Document:

EXHIBIT 10.16

EXECUTION VERSION

 

 

AGREEMENT REGARDING LOAN ASSIGNMENT
AND RELATED MATTERS

[Horizon Credit II LLC]

 

THIS AGREEMENT REGARDING LOAN ASSIGNMENT
AND RELATED MATTERS (“Agreement”) is entered into as of November 4, 2013 (the “Effective Date”),
by and among (i) HORIZON CREDIT II LLC, a Delaware limited liability company (“Borrower”), (ii) WELLS FARGO
CAPITAL FINANCE, LLC, a Delaware limited liability company (“WFCF”), as agent (in such capacity, “Resigning
Agent”) and as sole “Lender” (in such capacity, “Selling Lender”) under the Loan Agreement
(as defined below), and (vi) KEY EQUIPMENT FINANCE INC., a Michigan corporation (“Key”) as successor Agent under
the Loan Agreement (in such capacity, “Successor Agent”) and as purchaser of Selling Lender’s interests
under the Loan Agreement (in such capacity, the “Purchasing Lender”), with reference to the following:

 

RECITALS

 

A.           Borrower, Resigning Agent and Selling
Lender are parties to that certain Loan and Security Agreement dated as of July 14, 2011, as amended to date (the “Loan
Agreement”), pursuant to which Resigning Agent and Selling Lender provided financial accommodations to or for the direct
and indirect benefit of Borrower upon the terms and conditions contained therein. Unless otherwise defined herein, capitalized
terms or matters of construction defined or established in the Loan Agreement shall be applied herein as defined or established
therein.

 

B.           Purchasing Lender desires to acquire
from Selling Lender, and Selling Lender desires to sell to Purchasing Lender, all of Selling Lender’s rights and obligations
in its capacity as Lender under the Loan Agreement and the other Loan Documents, and in connection and concurrent therewith, among
other things, (i) Resigning Agent intends to resign from its position as “Agent” under the Loan Agreement and the other
Loan Documents and (ii) Purchasing Lender intends to appoint Successor Agent as the successor “Agent” under the Loan
Agreement and the other Loan Documents.

 

C.           The parties hereto are entering into
this Agreement to set forth their agreements with respect to the foregoing and certain other matters as more fully set forth herein,
in all cases subject to the terms and conditions hereof.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged:

 

1.           Assignment of Loan.

 

(a)           In consideration of Purchasing
Lender’s payment to Selling Lender and Resigning Agent of the amounts set forth on Schedule 1 to this Agreement (collectively,
the “Purchase Price Amount”), Selling Lender hereby sells and assigns to Purchasing Lender, and Purchasing
Lender hereby purchases and assumes from Selling Lender, Selling Lender’s rights and obligations in its capacity as Lender
under the Loan Agreement and the other Loan Documents, which consist of 100% of the existing Advances and Commitments under the
Loan Agreement. For the avoidance of doubt, this includes the Commitment of WFCF as the Swing Line Lender. The transaction described
in this Section 1(a) will be referred to as the “Loan Assignment,” and the rights and obligations so
assigned shall be referred to as the “Assigned Interest.”

 

    	 

    	 

    

 

(b)           By its execution hereof,
Borrower expressly consents to the Loan Assignment. Resigning Agent and Successor Agent confirm that the assignment fee in the
amount of $XXXX required to be paid under Section 14.1(a) of the Loan Agreement has been waived in connection with the Loan
Assignment.

 

(c)           As of the Effective Date,
(i) Purchasing Lender shall be a party to the Loan Agreement and have the rights and obligations of a Lender under the Loan Agreement
and (ii) Selling Lender shall relinquish its rights (except those surviving the termination of the Commitments and payment
in full of the Obligations and those that are preserved hereunder) and be released from its obligations under the Loan Documents.

 

2.           Resignation of Resigning Agent.
Notwithstanding the method of resignation of the “Agent” under the Loan Agreement that is set forth in Section 16.9
of the Loan Agreement, WFCF hereby resigns as “Agent” under the Loan Agreement effective as of the effectiveness of
this Agreement, and the parties hereto consent to such resignation.

 

3.           Appointment of Successor Agent;
Certain Matters Regarding Security Interests and Letters of Loan.

 

(a)           Notwithstanding the method
of appointment of a successor Agent that is set forth in Section 16.9 of the Loan Agreement, effective immediately upon
the effectiveness of this Agreement, (i) Purchasing Lender, as holder of 100% of the Advances and Commitments, hereby appoints
Key as Successor Agent, (ii) Key hereby accepts such appointment and assumes all of the obligations and duties of “Agent”
under the Loan Agreement and the other Loan Documents and (iii) Borrower hereby consents to such appointment. In furtherance of
the foregoing, Purchasing Lender authorizes Successor Agent to take such action as administrative agent on its behalf and to exercise
such powers under the Loan Documents as are delegated to “Agent” by the terms thereof, together with such powers as
are reasonably incidental thereto.

 

(b)           By virtue of the resignation
of Resigning Agent and the appointment of Successor Agent, all parties hereto acknowledge that (i) Successor Agent has succeeded
to, and is hereby vested with, all of the rights, powers, privileges, duties and interests of Resigning Agent under any Loan Documents
in its capacity as “Agent” (collectively, the “Agency Rights”), including with respect to all of
Resigning Agent’s rights and interests as a secured party with respect to any Collateral pledged to it pursuant to any Loan
Documents and as the holder of any Liens therein (provided, that the Fee Letter between Resigning Agent and Borrower shall
be deemed terminated upon the Effective Date, and Successor Agent shall not succeed to Resigning Agent’s rights under the
Fee Letter), (ii) each reference to “Agent” in the Loan Agreement and any of the other Loan Documents shall be deemed
to be a reference to Successor Agent, in its capacity as “Agent” thereunder, and (iii) WFCF is hereby discharged from
its duties and obligations as “Agent” under the Loan Agreement and the other Loan Documents as of the effectiveness
of this Agreement.

 

(c)           In connection with the
foregoing, Resigning Agent hereby agrees to take all steps reasonably requested by Successor Agent to assist Successor Agent in
its efforts to become the successor secured party with respect to all Liens currently existing in favor of Resigning Agent, without
any interruption in the perfection or priority currently enjoyed by Resigning Agent. Successor Agent shall be responsible for preparing
and filing amendments to any existing UCC-1 Financing Statements to reflect that Successor Agent is now the “Secured Party”
thereunder.

 

(d)           Without limiting the foregoing,
it is acknowledged and agreed that Successor Agent shall succeed Resigning Agent with respect to the Agency Rights under each of
the following agreements:

 

(i)           Sale and Servicing Agreement
dated as of July 14, 2011, by and among Borrower, Horizon (as Originator), Horizon Management (as Servicer), U.S. Bank National
Association (as Collateral Custodian), and Resigning Agent.

 

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(ii)           the following cash management
documents (collectively, the “Blocked Account Agreements”):

 

(A)           Restricted Account Agreement
(Account Restricted Immediately – Standing Wire Transfers), dated as of July 12, 2011, by and among Borrower, Resigning Agent
and Wells Fargo Bank, National Association (“WFB”), with respect to Account No. XXXXXXXX maintained by Borrower
with WFB; and

 

(B)           Restricted Account Agreement
(Account Restricted after Instructions) , dated as of July 12, 2011, by and among Borrower, Resigning Agent and WFB, with respect
to Account Nos. XXXXXXXX and XXXXXXXX maintained by Borrower with WFB.

 

(iii)           Control Agreement among
Borrower, Resigning Agent, Morgan Stanley Smith Barney LLC (as Introducing Broker), and Morgan Stanley & Co. LLC (as Securities
Intermediary), with respect to Account No. XXXXXXX maintained by Borrower with Morgan Stanley & Co. LLC.

 

(iv)           Collateral Access Agreement
dated as of July 14, 2011, by and among Pro-Park Group LLC (as Landlord), Resigning Agent, Borrower, Horizon (as Originator), and
Horizon Management (as Servicer and Tenant), with respect to the premise located at 312 Farmington Avenue, Farmington Connecticut
06032.

 

Promptly after the Effective Date
hereof, Successor Agent shall (A) send written notice to each of the parties to the agreements described in this Section
3 (with a copy to Resigning Agent and to any other persons entitled to notice under any such agreement) regarding the succession
of Successor Agent to the Agency Rights under such agreement and providing to such parties any necessary notice or other information
(including payment instructions) that may be required under any such agreement, and (B) deliver to WFB pursuant to Section
19 of the Blocked Account Agreements, Successor Agent’s binding written agreement to assume all of Resigning Agent’s
obligations under each of the Blocked Account Agreements in order to release Resigning Agent from its obligations under the Blocked
Account Agreements.

 

(e)           The Loan Assignment shall
be deemed to have occurred simultaneously with the transfer of the Agency Rights to Successor Agent, and no agency relationship
shall exist or have been created between Purchasing Lender and Resigning Agent.

 

(f)           The Purchase Price Amount
has been calculated assuming that the proceeds of all checks or similar instruments for the payment of money (collectively, “Checks”)
that have been received by Resigning Agent and credited to the Borrower’s account with Resigning Agent are good collected
funds. For the avoidance of doubt, Successor Agent has assumed and shall be responsible for all claims under the Blocked Account
Agreements arising as a result of any nonpayment, claim, refund, or chargeback of any Check (it being understood between Successor
Agent and Borrower that the amount of any such payment made by Successor Agent may, at the Successor Agent’s option, constitute
an Advance made by Purchasing Lender to Borrower under the Loan Agreement and that the provisions of the Loan Agreement shall govern
Borrower’s obligation to indemnify Successor Agent for costs and expenses generally).

 

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4.           Certain Acknowledgments of Selling
Lender and Resigning Agent. The Selling Lender and Resigning Agent hereby acknowledge and agree that, as a result of the consummation
of the transactions contemplated hereby, the Selling Lender has assigned to Purchasing Lender all of its rights and obligations
under the Loan Agreement and the other Loan Documents, and Successor Agent has succeeded to all the rights of Resigning Agent under
the Loan Documents. Accordingly, upon the effectiveness of this Agreement, the Selling Lender and Resigning Agent acknowledge and
agree that Borrower has no further obligations to Resigning Agent or Selling Lender under the Loan Agreement and the other Loan
Documents; provided, that notwithstanding the foregoing or any future termination of the Loan Documents, Borrower shall
remain obligated to Resigning Agent and the Selling Lender with respect to (a) any indemnification obligations under the Loan Documents
and any other provisions contained in the Loan Documents which by their express terms (as in effect immediately prior to the Effective
Date) survive the termination of the Loan Documents and (b) any of their obligations arising hereunder. Without limiting Resigning
Agent’s and Selling Lender’s claims against Borrower as to claims described in the proviso in the preceding sentence,
the Purchase Price Amount represents the entire amount of outstanding Obligation owed to the Selling Lender and Resigning Agent
under the terms of the Loan Agreement as of the Effective Date.

 

5.           Representations, Warranties and
Covenants.

 

(a)           Of WFCF. WFCF, in
its capacity as Resigning Agent and as Selling Lender:

 

(i)           represents and warrants as
of the Effective Date that (A) it has full power and authority, and has taken all actions necessary for it, to execute and deliver
this Agreement and to consummate the transactions contemplated hereby, (B) in the case of Selling Lender, it is the legal and beneficial
owner of the Assigned Interest and that such Assigned Interest is free and clear of any Lien and other adverse claims created by
or through Selling Lender and (C) by executing and delivering this Agreement, the Person executing and delivering this Agreement
on behalf of WFCF in the capacities specified above is an authorized signer for WFCF in such capacities and is authorized to execute
and deliver this Agreement; and

 

(ii)           in the case of Selling Lender,
represents and warrants as of the Effective Date that there are no promissory notes evidencing the Assigned Interest.

 

Other than the representations and warranties in clauses
(a)(i) and (a)(ii) above, WFCF makes no other representation or warranty, including as to the aggregate amount of the
Advances and Commitments, any statements, representations and warranties made in or in connection with any Loan Document or any
other document or information furnished pursuant thereto, the execution, legality, validity, enforceability or genuineness of any
Loan Document or any document or information provided in connection therewith, the existence, nature or value of any Collateral
or the perfection or priority of any Liens on any Collateral, or the financial condition of Borrower or the performance or nonperformance
by Borrower of any obligation under any Loan Document or any document provided in connection therewith, it being acknowledged and
agreed by Key in its capacity as Successor Agent and Purchasing Lender that the Assigned Interests and the Agency Rights are transferred
to Key on an “as is, where is” basis and WFCF disclaims all warranties, representations and guarantees, whether express
or implied, other than those expressly contained in clauses (a)(i) and (a)(ii) above.

 

(b)           Of Key. Key, in
its capacity as Successor Agent and as Purchasing Lender:

 

(i)           represents and warrants as
of the Effective Date that (A) it has full power and authority, and has taken all actions necessary for it, to execute and deliver
this Agreement and to consummate the transactions contemplated hereby, (B) this Agreement is the legal, valid and binding obligation
of Successor Agent and Purchasing Lender, enforceable against such Persons in accordance with its terms, (C) by executing and delivering
this Agreement, the Person executing and delivering this Agreement on behalf of Key in the capacities specified above is an authorized
signer for Key in such capacities and is authorized to execute and deliver this Agreement, (D) it (1) is a sophisticated Person
with respect to the matters that are the subject of this Agreement (including with respect to the acquisition of the Assigned Interest
and the assumption of the Agency Rights), (2) has adequate information concerning the business and financial condition of Borrower
to make an informed decision regarding the Loan Assignment and the assumption of the Agency Rights and (3) has independently and
without reliance upon Resigning Agent or Selling Lender, and based on such information as it has deemed appropriate, made its own
analysis and decision to enter into this Agreement, and (E) no broker, finder or other Person acting under the authority of Successor
Agent or Purchasing Lender is entitled to any broker’s commission or other fee in connection with the transactions contemplated
hereby for which Resigning Agent or Selling Lender could be responsible;

 

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(ii)           acknowledges that neither
Resigning Agent nor Selling Lender has given it any investment advice, credit information or opinion on whether the acquisition
of the Assigned Interest or the assumption of the Agency Rights is prudent;

 

(iii)           acknowledges that it has
not relied and will not rely on Resigning Agent or Selling Lender to furnish or make available any documents or other information
regarding the credit, affairs, financial condition or business of Borrower, or any other matter concerning Borrower;

 

(iv)           without in any way limiting
any disclaimers or any similar provision hereof, acknowledges that Resigning Agent’s execution of and/or delivery of any
documents transferring any Lien or claim in any Collateral, assigning any Lien or transferring the Agency Rights, in each case
as provided for herein or contemplated hereby, is made without recourse, representation, warranty or other assurance of any kind
by Resigning Agent as to Resigning Agent’s rights in any Collateral (including perfection or priority), the condition or
value of any Collateral, or any other matter;

 

(v)           confirms it has received
such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement
and shall continue to make its own credit decisions in taking or not taking any action under any Loan Document independently and
without reliance upon Resigning Agent or Selling Lender and based on such documents and information as it shall deem appropriate
at the time;

 

(vi)           acknowledges and agrees
that, as Agent or a Lender, as applicable, it may receive material non-public information and confidential information concerning
Borrower and its Affiliates and their Stock and agrees with Borrower to comply with Section 17.9 of the Loan Agreement in
respect thereof; and

 

(vii)           specifies as its address
for notices the address set forth on Exhibit B hereto.

 

(c)           Of Borrower:

 

(i)           Borrower represents and warrants
as of the Effective Date that the execution, delivery and performance by Borrower of this Agreement (A) are within its power; (B)
have been duly authorized by all necessary corporate or limited liability company action, as applicable; (C) do not contravene
any provision of its charter, bylaws or operating agreement, as applicable; (D) do not violate any law or regulation, or any order
or decree of any court or Governmental Authority; (E) do not conflict with or result in the breach or termination of, constitute
a default under or accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed of trust,
lease, agreement or other instrument to which it is a party or by which it or any of its property is bound; and do not require
the consent or approval of any Governmental Authority or any other Person.

 

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(ii)           Borrower represents and
warrants as of the Effective Date that this Agreement has been duly executed and delivered by such Person and constitutes a legal,
valid and binding obligation of such Person enforceable against it in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or
by equitable principles relating to enforceability.

 

6.           Conditions to Effectiveness.
This Agreement shall be effective at such time at which the following conditions have been satisfied (provided, that to
the extent any such condition is for the benefit of WFCF, WFCF may waive such condition in writing, and to the extent any such
conditions is for the benefit of Key, Key may waive such condition in writing):

 

(a)           receipt by Resigning Agent,
Selling Lender, Successor Agent and Purchasing Lender of this Agreement, duly executed and delivered by Resigning Agent, Selling
Lender, Successor Agent, Purchasing Lender, and Borrower;

 

(b)           receipt by Selling Lender
of the Purchase Price Amount by wire transfer of immediately available funds in accordance with the instructions specified in Schedule
1 hereto, no later than 2:00 p.m. (New York time) on the Effective Date; and

 

(c)           all representations and
warranties contained in Section 5 hereof are true and correct in all material respects as of the Effective Date.

 

7.           Notices. All notices, demands,
requests, directions and other communications required or expressly authorized to be made by this Agreement shall be given in writing
in the manner contemplated by, and addressed to the relevant Person as provided in, Section 12 of the Loan Agreement; provided,
that notices to WFCF in any capacity shall be sent to the notice address for WFCF set forth in the Loan Agreement as in effect
immediately before the effectiveness of this Agreement and notices to Key in any capacity shall be sent to the notice address for
Key provided for in the Loan Agreement as in effect after the effectiveness of this Agreement.

 

8.           Certain Amendments. The portion
of Section 12 to the Loan Agreement that provides the notice address for Agent is hereby deleted in its entirety and replaced
with the notice information on Exhibit A hereto.

 

9.           Reimbursement of Expenses Etc.
of Resigning Agent and Selling Lender. Borrower shall, and if Borrower does not, for any reason, Successor Agent shall, in
each case, promptly upon written request from WFCF, reimburse WFCF for all out-of-pocket costs and expenses incurred by WFCF as
Resigning Agent or Selling Lender in connection with the matters referred to in this Agreement or required to be performed hereunder
(it being understood between Successor Agent and Borrower that the amount of any such payment made by Successor Agent may, at Successor
Agent’s option, constitute an Advance made by Purchasing Lender to Borrower under the Loan Agreement and that the provisions
of the Loan Agreement shall govern Borrower’s obligation to indemnify Successor Agent for costs and expenses generally).

 

10.           Indemnification. Successor
Agent and Purchasing Lender shall indemnify, defend, and hold Resigning Agent, Selling Lender and their Affiliates, officers, directors,
employees, attorneys, consultants and agents (collectively, “Resigning Agent Indemnitees”) harmless from and
against any liability, claim, cost, loss, judgment, damage or expense (including reasonable attorneys’ fees and expenses)
(the “Indemnified Liabilities”) that any Resigning Agent Indemnitee incurs or suffers as a result of or arising
out of (a) a breach of any of Successor Agent’s or Purchasing Lender’s representations, warranties, covenants or agreements
in this Agreement or (b) any breach of any obligations or covenants by Successor Agent or Purchasing Lender or any of their successors
or assigns under any of the Loan Documents after the Effective Date or any other matter relating to actions or omissions of Successor
Agent or Purchasing Lender or any of their successors or assigns that occur after the Effective Date.

 

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11.           Release. Each of Borrower,
Horizon Technology Finance Corporation and Horizon Technology Finance Management LLC (collectively, the “Horizon Parties”
and each, a “Horizon Party”) hereby acknowledges and agrees that: (a) it has no claim or cause of action against
Resigning Agent or Selling Lender (or any of their respective successor and assigns, Affiliates, officers, directors, employees,
attorneys, consultants or agents) in connection with the Loan Documents and (b) Resigning Agent and Selling Lender have heretofore
properly performed and satisfied in a timely manner all of their obligations under the Loan Agreement and the other Loan Documents
that are required to have been performed on or prior to the date hereof. Notwithstanding the foregoing, Resigning Agent and Selling
Lender wish (and Borrower agrees) to eliminate any possibility that Borrower would assert any claim in contravention of the foregoing.
In furtherance of the foregoing, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
each of the Horizon Parties (for itself and its successors, assigns, heirs and representatives) (collectively, the “Releasors”)
does hereby fully, finally, unconditionally and irrevocably release and forever discharge Resigning Agent, Selling Lender and each
of their respective successor and assigns (including, for the avoidance of doubt, Purchasing Lender and Successor Agent), Affiliates,
officers, directors, employees, attorneys, consultants and agents (collectively, the “Released Parties”) from
any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings
and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or
description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had
or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or
omitted to be done on or prior to the Effective Date directly arising out of, connected with or related to the Loan Agreement or
any other Loan Document, or any act, event or transaction related or attendant thereto, or the agreements of Resigning Agent or
Selling Lender contained therein, or the possession, use, operation or control of any of the assets of Borrower or any other Horizon
Party, or the making of any Advances, or the management of such Advances or the Collateral. Each Releasor waives any and all claims,
rights and benefits it may have under any law of any jurisdiction that would render ineffective a release made by a creditor of
claims that the creditor does not know or suspect to exist in its favor at the time of executing the release and that, if known
by it, would have materially affected its settlement with the applicable debtor. Each Releasor acknowledges that (i) it has been
represented by independent legal counsel of its own choice throughout all of the negotiation that preceded the execution of this
Agreement and that it has executed this Agreement after receiving the advice of such independent legal counsel, and (ii) such Person
and its respective counsel have had an adequate opportunity to make whatever investigation or inquiry they deem necessary or desirable
in connection with the release contained in this Section 11.

 

12.           Miscellaneous.

 

(a)           Loan Document. This
Agreement shall be considered one of the Loan Documents under the Loan Agreement.

 

(b)           Headings. The various
headings of this Agreement are inserted for convenience of reference only and shall not affect the meaning or interpretation of
this Agreement or any provisions hereof.

 

(c)           Counterparts. This
Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument. Delivery of an executed counterpart of a signature page to
this Agreement by facsimile or email transmission shall be effective as delivery of a manually executed counterpart thereof.

 

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(d)           Interpretation.
No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party hereto by any court or
other governmental or judicial authority by reason of such party’s having or being deemed to have structured, drafted or
dictated such provision.

 

(e)           Further Assurances.
Each party executing this Agreement agrees that upon the reasonable request of any other party hereto, it shall (i) in the case
of expenses incurred by Resigning Agent, at Successor Agent’s expense (in accordance with Section 9 hereof) and (ii)
in all other cases, at Borrower’s expense, duly execute and deliver, or cause to be duly executed and delivered, to such
other party such further instruments and do and cause to be done such further acts as may be necessary or proper to carry out more
effectively the provisions and purposes of this Agreement.

 

(f)           Complete Agreement.
This Agreement constitutes the complete agreement between the parties with respect to the subject matter hereof, and supersedes
any prior written or oral agreements, writings, communications or understandings of the parties with respect thereto.

 

(g)           Governing Law. This
Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to
contracts made and performed in such state, without regard to the principles thereof regarding conflict of laws.

 

(h)           Waiver of Jury Trial.
The parties hereto, to the extent permitted by law, waive all right to trial by jury in any action, suit, or proceeding arising
out of, in connection with or relating to, this Agreement and any other transaction contemplated hereby. This waiver applies to
any action, suit or proceeding whether sounding in tort, contract or otherwise.

 

IN WITNESS WHEREOF, this Agreement Regarding
Loan Assignment and Related Matters has been duly executed as of the date first set forth above.

 

[SIGNATURE PAGES FOLLOW]

 

 

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	“Resigning Agent” and “Selling Lender”	 
	 	 
	WELLS FARGO CAPITAL FINANCE, LLC	 
	 	 
	By:	/s/ Randy Allenmang	 
	Name: Randy Allemang	 
	Title: Vice President	 
	 	 
	“Successor Agent” and “Purchasing Lender”	 
	 	 
	KEY EQUIPMENT FINANCE INC.	 
	 	 
	By:	/s/ Richard S. Andersen	 
	Name: Richard S. Andersen	 
	Title: Vice President	 
	 	 
	“Borrower”	 
	 	 
	HORIZON CREDIT II LLC	 
	 	 
	By:	/s/ Robert D. Pomeroy, Jr.	 
	Name: Robert D. Pomeroy, Jr.	 
	Title: Chief Executive Officer	 
	 	 
	“Horizon Party”	 
	 	 
	HORIZON TECHNOLOGY FINANCE CORPORATION	 
	 	 
	By:	/s/ Robert D. Pomeroy, Jr.	 
	Name: Robert D. Pomeroy, Jr.	 
	Title: Chief Executive Officer	 
	 	 
	“Horizon Party”	 
	 	 
	HORIZON TECHNOLOGY FINANCE MANAGEMENT LLC	 
	 	 
	By:	/s/ Robert D. Pomeroy, Jr.	 
	Name: Robert D. Pomeroy, Jr.	 
	Title: Chief Executive OfficerSUBSCRIPTION AGREEMENT
Shares Of Common Stock Of VII Peaks Co�]Op..vistTM Income BDC II, Inc.
The undersigned hereby tenders this subscrip..on and applies for the purchase of the dollar
amount of common shares of beneficial interest (the �gShares�h) of VII Peaks Co�]Op..vistTM
Income BDC II, Inc. (some..mes referred to herein as the �gCompany�h), set forth below.
Ini..al Investment ($5,000 minimum) Addi..onal Investment ($500 minimum) NAV or Net of commission Investment
Subscrip..on Amount $
Individual Joint Tenants with Right of Survivorship Pension Plan Trust (Complete Appendix A on page A�]5)
Non�]Profit Organiza..on Corpora..on or Partnership (Complete Appendix B on page A�]6)
UGMA: State of _______ UTMA: State of _______ Other (Specify and include ..tle pages) ____________________________________________
Custodial Account: IRA SEP/IRA ROTH/IRA OTHER Qualified Acct: ________________________________________________________
Custodian Name: ________________________________________________________________________ Account #: _____________________________
Custodian Mailing Address: _______________________________________________________________________________________________________
A. Individual/Beneficial Owners (Trust/Corpora..on/Partnership)
B. Joint Investor/Minor
C. Transfer on death beneficiary (Individual or Joint Tenant Accounts Only)
A. Investor�fs Address of Record
B. Investor�fs Mailing Address (If different than address of record, above)
Assign Applicable Percentage / Must Total 100%
* Each investor that elects to have his or her distribu..ons reinvested in VII Peaks Co�]Op..vistTM Income BDC II, Inc.�fs Distribu..on Reinvestment Plan agrees to no..fy the Company and the
broker�]dealer named in this Subscrip..on Agreement in wri..ng at any ..me there is a material change in his or her financial condi..on, including failure to meet the minimum income and
net worth standards as imposed by the state in which he or she resides.
** I authorize the Company or its agent to deposit my distribu..on to the account indicated below. This authority will remain in force un..l I no..fy the Company in wri..ng to cancel it. In
the event that the Company deposits funds erroneously into my account, the Company is authorized to debit my account for the amount of the erroneous deposit. I also hereby
acknowledge that funds and/or Shares in my account may be subject to applicable abandoned property, escheat or similar laws and may be transferred to the appropriate governmental
authority in accordance with such laws, including as a result of account inac..vity for the period of ..me specified in such laws or otherwise. None of the Company, its affiliates, its agents
or any other person shall be liable for any property delivered in good faith to a governmental authority pursuant to applicable abandoned property, escheat or similar laws.
A�]1 VII 064.06192013
Social Security Number* Date of Birth (MM,DD,YYYY)* Day..me Phone Number
First Name (MI) Last Name* Gender (M/F)
First Name (MI) Last Name Social Security Number ____Primary ____%
First Name (MI) Last Name Social Security Number ____Primary ____%
Name of inves..ng en..ty Tax ID Number
Street Address
City State Zip Code If Non�]U.S., Specify Country
First Name (MI) Last Name* Gender (M/F)
1. INVESTMENT
2. OWNERSHIP (Select only one)
3. INVESTOR INFORMATION
4. ADDRESS
Social Security Number* Date of Birth (MM,DD,YYYY)* Day..me Phone Number
Street Address
City State Zip Code If Non�]U.S., Specify Country
5. DISTRIBUTIONS (IRA accounts may not direct distribu..ons without the custodian's approval)
I choose to par..cipate in the Company�fs
DRIP �] Distribu..on Reinvestment Plan.*
________% of Distribu..on
I choose to have distribu..ons deposited in a checking/
savings/IRA/ brokerage account or sent to the
custodian for the benefit of the investor.**
________% of Distribu..on
I choose to have distribu..ons mailed to
me at the address listed in sec..on 4.
________% of Distribu..on

 

 

    	 

    	 

    
  

Please a..ach voided pre�]printed check from the below referenced account where funds from distribu..on are to be sent here **
In lieu of receiving documents by mail, I authorize the Company to make available on its website at www.viipeaks.com its monthly, quarterly and annual reports,
supplements, announcements or other documents required to be delivered to me, as well as any investment or marke..ng updates, and to no..fy me via e�]mail
when such reports or updates are available. Any documents not uploaded and made readily available on the website will be e�]mailed to the address iden..fied
below. (Any investor who elects the Electronic Delivery op..on must provide a valid e�]mail address, and such investor shall be responsible for no..fying the Company
in wri..ng should such account rela..ng to the e�]mail address be terminated or changed.) The e�]mail address for receipt of no..fica..ons as outlined above is:
Please carefully read and separately ini..al each of the representa..ons below, as applicable. In the case of joint investors, each investor must ini..al. Except in the
case of fiduciary accounts, you may not grant any person power of a..orney to make such representa..ons on your behalf. In order for the Company to accept this
Subscrip..on Agreement and as further considera..on for such acceptance, I hereby represent and warrant as follows:
Name of Financial Ins..tu..on Account Type
Mailing Address City/State Zip Code Account Number
Signature of Individual/Trustee/Beneficial Owner (MANDATORY) ABA Rou..ng Number
Signature of Joint Owner
6. ELECTRONIC DELIVERY OF REPORTS AND UPDATES (You will not receive paper mailings)
E�]mail address Ini..als
7. REPRESENTATIONS, WARRANTIES AND COVENANTS OF INVESTOR
SECTIONS a.e BELOW ARE MANDATORY Owner (ini..als) Joint Owner (Ini..als)
a) I have received the final prospectus (as amended or supplemented as of the date hereof) for VII Peaks Co�]
Op..vistTM Income BDC II, Inc. at least five business days prior to the signing of this subscrip..on agreement.
b) I have (i) a net worth of at least $250,000 or (ii) a net worth of at least $70,000 and a gross annual income of at
least $70,000. (Net worth does not include home, furnishings and personal automobiles.)
c) I am (we are) purchasing shares for my (our) own account.
d) I (we) acknowledge that the shares are not liquid, there is no public market for the shares, and I (we) may not
be able to sell the shares.
e) I am either purchasing the shares for my own account, or if I am purchasing shares on behalf of a trust/other
en..ty of which I am trustee or authorized agent, I have due authority to execute this subscrip..on
agreement and do hereby legally bind the trust or other en..ty of which I am trustee or authorized agent.
f) If I am (we are) a resident of Alabama, I (we) cer..fy that I (we) have a net worth of at least 10 ..mes my (our)
investment in the Company and other similar programs.
g) If I am (we are) a resident of California, I (we) cer..fy that in addi..on to the suitability standards above, I (we)
must limit my (our) investment in the Company to 10% of my (our) net worth (excluding home, furnishings and
automobiles).
h) If I am (we are) a resident of Iowa, I (we) have either (i) a liquid net worth of $85,000 and annual gross income of
$85,000 or (ii) a liquid net worth of $300,000. Addi..onally, my (our) total investment in the Company shall not
exceed 10% of my (our) net worth. Liquid net worth is that por..on of an investor's net worth that consists of cash,
cash equivalents and readily marketable securi..es and is exclusive of home, auto and furnishings.
i) If I am (we are) a resident of Kansas, I (we) cer..fy that my (our) aggregate investment in the Company and other
non�]traded business development companies is not more than 10% of my (our) liquid net worth. Liquid net worth is
defined as that por..on of net worth that consists of cash, cash equivalents and readily marketable securi..es.
j) If I am (we are) a resident of Kentucky, I (we) cer..fy that I (we) have either (i) a liquid net worth of $85,000 and
annual gross income of $85,000 or (ii) a liquid net worth of $300,000. Addi..onally, I (we) cer..fy that my (our) total
investment in the Company shall not exceed 10% of my (our) liquid net worth.
k) If I am (we are) a resident of Maine, I (we) cer..fy that my (our) aggregate investment in the Company and other
non�]traded business development companies is not more than 10% of my (our) liquid net worth.
l) If I am (we are) a resident of Massachuse..s, I (we) cer..fy that my (our) aggregate investment in this offering,
offerings by other non�]traded business development companies and offerings by other non�]traded direct par..cipa
...ng programs does not exceed, in the aggregate, more than 10% of my (our) liquid net worth. Liquid net worth is
that por..on of an investor�fs net worth that consists of cash, cash equivalents and readily available marketable securi
...es. 

 

 

    	 

    	 

    
  

 

In addi..on, you understand that you will receive a confirma..on of your purchase, subject to acceptance by the Company, within 15 days from the date your subscrip
...on is received and accepted, and that the sale of Shares pursuant to this subscrip..on agreement will not be effec..ve un..l at least five business days a..er the
date you have received a final Prospectus.
.. You should not expect to be able to sell your shares regardless of how we perform. If you are able to sell your shares of common stock, you will likely receive
less than your purchase price. Because you will be unable to sell your shares, you will be unable to reduce your exposure on any market downturn.
.. We do not intend to list our common stock on any securi..es exchange during or for what may be a significant ..me a..er the offering period, and we do not
expect a secondary market in the common stock to develop.
.. We plan to implement a share repurchase program , but only a limited number of shares of common stock will be eligible for repurchase by us. In addi..on, any
such repurchases will be at a price less than the current offering price in effect on the date that we ini..ate each quarterly repurchase offer.
.. You should consider that you may not have access to the money you invest for an indefinite period of ..me. An investment in our shares of common stock is
not suitable for you if you need access to the money you invest. See �gShare Repurchase Program,�h �gSuitability Standards�h and �gLiquidity Strategy.�h
.. Our distribu..ons in our ini..al year of investment opera..ons were not based on our investment performance, but were supported by our Advisors in the form
of opera..ng expense support payments to us, and a por..on of our distribu..ons cons..tuted a return of capital.
A�]3
Owner (ini..als) Joint Owner
(Ini..als)
m) If I am (we are) a resident of Nebraska, I (we) cer..fy that in addi..on to the suitability requirements described above, I (we)
have (i) either (a) an annual gross income of at least $100,000 and a net worth of at least $350,000, or (b) a net worth of at
least $500,000 (exclusive of home, home furnishings and automobiles); and (ii) maximum investment in this offering will not
exceed 10% of the investor�fs net worth.
n) If I am (we are) a resident of New Jersey, I (we) cer..fy that my (our) aggregate investment in this offering and similar offerings
not exceed 10% of my (our) liquid net worth. For this purpose �gliquid net worth�h is defined as that por..on of net worth
that consists of cash, cash equivalents and readily marketable securi..es.
o) If I am (we are) a resident of New Mexico, I (we) cer..fy that in addi..on to the suitability standards above, I (we) must limit
my (our) investment in the Company and its affiliates to 10% of my (our) net worth.
p) If I am (we are) a resident of North Dakota, I (we) cer..fy that I (we) have a net worth of at least ten ..mes my (our) investment
in the Company and its affiliates and that I (we) meet one of the established suitability standards.
q) If I am (we are) a resident of Ohio, I (we) cer..fy that my (our) aggregate investment in this offering, Affiliates of the issuer,
and in other non�]traded business development companies does not exceed 10% of my (our) liquid net worth. For this purpose
�gliquid net worth�h is defined as that por..on of net worth (total assets exclusive of home, home furnishings, and autor)
If I am (we are) a resident of Oregon, I (we) cer..fy that in addi..on to the suitability standards above, I (we) must limit my
(our) investment in the Company and its affiliates to 10% of my (our) net worth.
s) If I am (we are) a resident of Oklahoma, I (we) cer..fy that my (our) aggregate investments in the Company is not more than
10% of my (our) net worth (excluding home, home furnishings and automobiles).
t) ) If I am (we are) a resident of Tennessee, I (we) cer..fy that in addi..on to the suitability requirements described above, I
(we) have (i) either (a) an annual gross income of at least $100,000 and a net worth of at least $100,000, or (b) a net worth of
at least $500,000 (exclusive of home, home furnishings and automobiles); and (ii) maximum investment in this offering will not
exceed 10% of the investor�fs net worth.
SUBSTITUTE IRS FORM W�]9 CERTIFICATION
I (we) declare that the informa..on supplied in this subscrip..on agreement is true and correct and may be relied upon by the Company in connec..on with my (our)
investment in the Company. Under penal..es of perjury, each investor signing below cer..fies that (1) the number shown in the Investor Social Security Number/
Taxpayer Iden..fica..on Number field in Sec..on 3 of this form is my correct taxpayer iden..fica..on number (or I am wai..ng for a number to be issued to me), and (2)
I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been no..fied by the Internal Revenue Service (IRS) that I
am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has no..fied me that I am no longer subject to backup withholding,
and (3) I am a U.S. person (including a non�]resident alien). NOTE: You must cross out item (2) above if you have been no..fied by the IRS that you are
currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. The Internal Revenue Service does not
require your consent to any provision of this document other than this cer..fica..on, which is required to avoid backup withholding.
Owner or authorized person: Print Name Signature Date
Owner or authorized person: Print Name Signature Date
Signature of Custodian (if applicable) Date 

 

 

    	 

    	 

    

  

 

8. BROKER�]DEALER INFORMATION (All fields mandatory) The undersigned confirm on behalf of the Broker�]Dealer that they (i) are registered in the state in which the sale of the Shares to the investor execu..ng this Subscrip
...on Agreement has been made and that the offering of the Shares is registered for sale in such state; (ii) have reasonable grounds to believe that the informa
...on and representa..ons concerning the investor iden..fied herein are true, correct and complete in all respects; (iii) have discussed such investor�fs prospec�]
...ve purchase of Shares with such investor; (iv) have advised such investor of all per..nent facts with regard to the fundamental risks of the investment, including
the lack of liquidity and marketability of the Shares; (v) have delivered a current Prospectus and related supplements, if any, to such investor ; (vi) have reasonable
grounds to believe that the investor is purchasing these Shares for his or her own account; and (vii) have reasonable grounds to believe that the purchase of
shares is a suitable investment for such investor, that the undersigned will obtain and retain records rela..ng to such investor�fs suitability for a period of six years,
that such investor meets the suitability standards applicable to such investor set forth in the Prospectus and related supplements, if any, that such investor is in a
financial posi..on to enable such investor to realize the benefits of such an investment and to suffer any loss that may occur with respect thereto and that such
investor has an understanding of the fundamental risks of the investment, the background and qualifica..ons of the persons managing the Company and the tax
consequences of purchasing and owning Shares.
The undersigned Financial Advisor further represents and cer..fies that, in connec..on with this subscrip..on for Shares, he or she has complied with and has followed
all applicable policies and procedures under his or her firm�fs exis..ng An..�]Money Laundering Program and Customer Iden..fica..on Program in accordance
with Sec..on 326 of the USA PATRIOT ACT
NOTICE TO STOCKHOLDER OF ISSUANCE OF
UNCERTIFICATED SHARES OF COMMON STOCK
Containing the informa..on required by Sec..on 2�]221
of the Maryland General Corpora..on Law
To: Stockholder
From: VII Peaks Co�]Op..vistTM Income BDC II, Inc.
Shares of Common Stock, $0.001 par value per share
VII Peaks Co�]Op..vistTM Income BDC II, Inc., a Maryland Corpora..on (the �gCorpora..on�h), is issuing to you, subject to acceptance by the Corpora..on, the number of shares of its common
stock (the �gShares�h) that correspond to the dollar amount of your subscrip..on as set forth in your subscrip..on agreement with the Corpora..on. The shares do not have physical cer..ficate.
Instead, the Shares are recorded on the books and records of the Corpora..on, and this no..ce is given to you of certain informa..on rela..ng to the shares. All capitalized terms not
defined herein have the meanings set forth in the Corpora..on�fs Charter, as the same may be amended from ..me to ..me, a copy of which, including the restric..ons on transfer and
ownership, will be furnished to each holder of shares of the Corpora..on on request, and without charge. Requests for such a copy may be directed to the Secretary of Corpora..on at its
principal office.
The Corpora..on has the authority to issue shares of stock of more than one class. Upon the request of any stockholder, and without charge, the Corpora..on will furnish a full statement
of the informa..on required by sec..on 2�]221 of the Maryland General Corpora..on Law with respect to certain restric..ons on ownership and transferability, the designa..ons and any
preferences, conversion and other rights, vo..ng powers, restric..ons, limita..ons as to dividends and other distribu..ons, qualifica..ons, terms and condi..ons of redemp..on of the shares
of each class of stock which the Corpora..on has authority to issue, the differences in the rela..ve rights and preferences between the shares of each series to the extent set , and the
authority of the Board of Directors to set such rights and preferences of subsequent series. Such requests must be made to the Secretary of Corpora..on at its principal office.
A�]4
9. INVESTMENT INSTRUCTIONS
Broker�]Dealer Firm Name Financial Advisor Name
Financial Advisor Mailing Address
E�]Mail Address Telephone Rep #
Financial Advisor Signature Date
Broker Dealer Supervisor Signature (MANDATORY) Date
By Wire Transfer:
Account Name: Phoenix American Financial Services, Inc.
as trustee for VII Peaks Capital, LLC
Account Number: 0 3 2 4 2 5 8 5 0
Rou..ng Number: 1 2 1 1 0 0 7 8 2
Bank Name: Bank of the West
Bank Loca..on: Walnut Creek, CA
Custodial Accounts:
Forward this subscrip..on agreement directly to your current custodian
of assets.
By Mail:
Phoenix American Financial Services, Inc.
A..n: VII PEAKS Co�]Op..vist Income BDC II Service Team
2401 Kerner Blvd., San Rafael, California 94901
Telephone: 855�]889�]1778
Facsimile: 415�]485�]4553
Make all checks payable to:
VII Peaks Co�]Op..vist Income BDC II, Inc.
(PLEASE DO NOT SUBMIT CASHIERS CHECKS OR MONEY ORDERS) 

 

 

    	 

    	 

    
 

  

 

APPENDIX A �] TRUSTEE CERTIFICATION OF INVESTMENT POWERS
To be completed only by Trust Subscribers
This form may be used in connec..on with investments held by a trust in VII Peaks Co�]Op..vistTM Income BDC II, Inc.
You are authorized to accept orders and other instruc..ons from those individuals or en....es listed below, unless their authority is expressly
limited on this cer..fica..on (a..ach extra pages, if necessary.)
Please select one of the following three op..ons:
The Trustee(s) listed below may act as a majority as provided in the trust document referenced above.
The Trustee(s) listed below may act independently as provided in the trust document referenced above.
The Trustee(s) listed below must act collec..vely as provided in the trust document referenced above.
(a) We cer..fy that we have the power under the Trust and applicable law to enter into transac..ons involving the establishment and modifica�]
...on of subscrip..ons pertaining to investments in VII Peaks Co�]Op..vistTM Income BDC II, Inc. in respect of which the Trust has submi..ed a
subscrip..on agreement.
(b) We understand you, at your sole discre..on and for your sole protec..on, may require the wri..en consent of any or all Trustees prior to
ac..ng upon the instruc..ons of any individual Trustee. We, the Trustee(s), jointly and severally shall indemnify you and hold you harmless
from any liability for effec..ng any orders, transac..ons and instruc..ons, if you act pursuant to instruc..ons you believe to have been given
by any of the authorized individuals listed under Sec..on 4 below.
(c) We agree to inform you in wri..ng of any amendment to the Trust that affects its interest in VII Peaks Co�]Op..vistTM Income BDC II, Inc. or its
ac..ons in respect thereto, or any change in the composi..on of the Trustee(s), or any other event that could materially alter the cer..fica�]
...ons made above. You may rely on the con..nued validity of this cer..fica..on indefinitely absent actual receipt of such no..ce.
All Trustees must sign. Should only one person execute this agreement, it shall cons..tute a representa..on that the signer is the sole Trustee.
A..ach extra pages if necessary.
A�]5
Complete Name of the Trust:
Successor Trustees:
Date of the Trust: Date of the Latest Amendment:
Successor Trustees:
Successor Trustees:
Successor Trustees:
Revocable/ Living Trust (YES/NO):
Trustee Name (Please print) Signature Date
Trustee Name (Please print) Signature Date
Trustee Name (Please print) Signature Date
Trustee Name (Please print) Signature Date
TRUST INFORMATION
AUTHORIZED INDIVIDUAL(S)
INVESTMENTS PERMITTED
TRUSTEE SIGNATURES
SUCCESSOR TRUSTEES Please complete this sec..on if applicable.

    	 

    	 

    

 

 

  

 

APPENDIX B �] CORPORATE/LLC/LP RESOLUTION
To be completed only by Corporate/LLC/LP Subscribers
This form may be used by any new/current investor(s) (an �gInvestor�h) to grant designated officer(s)/member(s)/partner(s) of an en..ty
(corpora..on/LLC/LP full authority regarding an investment in VII Peaks Co�]Op..vistTM Income BDC II, Inc.
I hereby cer..fy that pursuant to:
(a) a valid mee..ng of the board of directors/members/partners of
an en..ty organized and exis..ng under and by virtue of the laws of the State of (the
�gEn..ty�h), at which said mee..ng a quorum was present and ac..ng throughout, or
(b) a valid wri..en consent of such a board of directors/members/partners,
the following resolu..on was adopted and remains in full force and effect without modifica..on through the date set forth above:
RESOLVED, that any officers/members/partners of the en..ty listed below are, and any one of them hereby is, fully authorized, empowered, and
directed to invest and to make any modifica..ons to investments in VII Peaks Co�]Op..vistTM Income BDC II, Inc. and that each of such officers/
members/partners is hereby authorized, empowered, and directed to execute, deliver on behalf of the en..ty and cause the en..ty to perform,
under any and all agreements, instruments and other documents, and to take such ac..ons as such officer may reasonably deem necessary or
advisable to carry out such investments or modifica..ons thereto.
I further cer..fy that the authority thereby conferred is not inconsistent with the Charter or Bylaws/agreements of this en..ty, and that the following
is a true and correct list of the officers/members/partners of this en..ty as of the present date.
Please list all officers/members/partners of the en..ty who meet the requirements listed above.
A�]6
Name: Title:
Name: Title:
Name: Title:
In Witness Whereof, I have hereunto set my hand this day of 20
Secretary OFFICERS/ MEMBERS/ PARTNERS

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