost

 

	
 
***%
Royalty

 

	
 
***% Financing
on Silver

 

	
 
***%
Profit

 

	
 
USD Fee Payable
to Company

 

	
 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
 
 

 

	
Dish
Cloth

	
  3562 

	
  12x12 

	
  1.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Face

	
  3554 

	
  13x13 

	
  1.50 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Ftip

	
  3559 

	
  12x18 

	
  2.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Kitchen
Towel

	
  3561 

	
  16x22 

	
  2.25 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Locker
Scarf

	
  3556 

	
  13x40 

	
  4.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Hand

	
  3553 

	
  16x30 

	
  4.25 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Tubmat

	
  3557 

	
  20x30 

	
  9.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Pet
Towel

	
    

	
  30x40 

	
  9.50 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Bath

	
  3552 

	
  30x54 

	
  15.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Bath

	
  3560 

	
  30x60 

	
  16.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

	
 

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
    

	
Bathsheet

	
  3555 

	
  35x66 

	
  18.00 

	
 [OMITTED

	
  PROVIDED

	
  SEPARATELY

	
  TO

	
 THE S.E.C.

	
    

	
    

	
    

 

Note 1:
Towel Costs & Specs as provided to Company.

Note 2:
Silver cost per lb of $10.35$[Omitted,
provided separately to the S.E.C.] provided by Company
05/27/16

 

*** Omitted, provided separately to the S.E.C.

 

 

 9EX-10.6

 EXHIBIT 10.6 

INDEMNIFICATION AGREEMENT 

This INDEMNIFICATION AGREEMENT is made this 15th day of November, 2016 (“Agreement”) by and between PennantPark Floating Rate Capital
Ltd. (the “Company”) and each of the Company’s Directors and/or Officers listed on Schedule A hereto (each, an “Indemnitee”). 

WHEREAS, at the request of the Company, Indemnitee currently serves as a Director/Officer and, therefore, may be subjected to claims, suits or
proceedings arising as a result of Indemnitee’s service; and 
 WHEREAS, as an inducement to Indemnitee to continue to serve as such
Director/Officer, the Company has agreed to indemnify Indemnitee against expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the fullest extent that is lawful; and 

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification; 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as
follows: 
 Section 1.     Definitions. For purposes of this Agreement: 

(a)         “Board” means the board of directors of the Company. 

(b)         “Corporate Status” means the status of a person as a Director, Officer, employee
or agent of the Company. 
 (c)         “Director” means a director of the Company. 

(d)         “Disabling Conduct” means willful misfeasance, bad faith, or gross negligence in
the performance of Indemnitee’s duties as a Director/Officer, or reckless disregard of Indemnitee’s duties as a Director/Officer. Disabling Conduct also shall mean (i) an act or omission of Indemnitee that is material to the matter
giving rise to a Proceeding and was committed in bad faith or was the result of active and deliberate dishonesty, (ii) actual receipt of an improper personal benefit in money, property, or services by Indemnitee, or (iii) in the case of a
criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. 

(e)         “Expenses” shall include all reasonable attorneys’ fees and all reasonable
costs, including, without limitation, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding. 

(f)         “Independent Counsel” means counsel that meets all of the following criteria:
(i) is “independent legal counsel” within the meaning of Rule 0-1(a)(6) under the Investment Company Act of 1940, as amended (the “1940 Act”), in respect of the Company; (ii) is experienced in matters of the 1940 Act
and Maryland corporate law; (iii) is not currently representing, nor in the past two years has been retained to represent, the Company or Indemnitee in any matter material to either such party; and (iv) is not currently representing, nor
in the past two years has been retained to represent, any other party 

 
in the Proceeding giving rise to a request for indemnification hereunder, except that the counsel also may represent another Independent Director in the Proceeding. Independent Counsel shall be
selected by Indemnitee and approved by the Board (which approval shall not be unreasonably withheld). In the event that the Board does not approve Indemnitee’s selection within 30 days of written notice from Indemnitee of Indemnitee’s
selection, Indemnitee may select another counsel from a law firm having 100 or more attorneys and rated “AV” in Martindale-Hubbell Law Directory to act as Independent Counsel for purposes of this Agreement, provided that such other counsel
satisfies the criteria in (i) through (iv) in this paragraph. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under applicable standards of professional conduct, would have a
material conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

(g)         “Indemnifiable Amounts” means reasonable Expenses, and any judgment, settlement,
penalty or fine actually incurred by Indemnitee or on Indemnitee’s behalf in connection with a Proceeding. 
 (h)
        “Independent Director” means a Director who is not an “interested person” (as defined in the 1940 Act) of the Company. 

(i)         “Officer” means an officer of the Company appointed by the Board pursuant to the
Company’s governing documents. 
 (j)         “Proceeding” includes any claim,
action, suit, arbitration, alternative dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to
Section 7 of this Agreement to enforce Indemnitee’s rights under this Agreement. 
 Section 2.    
Services by Indemnitee. Indemnitee agrees to continue to serve as a Director/Officer but may resign, at any time and for any reason, from such position (subject to any other contractual obligation or any obligation imposed by operation of
law). The Company shall have no obligation under this Agreement to continue Indemnitee in such position, but, in the event that Indemnitee ceases to serve as a Director/Officer, Indemnitee shall nevertheless retain all rights provided under this
Agreement until its termination. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries) and Indemnitee. 

Section 3.     Indemnification – General. The Company shall indemnify, and advance Expenses to, Indemnitee
(a) as specifically provided in this Agreement and the Company’s governing documents and (b) otherwise to the fullest extent permitted by applicable law in effect on the date hereof and as amended from time to time; provided, however,
that no change in applicable law shall have the effect of reducing the benefits available to Indemnitee hereunder based on applicable law as in effect on the date hereof. The rights of Indemnitee provided in this Section shall include, but shall not
be limited to, all rights set forth in the other Sections of this Agreement. 
 Section 4.     Rights of
Indemnification; Indemnification of Expenses for a Party. Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be,
made a party to or otherwise involved in any pending, actual, completed or threatened Proceeding, whether or not such Proceeding is brought by or in the right of the Company and irrespective of when the conduct that is the subject of the Proceeding
occurred. Pursuant to this Section 4, and subject to the procedures contained in Section 6 of this Agreement, Indemnitee shall be indemnified against all Indemnifiable Amounts by reason of Indemnitee’s Corporate Status to the maximum
extent permitted by applicable law in effect at the date of this 

  
 -2- 

 
Agreement or at the time of the request for indemnification, whichever is greater, provided that Indemnitee shall not be indemnified against Indemnifiable Amounts if Indemnitee is made
party in a Proceeding and found liable by reason of Disabling Conduct. Without limiting any other rights of Indemnitee in this Agreement, if Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to
one or more but less than all claims, issues or matters in such Proceeding, or is not successful as to one or more claims for reasons other than Disabling Conduct, the Company shall indemnify Indemnitee against all Indemnifiable Amounts incurred by
Indemnitee or on Indemnitee’s behalf in connection with each claim, issue or matter to the maximum extent permitted by applicable law in effect at the date of this Agreement or at the time of the request for indemnification, whichever is
greater. For purposes of this Section and without limitation, subject to the procedures contained in Section 6 of this Agreement, the termination of any claim, issue or matter in any such pending Proceeding by dismissal, with or without
prejudice, or by settlement agreement without an admission of liability, shall be deemed to be a successful result as to such claim, issue or matter. 

Section 5.     Advancement of Expenses. 

(a)         Advancement of Expenses of a Party. The Company shall advance all Expenses incurred
by or on behalf of Indemnitee in connection with any Proceeding to which Indemnitee is, or is threatened to be, made a party, within 10 business days after the receipt by the Company of a statement or statements from Indemnitee requesting such
advance or advances from time to time, prior to final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by (a) a written
affirmation by Indemnitee of Indemnitee’s good faith belief that Indemnitee has not engaged in Disabling Conduct in connection with the Proceeding and (b) a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced
if it shall ultimately be determined that Indemnitee has engaged in Disabling Conduct or if Indemnitee is not successful with respect to a claim, issue or matter by reason of Disabling Conduct, as determined in accordance with Section 4.
Furthermore, any such advancement shall be subject to the requirements and limitations of Section 17(h) of the 1940 Act. 

(b)         Indemnification and Advance of Expenses of a Non-Party. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate, or is otherwise involved, in any Proceeding, whether instituted by the
Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith within 10 days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee. 
 Section 6.     Procedure for Determination of
Entitlement to Indemnification. 
 (a)         To obtain indemnification under Sections 3 or 4
of this Agreement, Indemnitee shall submit a written request to the Company. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

 (b)         Upon written request by Indemnitee for indemnification pursuant to Section 6(a)
hereof: (i) if the Indemnitee has been successful, on the merits or otherwise, in defense of the Proceeding at issue (including a decision in an action for which Indemnitee seeks indemnity under this Agreement), then Indemnitee shall be
entitled to indemnification for Indemnifiable Amounts, and (ii) if there has been a final non-appealable decision on the merits (including a decision in an action for which Indemnitee 

  
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seeks indemnity under this Agreement) by a court or other body in the Proceeding at issue or if, at the time of Indemnitee’s written request, there shall have been no final non-appealable
decision on the merits by a court or other body, including because the Proceeding at issue has been settled, then Indemnitee shall be entitled to indemnification, for Indemnifiable Amounts, provided that (a) where there has been a final
non-appealable decision on the merits, the court or other body adjudicating the Proceeding at issue did not find Indemnitee liable by reason of Disabling Conduct and (b) with respect to the Proceeding at issue, a determination is made that
indemnification is permissible under the circumstances because Indemnitee had not engaged in Disabling Conduct, by (1) the vote of a majority of the Independent Directors who are not parties to the Proceeding at issue, (2) Independent
Counsel in a written opinion, or (3) Company shareholders. Indemnitee shall be afforded a rebuttable presumption that Indemnitee has not engaged in Disabling Conduct, except no such presumption shall be afforded in those cases where a
Proceeding is terminated by conviction, or a plea of nolo contendere or its equivalent, or an entry of an order of probation prior to judgment. 

(c)         If it is determined that Indemnitee is entitled to indemnification under this Agreement,
payment to Indemnitee shall be made within 10 business days after such determination. Indemnitee shall cooperate with the person making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such
person upon reasonable request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses
(including reasonable attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person making such determination, in response to a request by such person, shall be borne by the Company (irrespective of the
determination as to Indemnitee’s entitlement to indemnification). 
  Section 7.     Remedies of
Indemnitee. 
 (a)         If (i) a determination is made pursuant to Section 6 of
this Agreement that Indemnitee is not entitled to indemnification, (ii) advancement of Expenses is not timely made pursuant to Section 5, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 6(b) or Section 6(c) within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 4 within 10 business days after receipt by the Company
of written request therefor pursuant to Section 6, or (v) payment of indemnification is not made within 10 business days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an
adjudication in an appropriate court of the state of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. 

(b)         If Indemnitee, pursuant to Section 7(a), seeks a judicial adjudication or an award in
arbitration of Indemnitee’s rights under, or to recover damages for breach of this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against, any and all Expenses actually and
reasonably incurred by Indemnitee in such judicial adjudication or arbitration, but only if Indemnitee prevails therein. If it shall be determined in said judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all
of the indemnification or advancement of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated in the same proportion as the amount of the indemnification or
advancement of Expenses awarded in the judicial adjudication or arbitration. 

  
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 Section 8.     Non-Exclusivity; Insurance; Subrogation;
Exclusions. 
 (a)         The rights of indemnification and advance of Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law or the Articles of Amendment and Restatement or Bylaws of the Company, any agreement, a vote of shareholders or a
resolution of Directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. 
 (b)
        If the Company maintains liability insurance for Directors, Officers, employees, or agents of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms
to the maximum extent of the coverage available (including coverage after Indemnitee is no longer serving in a Corporate Status for acts and omissions or alleged acts or omissions while serving in a Corporate Status) for any such Director, Officer,
employee or agent under such policy or policies. 
 (c)         In the event of any payment under
this Agreement, when Indemnitee has been fully and indefeasibly indemnified (hereunder and/or otherwise) in respect of all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with a Proceeding by reason of Indemnitee’s Corporate Status, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

(d)         The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder to the extent Indemnitee otherwise actually has received such payment under any insurance policy, contract, agreement or otherwise. 

(e)         Notwithstanding any other provision of this Agreement to the contrary, the Company shall
not be liable for indemnification or advance of Expenses in connection with any settlement or judgment for insider trading or for disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934. 

Section 9.     Duration of Agreement. This Agreement supersedes any and all prior agreements between the
Company and Indemnitee with respect to the subject matter hereof. This Agreement shall continue until and terminate 10 years after the date that Indemnitee shall have ceased to serve as a Director, Officer, employee, or agent of the Company,
provided, that the rights of Indemnitee hereunder shall continue until the final termination of any proceeding then pending in respect of which Indemnitee is granted rights to indemnification or advancement of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 7 relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and
administrators. The Company agrees that it shall not sell, assign or otherwise transfer all or substantially all of its assets, or merge or reorganize with any other entity or series thereof, unless the entity or series to which such sale,
assignment or transfer is being made, or that is the survivor of any such merger or reorganization, agrees to assume all of the obligations (whether contingent or otherwise) of the Company hereunder. 

Section 10.     Severability. If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable that is not itself 

  
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invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without
limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby. 
 Section 11.     Exception to Right of Indemnification or Advancement of Expenses. 

(a)         Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to
indemnification or advance of Expenses under this Agreement with respect to any Proceeding brought by Indemnitee (other than a Proceeding under Section 7(a) of this Agreement), unless the bringing of such Proceeding or making of such claim
shall have been approved by a vote a majority of the members of the Board. 
 (b)
        Notwithstanding any other provision of this Agreement, the Company shall not be liable to indemnify Indemnitee against any liability to the Company or its shareholders to which Indemnitee (other than a
Proceeding under Section 7(a) of this Agreement) otherwise would be subject by reason of Disabling Conduct. 
 (c)
        Notwithstanding any other provision of this Agreement, the Company shall not be liable to indemnify Indemnitee against any liability to the Company or its shareholders arising in connection with a
Proceeding by or in the right of the Company in which the Indemnitee shall have been adjudged to be liable to the Company in a final non-appealable decision on the merits by a court or other body. 

Section 12.     Identical Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the
existence of this Agreement. 
 Section 13.     Headings. The headings of the Sections of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 

Section 14.     Modification and Waiver. No supplement, modification or amendment shall be binding unless
executed in writing by Indemnitee and the Company. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver. 
 Section 15.     Notice by Indemnitee. Indemnitee shall promptly notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advance of Expenses covered hereunder. The failure
to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such
Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced. 

  
 -6- 

 Section 16.     Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by
certified or registered mail with postage prepaid, on the third business day after the date on which it is mailed: 
 (a)
        If to one or more Indemnitee(s), to: 
 the address set forth below Indemnitee’s name
at the end 
 of this Agreement 

and, in the case of an Indemnitee that is an Independent 

Director, with copies to: 
 Nicole
M. Runyan 
 Stroock & Stroock & Lavan LLP 

180 Maiden Lane 
 New York, New
York 10038 
 (b)         If to the Company, to: 

PennantPark Floating Rate Capital Ltd. 

590 Madison Avenue, 15th Floor 

New York, New York 10022 

Attention: Chief Financial Officer 

with copies to: 
 Thomas J.
Friedmann 
 David J. Harris 

William J. Tuttle 
 Dechert LLP

 1900 K Street, N.W. 

Washington, District of Columbia 20006 
 or to
such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 

Section 17. Governing Law. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the state of Maryland. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written. 
  

			
		 	PENNANTPARK FLOATING RATE CAPITAL LTD.
		
		 	/s/ Arthur H.
Penn                                    
		 	 By: Arthur H. Penn
 Title: Chairman and Chief
Executive Officer

  
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	AGREED TO AND ACCEPTED BY:	 	
		
	 /s/ Adam K. Bernstein
	 	
	Name:       Adam K. Bernstein	 	
		
	 /s/ Marshall S. Brozost
	 	
	Name:       Marshall S. Brozost	 	
		
	 /s/ Jeffrey Flug
	 	
	Name:       Jeffrey Flug	 	
		
	 /s/ Samuel L. Katz
	 	
	Name:       Samuel L. Katz	 	
		
	 /s/ Arthur H. Penn
	 	
	Name:       Arthur H. Penn	 	
		
	 /s/ Aviv Efrat
	 	
	Name:       Aviv Efrat	 	
		
	 /s/ Guy F. Talarico
	 	
	Name:       Guy F. Talarico	 	

  
 -8- 

 Schedule A 

Directors 
 Adam K. Bernstein 

Marshall Brozost 
 Jeffrey Flug 

Samuel L. Katz 
 Arthur H. Penn1 
 Officers 

Aviv Efrat 
 Guy F. Talarico 

 
  
  

 
  

	1 	Mr. Penn is Chief Executive Officer and Chairman of the Board of Directors of the Company.

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