Document:

Collateral Management Agreement

 Exhibit 10.9 

 
  

 
 RACE STREET FUNDING LLC

 as Company 
 and 
 FS INVESTMENT CORPORATION 

as Collateral Manager 
 COLLATERAL MANAGEMENT AGREEMENT 
 Dated as of September 26, 2012 

 
  

 

 COLLATERAL MANAGEMENT AGREEMENT, dated as of September 26, 2012 (this
“Agreement”), between RACE STREET FUNDING LLC, a Delaware limited liability company (the “Company”), and FS INVESTMENT CORPORATION, a Maryland corporation (in such capacity, the “Collateral
Manager”). 
 WHEREAS, the Company desires to engage the Collateral Manager to provide the services described herein,
and the Collateral Manager desires to provide such services; and 
 WHEREAS, capitalized terms used herein that are not
otherwise defined herein shall have the respective meanings ascribed thereto in the TBMA/ISMA Amended and Restated Global Master Repurchase Agreement dated as of September 26, 2012, as amended from time to time (together with any agreements
referred to therein, the “Global Master Repurchase Agreement”), between the Company and JPMorgan Chase Bank, N.A., London Branch, as counterparty (in such capacity, together with its successors in such capacity, the
“Counterparty”). 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein, the parties
hereto hereby agree as follows: 
 1. Management Services. 

The Company hereby appoints FS Investment Corporation as Collateral Manager pursuant to the terms and conditions of this Agreement and
with the authority to service, administer and exercise rights and remedies, on behalf of the Company, in respect of the Collateral Assets. FS Investment Corporation hereby accepts such appointment and agrees to perform the duties and
responsibilities of the Collateral Manager pursuant to the terms hereof. The Collateral Manager will provide the Company with the following services (in accordance with and subject to the applicable requirements of, and the restrictions and
limitations set forth in, the Global Master Repurchase Agreement and the Company’s amended and restated limited liability company agreement (the “LLC Agreement”)): 

(a) determining the specific Collateral Assets or other assets to be purchased, otherwise acquired or sold by the Company;

 (b) effecting the purchase, other acquisition and sale of Collateral Assets and all other assets of the
Company; 
 (c) negotiating with Obligors as to proposed amendments and modifications (including, but not limited
to, extensions or releases of collateral) of the documentation evidencing and governing the Collateral Assets; 

(d) making determinations with respect to the Company’s exercise (including but not limited to any waiver,
modification or variation) of any rights (including but not limited to voting rights and rights arising in connection with the bankruptcy or insolvency of an Obligor or the consensual or non-judicial restructuring of the debt or equity of an
Obligor) or remedies in connection with the Collateral Assets and participating in the committees (official or otherwise) or other groups formed by creditors of an Obligor; 

(e) determining compliance with the Adjusted Net Worth Test; 

 (f) determining whether any Collateral Asset is a Performing Common Equity,
Preferred Stock, a Structured Finance Obligation, a Participation, a Finance Lease, a Uncovered Revolving or Delayed-Draw Asset, Non-Performing Common Equity, a Derivatives Transaction, debt or equity of affiliates of Counterparty and a Bank Loan;

 (g) determining whether any payment will be made, and the amount thereof, pursuant to Section 6(o) of
Annex I to the Global Master Repurchase Agreement; 
 (h) managing the Company’s investments within the
parameters set forth in the Global Master Repurchase Agreement; and 
 (i) promptly providing the Counterparty
and the Company in writing any notices required to be delivered under Section 6(c) of Annex I to the Global Master Repurchase Agreement to the extent the Collateral Manager has actual knowledge of the occurrence thereof. 

The Company agrees for the benefit of the Collateral Manager and the Counterparty to follow the lawful instructions and directions of the
Collateral Manager in connection with the Collateral Manager’s services hereunder. 
 The Collateral Manager shall use
reasonable care in rendering its services hereunder, using a degree of skill and attention no less than that which the Collateral Manager exercises with respect to comparable assets that it manages for itself and for others in accordance with its
existing practices and procedures which the Collateral Manager reasonably believes to be consistent with those followed by institutional managers of national standing relating to assets of the nature and character of Collateral Assets, except as
expressly provided otherwise in this Agreement. The Collateral Manager shall comply with and perform all the duties and functions that have been specifically delegated to it under this Agreement. The Collateral Manager shall not be bound to follow
any amendment to the Global Master Repurchase Agreement, however, until it has received a copy of the amendment from the Company or the Counterparty and, in addition, the Collateral Manager shall not be bound by any amendment to the Global Master
Repurchase Agreement which adversely affects in any material respects the obligations of the Collateral Manager unless the Collateral Manager shall have consented thereto in writing. The Company agrees that it will not permit any amendment to the
Global Master Repurchase Agreement that adversely affects the duties or liabilities of the Collateral Manager to become effective unless the Collateral Manager has been given prior written notice of such amendment and consented thereto in writing.

 To the extent necessary or appropriate to perform all of the duties to be performed by it hereunder, the Collateral Manager
shall have the power to negotiate, execute and deliver all necessary documents and instruments on behalf of the Company with respect to any Collateral Asset or other asset of the Company and with respect to the rights and obligations of the Company
under the Global Master Repurchase Agreement. 
 The Collateral Manager shall have no obligation to perform any duties other
than those specified herein. 

  
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 2. Brokerage. 

The Collateral Manager shall use reasonable efforts to obtain the best prices and execution for all orders placed with respect to the
Collateral Assets, and other assets of the Company, considering all circumstances. Subject to the objective of obtaining best prices and execution, the Collateral Manager may take into consideration research and other brokerage services furnished to
the Collateral Manager or its affiliates by brokers and dealers which are not affiliates of the Collateral Manager. Such services may be used by the Collateral Manager or its affiliates in connection with its other advisory activities or investment
operations. The Collateral Manager may aggregate sales and purchase orders of securities placed with respect to the Collateral Assets, and other assets of the Company, with similar orders being made simultaneously for other accounts managed by the
Collateral Manager or with accounts of the affiliates of the Collateral Manager, if in the Collateral Manager’s sole judgment such aggregation shall result in an overall economic benefit to the Company taking into consideration the selling or
purchase price, brokerage commission and other expenses. In accounting for such aggregated order price, commission and other expenses shall be averaged on a per position basis. 

The Company acknowledges that the determination of any such economic benefit by the Collateral Manager is subjective and represents the
Collateral Manager’s evaluation at the time that the Company will be benefited by better purchase or sales prices, lower commission expenses and beneficial timing of transactions or a combination of these and other factors. When any aggregate
sales or purchase orders occur, the objective of the Collateral Manager (and any of its affiliates involved in such transactions) shall be to allocate the executions among the accounts in an equitable manner. 

Subject to the Collateral Manager’s execution obligations described herein, the Collateral Manager is hereby authorized to effect
client cross-transactions where the Collateral Manager causes a transaction to be effected between the Company and another account advised by it or any of its affiliates; provided that, if and to the extent required by the Investment Advisers Act,
such authorization is terminable at the Company’s option without penalty, effective upon receipt by the Collateral Manager of written notice from the Company. The terms and conditions of any transaction between the Company and the Collateral
Manager pursuant to this Agreement shall be conducted and executed in accordance with applicable law and under terms and at a price that would be applicable in a materially identical transaction conducted on an arms-length basis. In addition, the
Company hereby consents to, and authorizes the Collateral Manager to enter into, agency cross-transactions where it or any of its affiliates acts as broker for the Company and for the other party to the transaction, to the extent permitted under
applicable law; provided that the Company shall have the right to revoke such consent at any time by written notice to the Collateral Manager. 
 3. The Representations and Warranties of the Company. 
 The Company
represents and warrants to the Collateral Manager that: 
 (a) the Company has been duly organized and is validly
existing under the laws of Delaware, has the full power and authority to own its assets and the obligations proposed to be owned by it and to transact the business in which it is presently engaged

  
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and is duly qualified under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires, or the performance of its obligations under this
Agreement and the Global Master Repurchase Agreement would require, such qualification, except for failures to be so qualified, authorized or licensed that would not in the aggregate have a material adverse effect on the business, operations, assets
or financial condition of the Company; 
 (b) the Company has full power and authority to execute, deliver and
perform this Agreement, the Global Master Repurchase Agreement and all obligations required hereunder and under the Global Master Repurchase Agreement, and the performance of all obligations imposed upon it hereunder and thereunder; 

(c) this Agreement has been duly authorized, executed and delivered by it and constitutes its valid and binding
obligation, enforceable in accordance with its terms except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws now or hereafter in effect
relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law); 

(d) no consent, approval, authorization or order of or declaration or filing with any government, governmental
instrumentality or court or other person is required for the performance by the Company of its duties hereunder, except such as have been duly made or obtained; 
 (e) neither the execution and delivery of this Agreement nor the fulfillment of the terms hereof conflicts with or results in a material breach or violation of any of the material terms or provisions of
or constitutes a material default under (i) the Company’s certificate of formation, operating agreement or other constituent documents, (ii) the terms of any material indenture, contract, lease, mortgage, deed of trust, note,
agreement or other evidence of indebtedness or other material agreement, obligation, condition, covenant or instrument to which the Company is a party or is bound, (iii) any statute applicable to the Company or (iv) any law, decree, order,
rule or regulation applicable to the Company of any court or regulatory, administrative or governmental agency, body or authority or arbitrator having or asserting jurisdiction over the Company or its properties, and which would have a material
adverse effect upon the performance by the Company of its duties under this Agreement; 
 (f) neither the Company
nor any of its affiliates are in violation of any U.S. federal or state securities law or regulation promulgated thereunder and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to
the best knowledge of the Company, threatened that would have a material adverse effect upon the performance by the Company of its duties under this Agreement; 

  
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 (g) the Company has not engaged in any transaction that would result in the
violation of, or require registration as an investment company under, the Investment Company Act; 
 (h) the
Company is not required to register as an “investment company” under the Investment Company Act; and 

(i) there is no charge, investigation, action, suit or proceeding before or by any court pending or, to the best knowledge
of the Company, threatened that, if determined adversely to the Company, would have a material adverse effect upon the performance by the Company of its duties under, or on the validity or enforceability of, this Agreement or the provisions of the
Global Master Repurchase Agreement applicable to the Company thereunder. 
 4. Representations and Warranties of the
Collateral Manager. 
 The Collateral Manager represents and warrants to the Company that: 

(a) the Collateral Manager is duly organized and validly existing under the laws of Maryland and has the full power and
authority to transact the business in which it is presently engaged and is duly qualified under the laws of each jurisdiction where the conduct of its business requires, or the performance of its obligations under this Agreement and the provisions
of the Global Master Repurchase Agreement applicable to the Collateral Manager would require, such qualification, except for failures to be so qualified, authorized or licensed which would not in the aggregate have a material adverse effect on the
business, operations, assets or financial condition of the Collateral Manager, or on the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement and the applicable provisions of the
Global Master Repurchase Agreement; 
 (b) the Collateral Manager has full power and authority to execute and
deliver this Agreement and to perform all of its obligations hereunder and under the Global Master Repurchase Agreement; 
 (c) this Agreement has been duly authorized, executed and delivered by the Collateral Manager and constitutes a valid and binding agreement of the Collateral Manager, enforceable against it in accordance
with its terms, except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles
of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law); 
 (d)
neither the Collateral Manager nor any of its affiliates is in violation of any federal or state securities law or regulation promulgated thereunder or any material listing requirements of any exchange on which it is listed and there is no charge,
investigation, action, suit or proceeding before or by any court, exchange or regulatory agency pending or, to the best knowledge of the Collateral Manager, threatened, that in either case would have a material adverse effect upon the performance by
the Collateral Manager of its duties under this Agreement; 

  
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 (e) neither the execution and delivery of this Agreement, nor the
performance of the terms hereof or the provisions of the Global Master Repurchase Agreement applicable to the Collateral Manager, conflicts with or results in a material breach or violation of any of the material terms or provisions of, or
constitutes a material default under, (i) its articles of organization, bylaws or other constituent document, (ii) the terms of any material indenture, contract, lease, mortgage, deed of trust, note agreement or other evidence of
indebtedness or other material agreement, obligation, condition, covenant or instrument to which the Collateral Manager is a party or is bound, (iii) any statute applicable to the Collateral Manager or (iv) any law, decree, order, rule or
regulation applicable to the Collateral Manager of any court or regulatory, administrative or governmental agency, body or authority or arbitrator having or asserting jurisdiction over the Collateral Manager or its properties, and which would have,
in the case of any of clauses (ii) through (iv) of this paragraph (e), a material adverse effect upon the performance by the Collateral Manager of its duties under this Agreement or the provisions of the Global Master Repurchase Agreement
applicable to the Collateral Manager; and 
 (f) no consent, approval, authorization or order of or declaration
or filing with any government, governmental instrumentality or court or other person is required for the performance by it of its duties hereunder, except such as have been duly made or obtained. 

5. Expenses. 
 The Collateral Manager shall pay all reasonable expenses and costs (including salaries, rent and other overhead) incurred by it in connection with its services under this Agreement; provided that
the Collateral Manager shall not be liable for and the Company shall be responsible for the payment of (i) expenses and costs of legal advisers (including reasonable expenses and costs associated with the use of internal legal counsel of the
Collateral Manager), consultants and other professionals retained by the Company or by the Collateral Manager, on behalf of the Company, in connection with the services provided by the Collateral Manager pursuant to this Agreement and the Global
Master Repurchase Agreement, (ii) the reasonable cost of asset pricing and asset rating services, and accounting, programming and data entry services that are retained in connection with services of the Collateral Manager under this Agreement,
(iii) travel expenses (airfare, meals, lodging and other transportation) incurred by the Collateral Manager as is reasonably necessary in connection with the selection of Collateral Assets and the negotiation, documentation, default or
restructuring of any Collateral Asset, and (iv) any extraordinary costs and expenses incurred by the Collateral Manager in the performance of its obligations under this Agreement. To the extent that such expenses are incurred in connection with
obligations that are also held by the Collateral Manager, the Collateral Manager shall allocate the expenses among the accounts in a fair and equitable manner. Any amounts payable pursuant to this Section 5 shall be reimbursed by the Company to
the extent funds are available therefor. 

  
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 6. Fees. 

(a) The Company shall pay to the Collateral Manager, for services rendered and performance of its obligations under this
Agreement fees which are payable in arrears on each Repurchase Date in an amount equal to 0.35% per annum of the aggregate par amount of all Collateral Assets measured as of each Repurchase Date (the “Management Fee”). The
Management Fee will be calculated on the basis of a calendar year consisting of 360 days and the actual number of days elapsed. 
 (b) The Collateral Manager may, in its sole discretion, (i) waive all or any portion of the Management Fee or (ii) defer all or any portion of the Management Fee. Such deferred amounts will
become payable on the next Repurchase Date in the same manner and priority as their original characterization would have required unless deferred again. 
 (c) If this Agreement is terminated pursuant to Section 11 hereof or otherwise, the Management Fee calculated as provided in Section 6(a) hereof shall be prorated for any partial periods between
Repurchase Dates during which this Agreement was in effect and shall be due and payable, along with any deferred Management Fee, concurrently with such termination. 

(d) The Management Fee will be payable from the Company’s assets. If on any Repurchase Date there are insufficient
funds to pay the Management Fee then due in full, the amount not so paid shall be deferred without interest and shall be payable on the next Repurchase Date if any on which any funds are available therefor, as provided in the Global Master
Repurchase Agreement. 
 7. Non-Exclusivity. 
 The services of the Collateral Manager to the Company are not to be deemed exclusive, and the Collateral Manager shall be free to render asset management or management services to other persons (including
affiliates, other investment companies, and clients having objectives similar to those of the Company). It is understood and agreed that the officers and directors of the Collateral Manager may engage in any other business activity or render
services to any other person or serve as partners, officers or directors of any other firm or corporation. Notwithstanding the foregoing, it is understood and agreed that the Collateral Manager will at no time render any services to, or in any way
participate in the organization or operation of, any investment company or other entity if such actions would require the Company to register as an “investment company” under the Investment Company Act. Subject to Section 9 hereof, it
is understood and agreed that information or advice received by the Collateral Manager and officers or directors of the Collateral Manager hereunder shall be used by such organization or such persons to the extent permitted by applicable law.

 8. Conflicts of Interest. 
 The Collateral Manager may, subject to applicable legal requirements, direct the Company (i) to acquire (whether by purchase, contribution or otherwise) any Collateral Assets for the Company from the
Collateral Manager or any of its affiliates as principal or (ii) to sell or distribute any Collateral Assets for the Company to the Collateral Manager or any of its affiliates as principal. 

  
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 Notwithstanding the provisions of the preceding paragraph, various potential and actual
conflicts of interest may arise from the overall investment activity of the Collateral Manager and its affiliates. The Collateral Manager, its affiliates and their respective clients may invest in obligations that would be appropriate for inclusion
in the Company’s assets. Such investments may be different from those made on behalf of the Company. The Collateral Manager and its affiliates may have ongoing relationships with Obligors and may own equity or Collateral Assets issued by
Obligors. The Collateral Manager and its affiliates and the clients of the Collateral Manager or its affiliates may invest in obligations that are senior to, or have interests different from or adverse to, the Collateral Assets of the Company. The
Collateral Manager may serve as Collateral Manager for, invest in, or be affiliated with, other entities organized to issue collateralized Collateral Assets secured by loans, high-yield debt securities, or other Collateral Assets. The Collateral
Manager may at certain times be simultaneously seeking to purchase or sell investments for other entities for which it serves as Collateral Manager, or for its clients and affiliates, and selecting such investments as Collateral Assets for the
Company. Furthermore, the Collateral Manager and/or its affiliates may make an investment on their behalf or on behalf of any account that they manage or advise without offering the investment opportunity to the Company or making an investment on
behalf of the Company. 
 The Company hereby acknowledges the various potential and actual conflicts of interest that may exist
with respect to the Collateral Manager; provided that nothing in this Section 8 shall be construed as altering the duties of the Collateral Manager as set forth in this Agreement or the requirements of any law, rule, or regulation
applicable to the Collateral Manager. 
 9. Records; Confidentiality. 

The Collateral Manager shall maintain appropriate books of account and records relating to services performed hereunder, and such books
of account and records shall be accessible for inspection by a representative of the Company, the Counterparty, and independent accountants appointed by the Company at a mutually agreed time during normal business hours and upon not less than three
(3) Business Days’ prior notice. 
 At no time will the Collateral Manager make a public announcement concerning the
Global Master Repurchase Agreement, the Collateral Manager’s role hereunder or any other aspect of the transactions contemplated by this Agreement and the Global Master Repurchase Agreement absent the written consent of the Company. 

The Collateral Manager shall, and shall cause its affiliates to, keep confidential any and all information obtained in connection with
the services rendered hereunder and shall not disclose any such information to non-affiliated third parties except (i) with the prior written consent of the Company, (ii) as required by law, regulation, court order or the rules or
regulations of any self regulating organization, body or official having jurisdiction over the Collateral Manager, (iii) to its professional advisers, (iv) such information as shall have been publicly disclosed other than in violation of
this Agreement, (v) the identification of the 

  
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Company as a client of the Collateral Manager, (vi) information related to the performance of the Collateral Manager, (vii) information furnished in connection with any successor
collateral manager or assignee, or any agent that has been assigned duties in accordance with this Agreement, or (viii) such information that was or is obtained by the Collateral Manager on a non-confidential basis; provided that the
Collateral Manager does not know or have reason to know, after due inquiry, of any breach by such source of any confidentiality obligations with respect thereto. For purposes of this Section 9, the Counterparty shall in no event be considered a
“non-affiliated third party,” and the Collateral Manager may disclose any of the aforementioned information to the Counterparty insofar as such information relates to the Company’s performance of its obligations under the Global
Master Repurchase Agreement. 
 10. Term. 
 This Agreement shall become effective on the date hereof and shall continue unless terminated as hereinafter provided. 
 11. Termination. 
 (a) This Agreement may be terminated, and
the Collateral Manager may be removed, without payment to the Collateral Manager of any penalty, for cause upon prior written notice by the Company; provided that such notice may be waived by the Collateral Manager. For this purpose,
“cause” will mean the occurrence of any of the following events or circumstances: 
 (i) the Collateral
Manager’s breach, in any respect, of any provision of this Agreement and the Collateral Manager’s failure to cure such breach within 30 days of its becoming aware of, or receiving notice of, the occurrence of such breach; 

(ii) the Collateral Manager’s willful breach of any provision of this Agreement; 

(iii) the failure of any representation, warranty, certification or statement made or delivered by the Collateral Manager
in or pursuant to this Agreement to be correct in any material respect when made, which failure (a) could reasonably be expected to have a material adverse effect on the Company and (b) is not corrected by the Collateral Manager within 30
days of its receipt of notice from the Company of such failure, unless, if such failure is not capable of being cured in 30 days but is curable within 60 days, the Collateral Manager has taken action that the Collateral Manager in good faith
believes will remedy, and does in fact remedy, such failure within 60 days after notice of such failure being given to the Collateral Manager; 
 (iv) the Collateral Manager (1) is dissolved (other than pursuant to a consolidation, amalgamation or merger), (2) files, or consents by answer or otherwise to the filing against it of, a
petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other

  
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similar law of any jurisdiction, (3) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due, (4) makes
a general assignment, arrangement or composition with or for the benefit of its creditors, (5) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any
substantial part of its property or (6) is adjudicated as insolvent or bankrupt, or a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Collateral Manager, or appointing a receiver, liquidator,
assignee, or sequestrator (or other similar official) of the Collateral Manager or of any substantial part of its property, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; or 

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

If any such event occurs, the Collateral Manager shall give prompt written notice thereof to the Company and the
Counterparty promptly upon the Collateral Manager becoming aware of the occurrence of such event. 
 (b) The
Collateral Manager shall have the right to terminate this Agreement only upon 90 days prior written notice to the Company and the Counterparty, and this Agreement shall terminate automatically in the event of its assignment by the Collateral Manager
which is not made in accordance with Sections 13 and 17 of this Agreement. 
 (c) This Agreement shall be
automatically terminated in the event that the Company determines in good faith that the Company or the Company’s asset portfolio has become required to be registered under the provisions of the Investment Company Act. 

(d) Within 30 days of the resignation or removal of the Collateral Manager, the Company may appoint a successor Collateral
Manager upon approval of the Counterparty. 
 12. Action Upon Termination. 

(a) Upon the effective termination of this Agreement, the Collateral Manager shall as soon as practicable deliver to the
Company all property and documents of the Company or otherwise relating to the Company’s assets then in the custody of the Collateral Manager. 
 Notwithstanding such termination, the Collateral Manager shall remain liable to the extent set forth herein (but subject to Section 13 hereof) for its acts or omissions hereunder arising prior to
termination and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorney’s fees) in respect of or arising out of a breach of the representations and warranties made by the Collateral Manager in
Section 4 hereof or from any failure of the Collateral Manager to comply with the provisions of this Section 12. 

  
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 (b) The Collateral Manager agrees that, notwithstanding any termination, it
shall reasonably cooperate in any suit, action or proceeding relating to this Agreement (each, a “Proceeding”) arising in connection with this Agreement or any of the Company’s assets (excluding any such Proceeding in which
claims are asserted against the Collateral Manager or any affiliate of the Collateral Manager) so long as the Collateral Manager shall have been offered reasonable security, indemnity or other provisions against the cost, expenses and liabilities
that might be incurred in connection therewith and a reasonable per diem fee. 
 13. Liability of Collateral Manager;
Delegation. 
 (a) The Collateral Manager assumes no responsibility under this Agreement other than to
render the services called for hereunder. The Collateral Manager shall not be responsible for any action of the Company in declining to follow any advice, recommendation or direction of the Collateral Manager. The Collateral Manager shall have no
liability to the Counterparty or other creditors of the Company, for any error of judgment, mistake of law, or for any loss arising out of any investment, or for any other act or omission in the performance of its obligations to the Company except
for liability to which it would be subject by reason of willful misfeasance, bad faith, gross negligence in performance, or reckless disregard of its obligations hereunder. The Collateral Manager may delegate to an agent selected with reasonable
care, which shall include any person that is party to a sub-advisory agreement with the Collateral Manager or any of its affiliates as of the date hereof, any or all duties (other than its asset selection or trade execution duties) assigned to the
Collateral Manager hereunder; provided that no such delegation by the Collateral Manager of any of its duties hereunder shall relieve the Collateral Manager of any of its duties hereunder nor relieve the Collateral Manager of any liability
with respect to the performance of such duties. For the avoidance of doubt, asset selection and trade execution duties shall include the services described in Section 1(a) hereof. 

Notwithstanding the above and Section 17, the Collateral Manager shall, upon notice to the Counterparty, be permitted
to assign any or all of its rights and delegate any or all of its obligations to an affiliate that (i) will professionally and competently perform duties similar to those imposed upon the Collateral Manager under this Agreement and (ii) is
legally qualified and has the capacity to act as the Collateral Manager under this Agreement. The Collateral Manager shall not be liable for any consequential damages hereunder. 

(b) The Company shall reimburse, indemnify and hold harmless the Collateral Manager, its directors, officers, agents and
employees and any of its affiliates from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred in investigating, preparing,
pursuing or defending any claim, action, proceeding or investigation with respect to any pending or threatened litigation caused by, or arising out of or in connection with, any acts or omissions of the Collateral Manager, its directors,

  
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officers, stockholders, agents and employees made in good faith and in the performance of the Collateral Manager’s duties under this Agreement except to the extent resulting from such
person’s bad faith, willful misfeasance, gross negligence or reckless disregard of its duties hereunder or thereunder. The Collateral Manager, its directors, officers, stockholders, agents and employees may consult with counsel and accountants
with respect to the affairs of the Company and shall be fully protected and justified, to the extent allowed by law, in acting, or failing to act, if such action or failure to act is taken or made in good faith and is in accordance with the advice
or opinion of such counsel or accountants. Notwithstanding anything contained herein to the contrary, the obligations of the Company under this Section 13(b) shall be payable from the Company’s assets and are subject to the availability of
funds. 
 (c) The Collateral Manager shall reimburse, indemnify and hold harmless the Company, its members,
manager, officers, agents and employees from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees and expenses), as are incurred in investigating,
preparing, pursuing or defending any claim, action, proceeding or investigation with respect o any pending or threatened litigation caused by, or arising out of or in connection with, (i) any acts or omissions of the Collateral Manager
constituting bad faith, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement and (ii) any breach of the representations and warranties made by the Investment Manger in Section 4 hereof. 

14. Obligations of Collateral Manager. 
 Unless otherwise required by this Agreement or by applicable law, the Collateral Manager shall not intentionally take any action, which it knows or should know would (a) materially adversely affect
the Company for purposes of United States federal or state law or any other law known to the Collateral Manager to be applicable to the Company, (b) require registration of the Company or the Company’s assets as an “investment
company” under the Investment Company Act, (c) not be permitted under the Company’s operating agreement or certificate of formation (including, but not limited to, Section 9 of the Company’s operating agreement),
(d) cause the Company to violate the terms of the Global Master Repurchase Agreement, or (e) subject the Company to federal, state or other income taxation; it being understood that in connection with the foregoing the Collateral Manager
will not be required to make any independent investigation of any facts or laws not otherwise known to it in connection with its obligations under this Agreement or the conduct of its business generally. The Collateral Manager covenants that it
shall comply in all material respects with all laws and regulations applicable to it in connection with the performance of its duties under this Agreement. Notwithstanding anything in this Agreement, the Collateral Manager shall not take any
discretionary action that would reasonably be expected to cause an Event of Default under the Global Master Repurchase Agreement. The Collateral Manager covenants that it shall not fail to correct any known misunderstandings regarding the separate
identity of the Company and shall not identify itself as a division or department of the Company. 

  
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 15. No Partnership or Joint Venture. 

The Company and the Collateral Manager are not partners or joint venturers with each other and nothing herein shall be construed to make
them such partners or joint venturers or impose any liability as such on either of them. The Collateral Manager’s relation to the Company shall be deemed to be that of an independent contractor. 

16. Notices. 
 Any notice under this Agreement shall be in writing and sent by facsimile, confirmed by telephonic communication, or addressed and delivered or mailed postage paid to the other party at such address as
such other party may designate for the receipt of such notice. Until further notice to the other party it is agreed that the address of the Company and the address of the Collateral Manager for this purpose shall be: 

 

			
	 Company:
	  	Race Street Funding LLC
		  	Cira Centre
		  	2929 Arch Street, Suite 675
		  	Philadelphia, Pennsylvania 19104
		  	Attention: Gerald F. Stahlecker
		  	Telephone: (215) 495-1169
		  	Facsimile: (215) 222-4649
		  	Electronic Mail: jerry.stahlecker@franklinsquare.com
		
	 Collateral Manager:
	  	FS Investment Corporation
		  	Cira Centre
		  	2929 Arch Street, Suite 675
		  	Philadelphia, Pennsylvania 19104
		  	Attention: Gerald F. Stahlecker
		  	Telephone: (215) 495-1169
		  	Facsimile: (215) 222-4649
		  	Electronic Mail: jerry.stahlecker@franklinsquare.com

 17. Succession/Assignment. 

This Agreement shall inure to the benefit of and be binding upon the successors to the parties hereto. No assignment of this Agreement by
the Collateral Manager (including, without limitation, a change in control or management of the Collateral Manager which would be deemed an “assignment” under the Investment Advisers Act) shall be made without the consent of the Company
and the Counterparty. 
 18. Miscellaneous. 

(a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to conflicts of laws principles. With respect to any Proceeding, each party irrevocably (i) submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court

  
 13 

 
located in the Borough of Manhattan in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives
any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. Nothing in this Agreement precludes
either party from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 

(b) THE PARTIES HERETO IRREVOCABLY CONSENT TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION OR PROCEEDING BY THE
MAILING OR DELIVERY OF COPIES OF SUCH PROCESS TO EACH SUCH PARTY AT THE ADDRESS SPECIFIED IN SECTION 16 HEREOF. THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
 (c) EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

(d) No failure on the part of either party hereto to exercise and no delay in exercising, and no course of dealing with
respect to, any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise of any right, remedy, power or privilege under this Agreement preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 (e) The captions in this Agreement are included for convenience only and in no way define or limit any of the provisions hereof or otherwise affect their construction or effect. 

(f) In the event any provision of this Agreement shall be held invalid or unenforceable, by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof. 
 (g) This
Agreement may not be amended or modified or any provision thereof waived except by an instrument in writing signed by the parties hereto. 
 (h) This Agreement contains the entire understanding and agreement between the parties and supersedes all other prior understandings and agreements, whether written or oral, between the parties concerning
this subject matter. The express terms of this Agreement control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 

  
 14 

 (i) This Agreement may be executed in any number of counterparts, each of
which so executed shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear
the signatures of all of the parties reflected hereon as the signatories. 
 (j) Each representation and warranty
made or deemed to be made herein or pursuant hereto, and each indemnity provided for hereby, shall survive the execution and delivery and any termination or assignment of this Agreement or resignation or removal of the Collateral Manager.

 (k) The Company hereby acknowledges and accepts all actions that were taken by the Collateral Manager and/or
recommended to the Company by the Collateral Manager prior to the Closing Date, including all actions and recommendations that were related to the anticipated purchase or receipt of assets by the Company that were otherwise consistent with the
services to be provided by the Collateral Manager to the Company pursuant to Section 1 of this Agreement prior to the Closing Date, in each case, as if this Agreement had been in effect at the time that such actions were taken or such
recommendations were made. 
 19. Non-Payment. 
 The Collateral Manager shall continue to serve as Collateral Manager under this Agreement notwithstanding that the Collateral Manager shall not have received amounts due to it under this Agreement because
sufficient funds were not then available hereunder to pay such amounts. 
 20. No Recourse. 

The Collateral Manager hereby acknowledges and agrees that the Company’s obligations hereunder will be solely the corporate
obligations of the Company, and the Collateral Manager will not have any recourse to any of the directors, managers, officers, employees or holders of the membership interest of Company with respect to any claims, losses, damages, liabilities,
indemnities or other obligations in connection with any transactions contemplated hereby. Recourse in respect of any obligations of the Company hereunder will be limited to the Company’s assets and, on the exhaustion thereof, all claims against
the Company arising from this Agreement or any transactions contemplated hereby shall be extinguished. The provisions of this Section 20 shall survive the termination of this Agreement for any reason whatsoever. 

[signature page follows] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have caused this COLLATERAL MANAGEMENT AGREEMENT to
be executed by their respective authorized representatives on the day and year first above written. 
  

			
	 RACE STREET FUNDING LLC

		
	 By:
	 	 /s/ Gerald F. Stahlecker

		 	 Name: Gerald F. Stahlecker

		 	 Title: Executive Vice President

	
	 FS INVESTMENT CORPORATION

		
	 By:
	 	 /s/ Gerald F. Stahlecker

		 	 Name: Gerald F. Stahlecker

		 	 Title: Executive Vice President

 [Signature Page to Race Street Collateral Management Agreement]Reassignment No. 12 of Receivables in Removed Asset Pool One Accounts

 Exhibit 10.1 
 EXECUTION COPY 
 REASSIGNMENT NO. 12 OF RECEIVABLES IN REMOVED ASSET POOL ONE
ACCOUNTS 
 REASSIGNMENT NO. 12 OF RECEIVABLES IN REMOVED ASSET POOL ONE ACCOUNTS (this “Reassignment”), dated
as of September 28, 2012, by and between CHASE ISSUANCE TRUST, (the “Trust”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Collateral Agent”), pursuant to the Asset Pool One Supplement referred to below.

 W I T N E S S E T H: 

WHEREAS, the Trust and the Collateral Agent are parties to the Second Amended and Restated Asset Pool One Supplement, dated as of
December 19, 2007, to the Third Amended and Restated Indenture, dated as of December 19, 2007, (hereinafter as such agreement may have been, or may from time to time be, amended, supplemented or otherwise modified, the “Asset Pool
One Supplement”); 
 WHEREAS, pursuant to the Asset Pool One Supplement, the Trust wishes to remove from Asset Pool One
all Asset Pool One Receivables in certain designated Asset Pool One Accounts (the “Removed Asset Pool One Accounts”) and to cause the Collateral Agent to reassign the Asset Pool One Receivables of such Removed Asset Pool One
Accounts, whether now existing or hereafter created, from the Collateral Agent to the Trust; and 
 WHEREAS the Collateral Agent
is willing to accept such designation and to reconvey the Asset Pool One Receivables in the Removed Asset Pool One Accounts subject to the terms and conditions hereof; 
 NOW, THEREFORE, the Owner Trustee, on behalf of the Trust, and the Collateral Agent hereby agree as follows: 
  

	1.	Defined Terms. All terms defined in the Asset Pool One Supplement and the Third Amended and Restated Transfer and Servicing Agreement, dated as of
December 19, 2007, as amended by the First Amendment to the Third Amended and Restated Transfer and Servicing Agreement, dated as of May 8, 2009, and used herein shall have such defined meanings when used herein, unless otherwise defined
herein. 

 “Removal Cut Off Date” shall mean, with respect to the Removed Asset Pool One Accounts,
August 31, 2012. 

 “Removal Date” shall mean, with respect to the Removed Asset Pool One
Accounts designated hereby, September 28, 2012. 
 “Removal Notice Date” shall mean, with respect to the
Removed Asset Pool One Accounts, September 21, 2012. 
  

	2.	Designation of Removed Asset Pool One Accounts. No later than five Business Days after the Removal Date, or as otherwise agreed upon between the Trust and the
Collateral Agent, the Trust will deliver to the Collateral Agent a computer file containing a true and complete list of all Removed Asset Pool One Accounts identified by account number and the aggregate amount of Asset Pool One Principal Receivables
in each Removed Asset Pool One Account as of the Removal Cut Off Date, which computer file shall as of the Removal Date modify and amend and be made part of the Asset Pool One Supplement. 

 

	3.	Conveyance of Receivables. The Collateral Agent does hereby reassign to the Trust, without recourse, on and after the Removal Date, all right, title and interest
of the Collateral Agent in, to and under the Asset Pool One Receivables now existing and hereafter created from time to time in the Removed Asset Pool One Accounts identified on Schedule 1 to this Reassignment, all Interchange and Recoveries
related thereto, all monies due or to become due (including all Asset Pool One Finance Charge Collections) and all amounts received or receivable with respect thereto and all proceeds (as defined in the UCC as in effect in the applicable
jurisdiction) thereof (the “Removed Collateral”). 

  

	4.	Conditions Precedent. The reassignment hereunder of the Asset Pool One Receivables in the Removed Asset Pool One Accounts and the amendment of the Asset Pool One
Supplement pursuant to Section 7 of this Reassignment are each subject to the satisfaction, on or prior to the Removal Date, of the conditions set forth in Section 2.5(b) of the Asset Pool One Supplement. 

 

	5.	Representations and Warranties. The Trust hereby represents and warrants to the Collateral Agent as of the Removal Date: 

 

	 	(a)	 Legal Valid and Binding Obligation. This Reassignment constitutes a legal, valid and binding obligation of the Trust enforceable against the
Trust, in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights
in general and except as such 

  
 2 

	 	
enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity); and 

 

	 	(b)	List of Removed Asset Pool One Accounts. The list of Removed Asset Pool One Accounts is and will be true and complete in all material respects when delivered
pursuant to subsection 2.5(b)(ii) of the Asset Pool One Supplement. 

  

	6.	Representations and Warranties of the Servicer. No selection procedures believed by the Servicer to be materially adverse to the interests of the Noteholders
were utilized in selecting the Removed Asset Pool One Accounts to be removed from the Trust and either (I) a random selection procedure was used by the Servicer in selecting the Removed Asset Pool One Accounts and only one such removal of
randomly selected Asset Pool One Accounts shall occur in the then current Monthly Period, (II) the Removed Asset Pool One Accounts arose pursuant to an affinity, private-label, agent-bank, co-branding or other arrangement with a third party that has
been cancelled by such third party or has expired without renewal and which by its terms permits the third party to repurchase the Removed Asset Pool One Accounts subject to such arrangement, upon such cancellation or non-renewal and the third party
has exercised such repurchase right or (III) the Removed Asset Pool One Accounts were selected using another method that will not preclude transfers from being accounted for as sales under generally accepted accounting principles or prevent the
Trust from continuing to qualify as a qualifying special purpose entity in accordance with SFAS No. 140. 

  

	7.	Amendment of the Asset Pool One Supplement. The Asset Pool One Supplement is hereby amended to provide that all references therein to the “Asset Pool One
Supplement,” to “this Asset Pool One Supplement” and “herein” shall be deemed from and after the Removal Date to be a dual reference to the Asset Pool One Supplement as supplemented by this Reassignment. All references
therein to the Asset Pool One Accounts shall be deemed not to include the Removed Asset Pool One Accounts designated hereunder and all references to Asset Pool One Receivables shall be deemed not to include the Asset Pool One Receivables reassigned
hereunder. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions of the Asset Pool One Supplement shall remain unamended and shall continue to be, and shall remain, in full force and effect in
accordance with its terms and except as expressly provided herein shall not constitute or be deemed to constitute a waiver of compliance with or a consent to noncompliance with any term or provision of the Asset Pool One Supplement.

  
 3 

	8.	Release. 

  

	 	(a)	The Collateral Agent hereby expressly terminates, relinquishes, releases, discharges and renders ineffective any and all security interests, liens, mortgages and
encumbrances, as against the Trust, any transferee of the Trust and any person claiming title to or an interest in the Removed Collateral through any such person, or any successor or assign of any of the foregoing (all such persons and entities
being referred to individually as a “Transferee” and collectively as the “Transferees”), any and all right, title, benefit, interest or claim whatsoever, present or future, actual or contingent (collectively,
“Rights”), owned or held by the Collateral Agent to, against or in respect of the Removed Collateral. 

  

	 	(b)	In case any provision of this Reassignment shall be rendered invalid, illegal or unenforceable in any jurisdiction, the Collateral Agent hereby acknowledges that its
interest in the Removed Collateral is subordinate and junior to the security interest of any Transferee and hereby expressly agrees that any security interest it may have in any Removed Collateral is and shall remain subordinate and junior to all
security interests granted by a Transferee, regardless of the time of the recording, perfection or filing thereof or with respect thereto. 

  

	 	(c)	The Collateral Agent acknowledges and agrees that the Transferees and their representatives are expressly entitled to rely on the provisions of this Section 8, it
being the intent of the Collateral Agent that the Transferees will acquire title to the Removed Collateral purchased by them free of any Rights owned or held by the Collateral Agent to, against or in respect of the Removed Collateral.

  

	9.	Counterparts. This Reassignment may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an
original, but all of which shall constitute one and the same instrument. 

  

	10.	GOVERNING LAW. THIS REASSIGNMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  

	11.	 Limitation of Liability. Notwithstanding any other provision herein or elsewhere, this Reassignment has been executed and delivered by
Wilmington 

  
 4 

	 	
Trust Company on behalf of the Trust, not in its individual capacity, but solely in its capacity as Owner Trustee, in no event shall Wilmington Trust Company in its individual capacity have any
liability in respect of the representations, warranties, or obligations of the Trust hereunder or under any other document, as to all of which recourse shall be had solely to the assets of the Trust, and for all purposes of this Reassignment and
each other document, the Owner Trustee (as such or in its individual capacity) shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust Agreement. 

 

	12.	Authorization. The Collateral Agent hereby authorizes Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”) to file any financing
statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as Skadden may determine, in its sole discretion, are necessary or advisable to reflect the reassignment to the Trust
pursuant to Section 3 hereof. Such financing statements may describe the collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as Skadden may
determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the Trust in connection herewith, including, without limitation, describing such property as
“all assets” or “all personal property.” 

  
 5 

 IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust, and the Collateral Agent have
caused this Reassignment to be duly executed by their respective officers as of the day and year first above written. 
  

							
	CHASE ISSUANCE TRUST
		
	By:	 	WILMINGTON TRUST COMPANY,
		 	 not in its individual capacity but solely as Owner
 Trustee on behalf of the Trust

			
		 	By:	 	 /s/ Yvette L. Howell

		 		 	Name:	 	Yvette L. Howell
		 		 	Title:	 	Assistant Vice President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
		 	as Collateral Agent,
			
		 	By:	 	 /s/ Cheryl Zimmerman

		 		 	Name:	 	Cheryl Zimmerman
		 		 	Title:	 	Vice President

 Chase Issuance Trust Reassignment No. 12 – APO 

Reassignment No. 12 of Receivables in Removed Asset Pool One Accounts 

 Schedule 1 
 REMOVED ASSET POOL ONE ACCOUNTS 
 [Delivered to the Collateral Agent]

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