Document:

Exhibit 4.1

 

ELEVENTH SUPPLEMENTAL INDENTURE

 

between

 

ARES CAPITAL CORPORATION

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

 

as Trustee

 

Dated as of January 15, 2020

 

 

ELEVENTH SUPPLEMENTAL INDENTURE

 

THIS ELEVENTH SUPPLEMENTAL INDENTURE (this
 “Eleventh Supplemental Indenture”), dated as of January 15, 2020, is between Ares Capital Corporation, a Maryland corporation
(the “Company”), and U.S. Bank National Association, as trustee (the “Trustee”). All capitalized terms
used herein shall have the meaning set forth in the Base Indenture (as defined below) unless otherwise defined herein.

 

RECITALS OF THE COMPANY

 

The Company and the Trustee executed and
delivered an Indenture, dated as of October 21, 2010 (the “Base Indenture” and, as supplemented by this Eleventh
Supplemental Indenture, together, the “Indenture”), to provide for the issuance by the Company from time to time of
the Company’s unsecured debentures, notes or other evidences of indebtedness (the “Securities”), to be issued
in one or more series as provided in the Indenture.

 

The Company desires to issue and sell $750,000,000
aggregate principal amount of the Company’s 3.250% Notes due 2025 (the “Notes”).

 

Sections 9.01(v) and 9.01(vii) of the Base
Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture, the Company,
when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or
more indentures supplemental to the Base Indenture to (i) change or eliminate any of the provisions of the Indenture when there
is no Security Outstanding of any series created prior to the execution of a supplemental indenture that is entitled to the benefit
of such provision and (ii) establish the form or terms of Securities of any series as permitted by Section 2.01 and Section 3.01
of the Base Indenture.

 

The Company desires to establish the form
and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of
the Holders of the Notes (except as may be provided in a future supplemental indenture to the Indenture (“Future Supplemental
Indenture”)).

 

The Company has duly authorized the execution
and delivery of this Eleventh Supplemental Indenture to provide for the issuance of the Notes and all acts and things necessary
to make this Eleventh Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement
of the Company, in accordance with its terms, have been done and performed.

 

     

     

    

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises
and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders
of the Notes, as follows:

 

ARTICLE I

TERMS OF THE NOTES

 

Section 1.01.      Terms of the Notes.
The following terms relating to the Notes are hereby established:

 

(a)       The
Notes shall constitute a series of Securities having the title “3.250% Notes due 2025” and shall be designated as Senior
Securities under the Indenture. The Notes shall bear a CUSIP number of 04010L AY9 and an ISIN number of US04010LAY92.

 

(b)       The
aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections
3.04, 3.05, 3.06, 9.06 or 11.07 of the Base Indenture) shall be $750,000,000. Under a Board Resolution, Officers’ Certificate
pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders
of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest
rate, maturity, CUSIP number and other terms as the Notes; provided that such Additional Notes must be part of the same
issue as the Notes for U.S. federal income tax purposes. Any Additional Notes and the existing Notes will constitute a single series
under the Indenture and all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise
requires.

 

(c)       The
entire Outstanding principal amount of the Notes shall be payable on July 15, 2025, unless earlier redeemed or repurchased in accordance
with the provisions of this Eleventh Supplemental Indenture.

 

(d)       The
rate at which the Notes shall bear interest shall be 3.250% per annum (the “Applicable Interest Rate”). The date from
which interest shall accrue on the Notes shall be January 15, 2020, or the most recent Interest Payment Date to which interest
has been paid or provided for; the Interest Payment Dates for the Notes shall be January 15 and July 15 of each year, commencing
July 15, 2020 (if an Interest Payment Date falls on a day that is not a Business Day, then the applicable interest payment will
be made on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment); the initial
interest period will be the period from and including January 15, 2020 (or the most recent Interest Payment Date to which interest
has been paid or provided for), to, but excluding, the initial Interest Payment Date, and the subsequent interest periods will
be the periods from and including an Interest Payment Date to, but excluding, the next Interest Payment Date or the Stated Maturity,
as the case may be; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid
to the Person in whose name the Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record
Date for such interest, which shall be January 1 and
July 1 (whether or not a Business Day), as the case may be, immediately preceding
such Interest Payment Date. Payment of principal of (and premium, if any) and any such interest on the Notes will be made at the
Corporate Trust Office of the Trustee in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the option of the Company, payment of interest may be
made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. Interest
on the Notes will be computed on the basis of a 360-day year of twelve 30-day months.

 

    2 

     

    

 

(e)       The
Notes shall be initially issuable in global form (each such Note, a “Global Note”). The Global Notes and the Trustee’s
certificate of authentication thereon shall be substantially in the form of Exhibit A to this Eleventh Supplemental
Indenture. Each Global Note shall represent the Outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate amount of Outstanding Notes from time to time endorsed thereon and that the aggregate amount of Outstanding
Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of Outstanding Notes represented
thereby shall be made by the Trustee or the Security Registrar, in accordance with Sections 2.03 and 3.05 of the Base Indenture.

 

(f)       The
depositary for such Global Notes shall be the Depositary. The Security Registrar with respect to the Global Notes shall be the
Trustee.

 

(g)       The
Notes shall be defeasible pursuant to Section 14.02 or Section 14.03 of the Base Indenture. Covenant defeasance contained in Section
14.03 of the Base Indenture shall apply to the covenants contained in Sections 10.06, 10.08 and 10.09 of the Indenture.

 

(h)       The
Notes shall be redeemable pursuant to Section 11.01 of the Base Indenture and as follows:

 

(i)       The
Notes will be redeemable, in whole or in part, at any time, or from time to time, at the option of the Company, at a Redemption
Price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to the Redemption Date:

 

		(a)	100% of the principal amount of the Notes to be redeemed, or

 

		(b)	the sum of the present values of the remaining scheduled payments of principal and interest (exclusive
of accrued and unpaid interest to the Redemption Date) on the Notes to be redeemed, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 25 basis points; provided,
however, that if the Company redeems any Notes on or after June 15, 2025, the Redemption Price for the Notes will be equal
to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption
Date.

 

For purposes of calculating the Redemption
Price in connection with the redemption of the Notes, on any Redemption Date, the following terms have the meanings set forth below:

 

“Treasury Rate” means, with
respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity of the Comparable Treasury
Issue (computed as of the third Business Day immediately preceding the redemption), assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The
Redemption Price and the Treasury Rate will be determined by the Company.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining
term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financing practice,
in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes being redeemed.

 

    3 

     

    

 

“Comparable Treasury Price”
means (1) the average of the remaining Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such quotations.

 

“Quotation Agent” means a Reference
Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer”
means each of (1) BofA Securities, Inc., (2) J.P. Morgan Securities LLC and (3) a primary U.S. government securities dealer selected
by SMBC Nikko Securities America, Inc. or their respective affiliates which are primary U.S. government securities dealers and
their respective successors; provided, however, that if any of the foregoing or their affiliates shall cease to be
a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall select
another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent,
of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business Day
preceding such Redemption Date.

 

All determinations made by any Reference
Treasury Dealer, including the Quotation Agent, with respect to determining the Redemption Price will be final and binding absent
manifest error.

 

(ii)       Notice
of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery,
to each Holder of the Notes to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date,
at the Holder’s address appearing in the Security Register. All notices of redemption shall contain the information set forth
in Section 11.04 of the Base Indenture.

 

(iii)       Any
exercise of the Company’s option to redeem the Notes will be done in compliance with the Investment Company Act, to the extent
applicable.

 

(iv)       If
the Company elects to redeem only a portion of the Notes, the particular Notes to be redeemed will be selected in accordance with
the applicable procedures of the Trustee and, so long as the Notes are registered to the Depositary or its nominee, the Depositary;
provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Note not
redeemed to less than $2,000.

 

(v)       Unless
the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the
Notes called for redemption hereunder.

 

(i)       The
Notes shall not be subject to any sinking fund pursuant to Section 12.01 of the Base Indenture.

 

(j)       The
Notes shall be issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(k)       Holders
of the Notes will not have the option to have the Notes repaid prior to the Stated Maturity other than in accordance with Article
XIII of the Indenture.

 

    4 

     

    

 

ARTICLE II

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 2.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by adding
the following defined terms to Section 1.01 in appropriate alphabetical sequence, as follows:

 

“Below Investment Grade Rating
Event” means the Notes are downgraded below Investment Grade by all three Rating Agencies on any date from the date of
the public notice of an arrangement that results in a Change of Control until the end of the 60-day period following public notice
of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced
consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event
otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change
of Control Repurchase Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise
apply do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in
whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change
of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating
Event).

 

“Change of Control” means
the occurrence of any of the following:

 

(1) the direct or indirect sale, lease,
transfer, conveyance or other disposition (other than by way of merger or consolidation) in one or a series of related transactions,
of all or substantially all of the assets of the Company and its Controlled Subsidiaries taken as a whole to any “person”
or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than to any Permitted Holders;
provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured debt instrument of the Company or
its Controlled Subsidiaries shall not be deemed to be any such sale, lease, transfer, conveyance or disposition;

 

(2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which is that any “person” or “group”
(as those terms are used in Section 13(d)(3) of the Exchange Act) (other than any Permitted Holders) becomes the "beneficial
owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding
Voting Stock of the Company, measured by voting power rather than number of shares; or

 

(3) the approval by the Company’s
stockholders of any plan or proposal relating to the liquidation or dissolution of the Company.

 

“Change of Control Repurchase Event”
means the occurrence of a Change of Control and a Below Investment Grade Rating Event.

 

“Controlled Subsidiary”
means any Subsidiary of the Company, 50% or more of the outstanding equity interests of which are owned by the Company and its
direct or indirect Subsidiaries and of which the Company possesses, directly or indirectly, the power to direct or cause the direction
of the management or policies, whether through the ownership of voting equity interests, by agreement or otherwise.

 

    5 

     

    

 

“Depositary” means, with
respect to each Note in global form, The Depository Trust Company, until a successor shall have been appointed and becomes such
person, and thereafter, Depositary shall mean or include such successor.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in each case as amended from time to time and
the rules and regulations of the Commission promulgated thereunder.

 

“Fitch” means Fitch,
Inc., also known as Fitch Ratings, or any successor thereto.

 

“GAAP” means generally
accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants, the opinions and pronouncements of the Public Company Accounting Oversight
Board and the statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other
entity as have been approved by a significant segment of the accounting profession in the United States, which are in effect from
time to time.

 

“Investment Company Act”
means the Investment Company Act of 1940, as amended, and the rules, regulations and interpretations promulgated thereunder, to
the extent applicable, and any statute successor thereto.

 

“Investment Grade” means
a rating of BBB– or better by Fitch (or its equivalent under any successor rating categories of Fitch), Baa3 or better by
Moody’s (or its equivalent under any successor rating categories of Moody’s) and BBB– or better by S&P (or
its equivalent under any successor rating categories of S&P) (or, in each case, if such Rating Agency ceases to rate the Notes
for reasons outside of the Company’s control, the equivalent investment grade credit rating from any Rating Agency selected
by the Company as a replacement Rating Agency).

 

“Moody’s” means
Moody’s Investor Services, Inc., or any successor thereof.

 

“Permitted Holders” means
(i) the Company, (ii) one or more of the Company’s Controlled Subsidiaries and (iii) Ares Capital Management LLC or any Affiliate
of Ares Capital Management LLC that is organized under the laws of a jurisdiction located in the United States of America and in
the business of managing or advising clients.

 

“Rating Agency” means
(1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s or S&P ceases to rate the Notes or fails
to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized
statistical rating organization” as defined in Section 3(a)(62) of the Exchange Act selected by the Company as a replacement
agency for Fitch, Moody’s and/or S&P, as the case may be.

 

“S&P” means Standard
 & Poor's Ratings Services, a division of McGraw-Hill, Inc., or any successor thereto.

 

“Significant Subsidiary”
means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X
under the Exchange Act, as such regulation is in effect on the date of this Indenture (but excluding any Subsidiary which is (a)
a non-recourse or limited recourse Subsidiary, (b) a bankruptcy remote special purpose vehicle or (c) is not consolidated with
the Company for purposes of GAAP).

 

    6 

     

    

 

“Voting Stock” as applied
to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person,
other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

 

Section 2.02.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by amending
the definition of “Subsidiary” in Section 1.01 to add the following sentence at the end of such definition:

 

“In addition, for purposes of this
definition, “Subsidiary” shall exclude any investments held by the Company in the ordinary course of business which
are not, under GAAP, consolidated on the financial statements of the Company and its Subsidiaries.”

 

Section 2.03.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by amending
the definition of “Company Request” and “Company Order” in Section 1.01 as follows:

 

“Company Request” and
 “Company Order” mean, respectively, a written request or order signed in the name of the Company by the Chairman
(or a Co-Chairman, if applicable), the Chief Executive Officer, the President (or a Co-President, if applicable) or a Vice President,
and by the Chief Financial Officer, the Chief Operating Officer, if any, the Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee.

 

Section 2.04.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by amending
the definition of “Officers’ Certificate” in Section 1.01 as follows:

 

“Officers’ Certificate”
means a certificate signed by the Chairman (or a Co-Chairman, if applicable), the Chief Executive Officer, the President (or a
Co-President, if applicable) or any Vice President and by the Chief Financial Officer, the Chief Operating Officer, if any, the
Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee.

 

ARTICLE III

SECURITIES FORMS

 

Section 3.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article Two of the Base Indenture shall be amended by adding
the following new Section 2.04 thereto, as set forth below:

 

“Section 2.04.      Certificated
Notes. Notwithstanding anything to the contrary in the Indenture, Notes in physical, certificated form will be issued and delivered
to each person that the Depositary identifies as a beneficial owner of the related Notes only if:

 

(a)       the
Depositary notifies the Company at any time that it is unwilling or unable to continue as depositary for the Notes in global form
and a successor depositary is not appointed within 90 days;

 

    7 

     

    

 

(b)       the
Depositary ceases to be registered as a clearing agency under the Exchange Act and a successor depositary is not appointed within
90 days; or

 

(c)       an
Event of Default with respect to the Notes has occurred and is continuing and such beneficial owner requests that its Notes be
issued in physical, certificated form.”

 

ARTICLE IV

REMEDIES

 

Section 4.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 5.01 of the Base Indenture shall be amended by replacing
clause (ii) thereof with the following:

 

“(ii)      default
in the payment of the principal of (or premium, if any on) any Note when it becomes due and payable at its Maturity, including
upon any Redemption Date or required repurchase date; or”

 

Section 4.02.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 5.01 of the Base Indenture shall be amended by replacing
(iv) thereof with the following:

 

		“(iv)	the Company’s failure for 60 consecutive days after written notice from the Trustee or the
Holders of at least 25% in principal amount of the Notes then Outstanding has been received to comply with any of the Company’s
other agreements contained in the Notes or this Indenture;”

 

Section 4.03.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 5.01 of the Base Indenture shall be amended by adding
the following language as clause (ix):

 

		“(ix):	default by the Company or any of its Significant Subsidiaries, with respect to any mortgage, agreement
or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money
borrowed in excess of $100 million in the aggregate of the Company and/or any such Significant Subsidiary, whether such indebtedness
now exists or shall hereafter be created (i) resulting in such indebtedness becoming or being declared due and payable or
(ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity,
upon required repurchase, upon declaration of acceleration or otherwise, unless, in either case, such indebtedness is discharged,
or such acceleration is rescinded, stayed or annulled, within a period of 30 calendar days after written notice of such failure
is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Notes then Outstanding.”

 

Section 4.04.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 5.02 of the Base Indenture shall be amended by replacing
the first paragraph of Section 5.02 with the following:

 

    8 

     

    

 

“If an Event of Default
with respect to the Notes occurs and is continuing, then and in every such case (other than an Event of Default specified in Section
5.01(v) or 5.01(vi)), the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes may declare
the principal of all the Outstanding Notes to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by the Holders), and upon any such declaration such principal shall become immediately due and payable; provided
that 100% of the principal of, and accrued and unpaid interest on, the Notes will automatically become due and payable in the case
of an Event of Default specified in Section 5.01(v) or 5.01(vi) hereof.

 

Section 4.05.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 5.12 of the Base Indenture shall be amended by replacing
clause (iii) thereof with the following:

 

“the Trustee need not take
any action that it determines in good faith may involve it in personal liability or be unjustly prejudicial to the Holders of Notes
not consenting.”

 

ARTICLE V

COVENANTS

 

Section 5.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article Ten of the Base Indenture shall be amended by adding
the following new Sections 10.08, and 10.09 thereto, each as set forth below:

 

“Section 10.08   Section
18(a)(1)(A) of the Investment Company Act.

 

The Company hereby agrees that for the period
of time during which Notes are Outstanding, the Company will not violate, whether or not it is subject to, Section 18(a)(1)(A)
as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, as
such obligation may be amended or superseded but giving effect to any exemptive relief granted to the Company by the Commission.”

 

“Section 10.09   Commission Reports and Reports to Holders.

 

If, at any time, the Company is not subject
to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Commission, the
Company agrees to furnish to the Holders of Notes and the Trustee for the period of time during which the Notes are Outstanding:
(i) within 90 days after the end of the each fiscal year of the Company, audited annual consolidated financial statements of the
Company and (ii) within 45 days after the end of each fiscal quarter of the Company (other than the Company’s fourth fiscal
quarter), unaudited interim consolidated financial statements of the Company. All such financial statements shall be prepared,
in all material respects, in accordance with GAAP, as applicable.”

 

ARTICLE VI

SUCCESSOR COMPANIES

 

Except as may be provided in a Future Supplemental
Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter
issued and Outstanding, Article Eight of the Base Indenture shall be amended by replacing Section 8.01 with the following:

 

    9 

     

    

 

“Section 8.01     Merger,
Consolidation or Sale of Assets.

 

The Company shall not merge or consolidate
with or into any other Person (other than a merger of a wholly owned Subsidiary of the Company into the Company) or sell, transfer,
lease, convey or otherwise dispose of all or substantially all of its property (provided that, for the avoidance of doubt,
a pledge of assets pursuant to any secured debt instrument of the Company or its Controlled Subsidiaries shall not be deemed to
be any such sale, transfer, lease, conveyance or disposition) in one transaction or series of related transactions unless:

 

(a)       the
Company shall be the surviving Person (the “Surviving Person”) or the Surviving Person (if other than the Company)
formed by such merger or consolidation or to which such sale, transfer, lease, conveyance or disposition is made shall be a corporation
or limited liability company organized and existing under the laws of the United States of America or any state or territory thereof;

 

(b)       the
Surviving Person (if other than the Company) expressly assumes, by supplemental indenture in form reasonably satisfactory to the
Trustee, executed and delivered to the Trustee by such Surviving Person, the due and punctual payment of the principal of, and
premium, if any, and interest on, all the Notes Outstanding, and the due and punctual performance and observance of all the covenants
and conditions of this Indenture to be performed by the Company;

 

(c)       immediately
before and immediately after giving effect to such transaction or series of related transactions, no Default or Event of Default
shall have occurred and be continuing; and

 

(d)       the
Company shall deliver, or cause to be delivered, to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each
stating that such transaction and the supplemental indenture, if any, in respect thereto comply with this Section 8.01 and that
all conditions precedent in this Indenture relating to such transaction have been complied with.

 

For the purposes of this Section 8.01, the
sale, transfer, lease, conveyance or other disposition of all the property of one or more Subsidiaries of the Company, which property,
if held by the Company instead of such Subsidiaries, would constitute all or substantially all the property of the Company on a
consolidated basis, shall be deemed to be the transfer of all or substantially all the property of the Company.”

 

ARTICLE VII

OFFER TO REPURCHASE UPON A CHANGE OF CONTROL REPURCHASE EVENT

 

Except as may be provided in a Future Supplemental
Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter
issued and Outstanding, Article Thirteen of the Base Indenture shall be amended by replacing Sections 13.01 to 13.05 with the following:

 

“Section 13.01   Change of Control.

 

If a Change of Control Repurchase Event
occurs, unless the Company shall have exercised its right to redeem the Notes in full, the Company shall make an offer to each
Holder of the Notes to repurchase all or any part (in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof) of that Holder’s Notes at a repurchase price in cash equal to 100% of the aggregate principal amount of Notes repurchased
plus any accrued and unpaid interest on the Notes repurchased to the date of purchase. Within 30 days following any Change of Control
Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the public announcement of the Change
of

 

    10

     

    

 

Control, the Company will mail a notice to each Holder describing the transaction or transactions that constitute or may constitute
the Change of Control Repurchase Event and offering to repurchase Notes on the payment date specified in the notice, which date
will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior
to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control
Repurchase Event occurring on or prior to the payment date specified in the notice. The Company shall comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations
are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event.

 

To the extent that the provisions of any
securities laws or regulations conflict with this Section 13.01, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this Section 13.01 by virtue of such conflict.

 

On the Change of Control Repurchase Event
payment date, subject to extension if necessary to comply with the provisions of the Investment Company Act, the Company shall,
to the extent lawful:

 

(1)       accept
for payment all Notes or portions of Notes properly tendered pursuant to its offer;

 

(2)       deposit
with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered;
and

 

(3)       deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate
principal amount of Notes being purchased by the Company.

 

The Paying Agent will promptly remit to
each Holder of Notes properly tendered the purchase price for the Notes, and the Trustee will promptly authenticate and mail (or
cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes
surrendered; provided that each new Note will be in a minimum principal amount of $2,000 or an integral multiple of $1,000
in excess thereof.

 

If any Repayment Date upon a Change of Control
Repurchase Event falls on a day that is not a Business Day, then the required payment will be made on the next succeeding Business
Day and no additional interest will accrue as a result of such delayed payment.

 

The Company will not be required to make
an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes an offer in respect of the Notes
in the manner, at the time and otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Notes properly tendered and not withdrawn under its offer.”

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.01.      This Eleventh Supplemental
Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of laws that would cause the application of laws of another jurisdiction. This Eleventh Supplemental
Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the Indenture and shall, to the
extent applicable, be governed by such provisions. If any provision of the Indenture limits, qualifies or conflicts with the duties
imposed by Section 318(c) of the Trust Indenture Act, the imposed duties will control.

 

    11 

     

    

 

Section 8.02.      In case any provision in
this Eleventh Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 8.03.      This
Eleventh Supplemental Indenture may be executed in any number of counterparts, each of which will be an original, but
such counterparts will together constitute but one and the same Eleventh Supplemental Indenture. The exchange of copies of
this Eleventh Supplemental Indenture and of signature pages by facsimile, .pdf transmission, email or other electronic means
shall constitute effective execution and delivery of this Eleventh Supplemental Indenture for all purposes. Signatures of
the parties hereto transmitted by facsimile, .pdf transmission, email or other electronic means shall be deemed to be
their original signatures for all purposes.

 

Section 8.04.     The Base Indenture, as
supplemented and amended by this Eleventh Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture
and this Eleventh Supplemental Indenture shall be read, taken and construed as one and the same instrument with respect to the
Notes. All provisions included in this Eleventh Supplemental Indenture supersede any conflicting provisions included in the Base
Indenture with respect to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Indenture, as supplemented
by this Eleventh Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented
by this Eleventh Supplemental Indenture.

 

Section
8.05.    The provisions of this Eleventh Supplemental Indenture shall become effective
as of the date hereof.

 

Section 8.06.     Notwithstanding anything
else to the contrary herein, the terms and provisions of this Eleventh Supplemental Indenture shall apply only to the Notes and
shall not apply to any other series of Securities under the Indenture and this Eleventh Supplemental Indenture shall not and does
not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under the
Indenture, whether now or hereafter issued and Outstanding.

 

Section 8.07.     The recitals contained
herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this Eleventh Supplemental Indenture, the Notes or any
Additional Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Eleventh Supplemental
Indenture, authenticate the Notes and any Additional Notes and perform its obligations hereunder. The Trustee shall not be accountable
for the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof.

 

    12 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Eleventh Supplemental Indenture to be duly executed as of the date first above written.

 

	 	ARES CAPITAL CORPORATION
	 
	 	By:	/s/ Penni F. Roll
	 	Name:	 Penni F. Roll
	 	Title:	 Chief Financial Officer
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 
	 	By:	/s/ Karen R. Beard
	 	Name:	 Karen R. Beard
	 	Title:	 Vice President

 

[Signature Page to Eleventh Supplemental
Indenture]

 

     

     

    

 

Exhibit A – Form of Global Note

 

This Security is a Global Note within the
meaning of the Indenture hereinafter referred to and is registered in the name of The Depository Trust Company or a nominee thereof.
This Security may not be exchanged in whole or in part for a Security registered, and no transfer of this Security in whole or
in part may be registered, in the name of any Person other than The Depository Trust Company or a nominee thereof, except in the
limited circumstances described in the Indenture.

 

Unless this certificate is presented
by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange
or payment and such certificate issued in exchange for this certificate is registered in the name of Cede & Co., or such other
name as requested by an authorized representative of The Depository Trust Company, any transfer, pledge or other use hereof for
value or otherwise by or to any person is wrongful, as the registered owner hereof, Cede & Co., has an interest herein.

 

Ares Capital Corporation

 

	No. ___	$____________
	 	CUSIP No. 04010L AY9
	 
	 	ISIN No. US04010LAY92

 

3.250% Notes due 2025

 

Ares Capital Corporation, a corporation
duly organized and existing under the laws of Maryland (herein called the “Company”, which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of ________________ (U.S. $____________) on January 15, 2025, and to pay interest thereon from January
15, 2020, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
January 15 and July 15 in each year, commencing July 15, 2020, at the rate of 3.250% per annum, until the principal hereof is paid
or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this Security is registered at the close of business on
the Regular Record Date for such interest, which shall be January 1 and July 1 (whether
or not a Business Day), as the case may be, immediately preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. This Security may be issued as part of a series.

 

Payment of the principal of (and premium,
if any) and any such interest on this Security will be made at the Corporate Trust Office of the Trustee in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

 

     

     

    

 

Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place.

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    2 

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	Dated: ___________
	 
	 	ARES CAPITAL CORPORATION
	 
	 	By:	____________________________
	 	 	Name:
	 	 	Title:

 

    3 

     

    

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

	Dated: ____________
	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 
	 	By:	____________________________
	 	 	Authorized Signatory

 

    4 

     

    

 

Ares Capital Corporation

3.250% Notes due 2025

 

 

This Security is one of a duly authorized
issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of October 21, 2010 (herein called the “Base Indenture”, which term shall have the meaning
assigned to it in such instrument), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Base Indenture), and reference is hereby made to the Base Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered, as supplemented by
the Eleventh Supplemental Indenture, relating to the Securities, dated as of January 15, 2020, by and between the Company and the
Trustee (herein called the “Eleventh Supplemental Indenture”; and the Eleventh Supplemental Indenture and the Base
Indenture together are herein called the “Indenture”). In the event of any conflict between the Base Indenture and
the Eleventh Supplemental Indenture, the Eleventh Supplemental Indenture shall govern and control.

 

This Security is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $____________. Under a Board Resolution, Officers’
Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of
the Holders of Securities, issue additional Securities of this series (in any such case “Additional Securities”) having
the same ranking and the same interest rate, maturity, CUSIP number and other terms as the Securities, provided that such
Additional Securities must be part of the same issue as the Securities for U.S. federal income tax purposes. Any Additional Securities
and the existing Securities will constitute a single series under the Indenture and all references to the relevant Securities herein
shall include the Additional Securities unless the context otherwise requires. The aggregate amount of Outstanding Securities represented
hereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.

 

The Securities of this series are subject
to redemption in whole or in part at any time or from time to time, at the option of the Company, at a Redemption Price equal to
the greater of the following amounts, plus, in each case, accrued and unpaid interest to the Redemption Date:

 

		(a)	100% of the principal amount of the Securities to be redeemed, or

 

		(b)	the sum of the present values of the remaining scheduled payments of principal and interest (exclusive
of accrued and unpaid interest to the Redemption Date) on the Securities to be redeemed, discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 25 basis
points; provided, however, that if the Company redeems any Securities on or after June 15, 2025, the Redemption Price for
the Securities will be equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest,
if any, to, but excluding the Redemption Date.

 

For purposes of calculating the Redemption
Price in connection with the redemption of the Securities, on any Redemption Date, the following terms have the meanings set forth
below:

 

“Treasury Rate” means, with
respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity of the Comparable Treasury
Issue (computed as of the third

 

    5 

     

    

 

 Business Day immediately preceding the redemption), assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The
Redemption Price and the Treasury Rate will be determined by the Company.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financing
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities being
redeemed.

 

“Comparable Treasury Price”
means (1) the average of the remaining Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such quotations.

 

“Quotation Agent” means a Reference
Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer”
means each of (1) BofA Securities, Inc., (2) J.P. Morgan

 

Securities LLC and (3) a primary U.S. government
securities dealer selected by SMBC Nikko Securities America, Inc., or their affiliates which are primary U.S. government securities
dealers and their respective successors; provided, however, that if any of the foregoing or their affiliates shall
cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company
shall select another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent,
of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business Day
preceding such Redemption Date.

 

All determinations made by any Reference
Treasury Dealer, including the Quotation Agent, with respect to determining the Redemption Price will be final and binding absent
manifest error.

 

Notice of redemption shall be given in writing
and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, to each Holder of the Securities
to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date, at the Holder’s address
appearing in the Security Register. All notices of redemption shall contain the information set forth in Section 11.04 of the Base
Indenture.

 

Any exercise of the Company’s option
to redeem the Securities will be done in compliance with the Investment Company Act, to the extent applicable.

 

If the Company elects to redeem only a portion
of the Securities, the particular Securities to be redeemed will be selected in accordance with the applicable procedures of the
Trustee and, so long as the Securities are registered to the Depositary or its nominee, the Depositary. In the event of redemption
of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof; provided, however, that no such partial
redemption shall reduce the portion of the principal amount of a Security not redeemed to less than $2,000.

 

    6 

     

    

 

Unless the Company defaults in payment of
the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Securities called for redemption.

 

Holders will have the right to require the
Company to repurchase their Securities upon the occurrence of a Change of Control Repurchase Event as set forth in the Indenture.

 

The Indenture contains provisions for defeasance
at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to
this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default with respect to Securities
of this series shall occur and be continuing (other than Events of Default related to certain events of bankruptcy, insolvency
or reorganization as set forth in the Indenture), the principal of the Securities of this series may be declared due and payable
in the manner and with the effect provided in the Indenture. In the case of certain events of bankruptcy, insolvency or reorganization
described in the Indenture, 100% of the principal of and accrued and unpaid interest on the Securities will automatically become
due and payable.

 

The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of each series
to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders
of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions
of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture
or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less
than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee
to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have received from the
Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for sixty (60) days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of
any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

No reference herein to the Indenture and
no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

 

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender
of this Security for registration of transfer

 

    7 

     

    

 

at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney
duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable
only in registered form without coupons in denominations of $2,000 and any integral multiples of $1,000 in excess thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

No service charge shall be made for any
such registration of transfer or exchange, but the Company or Trustee may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

To the extent any provision of this Security
conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Indenture and this Security shall be
governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

 

    8Exhibit
10.2 

 

ELECTROMEDICAL
TECHNOLOGIES, INC.

 

Rule 10b5-1 Sales Plan 

(Stock Only) 

 

NOTE: This Sales Plan contains conditional
limitations on the Seller’s ability to sell stock registered on Form 

S-1 and receive dollar values from the sales of stock.

 

Sales Plan dated January 9, 2020 (together with all Exhibits
hereto, this “Sales Plan”) between Matthew Wolfson (“Seller”), Glendale Securities (“Glendale”),
Wilson Davis, Pacific Stock Transfer Company and ElectroMedical Technologies, Inc. (“ELCQ” or “Issuer”),
and Plan Administrator Mailander Law Office, Inc.

 

	 	A.	Recitals 

 

	 	1.	This Sales Plan is entered into between Seller, Seller’s brokerage firm Glendale, Glendale’s clearing firm Wilson Davis, ELCQ’s transfer agent Pacific Stock Transfer Company and ELCQ and its Plan Monitor and Administrator Mailander Law Office, Inc. for the purpose of establishing a trading plan that complies with the requirements of Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

 

	 	2.	Seller is establishing this Sales Plan in order to permit the orderly disposition of a portion of Seller’s holdings of ELCQ common stock, $0.001 par value (the “Stock”), which is currently trading on the OTC Markets Pink tier (“Principal Market”). This Sales Plan relates to a total of 2,000,000 shares of the Issuer’s common stock registered in an S-1 registration statement filed with the Securities and Exchange Commission on November 12, 2019. As of the date of this Sales Plan, the S-1 registration statement is not effective. Seller and Issuer intend that this Sales Plan apply to and be considered an exhibit to Issuer’s S-1/A. 

 

	 	B.	Seller’ Representations, Warranties and Covenants 

 

	 	1.	As of the date hereof, Seller is not subject to any legal, regulatory, or contractual restriction or undertaking that would prevent him from entering into this Sales Plan or from conducting restricted trading in accordance with the Sales Plan. Seller is entering into this Sales Plan in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws. 

 

	 	2.	The securities to be sold under this Sales Plan are beneficially owned by Seller and are not subject to any liens, security interests or other encumbrances or limitations on disposition other than those that may be imposed by the Securities Act. 

 

	 	3.	While this Sales Plan is in effect, Seller agrees to not enter into or alter any corresponding or hedging transaction or position with respect to the securities covered by this Sales Plan, unless this Sales Plan is modified or terminated in accordance with the terms hereof, and agrees not to alter or deviate from the terms of this Sales Plan. 

 

	 	4.	Seller agrees to: 

 

	 	a.	Provide ELCQ, Pacific Stock Transfer, Glendale and Wilson Davis with a certificate or certificates dated as of the date of this Sales Plan and signed by the Seller to this Sales Plan prior to commencement of the Plan Sales Period (as defined below). 

  

	 	b.	Notify Glendale’s Legal and Trading Departments as soon as practicable if Seller becomes aware of (i) the occurrence of any event contemplated by paragraph 3 of the certificate set forth as Exhibit A to this Sales Plan; (ii) a change in ELCQ’s insider trading policies, so that the sales to be made by Seller pursuant to the Sales Plan would violate these policies; or (iii) a determination by ELCQ’s board of directors or chief financial officer that purchases or sales pursuant to the Sales Plan would have a material adverse effect on the Issuer’s financial condition. In the case of a notice relating to clause (i) above, such notice shall indicate the anticipated duration of the restriction, but shall not include any other information about the nature of the restriction or its applicability to Seller and shall not in any way communicate any material nonpublic information about ELCQ or its securities to Glendale.

 

    1

     

    

 

	 	5.	The execution and delivery of this Sales Plan by Seller and the transactions contemplated by this Sales Plan will not contravene any provision of applicable law or any agreement or other instrument binding on Seller or any judgment, order or decree of any governmental body, agency or court having jurisdiction over Seller.

 

	 	6.	Seller agrees with respect to the Stock subject to trading pursuant to this Sales Plan (“Stock”), that until this Sales Plan has been terminated, Seller shall not (i) enter into a binding contract with respect to the purchase or sale of Stock with another broker, dealer or financial institution (each, a “Financial Institution”), (ii) instruct another Financial Institution to purchase or sell Stock or (iii) adopt a plan for trading with respect to Stock other than this Sales Plan. Notwithstanding the foregoing, Seller shall notify ELCQ in connection with any sales of Stock of the Issuer prior to such sale.

 

	 	7.	Seller agrees that he  shall not, directly or indirectly, communicate any material, nonpublic information relating to the Stock or the Issuer to any employee of Glendale or its affiliates who are involved, directly or indirectly, in executing this Sales Plan at any time while this Sales Plan is in effect. 

 

	 	8.	Seller agrees: 

 

	 	a.	to make all filings, if any, required under the Exchange Act in a timely manner, to the extent any such filings are applicable to Seller. In order to promote compliance with such filing requirements, Glendale agrees to use reasonable efforts to transmit transaction information for open market transactions under this Sales Plan via email to ELCQ by the close of business on the day of any sale, and shall in any event transmit such information no later than the close of the business on the second business day after any sale. Emails with transaction information shall be sent to: 

- Tad Mailander: tmailander@gmail.com,
Plan Monitor and Administrator

 

	 	b.	that Seller shall at all times during the Plan Sales Period (as defined below), in connection with the performance of this Sales Plan, comply with all applicable laws, including, without limitation, Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

  

 

	 	C.	Implementation of the Plan 

 

	 	1.	Seller hereby appoints Glendale to sell shares of Stock pursuant to the terms and conditions set forth below. Subject to such terms and conditions, Glendale hereby accepts such appointment. 

 

	 	2.	Seller and Glendale are authorized to begin selling Stock under this Sales Plan only after the following events occur: (a) Issuer’s S-1 registration statement is deemed effective by the Securities and Exchange Commission; and, (b) Forty-five days after the completion by the Issuer of the Direct Offering of 10,000,000 Shares of Common Stock being sold at $1.94 per share pursuant to the Primary Direct Offering disclosed in the S-1 registration statement. Glendale shall cease selling Stock on the earliest to occur of: (i) the date on which ELCQ is required to terminate sales under this Sales Plan pursuant to paragraph D.1.a below; (ii) the date on which ELCQ receives notice of the death of Seller; (iii) the date that ELCQ or any other person publicly announces a tender or exchange offer with respect to the Stock; (iv) the date of public announcement of a merger, acquisition, reorganization, recapitalization or comparable transaction affecting the securities of the Issuer as a result of which the Stock will be exchanged or converted into shares of another company; (v) the date on which ELCQ receives notice of the commencement of any proceedings in respect of or triggered by Seller’s bankruptcy or insolvency; (vi) the date on which ELCQ or Seller reasonably determines that the Sales Plan does not comply with Rule 10b5-1 or applicable securities laws; and (vii): 

 

    2

     

    

 

	 	 ̈	                     (Date) at the close of the Principal Market. 

 

	 	x	the date that the aggregate number of shares of Stock sold under this Sales Plan is 2,000,000 shares; 

 

	 	 ̈	The date every month that the aggregate proceeds of sales pursuant to this Sales Plan (after deducting commissions and other expenses of sale) reaches ______________. 

 

(the
period during which Seller are authorized to sell stock under this

paragraph C.2 is referred to in this Sales Plan as the “Plan Sales

Period”).

 

	 	3.	Glendale and the Seller shall not sell Stock under this Sales Plan at any time when: 

 

	 	a.	ELCQ, in its sole discretion, has determined that a market disruption, banking moratorium, outbreak or escalation of hostilities or other crisis or calamity has occurred, or 

 

	 	b.	ELCQ, in its sole discretion, has determined that it is prohibited from doing so by a legal, contractual or regulatory restriction applicable to it or its affiliates or to Seller (other than any such restriction relating to Seller’s possession or alleged possession of material nonpublic information about the Issuer or the Stock), or 

 

	 	c.	ELCQ has received notice from the Issuer or Seller of the occurrence of any event contemplated by paragraph 3 of the certificate set forth as Exhibit A to this Sales Plan, or 

 

	 	d.	a sale effected under the Sales Plan fails to comply (or in the reasonable opinion of ELCQ and/or Glendale is not likely to comply) with Rule 144 of the Securities Act), or

 

	 	e.	ELCQ has received notice from Seller to terminate this Sales Plan in accordance with paragraph D.1 below. 

 

	 	f.	Seller and Glendale shall withdraw Stock from the Plan Account in order to effect sales of Stock under this Sales Plan. Glendale agrees to notify Seller promptly if at any time during the Plan Sales Period the number of shares of Stock in the Plan Account is less than the number of Plan Shares remaining to be sold under this Sales Plan. Upon such notification, Seller agrees to deliver promptly to the Plan Account the number of shares of Stock necessary to eliminate this shortfall. 

 

	 	g.	To the extent that any Stock remains in the Plan Account after the end of the Plan Sales Period or upon termination of this Sales Plan, Glendale agrees to return such Stock promptly to the Issuer’s transfer agent for re-legending to the extent that such Stock would then be subject to transfer restrictions in the hands of the Seller. 

 

	 	4.	Glendale shall in no event effect any sale under this Sales Plan if the Stock to be sold is not in the Plan Account. 

 

	 	5.	Seller and Glendale may sell Stock on the OTC Markets Pink trading tier or otherwise, but only once registered in the Issuer’s S-1 registration statement, and after forty five days after the Issuer has completed its direct offering under the S-1. 

 

	 	6.	Seller may instruct Glendale to sell or purchase other non-ELCQ shares of Stock other than pursuant to this Sales Plan. The parties hereto agree that any such sale or purchase transaction (i) will not be deemed to modify this Sales Plan unless Seller so requests in writing in accordance with paragraph D.1.d below and (ii) will be given by Seller to Glendale only if such transaction does not contravene any of the representations, warranties or covenants set forth in Section B of this Sales Plan. 

 

	 	D.	Amendment and Termination 

 

	 	1.	This Sales Plan may not be terminated prior to the end of the Plan Sales Period, except that: 

 

	 	a.	it may be terminated due to the death of the Seller.

 

    3

     

    

 

	 	b.	it may be terminated pursuant to Paragraph C.3.a of this Sales Plan 

 

	 	c.	it may be, at Glendale’s option, terminated if Glendale has received notice from the Issuer of the occurrence of any event contemplated by paragraph 3 of the certificate set forth as Exhibit A to this Sales Plan. 

 

	 	d.	Notwithstanding the provisions of paragraph D.1. herein, this Sales Plan may only be amended pursuant to the Issuer’s insider trading policy, as enacted.

 

	 	e.	This Plan may be amended by Seller only upon the written consent of ELCQ and receipt by ELCQ of the following documents, each dated as of the date of such amendment: 

 

	 	(i)	a representation signed by the Issuer substantially in the form of Exhibit A to this Sales Plan, 

 

	 	(ii)	a certificate signed by Seller certifying that the representations and warranties of Seller contained in this Sales Plan are true at and as of the date of such certificate as if made at and as of such date and 

 

	 	(iii)	a Seller’s Representation Letter completed and executed by Seller.

 

	 	E.	Indemnification; Limitation of Liability 

 

	 	1.	a. Seller agree to indemnify and hold harmless ELCQ and its directors, officers, employees and affiliates from and against all claims, losses, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) arising out of or attributable to ELCQ’s actions taken or not taken in compliance with this Sales Plan or arising out of or attributable to any breach by Seller of this Sales Plan (including Seller’s representations and warranties in this Sales Plan) or any violation by Seller of applicable laws or regulations; provided, however, that the indemnification provisions of this paragraph E.1.a shall not apply in the case of any claims, losses, damages or liabilities finally judicially determined to have resulted from ELCQ’s gross negligence or willful misconduct. This indemnification shall survive termination of this Sales Plan. 

 

	 	b.	Notwithstanding any other provision of this Sales Plan, neither party shall be liable to the other party for: 

 

	 	(i)	special, indirect, punitive, exemplary or consequential damages, or incidental losses or damages of any kind, even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably foreseen, or 

 

	 	(ii)	any failure to perform or to cease performance or any delay in performance that results from a cause or circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, severe weather, market disruptions or other causes commonly known as “acts of God.” 

 

	 	2.	Seller consulted with Seller’s own advisors as to the legal, tax, business, financial and related aspects of, and has not relied upon ELCQ or any person affiliated with ELCQ in connection with Seller’s adoption and implementation of this Sales Plan. 

 

	 	3.	Seller acknowledge and agree that in performing Seller’s obligations under this Sales Plan, neither ELCQ nor any of its affiliates nor any of their respective officers, employees or other representatives is exercising any discretionary authority or discretionary control respecting management of Seller’s assets, or exercising any authority or control respecting management or disposition of Seller’s assets, or otherwise acting as a fiduciary (within the meaning of Section 3(21) of the Employee Retirement Income Security Act of 1974, as amended, or Section 2510.3-21 of the Regulations promulgated by the United States Department of Labor) with respect to Seller’s assets. Without limiting the foregoing, Seller further acknowledges and agrees that neither ELCQ nor any of its affiliates nor any of their respective officers, employees or other representatives has provided any “investment advice” within the meaning of such provisions, and that no views expressed by any such person will serve as a primary basis for investment decisions with respect to Seller’s assets.

 

    4

     

    

 

	 	F.	Agreement to Arbitrate Certain Disputes 

 

The following disclosure is required by various
regulatory bodies but should not limit the applicability of the following arbitration provision to or in any claim or controversy
which may arise between Seller and ELCQ. 

 

This Agreement contains a pre-dispute arbitration
clause. By signing this Sales Plan, which includes the following arbitration agreement, the parties agree as follows: 

 

	 	•	 	Arbitration is final and binding on the parties. All parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed. 

 

	 	•	 	The parties are waiving their right to seek remedies in court, including the right to a jury trial. Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited. 

 

	 	•	 	Pre-arbitration discovery is generally more limited than and different from court proceedings. The ability of the parties to obtain documents, witness statements, and other discovery is generally more limited in arbitration than in court proceedings. 

 

	 	•	 	The arbitrators’ award is not required to include factual findings or legal reasoning, and any party’s right to appeal or seek modifications of rulings of the arbitrators is strictly limited. The arbitrators do not have to explain the reason(s) for their award. 

 

	 	•	 	The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.

 

	 	•	 	The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court. 

 

	 	•	 	The rules of the arbitration forum in which the claim is filed, and any amendments thereto, are hereby incorporated into this Agreement.

 

	 	•	 	The award of the arbitrators or of the majority of them shall be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction. 

 

	 	•	 	No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action, or who is a member of a putative class action who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the Seller is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein. 

 

	 	•	 	Seller agrees, and in consideration of ELCQ carrying an account for Seller, ELCQ agrees, that all controversies which may arise between us, including any dispute involving ELCQ’s present or former agents, employees, officers, and directors and including, but not limited to those involving transactions in this or any other account you have individually or jointly with or on behalf of another party at ELCQ, including those in which you have a beneficial interest, or the construction, performance, or breach of this or any other agreement between us, whether entered into prior, on, or subsequent to the date hereof, shall be fully and finally determined by binding arbitration. Any arbitration under this Agreement shall be determined pursuant to the arbitration laws of the State of Missouri and Federal Arbitration Act, where applicable, before the Financial Industry Regulatory Authority (FINRA). 

 

	 	•	 	If Seller files a complaint in court against ELCQ or its present or former employees, officers, or directors, ELCQ may seek to compel arbitration of any such claims. If ELCQ seeks to compel arbitration of such claims, ELCQ must agree to arbitrate all of the claims contained in the complaint if the Seller so requests.  

 

    5

     

    

 

Seller
acknowledges that the preferred forum for any dispute resolution involving controversies which may arise between
Seller and ELCQ is through arbitration pursuant to the terms of the arbitration provision found in this Agreement. In the unlikely
event any controversy or dispute arising under this Agreement with ELCQ is determined to be ineligible for arbitration, Seller
agrees as follows: THE PARTIES TO THIS AGREEMENT SHALL NOT EXERCISE ANY RIGHTS THEY MAY HAVE TO ELECT OR DEMAND A TRIAL
BY JURY. The Seller and ELCQ hereby expressly waive any right to a trial by jury. The Seller acknowledges and agrees that
this provision is a specific and material aspect of the agreement between the parties and that ELCQ would not enter into this Agreement
with Seller if this provision were not part of the agreement. 

 

Dispute Resolution Locale: Any
suit, arbitration proceeding, reparation proceeding, claim, or action against ELCQ or its present or past officers, agents, or
employees shall be brought and heard in the city where the branch sales office of ELCQ is or was located with which Seller dealt.
If the court, arbitration forum, or reparations tribunal does not conduct hearings in that city, then any such action must be brought
and heard in the locale closest to that city in which the court, arbitration forum, or reparations tribunal conducts hearings.
This paragraph shall apply even if Seller has related disputes with other parties which cannot be resolved in the same locale. 

 

	 	G.	General 

 

	 	1.	Seller and ELCQ acknowledge and agree that this Sales Plan is a “securities contract,” as such term is defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), entitled to all of the protections given such contracts under the Bankruptcy Code. 

 

	 	2.	This Sales Plan constitutes the entire agreement between the parties with respect to this Sales Plan and supersedes any prior agreements or understandings with regard to the Sales Plan. 

 

	 	3.	All notices to Glendale under this Sales Plan shall be given to Glendale’s Legal and Trading Services Department in the manner specified by this Sales Plan by telephone at 818-907-1505 or by certified mail to the address below: 

 

	 	4.	 

Glendale Securities 

15233 Ventura Blvd Suite 712

Sherman Oaks, CA 91403

(818) 907-1505

 

Notices to the Issuer shall be given to:

 

ElectroMedical Technologies, Inc. 

c/o Mailander Law Office, Inc. [Sales
Plan Administrator and Monitor]

945 4th Avenue, Ste. 311

San Diego, CA 92101

Tmailander@gmail.com

Telephone: (619) 239-9034saf

 

Notices to Pacific Stock Transfer shall
be given to:

 

Pacific Stock Transfer Company

6725 Via Austi Pkwy, Suite 300

Las Vegas NV 89119

Attention: Ms. Joslyn Claiborne 

(Joslyn@pacificstocktransfer.com)

Telephone: (702) 361-3033

 

	 	5.	Each Party’s rights and obligations under this Sales Plan may not be assigned or delegated without the written permission of the other party, which may be withheld in such party’s sole discretion. 

 

    6

     

    

 

	 	6.	This Sales Plan may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures on all counterparts were upon the same instrument. 

 

	 	7.	If any provision of this Sales Plan is or becomes inconsistent with any applicable present or future law, rule or regulation, that provision will be deemed modified or, if necessary, rescinded in order to comply with the relevant law, rule or regulation. All other provisions of this Sales Plan will continue and remain in full force and effect. 

 

	 	8.	This Sales Plan shall be governed by and construed in accordance with the internal laws of the State of Missouri, applicable to agreements made and to be fully performed therein and may be modified or amended only by a writing signed by the parties to this Sales Plan. 

 

NOTICE: THIS AGREEMENT CONTAINS A PRE-DISPUTE
ARBITRATION CLAUSE IN

PARAGRAPH F.

 

IN WITNESS WHEREOF, the undersigned have signed this Sales Plan
as of the date first written above. 

 

Date: January 9, 2020

 

	Signature:	
         /s/ Matthew Wolfson

        
	 
	Print Name:	
         MATTHEW
        WOLFSON

        
	 

 

ELECTROMEDICAL TECHNOLOGIES, INC.

 

	By:	
         /s/
        Tad Mailander

        
	 
	 	 	 
	Print Name:	
         TAD
        MAILANDER

        
	 
	 	
         LEGAL
        COUNSEL, SALES PLAN

        MONITOR/ADMINISTRATOR

        
	 

 

 

 

GLENDALE SECURITIES

 

	By:	 	 
	 	 	 
	Print Name:	 	 
	 	 	 
	Title:	 	 

 

PACIFIC STOCK TRANSFER COMPANY

	 	 	 
	By:	 	 
	 	 	 
	Print Name:	 	 
	 	 	 
	Title:	 	 

 

    7

     

    

 

 

EXHIBIT A 

SELLER REPRESENTATION 

 

	1.	Matthew Wolfson (“Seller”) represents that he approved the Sales Plan dated January 9, 2020, (the “Sales Plan”) with ELCQ  relating to the common stock, $0.001, par value of the Issuer (the “Stock”). 

 

	2.	The Seller confirms the following: 

 

	 	 
	1. Position/Affiliation with Issuer	
        Stockholder, affiliate

        

	2. Is Seller a Form 4 filer?	YES x NO  ̈
	3. Is Seller a Form 144 Filer?	YES x NO  ̈

 

	3.	The sales to be made by Seller under the Sales Plan will not violate the ELCQ’s insider trading policies, as enacted, and to the best of the Seller’ knowledge there are no legal, contractual or regulatory restrictions applicable to Seller or Seller’ affiliates as of the date of this representation that would prohibit the Seller from entering into the Sales Plan or prohibit any sale under the Sales Plan. 

 

	4.	If at any time during the Sales Plan Period (as defined in the Sales Plan), (i) Seller become aware of a legal, contractual or regulatory restriction that is applicable to Seller and that would prohibit any sale under the Sales Plan (other than any such restriction relating to Seller’s possession or alleged possession of material nonpublic information about the Issuer or its securities), (ii) there is a change in the ELCQ’s insider trading policies, so that the sales to be made by Seller pursuant to the Sales Plan would violate these policies, or (iii) ELCQ’s board of directors or chief financial officer determines that purchases or sales pursuant to the Sales Plan would have a material adverse effect on the Issuer’s financial condition, Seller agree to give Glendale notice of such restriction by telephone as soon as practicable, and shall indicate the anticipated duration of the restriction, but shall not include any other information about the nature of the restriction or its applicability to Seller. In any event, the Issuer shall not communicate any material nonpublic information about the Issuer or its securities to Glendale.

 

Moreover, if the sales to be
made by the Seller under the Sales Plan require that ELCQ meet the Current Public Information provisions contained in paragraph
(c) of Rule 144 under the Securities Act of 1933, as amended, Seller agrees to give Glendale notice in the manner provided
above in the event that ELCQ fails to continue to satisfy the Current Public Information provisions. 

 

Date: January 9, 2020

 

	Signature:	
         /s/ Matthew Wolfson

        
	 
	 	 	 
	Print Name:	
         MATTHEW
        WOLFSON

        
	 

 

    8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]